Larry Burkett - Debt-Free Living: Eliminating Debt in a New Economy

DEBT-

FREE

LIVING

Eliminating Debt in a New Economy

LARRY BURKETT

M OODY P UBLISHERS
CHICAGO

2010 C ROWN F INANCIAL M INISTRIES

1999 edition by C HRISTIAN F INANCIAL C ONCEPTS

All rights reserved. No part of this book may be reproduced in any form without permission in writing from the publisher, except in the case of brief quotations embodied in critical articles or reviews.

All Scripture quotations, unless otherwise indicated, are taken from the Holy Bible, New International Version. NIV. Copyright 1973, 1978, 1984 by Biblica, Inc. Used by permission of Zondervan. All rights reserved.

Scripture quotations marked ESV are taken from The Holy Bible, English Standard Version. Copyright 2000, 2001 by Crossway Bibles, a division of Good News Publishers. Used by permission. All rights reserved.

Editor of 2010 edition: Pam Pugh
Cover design: Dog Eared Design
Cover image: iStockphoto
Interior design: Smartt Guys design

Library of Congress Cataloging-in-Publication Data

Burkett, Larry.

Debt-free living: eliminating debt in a new economy / Larry Burkett.

p. cm.

Includes bibliographical references.

ISBN 974-1-8024-1564-9

1. Finance, Personal. 2. Debt. I. Title.

HG179.B83495 2010

332.02402dc22

2009045081

We hope you enjoy this book from Moody Publishers. Our goal is to provide high-quality, thought-provoking books and products that connect truth to your real needs and challenges. For more information on other books and products written and produced from a biblical perspective, go to www.moodypublishers.com or write to:

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When Larry Burketts Debt-Free Living was first published in 1989, I could have been one of the horror story case studies that opened the book. Coming out of my own bankruptcy at the time, I was on a mission to discover how money really works. Debt-Free Living was a light in my darkness, giving voice to a lifetime of common-sense financial principles that I had largely ignored. Now, twenty years later, I believe there has never been a better time for the time-honored, godly principles of this book to make a comeback.

D AVE R AMSEY is the bestselling author of The Total Money Makeover, a nationally syndicated radio talk show host, and host of The Dave Ramsey Show on the Fox Business Network.

It is a privilege for me to endorse the revised Debt-Free Living by the person who made an impact on his world like no other. Larrys life message is sorely needed today. As he would say, Gods principles of finances are always right, always relevant, and will never change.

R ON B LUE is a bestselling author and president of Kingdom Advisors

Sometimes it seemed as though Larry Burkett could see around corners. He certainly saw things long before the rest of us. Thats why his warnings about the dangers of debt and the direction of our economy still ring true. Indeed, the turmoil of recent years has given even greater force to his insights. Of course, as Larry would say with genuine humility, All I do is plagiarize Scripture. He saw his role as simply trying to convey that Gods Word is true and that the Lord can be trusted. Indeed, thats what Debt-Free Living is all about.

A USTIN P RYOR is founder and president, SoundMindInvesting.com

PREFACE TO THE 2010 EDITION

L arry Burketts desire was to teach Christians what Gods Word says about finances and to show them how to practically apply these principles to their lives.

From 1977 when he founded Christian Financial Conceptsnow Crown Financial Ministriesto the present, countless books have been written on the subject of money, seminars have been taught, and an abundance of information is now readily available through the Internet. Still, Larrys basic principles hold true.

Because todays financial climate has changed since Larry first wrote Debt-Free Living, we thought it worthwhile to revise and update his enduring work. We have added a couple of new stories, reworked the original ones to reflect contemporary life, updated information, and more. A new section on books and online resources is included.

In keeping with the authors first-person voice and his teachings, we offer you this fresh look at Larry Burketts Debt-Free Living.

M OODY P UBLISHERS, A PRIL 2010

FOREWORD

O ur world has changed significantly since Larry Burkett first penned the words of this book two decades ago, and this latest version of Debt-Free Living has been updated to be current with many of those changes.

As the old saying goes, The more things change, the more they stay the same. However, in the case of debt, personal and national levels have not remained constantthey have skyrocketed. But what has not changed is the source of wisdom that Larry drew upon to lead the reader into a life free from financial slavery: Gods Word. It remains relevant, practical, and effective for bringing about the spiritual and financial transformation that we need.

We as Christians are called to be aliens and strangers in this world. Today, more than ever, we must heed the warnings contained in these pages and take action. Larrys classic work will give you the motivation and the process to follow so that you can live without debt regardless of how impossible that may seem now.

As you read these pages, my hope is that youll resolve to change courseto reset your heart and mind and discover the life-transforming freedom of living without debt. If you do that, Larrys goal in writing this book will have been realized. Youll be liberated, and you will grow closer to Christ and His purposes for your life.

On your journey toward debt-free living, you may need help. I invite you to stay in touch with us at Crown.org. It will be our joy to serve and encourage you.

C HUCK B ENTLEY
CEO, Crown Financial Ministries
1 Corinthians 1:9

PART ONE

S TORIES of P EOPLE
W HO F ELL I NTO D EBT

B en and Naomi were both from middle-income families. They grew up in the suburban area of Chicago and did their share of chores around the house.

Naomis father was a practical person who kept the household records and distributed the money. He budgeted an amount for Naomis mother to manage the household. He paid all the other bills and gave Naomi a modest allowance. Naomi was required to work for a portion of her clothing and entertainment money.

In Bens family the distribution of tasks was different. His mother handled the checkbook and paid the bills. His father never got involved with family finances, except when he wanted to buy something. Then he simply wrote a check for the amount he needed. That habit caused some terrible fights, since he never bothered to record his check amounts. Ben could almost always go to his dad and get money when he needed it. When he did this, Bens father usually told him not to tell his mother, because she would have a fit. Bens father worked hard on his job, even picking up overtime whenever he could, and believed that the money he earned was his to spend as he wished.