Ralph: You've done the hard work.
You faced your debt, you saw the truth, and you didn't run, but
now comes the next challenge.
How do you stay motivated to actually pay it off?
Which method keeps you moving?
When the process takes months or even years?
Well, stick with me today.
'cause today we're unpacking not just how to pay off debt, but how to
choose a method that best fits you.
Because the best plan isn't the smartest plan.
It's the one that you'll stick with.
So stick around today.
Hey there.
Welcome back to your Daily, financially Confident Christian.
I'm Ralph, and I'm honored that you're walking this journey with me today.
This is the show where we tackle faith, we tackle finances,
and we talk about freedom.
And today we're continuing our series dealing with the stress of money worries.
Now, yesterday we talked about how debt can shape our identity
and how to replace that shame.
With truth.
Well, today we're gonna shift gears.
Now that the fog is lifted and the numbers are clear, how do you create a realistic
plan that works for how you're wired?
Now, maybe you're standing at the bottom of your debt mountain and you're, you're
looking up at it and you're wondering which direction to start climbing.
Do you attack that small one first for a quick win?
Do you go after the big interest rates so you don't lose more money?
Here's what I've seen.
A lot of people pick a, a plan that that sounds smart, but it doesn't match how
they're wired and they just give up.
See, Debt payoff isn't always about math.
It's a mindset, it's a discipline, and it's knowing your own
psychology in a lot of ways.
Here's the thing.
God created each of us differently.
Some of us are fueled by seeing fast results now, others of us are motivated
by making the most efficient decisions.
Let's look at the book of Proverbs, chapter 24, verse three.
It says this, by wisdom, a house is built and through
understanding it is established.
What's that really telling us?
See, understanding yourself how you think, how you stay motivated.
That's part of walking in wisdom, and that's why we're not just
comparing two strategies today.
What we're talking about is which strategy actually works for you?
Well, let me break it down for you.
There's really two methods I wanna talk about today.
The first one is what I call the debt snowball method.
And that one, you list your debts from smallest to largest by balance.
You pay the minimums on everything, but you throw extra money, extra
every dollar at the smallest debt first, and when that's paid off,
you move on to the next smallest.
Now, you might be saying, Ralph, why does that work?
Well, this method is psychological.
It gives you those quick wins, it gives you momentum, and it gives you motivation.
And if you're someone who needs to feel progress to stay engaged in something,
this is the method for you because you'll stay encouraged because you
see results and you see them fast.
Now, the other method is what we call the debt.
Avalanche method.
Now, in this method, you list your debts from highest to lowest By interest
rates, you pay your minimums on all of them, but you put all extra money
towards the highest interest debt first.
If you think about it, you're paying off the one that cost you the most first.
Now, you might be saying.
Well, why does this work, Ralph?
Well, this method is very mathematical.
It saves you the most money over time.
And if you're someone who's a logic driven, if you're someone who's patient
and loves efficiency, well, this is gonna be the method for you because why?
You're gonna stay motivated, because you're squeezing the
most value from your plan.
So whether you're emotionally wired or you're logically wired, the
important thing is what Proverbs, chapter 21 verse five, reminds us.
The plans of the diligent lead surely to abundance.
Now, what is it saying there?
Diligence not perfection.
And planning, not guessing.
And see, when you choose a, a strategy that matches your mindset, you're far
more likely to finish the journey.
So here's your one action step for today.
First thing I want you to do is pull out that list of debt you made.
If you haven't made one, it's a great time to do it and review all your balances.
And your interest rates.
The second thing you need to do is you need to ask yourself this question, am
I someone who needs fast wins, or do I care more about long-term savings?
So you gotta come to your own decision.
Then once you choose that strategy, if you need that momentum and that motivation.
I'm gonna encourage you to choose that debt snowball method.
If you want to save the most money long term, then you're gonna
choose the debt avalanche method.
So now you just wanna order your debts accordingly and highlight
the first one you'll tackle.
This is now your personal debt payoff plan.
And listen, it's not just numbers.
It's a strategy that truly matches your heart Let's pray.
Father God, thank you for creating us uniquely, with different
strengths and different motivations.
And today as we choose how to approach our debt, Lord, give us wisdom not
just to pick the right plan, but the plan that fits how you've wired us.
Help us stay diligent.
Help us stay encouraged.
Lord, and guide us every step we take on this path to
freedom and we trust you, Lord.
And we ask this in confidence, in Jesus' name.
Amen.
You're not just choosing a method, you're choosing a mindset.
And when your strategy aligns with how God wired you, that's
when transformation happens.
And if this helped you decide on a strategy, tell someone else about
it, share this episode with them.
And if you're just joining us, catch yesterday's episode first.
It's the foundation.
And don't forget, for the first 100 listeners who visit financially
confident christian.com/master, I'm giving away a free copy of my book.
It's called Mastering Your Finances.
It's short.
It's simple, but it is super powerful.
So head to financially confident christian.com/master and grab yours.
Now, tomorrow we're gonna talk about how to fuel your debt payoff, where
to find that extra money in your budget to speed this whole process up.
So let's go out there and be financially confident.
Christians, you can do this.
I have confidence in you.
Have confidence in yourself.
I want you to stay financially savvy.
God bless you, and you have a great day today.