Avoiding Debt: Biblical Wisdom

Ready to learn how to avoid debt the biblical way? God offers a lifeline! In this article, we’ll explore how to gain financial freedom through avoiding debt – and discover what the Bible says about handling money wisely. Get ready to break free from the bondage of debt as we unlock ancient biblical secrets for modern financial peace.

The Bible holds a wealth of wisdom concerning money, possessions, and the importance of avoiding debt. It warns against debt and encourages us to live within our means, find contentment in what we have, and put our trust in God’s provision. Practicing wise financial stewardship, and steering clear of unnecessary debt is a foundational biblical principle that leads to genuine freedom, not bondage.

Are you aware that the average U.S. household has around $101,915 in debt? And to add to that, the total consumer debt in America exceeds a mind-blowing $17 trillion! These alarming statistics shed light on the pressing debt problem that many families are grappling with today. 

Regardless of your current financial situation, my hope is that you’ll come away from this article with a renewed commitment to good stewardship and reliance on God’s provision. So let’s explore what the Bible says about debt and how we can live debt-free lives focused on God’s kingdom and priorities. The statistics paint a grim picture of debt today – but God’s truth sets us free from the bondage of debt and leads us to contentment and generosity.

1. What Does the Bible Say About Debt?

The Bible contains many verses that warn against debt and encourage living within one’s means.

The Bible has a lot to say about owing money and getting into debt. Here are some of the key points:

  • Proverbs 22:7 says, “The borrower is servant to the lender.” That means when you owe someone money, you become like a servant to them until your debt is paid off. You lose your freedom!
  • Romans 13:8 – Paul is giving us some financial advice with a twist! He tells us not to owe money to anyone, except for one thing: love each other. It’s a broader perspective, showing that we should focus more on spiritual debts (like showing love) than just material ones. Let’s keep this in mind as we navigate our financial choices!
  • Psalm 37:21 talks about how wicked people borrow money and don’t pay it back. But righteous people try to live within their means and be generous in helping others.
  • Proverbs warns about putting up collateral or making promises to pay off debt. It’s easy to get trapped by debt when you pledge to pay it off, so you should be very careful before borrowing.
  • Ecclesiastes 5:5 says it’s better to not make a vow to pay off debt than to make one and not be able to follow through. Don’t take on debt you can’t reasonably pay off.

So, the Bible teaches us to be responsible with our money, not to borrow recklessly, and to think carefully before making financial commitments. It’s all about being wise and taking care of our financial well-being.

2. The Dangers of Debt

Throughout my life, I’ve never been a fan of debt. Whenever possible, I’ve tried to avoid it. Or if I had to make a big purchase, I made it my mission to pay it off as quickly as I could. As I look back, I realize that some of the money I spent was on courses I never completed. What a waste!

It’s disheartening to see many fellow Christians, who should experience true freedom, being chained by debts. You know, it’s tempting to borrow money when we want something right away. But hold on! The Bible has some eye-opening warnings about the dangers of debt that we should seriously consider.

Let’s look at a few:

1) Debt Can Enslave Us

First, debt can make you feel totally tied down, like you’re a slave to what you owe (Proverbs 22:7). All your money goes to payments and you can’t do anything fun! And we definitely don’t want to be enslaved by our debts, do we? 

2) Debt Reveals Discontentment

And here’s the thing, when we’re always rushing to get more stuff through debt, it shows a lack of contentment and trust in God’s provision. Hebrews 13:5 reminds us that God will never leave us or forsake us, and Philippians 4:19 assures us that God will supply all our needs. If we truly trust that God can supply all our needs, then why would we ever consider going into debt?

3) Debt Causes Stress

But that’s not all. Debt can cause a ton of stress and conflict with loved ones about money. It’s like a sneaky thief that steals our peace and joy. Furthermore, being in debt could hinder us from being effective stewards of the resources God has entrusted to us.

When you owe money, it feels impossible to be generous and help others. You get wrapped up in your own problems. And those credit card bills and late payment notices can give anyone anxiety! Debt stinks.

It’s so important to avoid debt as much as possible. It can take away your freedom and joy in many ways. Ask God to help you be content with what you have today.

3. Tips for Avoiding and Getting Out of Debt

Remember, God wants us to be wise stewards of our finances, and with His guidance, we can overcome debt and live a financially healthy life. 

For things to change, you have to change.” — Jim Rohn

Here are some practical tips I’ve learned along the way for avoiding and getting out of debt. I really hope they’ll be helpful to you too:

1) Set Up a Budget

Create a budget that outlines your income and expenses. Make sure you allocate money for essentials like food, housing, and bills. Having a budget helps you stay on track and avoid unnecessary spending.

2) Live Within Your Means

Avoid the temptation of living beyond what you can afford. It’s essential to distinguish between needs and wants. Be content with what you have, and remember that material possessions don’t define your worth.

3) Emergency Fund

Save up for unexpected expenses by building an emergency fund. Having a safety net helps you avoid resorting to debt when emergencies strike. 

My goal is to have a 6-month safety net. But for you, it might be different. Regardless, having this financial cushion will bring you peace of mind and better sleep at night.

4) Avoid Impulse Buying

Before making a purchase, give yourself some time to think it over. Ask yourself if it’s something you truly need or just a fleeting desire. Pray about your decisions and seek God’s guidance.

5) Stay Away from High-Interest Debt

If possible, avoid high-interest loans and credit cards. I often use my credit card as it’s convenient but I am diligent in paying it off quickly to prevent interest from piling up. 

6) Tithe and Give

Honour God with your finances by giving to others in need. When we put God first, He promises to bless us abundantly (Malachi 3:10).

7) Seek Wise Counsel

Don’t be afraid to seek advice from financially savvy and godly individuals. Proverbs 15:22 says, “Plans fail for lack of counsel, but with many advisers, they succeed.”

8) Cut Unnecessary Expenses

Identify areas where you can cut back on spending. For example, dine out less, cancel unused subscriptions, and find affordable alternatives for entertainment.

9) Negotiate Debts

If you’re struggling with debt, try negotiating with creditors for better repayment terms. Many are willing to work with you if you communicate honestly about your situation.

10) Debt Snowball Method

If you have multiple debts, consider using the debt snowball method. Focus on paying off the smallest debt first while making minimum payments on others. Once the smallest debt is paid off, tackle the next one. This approach builds momentum and motivation.

11) Pray for Strength and Wisdom

Lastly, pray earnestly for God’s strength and wisdom in managing your finances. Surrender your financial worries to Him, and trust that He will provide for your needs (Matthew 6:31-33).

Getting out of debt takes time and discipline. But with God’s guidance and these practical tips, you can break free from the burden of debt and experience financial freedom. Keep your faith strong, and trust in the Lord’s provision. He is faithful, and He will see you through!

Recommended Articles for Inspiration: How to be a Good Steward of your MoneyYou shall Lack Nothing: Psalm 23Budgeting Biblically: 10 Tips for Managing Your Money God’s Way 

4. Relying on God, Not Debt

As Christians, our faith teaches us that God is our ultimate provider and sustainer, and He invites us to trust Him completely with our finances.

1) God is Our Provider

The Bible reminds us time and again that God is our loving provider (Philippians 4:19). When we face financial challenges, let’s turn to Him in prayer and seek His guidance. Trust that He knows our needs and will take care of us.

2) Contentment in God

It’s easy to get caught up in a culture that urges us to chase after more and more. But true contentment comes from knowing and loving God (Hebrews 13:5). Let’s find joy in His presence and appreciate the blessings we already have.

3) Prayerful Decision-Making

Before making significant financial decisions, let’s include God in the process. Seek His wisdom through prayer, and He will guide us on the right path (James 1:5).

4) Avoiding Impulsive Actions

In moments of financial stress, we might be tempted to take on debt as a quick fix. Instead, let’s pause, pray, and remember that God has a plan for us (Jeremiah 29:11).

5) Stewardship Matters

God calls us to be faithful stewards of the resources He entrusts to us (1 Corinthians 4:2). By managing our finances wisely, we honour Him and ensure we’re using His gifts responsibly.

6) Tithing and Giving

Remember the importance of tithing and giving back to God (Malachi 3:10). When we put God first in our finances, we demonstrate our trust in Him to provide abundantly.

7) Financial Accountability

Share your financial journey with a trusted friend or mentor. Proverbs 15:22 encourages seeking counsel, and this can provide valuable support and accountability.

8) God’s Timing is Perfect

When we’re in a tough spot financially, it’s crucial to remember that God’s timing is perfect. He might not always answer our prayers immediately, but He will never forsake us (Isaiah 41:10).

9) Patience and Perseverance

Getting out of debt might take time and effort. Trust in God’s strength and be patient with yourself. He will give you the strength to persevere (Philippians 4:13).

10) Avoid Comparison

Don’t compare your financial situation to others. God’s plan for each of us is unique, and He equips us for what He has called us to do (2 Corinthians 9:8).

11) Finding Peace in God

When we fully trust in God, it brings us peace. Even in the midst of financial challenges, we can find rest and security in His presence (Matthew 11:28).

In summary, let’s anchor our financial lives in God’s faithfulness. Relying on Him, not debt, allows us to experience true freedom and peace. Keep your faith strong, trust in His provision, and remember that He cares for every aspect of your life. With God as our guide, we can navigate any financial situation and emerge victorious.

Closing Message: Share Your Thoughts

I hope you found these insights from the Bible about avoiding debt helpful and encouraging! 

Now, I’d love to hear from you, my fellow brothers and sisters in Christ. Share your thoughts, experiences, and any additional wisdom you might have on this topic in the comments below. 

Let’s engage in this conversation together and learn from one another as we strive to be wise stewards of our finances. Remember, your contribution might be just what someone else needs to hear. So, don’t hesitate—leave your comments below, and let’s support and uplift each other on this journey! God bless you all! ??

About the author

Welcome to Secured Profits! We're on a journey to Financial Freedom God's Way, exploring Biblical teachings on wealth, financial wisdom, God's priorities, and sharing practical money management tips. Let's discover how to align our finances with God's word and experience true financial abundance and peace!

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