7 Steps to Get Out of Debt

Last week, we began our 7-step journey to getting out of debt by laying the spiritual foundation:
Step 1 – Pray for Wisdom and Strength, and Step 2 – Stop Using Credit Cards.

In Step 1, we invited God into our financial life—asking for wisdom to make the right choices, strength to stay the course, and peace in the midst of pressure.
In Step 2, we made the bold decision to stop borrowing. Using credit cards while trying to pay off debt is like bailing water out of a sinking boat while still drilling holes in the bottom. You may be working hard—but you’re not getting anywhere. Freedom starts by cutting off the source of the cycle.

This week, we continue with Step 3 – Establish a Realistic Budget and Step 4 – List Your Assets.

Because debt freedom doesn’t start with more income—it starts with better stewardship. That means having a plan for your money and knowing what you have to work with. When you build a budget, you give your money purpose. When you take inventory of your assets, you begin to see clearly what God has already placed in your hands.

Let’s move forward together—from confusion to clarity, and from overwhelm to order.

💡 This Week’s Focus: Budget with Purpose, Count with Clarity

You’ve prayed. You’ve stopped borrowing. Now it’s time to build.

A budget isn’t about restriction—it’s about direction. It’s how you tell your money where to go, instead of wondering where it went. When you build a budget, you're taking control. You’re aligning your money with your values and putting every dollar to work with purpose.

But clarity doesn’t stop there. Debt often makes us focus on what we lack. Step 4 invites us to look at what we already have. Listing your assets isn’t about bragging or comparing—it’s about seeing clearly. It’s about recognizing the resources God has already placed in your hands.

These two steps are where things get practical. You’re not just praying for change—you’re planning for it.

📖 Verse of the Week

Luke 14:28 (ESV): “For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?”

God’s Word encourages thoughtful planning—not just in theory, but in daily practice.
Budgeting and listing your assets aren’t just financial habits—they are spiritual disciplines.
They help you move forward with wisdom instead of worry, intention instead of impulse, and stewardship instead of stress.

Step 3: Establish a Realistic Budget

Start with a zero-based budget, where every dollar has an assignment: give, save, spend, or repay debt.
When you’re done, your income minus your expenses should equal zero—not because you’ve run out of money, but because you’ve told every dollar where to go with purpose.

If you already created a basic draft in your earlier newsletter titled “You Need a Budget — Here’s How to Build One That Works,” now it’s time to take that plan further—by looking for ways to find money so you can start attacking your debt.

Here are a few practical ways to find extra room in your existing budget:

• Audit your subscriptions – Cancel anything you’re not actively using or don’t truly need. Even $10 or $20 per month adds up.

• Simplify your meals – Plan meals based on what you already have and what you’ll actually eat. Avoid spending on items that will go bad or get tossed.

• Pause your sinking funds – Temporarily hold off on extras like vacations, new furniture, or clothes you don’t truly need right now.

• Ruthlessly cut non-essentials – Trim back or eliminate spending on entertainment, dining out, convenience purchases, or impulse buys.

• Use the envelope system – Withdraw cash for categories like groceries or gas, and use labeled envelopes to limit spending. When the cash runs out, that category is done for the week.

These changes don’t have to last forever. But for this season, they can help you build momentum and free up cash to make real progress on your debt.

If you’re willing and able to go further, consider taking on a short-term side gig or freelance opportunity to speed up your payoff. Even a few hundred dollars a month from tutoring, delivery apps, babysitting, or selling unused items can make a big difference.

Every time you sit down to budget, you're declaring, “I trust God to provide, and I want to be faithful with what I’ve been given.”
That’s not just financial discipline—it’s spiritual alignment.
Keep showing up. Keep adjusting. And keep moving forward with purpose.

Step 4: List Your Assets (Everything You Own)

When you're in debt, it’s easy to focus only on what you owe. But sometimes, the extra cash you need to pay it down is already sitting right in your home.

This week, take time to list everything you own. Start with the obvious:

• Cash and checking/savings account balances

• Retirement and investment accounts

• Vehicles and electronics

• Real estate or land

• Business tools or side hustle equipment

• Collectibles, valuables, or items you could sell

But don’t stop at documentation—look for what can be used to reduce your debt now.

Evaluate What You Own

Walk through your home room by room. Identify items you don’t use or need—furniture, clothing, tools, small appliances, electronics, or even hobby gear.
Each item holds potential value.

Be Creative with Selling Platforms

• Online options: Facebook Marketplace, OfferUp, Poshmark, Mercari, and eBay are great for reaching wide audiences.

• Local sales: Garage sales, flea markets, and consignment stores can move items fast and save on shipping.

• Specialty markets: If you own collectibles or niche items, look for platforms that serve those specific communities—they often pay top dollar.

Let Your Assets Work for You

Selling unused items isn't just decluttering—it’s leveraging what you already have to attack your debt faster.
And the payoff is twofold: a cleaner space and a clearer financial path.

This step also shifts your mindset from scarcity to stewardship.
You may feel weighed down by what you owe—but you’re not starting from zero.
Just like the widow in 2 Kings 4, who thought she had nothing but a small jar of oil, God can use what’s already in your hands to bring breakthrough.

Getting out of debt takes creativity and determination.
Your assets could be the key to gaining traction and building momentum on your journey to freedom.

🎯 Weekly Challenge: Create Your First Full Picture

This week, take intentional time to build a clear foundation:

• Write your zero-based budget—assign every dollar a job

• Make a list of your assets—everything you own that holds value

• Pray over your numbers and ask God to guide your next steps

Progress begins with perspective. These steps give you both.

💬 Reflection Questions

• How does having a budget shift the way I think about money?

• Have I ever avoided looking at my full financial picture out of fear?

• What resources has God already placed in my hands that I’ve overlooked?

• Am I willing to tell my money where to go, rather than wonder where it went?

📢 What’s Coming Next

Next week, we’ll dive into Step 5—listing out your debts and getting a clear picture of what you owe.
This is where your momentum starts to build—and your confidence begins to grow.

🔁 New here or missed a few? You can read all the previous newsletters right here: financebyfaith.beehiiv.com

Blessings and financial peace to you!