Christian Worship Fellowship Prayer (EHF Logo)

I'm honored that you've allowed me to be a part of your Christian life.  Please return often for fellowship, study and prayer.  Thank you very much for visiting.
Love & Hugs,

Debt Elimination Example gives you a typical family debt condition and shows how to eliminate the debt. Debt freedom is an essential part of Christian Finances and Stewardship.

Continued from Debt Elimination-Reduction

Total Debt Elimination Example:

Creditor Name Minimum
Wegotyer Numbr Visa 10.00 21.75 400.00
Mister Card 39.90 19.25 2,100.00
American Distress 66.50 19.75 3,500.00
Vista Cold 104.50 16.5 5,500.00
Platnitude 161.50 14.75 8,500.00
Triple B Automotive Sales 422.73 6.0 13,000.00
Old Dirt Mortgage Co. 1896.20 6.5 300,000.00
Totals 2,701.33   333,000.00

Though the amounts in this example are a little below the US national average, it should serve our purposes.  In this example, if we made the minimum payment and added no charges to the credit balances, the Automotive Sales debt will be paid off in 3 years, the credit cards in 15 years, and the mortgage in 30 years.

Let's assume this family makes $ 60,000 per year, earns a 3% raise of which they net an increase of $ 1,200 per year, and receives an income tax refund of $ 400 each year.  Let's also assume 100% of the first tax refund was used to pay off their first credit card, "Wegotyer Numbr". Using the debt elimination instructions above, the following results would occur:

Automotive Sales paid in 3 years-same interest.

Here's an interesting point:  If you were this family, after paying off these debts, you would have over $4,000 extra every month.  If you spent $ 10,000 per year on vacations and "toys" you'd still have $ 38,000 per year for savings and giving.  Even if you stopped short and didn't pay off the mortgage, in less than 5 years, you'd have an extra $ 1,200 per month.  When is the last time you had that much extra?

Could you use another $ 1,200 to $ 4,000 per month?  Then let's get started!

Related Topics:

Christian Money Links:

RSS Feed Logo  Bible Studies
Christian Budgeting Tips
Christian Budgeting Tips 2
Christian Almsgiving
Christian Finances-1
Christian Finances-2
Christian Finances-3
Debt Elimination
Debt Free Christian Life
Definition Of Tithe
Employment & Christians
Family Budget Worksheet
Home Mortgage Basics
Home Mortgage Basics 2
Investment With Low Risk
Investment-Low Risk-2
Job Interview Tips
Resume Writing Tips

Other Money Resources:

Christian Finance Books
Christian Advice Forum
Other Christian Resources
Money Management

Web-Church News!