Psalm 37:21 says, "The wicked borrows but does not pay back." Do you want to know how to pay off debt? Read or listen to this chapter from Your Finances God’s Way to learn the best strategies for paying off debt.

Table of contentsStrategies to Avoid a MortgageFirst, Consider a RentalSecond, Live ModestlyThird, Purchase a Starter HomeTwo Pieces of Advice if You Decide to Purchase a MortgageFirst, Understand "Qualifying"Second, Choose a 15-Year Versus a 30-Year MortgageThe Best Strategies for Paying Off DebtSacrifice to Pay Off DebtLive Below Your Income to Pay Off DebtBuy Used to Pay Off DebtStay Home to Pay Off DebtFirst, Build RelationshipsSecond, Avoid ConflictThird, Invest in Your HomeFirst, Avoid LavishnessSecond, Avoid Unnecessary ExpensesThird, Avoid “Going Big”Fourth, Avoid Expensive HobbiesEnjoy Cheap or FreeKeep the End in MindContinue GivingPut Extra Money Toward DebtWhat About When You're Out of Debt?Possibly Missing Out on God's BestFootnotes

When couples in the church I pastor give birth to a child, I try to bring them a meal, meet the baby, see if they need anything, and pray with them. When Robert and Katy Cunningham had their fifth son, I went to see not only them and their new baby, but also their new living situation. They (seven people, including five energetic young boys) had moved into a broken-down motorhome that was sitting on the property where Robert was building their house. They went to great lengths to observe Psalm 37:21.

When I returned home, I told my wife two things. First, I shared how proud I was of Robert and Katy for their commitment to being debt-free and all the sacrifice that was involved in sticking with that conviction. Second, I said, “We don’t have very much to complain about!”

Not long ago, Robert finished the construction. They were able to move out of the motorhome and into their new house debt-free.

Maybe you have said, “People can’t buy a home with cash.” I have heard this argument many times, and Robert and Katy’s testimony (as well as many others) reveals it is not true. I have watched young and old people alike, inside and outside my church, purchase homes without mortgages. Here are three points of advice to help you do the same.

Strategies to Avoid a Mortgage

The biggest debt most people have is a mortgage. Here are three strategies to possibly avoid one!

First, Consider a Rental

Many people argue that it’s better to buy a house because if you rent, you’re throwing money away. The idea is the money would be better off put toward the cost of your house. This appears to be true until you consider how much of a mortgage payment goes toward the interest versus the principal. The money going toward the interest isn’t going toward the price of the house any more than rent goes toward the price of the house. If you want your money to go toward the price of the house, save up the money and buy your house with cash.

Second, Live Modestly

We have friends who lived in a basement until they could buy their first home with cash. Some other friends lived in a two-bedroom rental with seven children. Did these situations involve sacrifice and living modestly? Definitely. But how good do you think these people feel now as they live in their homes with no debt?

Third, Purchase a Starter Home

When I talk about buying a home with cash, it might be more accurate to say homes. Who says you need to live in your dream home in your twenties or thirties? A better approach is to purchase a smaller starter home with cash and save up for your next home. Then sell your starter home, which is hopefully worth more than when you bought it, and use that money, along with the money you’ve saved up, to purchase your next home. As your family and income grow, so does your home.

Two Pieces of Advice if You Decide to Purchase a Mortgage

If, for whatever reason, you still decide to go ahead with a mortgage, let me offer you two points of advice.

First,