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Steve Van Nattan

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GET OUT OF DEBT

How Can I Get Out of Debt?

By Steve Van Nattan

What is debt?

Answer: bondage

The most certain way to be a victim of the coming recession and/or national bankruptcy is to be in debt. In our culture, a house mortgage is almost essential to survive. But, borrowing for a house that has you up to debt to nostrils is insane. Then comes the foreclosure.

Sell the house, and get into something more modest. Manufactured homes are being made, if you buy high end models, which will actually gain value if you set them up right.

Do not put a brick wall around the thing and call it a "foundation" to get a loan. Have the manufactured home set on concrete pads and welded down to anchors in the concrete.

This will pass loan requirements for a foundation, but you could cut the welds and move the home to another site if you lost ownership of the real estate. You will still be honor bound to pay for the home though.

Get rid of your cars that you are paying for. Buy a five to ten year old car, and have it freshened up mechanically and cosmetically. Try to buy a used car that is still under warrantee, and do not buy a GM car if possible. Buy a car made in the USA so that you can be sure to get after market parts when you need them.

If you cannot do the above, move your auto debts to a credit card that offer 0% or a small interest number. That way, if the nation collapses, your car will not be repossessed. Get down to one of two cars, or, as many as you need for the working people in your home. If you want a second car, buy, or partially restore, an old klunker that is not worth repossessing. Register it in someone else's name if possible, like one of your kids or your parents.

Photo by Jenny at Flickr who had just paid off all her debt.

Stop eating out, and carry a lunch to work instead of eating lunch with the other employees at restaurants. When you eat out, make it a special event, not just because you are tired or too lazy to cook. Shop at discount markets like Sam's. Team up with others in the family if you need to and share the quantity items. Plan trips to town so that you do ALL the things possibly needed in one trip instead of running to town and back over and over. If you can deduct your work mileage, do all the shopping possible on the way to or from work to eliminate personal mileage. Grow as much of your food as possible. Your lovely back yard may have to become a vegetable garden for a few years.

Bank in a small bank near home, and get your house mortgage at a credit union near you. Do NOT get a mortgage with a large national loan company. They could go belly up and sell your loan to China or who knows who. A local lender will be a lot more likely to work with you if you have trouble paying later. If you need extreme ongoing credit/loan arrangements to run your own personal business, get a job where you work FOR someone else. Better to close or sell your own business and be out of debt than keep it and go belly up. Then you WILL have to work for someone else for at least 7 years.

Scale down your business to be leaner and meaner financially. Reduce inventory to a minimum, and learn to order supplies and stock to arrive just before you will need it. Shop harder for the best wholesale prices. Consider large orders by ordering with a trusted competitor at some distance. Before you declare bankruptcy, talk to your employees, and show them the books so they know the situation. Ask them if they want to take a pay cut until the economy improves. That means YOU also take a pay cut.

Finally, if you are way in debt and cannot get out, there is a morbid rule to consider-- Be all the way into debt with no assets you own outright, OR be all the way out of debt. If you are 100% in debt on all things in your life, there is nothing to repossess. People with 50/50% debt and asset ownership will see the things they own taken to pay for the things they owe on. During a recession it is hard for big banks and mortgage companies to sell anything they repossess, and they are much more likely to cut a deal with you if you have no assets they can grab.

The biblical proverb applies though- Proverbs 22:7 The rich ruleth over the poor, and the borrower is servant to the lender. We are blessed in the USA, and in most modern nations, that the rich cannot infringe on the life of the poor without lawful cause. So, better to be poor than a borrower.

If you have high debts and significant savings which could be attached by your lenders, move savings to family members you can trust WHO ARE NOT in debt. Give the assets to your grown kids, $10,000 per year, as gifts so that they do not have to pay tax on them. Make a private understanding that they are to invest the gifts on your behalf. Do NOT declare bankruptcy just after doing this. All states have laws which force the return of the "gifts" to be paid against your debts. Instead, try to pay the loans off by consolidation or negotiation with the lenders. Make partial payments. During a financial crisis, a lender will usually be quite content if you pay any part of your debt or payments.

Better to be 100% out of debt and live a simple life than to be 50-50% and be making humiliating visits to bankers and lenders regularly to beg for mercy. This mentality of living within one's means is very out of fashion these days, and 95% of all Christians have accepted deep debt as a normal way of life. We are now seeing the end of the story play itself out daily. Big banks which were very friendly to small borrowers and small businessmen are ruthlessly changing the credit rules and demanding debts be paid up. These big companies write fine print agreements just for the sort of mess we are in right now, and they use the fine print to save themselves from bankruptcy. Smiling bankers can become very nasty tempered when they see THEIR bottom line has turned red. You are their only asset, and they WILL be demanding you pay the uttermost farthing.

Again, I cannot over stress the importance of banking in a small local bank. They have a fantastic record of weathering economic crisis like the one we are in right now. Small banks do fail occasionally, but it is very rare. Also, you can watch the people who run your bank, and they have to face you in the market place, in the restaurant, and at ball games. If they are deeply involved in community life, and if their grown kids live in the same town the bank is in, your banker will think twice about doing something stupid or shady in their banking business affairs. The people at the top of the Chase and Bank of America do not give a hoot what people think of them, and that is why they so often are crooks or sharks.

Meanwhile, plan on it, the USA will be reduced in the world before the End Times can be fulfilled. Chicago will NOT be the center of the world, and the dollar will NOT be the world monetary standard. The Bible puts Jerusalem, Babylon, the Kings of the East, Europe, Russia, and Ethiopia at the center of the world's events in the Last Days before the Lord's return. Plan on living in "po-folks" USA or even in a new nation called California, Texas, or Massachusetts etc etc. If you live in the US Southwest, learn Spanish so you can shop in the WalMart or Sears in Mexico. At least make your kids take Spanish in school.

I am no longer a patriotic anything-- I am a pilgrim on my way through. I feel just fine about Texas, and I wish no evil to the USA, but I know very well that my biblical destiny rules out great expectations for the USA. As to my first loyalty, it is to Christ, then my family, and then the Lord's Church. Everything else is nothing but ho hum to me. I DO believe a person should look after his neighbor's interests as well. I have to live next door to them, so I will help them if I can. Obama is NOT my neighbor, nor is any trashy politician who plays the fool like Bush and Congress and Obama have in these recent unbiblical financial tricks.

Remember what Paul said in 2 Thessalonians 3:10 For even when we were with you, this we commanded you, that if any would not work, neither should he eat. I will not support or bow to fools who give big gifts to loafers and lushes in high places. I agree with Rush Limbaugh, in spite of his massive ego and foul mouth-- most of our politicians would serve us best by failure in everything they do. We all need to pray for the failure of Obama and his friends.

Finally, we Bible believers need to understand that we are not called to guide or provoke Caesar. Jesus wasted NONE of his three and one half years of ministry on fixing Caesar or the political scene in Palestine in his day. When confronted by Pilate, and in response to Pilate's confusion as to how Jesus expected to be a king, Jesus said, John 18:36 Jesus answered, My kingdom is not of this world: if my kingdom were of this world, then would my servants fight, that I should not be delivered to the Jews: but now is my kingdom not from hence.

The destiny of the USA is set-- it will be vastly diminished from what it is today, and soon.

Also, your destiny is also set--

1 Corinthians 15:51 Behold, I shew you a mystery; We shall not all sleep, but we shall all be changed,
52 In a moment, in the twinkling of an eye, at the last trump: for the trumpet shall sound, and the dead shall be raised incorruptible, and we shall be changed.

That is NOT the sort of "change" Obama promised America. There are only two possible endings to your life if you are in Christ Jesus-- death, which will bring you instantly "present with the Lord," or an equally instant exit from this life at the appearing of Christ for his Church.

1 Thessalonians 4:17 Then we which are alive and remain shall be caught up together with them in the clouds, to meet the Lord in the air: and so shall we ever be with the Lord.

We really must make an effort to stop worrying ourselves about Barak Obama and our leaders who have betrayed the US Constitution. We cannot get back what the alleged "founding fathers" started. It will never happen. None of us can, nor should we, change the manners or actions of our Caesar, just as Jesus made no such effort in his day. We should imitate our Lord's example in Luke 2:49 And he said unto them, How is it that ye sought me? wist ye not that I must be about my Father's business?

By the way, Jesus left NO unpaid debts when he died on the cross, AND, on top of that, he paid our debt we owed for our sins. Hebrews 13:13 Let us go forth therefore unto him without the camp, bearing his reproach.

 

VIDEOS

RADICAL CONCEPT IN DEBT MANAGEMENT

THIS IS A GREAT DISCUSSION FOR A BIBLE BELIEVER
(Disclaimer: His tithe teaching is not from the New Testament)

 

 

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