The above was a real case that occurred in 2005. I have included my suggested process to help below (there are likely other ways to help as well). Notice that the topics and order that I helped this couple with were the topics and order that I teach this class and website. It can help.

1. Teach them the importance of perspective and the key principles of understanding and using wealth wisely.

I shared with them the importance of perspective and taught them that how we look at things makes a difference. I also shared with them the key principles about understanding and using wealth wisely.

2. Help them determine what was important to them—their personal goals. 

I helped them think through the process of setting effective goals, and then they wrote down their goals so they would be working for the right things. We didn’t spend a lot of time together on this area, but I did emphasize its importance and had them do it on their own.

3. Help them realize where they were financially.

I helped them develop a balance sheet for the family.

We worked together to determine what assets were available and how much was owned on each asset—truck, motorcycle, cars, etc.

We developed an income statement for the family.

We worked at finding out where the money was going, so we could put it to the best use: they were not spending their money on their goals.

We put the family on a very strict budget: we did leave a little for a date on Friday though.

4. Help them understand why they went into debt in the first place.

I shared with them the reasons people go into debt so they could understand why they got into this problem in the first place.

I talked about the spiritual reasons behind not going into debt: how they needed to get their spiritual houses in order so that Heavenly Father would help them get their temporal houses in order.

5. Determine one-off ways of reducing debt.

I enlisted the help of others with additional expertise in these area.  Together with this additional help, we tried to find ways to pay off debt.

I had them fill out their income taxes quickly for their income tax return.

They borrowed money against their cash-value insurance policy to reduce their debt.

I had them sell assets that they could do without (i.e. truck, old vehicles, etc.).

6. We helped them determine a course of action and committed them to that course.

We worked together to put together a plan, and then we all worked on that plan together.

I held them accountable for their plan.

We got other people to help them with talking to creditors and paying off their debts.

Now, four years later, they are still in debt, but it is much more manageable and they are working to get it all paid off. Was it easy? No. Was it worthwhile? Yes.

The wife commented recently: “I just didn’t realize that it would be so hard for so long. You run into debt, but you crawl out of it."