They say that money is a good servant but a terrible master, and that’s especially true when it comes to debt. Surveys show that taking on debt ranks near the top of financial regrets. Debt has the power to profoundly change our lives—even having spiritual consequences.

When you think about money, there are four things you can do with it: live on it, give it away, owe it to someone, and invest it to grow. Think of these as the four slices of a pie: live, give, owe, and grow. Since a pie is a limited amount, when one slice gets bigger, the others must get smaller. That’s why we’re focusing on the *“owe”* slice of our financial pie.

__What the Bible Says About Debt__

There’s often confusion about biblical principles when it comes to debt. Let’s begin by understanding what the Bible does and doesn’t say. The Bible doesn’t teach that borrowing is inherently wrong. Debt isn’t sinful or evil, but it is enslaving. It redefines relationships, making one person indebted to another, and it often dictates decisions for the one who is enslaved.

Here are three key biblical principles to guide us in managing debt:

__1. Repay What You Borrow__

The Bible calls us to honor our commitments, including repaying what we borrow. Psalm 37:21 teaches, *“The wicked borrow and do not repay, but the righteous give generously.”* Borrowing must come with the responsibility of repayment.

__2. Avoid Becoming a Slave to Debt__

Proverbs 22:7 warns, *“The rich rule over the poor, and the borrower is servant to the lender.”* Debt creates a form of servitude, limiting your freedom to make choices that align with God’s purposes for your life.

__3. Serve God, Not Money__

Matthew 6:24 reminds us, *“No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money.”* To serve God fully, we must avoid letting debt control our lives.

__The Spiritual Freedom of Living Debt-Free__

One of the greatest reasons to avoid debt is the freedom it provides to serve God more fully. When enslaved to debt, your ability to respond to God’s calling may be restricted. Being debt-free allows you to make decisions that prioritize His plans for your life.

If you’re currently struggling with debt, the first step is to pray. Share your heart’s desire with God, asking for His guidance and provision as you commit to following His financial principles.

__Practical Steps to Break Free from Debt__

Living debt-free doesn’t happen overnight, but with consistent effort and faith, you can make progress. Here are some practical steps to help you:

__1. Live Below Your Means__

You can’t save money or get out of debt if you’re overspending. Create a budget that ensures you spend less than you earn, freeing up extra money each month.

__2. Build an Emergency Fund__

An emergency fund acts as *“debt insurance.”* Start by saving $1,500. Then, aim for one month’s living expenses, gradually working up to three to six months’ worth. This cushion will help you avoid taking on new debt when unexpected expenses arise.

__3. Avoid Common Pitfalls__

A heartbreaking mistake is aggressively paying down debt without first establishing an emergency fund. Without savings, an unplanned expense can force you to borrow again, undoing your progress. Save a portion of your discretionary income for emergencies while still making extra debt payments.

__4. Follow Biblical Principles Consistently__

By following God’s financial principles, you’ll build habits that lead to lasting freedom from debt. Over time, you’ll see real progress and experience the peace that comes from financial stability.

Debt doesn’t have to control your life. By understanding and applying biblical principles, you can take meaningful steps toward financial freedom. Remember, money is a tool—a servant—meant to be used wisely.

__Commit to living below your means, saving for emergencies, and following God’s guidance in all your financial decisions. With faith and diligence, you can break free from the burden of debt and experience the joy of serving God with your resources.__

You can also __[listen](https://www.faithfi.com/search?q=3%20Biblical%20Principles%20for%20Debt%20With%20Sharon%20Epps&videos=true&articles=true&podcasts=true&posts=true&groups=true&events=true&support=true)__ to a related podcast on this topic.

FaithFi

Articles

They say that money is a good servant but a terrible master, and that’s especially true when it comes to debt.

DEBT | Dec 12, 2024

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By: Sharon Epps

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