Discontentment will lead to justifying debt. When your finances get overwhelming, it drastically alters every other aspect of your life.
What Does the Bible Say About Debt?
- Proverbs 22:7 – The rich rules over the poor, and the borrower is the slave of the lender.
- Romans 13:7-8 – Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed. Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.
- Psalm 37:21 – The wicked borrows but does not pay back, but the righteous is generous and gives.
- Proverbs 22:26-27 – Be not one of those who give pledges, who put up security for debts. If you have nothing with which to pay, why should your bed be taken from under you?
- Luke 14:28 – For which of you, desiring to build a tower, does not first side down and count the cost, whether he has enough to complete it?
- 1 Timothy 5:8 – But if anyone does not provide for his relatives, and especially for members of his household, he has denied the faith and is worse than an unbeliever
Should I Incur More Debt?
- Beware of Comparison – Don’t let what others own own you.
- Beware of Discontentment – When you can’t afford the type of lifestyle you think you deserve, you will make financial decisions that will cost you more in the long run.
- Beware of Normalization – Just because everyone else is in debt does not mean that you need to be.
- Beware of Materialism – You must learn to differentiate between what you want and what you need.
- Beware of Interest – Going into debt for a purchase always ensures that you pay more for something than what it is actually worth.
- Beware of Delusion – Refusing to deal with debt deludes you into thinking you are better off financially than you really are.
How Can I Get Out of Debt?
- Remove the possibility of going further in debt than what you already are.
- Create a monthly budget to determine where your money is going before it is spent.
- Write out all your debts into columns with the remaining amount and minimum payments.
- Organize your debts from the smallest to the largest.
- Prioritize paying the monthly amount on each debt.
- Put every possible extra dollar towards the smallest debt on your list.
- Once you pay the smallest debt off, apply everything from the first debt to the second debt.
- Continue this debt snowball until all your debts are gone.
- Don’t get rid of your old debts so that you can get new ones.
- Work to be in a financial position where you can pay cash for all purchases.
Why Should I Be Free from Debt?
- Dealing with debt is a burden that affects every area of life.
- Any financial strategy that disregards future needs will confront your family at the worst possible time.
- Steward your blessings in order to bless others.
- Have as much money as possible to give in this life and after death for Kingdom work.