3 Steps to Living Debt-Free

By Randy Tramp

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We were 30,000 dollars in debt. We needed out—fast.

That began a journey of discovery. For the next few minutes, I’d like to relate to you my findings.

Starting with credit cards. Not only did we need to pay them off, but we also needed a new mentality; one, I’m proud to have obtained.

(1)  Pay off your credit cards monthly.

It may sound like a simple thing, but unless you have this cemented into your thinking, you’ll never rise to financial freedom.

To get our cards paid off, we tackled one at a time. With laser determination, we conquered the highest interest card. Once zeroed, we directed all the money to the next one. It snowballed until we had every card paid off.

Today it feels good to get a monthly reward check.

We didn’t stop there.

(2)  Make payments to your savings account.

With the credit cards paid off, we had extra money each week. Immediately that extra money was designated. Emergency fund. Car savings and regular savings.

Lowered stress happens when you plan for emergencies. Having extra cash when something breaks down keeps a family in smooth waters. You may be asking, “We have a hard time paying our bills, how can we save extra?” Let me answer that, by saying this: “Start with a small amount and be consistent.” If it’s ten dollars a week, keep putting that amount in your savings. Over a year’s time, it’ll be over five hundred dollars. Put more in – well you can do the math.

We’ve saved thousands of dollars over the years by paying for our vehicles with cash. How? We make monthly car payments—to our savings account, then use that money to buy a car.

(3)  Pay Extra on your Mortgage.

You’d be surprised at how a few extra dollars to your mortgage interest adds up. It does.

I’ve calculated my mortgage considering my retirement. When I hit that age, both our houses will be paid off.

The last thing I want to talk about is giving. I know it’s a non-stopper in conversations. That’s why I put it last, even though it should be first.

We’re wired to be selfish and self-centered. Nothing flows when we live in that nature. Giving creates a flow, allowing God to bless. I’m not speaking give a dollar and get two back. Blessings come in all different forms.

Give, and it will be given unto you, pressed down, shaken together and running over, will be poured into your lap. For with the measure you use, it will be measured to you. Luke 6:38 (NIV)

Our journey was one step at a time. Are you ready to join me?

Click to tweet: Lowered stress happens when you plan for emergencies.

Writing Prompt: Think of a way one of your characters in your current WIP can give a blessing, expecting none in return. Write it.


Randy Tramp is a freelancer, writing articles for newspapers and magazines. He’s just published his debut novel, Night to Knight.
He served in the Navy for eight years, supervised inmates at a Federal prison for twelve years and ministered as a children’s Pastor for twelve years. During this time, while on a missions trip, he taught African’s about children’s ministry.
His passion is to see families strengthened and relationships restored. He and his wife Kim are parents of eleven children (eight adopted) and five grandchildren, ranging in ages from two to thirty-two.
You can connect with Randy at:

Night to Knight

night-to-knightSpecial Forces Mark Steele commands an operation to save two American Missionaries. He’s injured and dismissed from the Special Forces. Not wanting to take a desk job, the Navy discharges him. Mark becomes discouraged until he discovers a new purpose in life—locate and return abducted children to their family.

To protect his wife from emotional stress, Mark doesn’t tell her. During one of Mark’s missions, Kaitlyn finds a crumbled paper in the wastebasket next to his desk. She calls the number and hears a female’s voice, then Mark’s voice in the background. “We’re a married couple headed to Phoenix,” Mark says…

Read more about Randy’s book here.


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4 thoughts on “3 Steps to Living Debt-Free

  1. I’ve done all those too, Randy and I can attest to the fact that it works. One more thing I’d add. Spend your money the way your grandma used to. Make envelops for each of your expenses (food, clothing, entertainment, etc.) and put cash in the envelops when you’re paid.Then use ONLY that cash to pay for what you need. There are some exceptions, but that’s my general rule. All entertainment money gone? Don’t see that movie till you’re paid again. It takes some discipline, but doesn’t all budgeting?

    It doesn’t matter the amount you put in the category, the key is to stick to the envelop. It takes a little time to figure how much you need for each category, but in a few months, you have a pretty good idea.

    The funny thing is that we’re much less willing to spend cash than to hand over a credit card. You say that’s “just psychological”? True, but since we operate out of psyche, it works!! That’s the point. It’s worked for over a decade.

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