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5 Steps to A Debt-Free Life

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If you’re done living paycheck to paycheck, making never-ending payments and being subject to lenders, it’s time to take these 5 steps to a debt-free life!

“Receive the power.” That was a recent word of the Lord to Kenneth Copeland concerning the debt freedom of His people. He continues: “The power to get wealth is THE BLESSING of Abraham, and it’s in you right now. Don’t look to the outside—it’s in you.”

Glory to God! Living debt free is possible, and it is God’s will that every one of us enjoy a prosperous life. If you’re facing a small debt or a mountain of debt, know this: There is no condemnation. If you are in a debt situation, get rid of all condemnation and go to a place of faith—because you are on your way out!

There is no question that it is God’s will for you to live debt free. His Word says He will make you the head and not the tail…and bless all the work of your hands…and you will lend and NOT borrow (Deuteronomy 28:12-13). That means He will help you get there!

Make an investment in your future and get into a faith momentum. Get on the road to debt freedom, and don’t stop until you get there. Here are the first five steps.

1. Make a Quality Decision

Like any spiritual victory, becoming debt free begins with a decision. Being born again and receiving Jesus as Lord and Savior is a decision. Walking in the light of His truth and following righteousness is a decision. Forgiving and loving others is a decision. Likewise, becoming debt free is also a decision.

It may not seem like it’s in your control to even make that decision. It may seem like money is the one calling the shots. But that’s just a lie of the devil. YOU have dominion—you have control by the authority and grace of God. Now, it’s up to you to make a quality decision to live debt free for the rest of your life.

“You are only one decision away from your debt freedom.” –Gloria Copeland

What is a quality decision?

Well, it isn’t just a nice idea you hope to achieve. It isn’t something you give yourself the option of abandoning. A quality decision is one that settles the issue forever. That means it is no longer an option to go to the bank and borrow money—that’s over. You don’t do that anymore. Once you’ve made a quality decision, there is no retreat and no turning back, no more room for debate or argument—it simply doesn’t come to the table anytime you discuss what you’re believing for.

Let’s face it—you’ll have plenty of opportunities in the future to be tempted to borrow money. It seems quick and easy, “everyone” is doing it, and you might even think you’ll never be able to acquire what you need without going into debt. A quality decision protects you from compromising—it forces you to stand in faith, to live by the Word of God, and to conquer every financial mountain with an overwhelming victory—one that can only be enjoyed without taking on debt.

If you are in debt right now, and you are seeking to pursue and achieve a debt-free life, remember—there is no condemnation. God does not want you to live in guilt or shame over past mistakes. In fact, Kenneth Copeland once said, “The moment you make the quality decision to be debt free, God sees you debt free.”

When God sees you debt free, He will meet you at your quality decision with the supernatural. Things will begin to shift in your financial situation, as you stand firm in your resolve to become and remain debt free.

If you are ready to make this no-turning-back, quality decision, put your hand on your heart and repeat the following out loud:

“Father, in the Name of Jesus, I make the quality decision to live debt free. I’m coming out of debt right now. I’m staying out of debt. By the power of God’s Word, I am living a debt-free, abundant life by faith. I am now debt free because God sees me debt free. In Jesus’ Name, I am done with debt!”

Watch Gloria Copeland share the testimony about when she and Kenneth first made the decision to become debt free.

2. Get Into a Covenant Agreement

When you sign your name on documents to borrow from a financial institution, you are coming into a covenant agreement— with the bank, and with people you likely don’t know, who have ties or values you’re probably not aware of. Yet, you are tying yourself spiritually to that institution and to their ties and values.

More importantly, as Kenneth Copeland says, “Borrowing is a replacement covenant. It is going to someone else when you should have gone to God.”

 To live debt free, you must come to a place where you see God as your Source—not people. Meditate on continually and say repeatedly—“God is my Source.” Let this become so real in your spirit that you no longer think of your income, your job, your bank account or a loan as your source. God is your Source. His will for you is debt freedom—settle that in your heart today, and let Him be your one and only Source, your Master Financier. He will get money to you.

While you don’t want to be in covenant with the bank, an important step toward debt freedom is coming into covenant agreement with your spouse or someone who will stand with you in faith to remain debt free. Matthew 18:19 says, “If two of you agree on earth concerning anything that they ask, it will be done for them by My Father in heaven” (NKJV).

When you stand in agreement to live debt free, you are believing and agreeing to fulfill God’s will for you (Romans 13:8). 

3. Allow the Spirit of God to Lead You

As you continue in this new venture toward a debt-free life, a critical part of the journey is to seek God’s wisdom and allow the Spirit of God to lead you. Begin by committing one to three days to pray about God’s wisdom concerning your finances. Pray about your situation in tongues until you know what to do. Proverbs 4:7 says, “Wisdom is the principal thing; therefore get wisdom. And in all your getting, get understanding” (NKJV).

Your debt-cancellation plan should not create unnecessary pressure on you—it should be wrapped up in God’s wisdom. When the pressure starts, press toward peace—resist the temptation to become impatient. Stay with it until you are out of debt. God sees the complete picture. So relax by faith and press into the wisdom of God to know HOW to get out of debt. You don’t need to figure out a natural plan—He will tell you what to do.

 “The wisdom of God is your ticket out from under the curse.” –Gloria Copeland

When God’s wisdom is known, the peace that passes understanding takes over. Deadlines won’t mean anything to you, and the situation will begin to look easier and easier.

Begin by speaking the following:

  • God has a Spirit-led debt-cancellation plan for me (Jeremiah 29:11)
  • I receive God’s plan by faith—and I do not doubt (James 1:5-8)
  • God’s plan comes out of the realm of the spirit—not the natural (1 Corinthians 2:9-10)
  • I have the ability to hear God’s plan (Psalm 85:8)
  • I am obedient to God’s plan. Whatever He tells me to do, I will do it (Isaiah 1:19)!

As you listen for the Spirit of God, you will begin to see Him work. Keep an eye out! Keep listening for God, follow what He says, and watch for the supernatural.

4. Stay in a Continual State of Sowing and Reaping

In order to increase your receiving, you have to go to a higher level of giving. This is a spiritual law, and a critical step you need to take if you want to live a debt-free life.

In the natural, spending more money won’t work. But with God, you can give your way out of debt! Many people make the huge mistake of discontinuing their tithing and sowing when trying to get out of debt. It seems like the “logical” thing to do. But debt freedom is dependent upon staying in a continual state of sowing and reaping.

When we honor the Lord with our tithing and giving, we are candidates for overflow (Proverbs 3:9-10).

That’s what happened at Kenneth Copeland Ministries many years ago. The ministry was financially behind—by $1 million! Kenneth had prayed, but it seemed that all the prayers and faith that had brought previous victories didn’t seem to get the job done this time. So, he went before the Lord, and God told him that KCM needed to start tithing 10 percent of its income into other ministries.

When you need money, giving more away doesn’t seem like a good idea! But obeying God is always a good idea. As KCM began to sow the 10 percent, the million-dollar deficit began to disappear. The laws of sowing and reaping were at work and succeeding.

As you set out to become debt free, open your spiritual ears to hear where and how much God wants you to sow for your harvest. As Jerry Savelle notes, “When you talk to the Lord about your need, He will talk to you about sowing seed.”

As money begins to come to you, sometimes the Lord will instruct you to put money toward your debt, while other times He will direct you to sow. His plan is perfect! So, tune in and listen to His instructions—don’t assume what you should do. He wants to bless you beyond your income, your salary and your natural means—beyond anything you’ve ever known.

No matter what: Do not quit giving, do not quit sowing, do not quit tithing. That’s your key to success!

5. Enter Into His Rest

 What does it mean to rest? Some people think it means to do nothing, but spiritual rest is an active decision to cast your cares—all your cares—upon the Lord. The indicator of faith is rest. If you can’t rest, you aren’t in faith. Bill Winston explains it this way: “Religion says believe because it makes sense. Most of the time, faith does not make sense. Human reason is used as a weapon of the devil to rob you of faith.”

So, when a situation comes where the world would tell you to worry, that’s when you need to make a decision to give the situation to the Lord, and leave it with Him. You pray your prayer—and that’s it. But if you keep going back over and over it in prayer and talk about it with all your friends, you aren’t at rest.

Worry is just a down payment on something that might not happen. So, don’t lose sleep by tossing and turning over your debt. Instead, let patience have her perfect work. Maintain your faith under trial—be constant in your stand for debt freedom.

To begin, here is a confession to cast your cares on the Lord so you can enter into His rest:

“Father, in the Name of Jesus, I throw the care, weight, anxiety, worry and concern of that debt load over onto You. I refuse to carry the care any longer. You are well able to able to carry it and well able to provide whatever I need. According to Hebrews 4:3, 9-11, I enter the rest and peace of God concerning my debt freedom. I believe it, receive it and walk in it. I am free! My days of worry and anxiety, pressure and stressing over debt are over forever! I refuse the pressure and stress—I choose instead to enter Your rest.”

When you follow these five steps to a debt-free life, you will be well on your way to prospering, and you’ll be in position to bless others. Pastor George Pearsons has said, “There are streams of income and supernatural manifestations of the glory of God removing debt from our lives.” Receive that today, because when you step into the anointing, the equation changes. You are redeemed from the curse of poverty, lack and debt.  You are debt free, in Jesus’ Name!


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