You probably don’t enter many financial decisions thinking, “I want to be in debt.” And yet, for many Americans, debt—especially credit card debt—has become a way of life. According to Bankrate, 46% of credit cardholders carry a credit card balance, and nearly a quarter of those cardholders (23%) don’t think they’ll ever pay that balance off.*
So, how can you have a healthier relationship with debt? Believe it or not, the Bible offers timeless guidance on debt that remains remarkably relevant today. Whether you’re a person of faith or simply seeking practical financial wisdom, these biblical principles provide a solid foundation for helping you manage your debt and supporting your financial goals.
Did You Know? There’s a lot of biblical financial wisdom that goes beyond healthy debt habits. See what else the Bible says about money. |
The Bible’s Key Lessons Regarding Debt
Avoid Debt When Possible
Debt is often the result of poor spending decisions. So, it’s no surprise that the Bible consistently encourages living within your means.
Proverbs 22:7 states, “The rich rule over the poor, and the borrower is slave to the lender.” This verse highlights how debt creates a power imbalance that can limit your freedom and options.
Romans 13:8 takes this further: “Let no debt remain outstanding, except the continuing debt to love one another.” While some interpret this as prohibiting all debt, most biblical scholars view it as encouraging prompt payment and responsible borrowing practices.
Count the Cost Before Borrowing
Luke 14:28 asks, “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?” This principle applies directly to taking on debt—always calculate whether you can realistically repay what you’re borrowing.
The Bible emphasizes planning and wisdom in financial decisions. Proverbs 27:23 advises, “Be sure you know the condition of your flocks, give careful attention to your herds.” This ancient farming wisdom translates to modern budgeting: know your financial situation intimately before making major commitments.
Pay What You Owe
Ecclesiastes 5:4-5 warns, “When you make a vow to God, do not delay to fulfill it… It is better not to make a vow than to make one and not fulfill it.” This applies to financial commitments—your word should be your bond.
Psalm 37:21 contrasts the wicked who “borrow and do not repay” with the righteous who “give generously.” Honoring your debts reflects your character and builds trust with others.
Help Others in Financial Need
The Bible balances personal responsibility with community support. Deuteronomy 15:7-8 instructs, “If anyone is poor among your fellow Israelites… be openhanded and freely lend them whatever they need.”
However, this generosity comes with wisdom. Proverbs 17:18 cautions, “One who has no sense shakes hands in pledge and puts up security for a neighbor.” The Bible supports helping others while maintaining appropriate boundaries.
How to Apply These Lessons to Your Life
Create a Realistic Budget
Biblical wisdom emphasizes knowing your resources. Start by tracking every dollar that comes in and goes out. This awareness, much like a shepherd knowing his flock, enables better decision-making: “Be sure you know the condition of your flocks, give careful attention to your herds; for riches do not endure forever.” (Proverbs 27:23-24)
List your essential expenses first: housing, food, transportation, and debt payments. Then allocate money for savings before considering discretionary spending. This approach mirrors the biblical principle of counting the cost before acting.
Build an Emergency Fund
Proverbs 21:20 notes, “The wise store up choice food and olive oil, but fools gulp theirs down.” Building an emergency fund of three to six months’ expenses can provide the financial cushion that prevents you from relying on debt during unexpected challenges. (Fact: 45% of credit card debtors attribute their debt to emergency and unexpected expenses*.)
Even if you’re currently paying off debt, try to save $1,000 as a starter emergency fund. This small buffer can prevent minor emergencies from becoming major financial setbacks.
Develop a Debt Repayment Strategy
Honor your commitments by creating a systematic plan to eliminate debt. Two popular approaches work well. Choose the approach that best fits your personality and stick with it consistently:
- The debt snowball method can be helpful for those who like quick, early wins to stay motivated. It works by paying off your smallest balances first while making minimum payments on larger debts. Once a debt is paid off, add the amount you were paying for that debt to the payment on the next-smallest debt, creating a “snowball” effect that builds momentum towards total payoff.
- The debt avalanche method works by targeting your debts with the highest interest rates first, potentially saving more money over time. This approach is purely focused on what makes the most sense mathematically and requires some patience.
Practice Generous Giving
This might seem counterintuitive when dealing with debt, but the Bible consistently connects generosity with financial blessing. Even small acts of giving—whether money, time, or resources—can shift your mindset from scarcity to abundance.
If you usually treat giving as something you do with your “leftover” funds after all your finances are in order, now is a good time to assess that stance and decide if giving is your priority even if it means stepping outside your comfort zone. Taking a “give first” mindset can be mentally, spiritually, and emotionally rewarding—and it can also compel you to plan better.
| Read more: 6 ways to improve your charitable planning now
Moving Forward with Financial Wisdom
Proverbs 15:22 states, “Plans fail for lack of counsel, but with many advisers they succeed.” Don’t let pride prevent you from seeking help with your finances.
Consider working with a financial advisor who understands your values and goals. Some financial advisors even hold Certified Kingdom Advisor® (CKA) credentials, which means they have been specially trained and certified to provide financial advice that’s rooted in the principles of the Bible and the Christian faith.
If you’d like to learn more about working with a financial advisor who has the Certified Kingdom Advisor® designation, schedule a time to meet with Advent Partners today. Our team includes experienced advisors with the CKA® designation who can offer you a spiritually integrated approach to financial planning that helps you stay ready to do more good in your world.
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