If everything you have laboured for will not become a history of a better yesterday, and your future filled with "had I know", then you must do this without hesitation;
- STOP SPENDING MORE THAN YOU MAKE. Put a freeze on all credit purchases, either pay cash or do Without them The Bible warns us in Prov. 22: 7 “The rich rule over the poor, and the borrower is servant to the lender” Rom. 13 8, “Let no debt remain outstanding...
- ESTABLISH A WRITTEN BUDGET. Howard Dayton said “No one I have known to be in financial difficulty used a budget”. Two steps are involved, if budget must work:
(a) Find out where you are today
(i) Keep a detailed record of every Naira/Dollar spent for every member of the family. Include everything, food, clothing, beverage, medical, transportation, schooling, offerings, giving, etc. Add expenses for rent, insurance, electricity, water, telephone and other utilities. Add all these up to show what you are presently spending each month.
(ii) Add up your total monthly income: salaries, dividends fOr shares and private business profits. Don’t be surprised if your expenditures are more than your income. That is why you are in debt presently.
(b) Next, make a spending plan that Will get you from where you are, to where you want to be. To solve the problem of spending more than you earn, you either increase your income to a level above your expenditure or decrease your expenditure below your income level.
- MAKE A LIST OF EVERYTHING YOU OWN. The list will include your house, land, cars, wristwatches, furniture, deposits, savings, shares, cash value of insurance, gold, jewelry, video, television, washing machine, toys, bicycle, exercise machine and anything that can easily be converted to cash.
Write down what each item is actually worth now, not what you paid for it, or think it might be worth later on. You may discover several items that you can easily do without - e.g. second television, table gas, since you have the four-burner oven, extra wristwatches (a friend once had more than 15 wristwatches), musical instruments, family second car.
You probably read of a prominent rich man in Nigeria who sold off his private jet to save himself from facing the Failed Bank Tribunal. Selling a car delivered my friend from debt and its accumulated interest. This gave him a breathing space to plan his life.
- MAKE A LIST OF ALL YOUR DEBTS. Surprisingly, many people don’t know how much they owe. They may know how much they are supposed to pay in a month, but they don’t have a clear picture of What all their debts add up to or how much interest is being charged on each account. Make a list of all you owe, including rent, mortgage, installmental loans, office loans, co-operative loans, insurance premium, business loans, borrowed tithe, pledges and vow unpaid to date.
- LIST THE NAME OF DEBTORS, THE MONTHLY PAYMENT, INTEREST RATE AND BALANCE DUE. This list will help you establish a priority for paying your debts according to age and interest rate.
- WORK OUT A REPAYMENT SCHEDULE. You can send a copy of your repayment schedule to' your creditors. Let them know you are making serious efforts to pay them back and keep your word to them. Keep in touch with your creditors and be sure they can reach you.
- GIVE SOME SERIOUS THOUGHT TO HOW YOU GOT INTO DEBT: The whole family should be involved in this discussion.
- - It might have been due to an unavoidable situation, lost job or business set back.
- - Carelessness and loose spending.
- - Keeping up with the Joneses.
- - Trying to match the lifestyle of those Who have worked and saved for decades.
- - Influences of television commercials and adverts.
It has been estimated that arguments and disagreements over money and debt is at the heart of 58% of all divorces and separation.
Rev. Albert O. Aina | Chief Executive Officer, Christian Leadership Skills Inc. Senior Pastor, Saabo Foursquare Gospel Church 21/23, Adebowale Street, Off Aina Street, Debo, Ojodu, Lagos. 08023010696; albertoaina@yahoo.com www.christianleadershipskill.org