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10 Steps to Debt Freedom

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If one of your goals this year is to get out of debt, here’s something you need to know: God’s will for you is financial freedom. When you put your feet to your faith, you WILL see results! To help you get started, we’ve put together 10 steps to debt freedom guaranteed to bring you closer to debt freedom and financial abundance in your life.

1. Make a Plan

“Write the vision and make it plain.” –Habakkuk 2:2 (NKJV)

When you want to accomplish anything in your life, the Bible is clear—the place to start is writing it down! Getting out of debt isn’t something that will just happen. It starts when you make a decision to be debt free, then make a plan to achieve it. Here’s how to start:

  • Write down a statement in your journal that says something like this: “I am debt free. I owe no man anything but to love.” By making this positive affirmation, you are already setting things in motion in your mind and spirit.
  • Every day pray over your vision and your plan. Thank God that it is done, and praise Him for the freedom you’ll enjoy!
  • Create a budget either on paper or by using a simple tool like the EveryDollar Budgeting app. You can use this app to track your spending as well.

For more on creating and following a budget, check out Gary Keesee Ministries Forward Financial Group, Dave Ramsey, or Crown Financial Ministries.

2. Review Your Budget

“Let the favor of the Lord our God be upon us.” –Psalm 90:17 (ESV)

It’s easy to get stuck thinking that whatever you’re spending now is what you have to spend to survive each month, but most of the time, that simply isn’t the case. God’s favor is the first place you should go. We, as believers, can enjoy the favor of God in every area of our lives, which includes discounts other people don’t receive, special insight on how to save money, even goods and services for FREE.

So before you review your budget, go before the Lord, thank Him for His goodness and His favor; then ask Him to reveal to you where you could reduce your spending or get a better deal on what you already have.


  • Shop around for better deals on your auto and home insurance; and your cell, streaming and other services. Prices on these items can be negotiated, but do your homework and talk to other providers before calling your existing providers.
  • Also, review your current bank statement. Are there monthly charges you forgot you had? Or perhaps software, apps or memberships you rarely use? Cancel any  unnecessary subscriptions.
  • Reduce spending in areas such as eating out or clothing purchases.
  • Consider refinancing your home to a lower term. The interest rates on a 15-year mortgage are currently lower than a 30-year.

3. Commit to No New Debt and Saving $1,000

“Don’t be in debt to anyone.” –Romans 13:8 (CEB)

To enjoy debt freedom, you have to commit to no new debt, or you’ll keep yourself stuck in the same cycle. If there is something you want, wait until you’ve saved for it. Resist the temptation to charge for purchases, and ask God to help you walk in the fruit of self-control.

To aid in this effort, cut up your credit cards, or leave them in a lockbox at home, rather than in your wallet. Then, do as experts like Dave Ramsey recommend and save a $1,000 emergency fund to cover most unexpected things outside your budget.

4. Use a Debt Snowball

“Wisdom is the principal thing.” –Proverbs 4:7 (NKJV)

Experts like Dave Ramsey recommend a debt snowball, which is the strategy of paying off your smallest debts first. Rather than putting extra on every debt, you pay the minimum on everything but the smallest debt. Put everything you can into that debt until it is paid off. Then, move to the next smallest, and conquer that one, as well. It’s amazing what that sense of accomplishment will do as you move forward in your goal for total debt freedom!

5. Generate Extra Income

“Remember the Lord your God, for it is He Who gives you power to get wealth.” –Deuteronomy 8:18 (AMPC)

As believers, we should always be INCREASING—no matter what is going on in the world around us. One way to unlock God’s blessings is by obeying His Word, and stepping out and acting on your faith. If you’re waiting for a big check to drop in your lap while you’re sitting in your recliner watching cartoons, you’re in for a long wait. But…when you put feet to your faith and start doing what you can do to get out of debt (reducing spending, increasing your payments, etc.), you open the door for God to add His “super” to your “natural.”

To help accelerate your debt payments, you can look for ways to generate income in the natural. Here are a few ideas to get you started:

  • eBay did a study and found that people have, on average, $3100 worth of unused items in their household! Consider gathering and selling unused items.
  • If you regularly receive large tax refunds, consider adjusting your payroll withholdings. This will give you extra income each month to put toward debt.
  • Use all unexpected income—bonuses, raises, etc., to accelerate your debt snowball.
  • Ask for a raise! The main reason people don’t get raises or promotions? They don’t ask!
  • Consider taking on a side gig using one of your many talents to earn extra money.

As you put feet to your faith and seek to honor God’s Word to stay out of debt, God will meet you. There are countless stories of supernatural debt cancellations AFTER people have applied themselves and worked toward changing their habits.

6. Pay Off Your Mortgage

“You shall lend to many…but you shall not borrow.” –Deuteronomy 28:12 (ESV)

Seem too big a goal? Think again!

Henry Ford once said, “If you think you can or you think you can’t, you’re right!” That lines up with Proverbs 23:7, which says, “As [a man] thinks in his heart, so is he” (NKJV).

You CAN pay off your mortgage! Once your other debts are paid, it’s time to go for it. Here are some tips to accelerate your process:

  • Take all the money you were applying toward other debt and payments, and put it all into your mortgage.
  • Be sure all extra payments are being applied to PRINCIPAL ONLY.
  • You can knock seven years off your mortgage by making half payments every two weeks, rather than monthly!

God wants you to be debt free. Go to the Lord, and tell Him the desires of your heart to own your home free and clear. Write it down in your journal, and declare aloud daily, “I own my home debt free in the Name of Jesus!” Then affirm it by saying, “Thank You, Jesus, that I am debt free!”

Watch Gloria Copeland and George Pearsons teach you how to believe God for a house.

7. Avoid Car Debt

“A wise man will hear and increase learning.” –Proverbs 1:5 (NKJV)

Once your cars are paid off, begin making car payments to…yourself. That’s right. The average monthly car payment is $425 per month. If you do that for 3 years, you’ll have $15,300 to put toward your next car!

8. Stay Out of Debt

“The Lord will guarantee a blessing on everything you do.” –Deuteronomy 28:8

Once your debt is paid (minus your home), increase your savings to three to six months’ living expenses. This will give you a stronger cushion for the future. And here’s the exciting part. Once you’re debt free, you can move into abundant living and extravagant giving! You can sow large offerings when God calls you to do so. You can save for college or vacations. You can invest and grow your finances to a place you’ve always dreamed.

9. Put Your Faith To Work

“Have faith in God.” –Mark 11:22

Each of these principles will work for any person, but when you put your faith to work alongside them, your results will be ACCELERATED and INCREASED supernaturally. Who wouldn’t want that?!

As you put feet to your faith and take steps to achieve debt freedom, EXPECT supernatural results. That means the kind of results that the world can never see. The kind of results that are exceedingly, abundantly above all you could ask or imagine.

Part of faith for debt freedom is recognizing the biblical principle of sowing and reaping. It may seem counterintuitive, but tithing and giving are critical to your debt freedom. Obedience to God’s Word opens the door to THE BLESSING.

Find 10 Declarations for Financial Freedom HERE.

10. Watch Debt Freedom Testimonies

“Now faith is the substance of things hoped for…” –Hebrews 11:1 (KJV)

One way to get to debt freedom FAST is to build your faith through the power of testimonies.

If you’ve been around KCM for a while, you know we have quite a few testimonies of debt freedom among our Partners and Friends! You’ll find them in our books, on our website and all over KCM’s YouTube® page.

God is no respecter of persons. What He’ll do for your brother and sister in the Lord, He’ll do for you. Listen to their journeys, learn where they missed it, and how they fixed it. Let testimonies of debt freedom feed your faith. They will keep you going when circumstances don’t seem to be improving.

Here’s a testimony of debt freedom to get you started:

When Mylon Le Fevre first got saved, he had a massive amount of debt. It was so much, it seemed impossible that he could ever get out. As a new Christian, he had learned that God said in Romans 13:8 to get out of debt and stay out of debt.

So, he met with a financial counselor who mapped everything out for him, including how much he would need to put aside each month to achieve debt freedom.

Mylon put everything he had into getting out of debt. He didn’t eat out or purchase anything (he only bought the food he needed and paid his bills). He took steps of faith! Though the financial advisor said it would take five years and eight months, all of Mylon’s debt was gone in 18 months!

Let even more testimonies of debt freedom from these KCM Partners feed your faith!

Tola and Toyin Adegborioye

Bryan and Cindy Lee

Dr. Joshua and Iliana Bugler

These powerful testimonies will feed your faith for debt freedom until you see your own miracle.

The best part? Your testimony is next!

When you take these 10 Steps to Debt Freedom, you’ll be well on your way to the life you’ve always dreamed of. Financial freedom is yours in Jesus’ Name!

Watch Kenneth Copeland teach you how to operate in the Kingdom’s economy.

Related Articles:

 10 Declarations for Financial Freedom