Money Monday

Avoid Debt

Elder Joseph B. Wirthlin taught: “All too often a family's spending is governed more by their yearning than by their earning. They somehow believe that their life will be better if they surround themselves with an abundance of things. All too often all they are left with is avoidable anxiety and distress” ("Earthly Debts, Heavenly Debts," Ensign, May 2004, 42).

In the All Is Safely Gathered In: Family Finances pamphlet it says, "Spending less money than you make is essential to your financial security. Avoid debt, with the exception of buying a modest home or paying for education or other vital needs. If you are in debt, pay it off as quickly as possible."

On the LDS website you can also find debt reduction tools such as a debt-elimination calculator and a family budget worksheet. Both of these tools are beneficial to becoming and staying debt free. Here is a debt calculator that can help you understand the interest you pay and help you calculate how and when you can bee debt free.

"Look to the condition of your finances. Discipline yourself in your purchases, avoiding debt to the extent you can. In most cases, you can avoid debt by managing your resources wisely. If you do incur debt, such as a reasonable amount in order to purchase a modest home or complete your education, work to repay it as quickly as possible and free yourself from bondage. When you have paid your debts and accumulated some savings, you will be prepared for financial storms that may come your way. You will have shelter for your family and peace in your heart" (49).
—See True to the Faith (2004), 48–49