Anyone who has tried to get out of debt knows the feeling of staring at a pile of balances and not knowing where to begin. Jesus gave a simple illustration about planning that applies surprisingly well to this situation.
A builder with a plan
In the Gospel of Luke, Jesus spoke about the cost of following him and used an everyday example to make his point.
“For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?” (Luke 14:28, KJV)
The picture is of a wise builder who sits down with pencil and paper before laying the first stone. He does not rely on optimism. He knows exactly how much the project costs and whether he can finish it. Paying off debt works the same way. A plan built on numbers is far more likely to succeed than one built on hope.
Step one: count the cost
Begin by writing down every debt you have. For each, record the creditor, current balance, interest rate, and minimum monthly payment. Add up the balances to find your total. Then look at your monthly income and spending to see how much you can realistically put toward debt each month beyond the minimums.
This step can be painful, and many people avoid it for years. But a number you can see is less frightening than a fear you cannot define. Facing the facts is an act of honesty and courage.
Step two: choose a method
Two popular approaches are often called the snowball and the avalanche. In the snowball method, you pay minimums on everything and put all your extra money toward the smallest balance. When it is gone, you roll that payment into the next smallest, building momentum like a snowball. In the avalanche method, you target the debt with the highest interest rate first, which usually saves the most money over time.
Mathematically, the avalanche tends to be less expensive. Emotionally, the snowball often wins because early victories keep people motivated. Choose the method you will actually stick with. A plan you follow beats a perfect plan you abandon.
A prayer for the long road
Lord, give me the honesty to look at my finances clearly, the wisdom to make a plan, and the patience to follow it. Help me not to grow weary, and remind me that you walk with me through every payment. Amen.
A debt payoff plan in numbers
Suppose you have three debts: a credit card with a $500 balance, a medical bill of $1,500, and a car loan with $3,000 remaining. The total is $5,000. After reviewing your budget, you find you can direct $400 per month toward debt in all.
To keep the math simple, let us set interest aside for a moment. At $400 per month, the total of $5,000 would take 12.5 months to pay off ($5,000 divided by $400). In practice, interest will make the actual timeline somewhat longer, which is exactly why it is wise to account for it rather than guess.
Using the snowball approach, you would put the whole $400 toward the $500 credit card first, clearing it in a little over a month. Then you would move that full $400 to the $1,500 medical bill, and then to the car loan. Each time a debt disappears, the payment gets rolled forward, and the sense of progress grows.
Step three: protect the plan
Two things commonly derail a debt-payoff plan: new debt and surprise expenses. To guard against new debt, many people pause using their credit cards while they pay down their balances. To handle surprises, it helps to build a small starter emergency fund first, even if it is only a few hundred dollars, so that a flat tire does not become another balance on a card.
It also helps to look for ways to increase the amount you can put toward debt. This can mean trimming a few expenses for a season, selling items you no longer use, or taking on temporary extra work. Even an additional $50 per month noticeably shortens the timeline.
Step four: keep going and celebrate
Debt payoff is a long road, and it is easy to grow weary. Mark each milestone. When the first balance is gone, take a moment to give thanks. Share your progress with a friend who will encourage you. Remember that the goal is not only a lower number but a life with more freedom to give, save, and serve.
Counting your own cost
If you sat down this week and wrote out every debt, with its balance and payment, how would you feel? What is one small step you could take to start?
Related on Proverbs & Pennies: What Does the Bible Say About Debt? Proverbs 22:7 Explained, Planning Ahead: What Proverbs Says About Budgeting, Lessons From the Ant: What Proverbs Teaches About Saving, and Living Debt-Free Without Legalism: A Balanced View.
Scripture quotations are from the King James Version (public domain). This article is for education and inspiration and is not personalized financial advice.