What Debt Payoff Strategy Actually Works for You?

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You've done the hard work.

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You faced your debt, you saw the truth, and you didn't run, but

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now comes the next challenge.

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How do you stay motivated to actually pay it off?

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Which method keeps you moving?

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When the process takes months or even years?

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Well, stick with me today.

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'cause today we're unpacking not just how to pay off debt, but how to

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choose a method that best fits you.

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Because the best plan isn't the smartest plan.

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It's the one that you'll stick with.

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So stick around today.

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Hey there.

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Welcome back to your Daily, financially Confident Christian.

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I'm Ralph, and I'm honored that you're walking this journey with me today.

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This is the show where we tackle faith, we tackle finances,

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and we talk about freedom.

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And today we're continuing our series dealing with the stress of money worries.

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Now, yesterday we talked about how debt can shape our identity

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and how to replace that shame.

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With truth.

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Well, today we're gonna shift gears.

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Now that the fog is lifted and the numbers are clear, how do you create a realistic

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plan that works for how you're wired?

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Now, maybe you're standing at the bottom of your debt mountain and you're, you're

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looking up at it and you're wondering which direction to start climbing.

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Do you attack that small one first for a quick win?

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Do you go after the big interest rates so you don't lose more money?

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Here's what I've seen.

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A lot of people pick a, a plan that that sounds smart, but it doesn't match how

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they're wired and they just give up.

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See, Debt payoff isn't always about math.

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It's a mindset, it's a discipline, and it's knowing your own

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psychology in a lot of ways.

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Here's the thing.

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God created each of us differently.

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Some of us are fueled by seeing fast results now, others of us are motivated

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by making the most efficient decisions.

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Let's look at the book of Proverbs, chapter 24, verse three.

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It says this, by wisdom, a house is built and through

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understanding it is established.

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What's that really telling us?

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See, understanding yourself how you think, how you stay motivated.

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That's part of walking in wisdom, and that's why we're not just

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comparing two strategies today.

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What we're talking about is which strategy actually works for you?

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Well, let me break it down for you.

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There's really two methods I wanna talk about today.

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The first one is what I call the debt snowball method.

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And that one, you list your debts from smallest to largest by balance.

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You pay the minimums on everything, but you throw extra money, extra

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every dollar at the smallest debt first, and when that's paid off,

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you move on to the next smallest.

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Now, you might be saying, Ralph, why does that work?

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Well, this method is psychological.

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It gives you those quick wins, it gives you momentum, and it gives you motivation.

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And if you're someone who needs to feel progress to stay engaged in something,

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this is the method for you because you'll stay encouraged because you

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see results and you see them fast.

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Now, the other method is what we call the debt.

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Avalanche method.

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Now, in this method, you list your debts from highest to lowest By interest

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rates, you pay your minimums on all of them, but you put all extra money

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towards the highest interest debt first.

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If you think about it, you're paying off the one that cost you the most first.

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Now, you might be saying.

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Well, why does this work, Ralph?

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Well, this method is very mathematical.

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It saves you the most money over time.

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And if you're someone who's a logic driven, if you're someone who's patient

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and loves efficiency, well, this is gonna be the method for you because why?

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You're gonna stay motivated, because you're squeezing the

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most value from your plan.

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So whether you're emotionally wired or you're logically wired, the

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important thing is what Proverbs, chapter 21 verse five, reminds us.

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The plans of the diligent lead surely to abundance.

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Now, what is it saying there?

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Diligence not perfection.

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And planning, not guessing.

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And see, when you choose a, a strategy that matches your mindset, you're far

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more likely to finish the journey.

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So here's your one action step for today.

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First thing I want you to do is pull out that list of debt you made.

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If you haven't made one, it's a great time to do it and review all your balances.

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And your interest rates.

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The second thing you need to do is you need to ask yourself this question, am

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I someone who needs fast wins, or do I care more about long-term savings?

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So you gotta come to your own decision.

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Then once you choose that strategy, if you need that momentum and that motivation.

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I'm gonna encourage you to choose that debt snowball method.

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If you want to save the most money long term, then you're gonna

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choose the debt avalanche method.

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So now you just wanna order your debts accordingly and highlight

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the first one you'll tackle.

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This is now your personal debt payoff plan.

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And listen, it's not just numbers.

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It's a strategy that truly matches your heart Let's pray.

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Father God, thank you for creating us uniquely, with different

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strengths and different motivations.

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And today as we choose how to approach our debt, Lord, give us wisdom not

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just to pick the right plan, but the plan that fits how you've wired us.

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Help us stay diligent.

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Help us stay encouraged.

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Lord, and guide us every step we take on this path to

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freedom and we trust you, Lord.

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And we ask this in confidence, in Jesus' name.

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Amen.

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You're not just choosing a method, you're choosing a mindset.

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And when your strategy aligns with how God wired you, that's

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when transformation happens.

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And if this helped you decide on a strategy, tell someone else about

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it, share this episode with them.

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And if you're just joining us, catch yesterday's episode first.

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It's the foundation.

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And don't forget, for the first 100 listeners who visit financially

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confident christian.com/master, I'm giving away a free copy of my book.

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It's called Mastering Your Finances.

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It's short.

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It's simple, but it is super powerful.

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So head to financially confident christian.com/master and grab yours.

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Now, tomorrow we're gonna talk about how to fuel your debt payoff, where

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to find that extra money in your budget to speed this whole process up.

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So let's go out there and be financially confident.

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Christians, you can do this.

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I have confidence in you.

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Have confidence in yourself.

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I want you to stay financially savvy.

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God bless you, and you have a great day today.