Five Rules for Borrowing

After decades of giving financial counsel, I’ve found that borrowing decisions often determine whether people experience freedom or bondage.  I’ve watched families flourish because they exercised restraint, and I’ve watched others spend years digging out from choices made too quickly. Debt is not just a financial issue. It is a freedom issue. It affects your options, your stress level, and even your sensitivity to God’s leading. I’ve always taught five simple rules for borrowing. They aren’t complicated, but they are demanding. If you follow them, you’ll make wiser decisions.

Rule 1

First, borrowing always mortgages the future.

Therefore, the economic return must be greater than the economic cost. If you borrow at a certain interest rate, what you purchase should reasonably be expected to produce a greater return than what you’re paying to borrow the money. That may be true in some cases, for example, a home mortgage, where there's the potential for appreciation over time. It is rarely true with credit cards or auto loans, where what is purchased typically declines in value the moment you buy it. Paying interest on something that loses value puts you on a treadmill that’s difficult to step off.

Rule 2

Second, never presume upon the future.

There must be a guaranteed way to repay what’s borrowed. A job today doesn’t guarantee a job tomorrow. An asset you hope to sell may not sell when you need it to. Circumstances change. Health changes. Markets change. Borrowing without a sure way to repay creates a level of risk Scripture repeatedly cautions against and can quickly turn what seemed manageable into something overwhelming.

Rule 3

Third, spouses must be in total agreement.

A marriage thrives when both partners are aligned on their financial path. I’ve counseled thousands of couples, and I’ve seen many financial wounds that began because one spouse moved forward with debt while the other hesitated. Unity protects both your marriage and your finances.

Rule 4

Fourth, never deny God an opportunity to provide.

Before borrowing, exhaust your alternatives. Could you wait? Could you save? Could you adjust your lifestyle or scale back the purchase? In many cases, time is your ally. Waiting builds discipline and often reveals whether the purchase was truly necessary. Sometimes debt short-circuits the opportunity to see God meet the need in a different way.

Rule 5

Finally, remember that debt reduces freedom. 

When you owe someone, your choices narrow. Your margin shrinks. Even if the payments feel manageable, the obligation quietly shapes your future decisions and limits your flexibility.

The Bible puts it plainly: “The rich rules over the poor, and the borrower is the slave of the lender” (Proverbs 22:7). That principle has not changed. The Bible doesn’t say that borrowing is sinful, but it consistently warns against it and urges wisdom. When you treat borrowing with caution, humility, and prayerful consideration, you preserve the freedom God desires for you. And financial freedom, rightly understood, is not about having more—it's about being less entangled and more available for God’s purpose in your life.

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