Why Christians Should Avoid Debt and 6 Steps for How to Start

We live in a fast-paced world full of excess. Our society teaches us we should have the best of everything, that it’s “all about me,” and to do anything we have to in order to get what we want. We can spend at the push of a button online. Order that designer purse, book that extravagant vacation, or buy that brand-new SUV. We can buy all these things online without ever leaving our homes. If you have to go into debt to do it, who cares? This is the norm in our society. Debt is king, almost a lifestyle. If you don’t have the money for it, charge it. Get that gratification now, even if it causes loads of headaches later.

Although debt is the way of our society, debt can have catastrophic consequences. There is always the story of someone who overspends on the holidays and regrets it later. Then there is the person with so much debt that they can’t pay it off. They wind up losing their cars, houses, and sometimes relationships because of it.

What Does the Bible Say about Debt?

The Bible says that debt is a bad idea and that we should not be in debt to any person.

“Owe nothing to anyone except your obligation to love one another. If you love your neighbor, you will fulfill the requirements of God’s law.” (Romans 13:8, NLT)

“Just as the rich rule the poor, so the borrower is servant to the lender.” (Proverbs 22:7, NLT)

“Don’t agree to guarantee another person’s debt or put up security for someone else. If you can’t pay it, even your bed will be snatched from under you.” (Proverbs 22:26-27, NLT)

“Not that I was ever in need, for I have learned to be content with whatever I have. I know how to live on almost nothing or with everything. I have learned the secret to living in any situation, whether it is with a full stomach or empty, with plenty or little. For I can do everything through Christ, who gives me strength.” (Philippians 4:11-13, NLT)

The Bible makes it crystal clear that we should not have debt of any kind. We should not have our own debt or be responsible for someone else’s debt.

Still, sometimes big purchases come up that we sometimes have to go into debt for. Your fifteen-year-old car sees its last leg. There is an enormous hole in the roof. Your decent, reliable car needs extensive repair. It has happened to everyone. Does this make you a bad Christian? No, I don’t think so. Sometimes debt is just something you have to do.

How Do Christians Stay Out of Debt?

Clearly, as Christians, we shouldn’t be in debt, but how do we stay out of it? There are many ways to stay out of debt, but here are some tips that have worked for me.

1. Get on the same page as your spouse/significant other.

This is an essential part of staying out of debt. You need to discuss each of your views on debt. If you’re in debt, you need to be on the same page about how to get out of it. If you’re not in debt, you need to discuss not going into debt.

When we got married, we both had some debt, and we agreed we would not do this anymore and would pay it off. We also agreed that if an extreme circumstance came up (car replacement, inflated home repair issue) that we couldn’t pay with in cash, as long as we stayed on top of the payments, it would be okay. Some circumstances, you just can’t help. That’s life.

2. If you’re in debt, find a plan that works for you.

Many people swear by Dave Ramsey’s baby steps to get out of debt. That worked for us to help us get out. However, the plan may not work for everyone. Everyone has different circumstances. I suggest finding a financial expert who teaches a plan to get out of debt that works for you. This is not a one-size-fits-all situation, but it will work when you commit to following a plan.

3. Budget: yes, the “B” word.

A budget is crucial for staying out of debt. It is important to know where every dollar that comes in is going and what is being paid out. Also, keep in mind that we do not set a budget in stone; we can adjust it. There are lots of tools and software to help with this; find what’s best for you, and take control of your money. Also, meeting with your spouse about the budget is important so each of you knows what is going on and there are no surprises.

4. Have some savings.

This is one of the hardest things to do, especially when the cost of living gets higher and higher. Still, having $1,000-$2,000 to start can make a difference. It may not cover something HUGE, but it can help pay the deductible after a car accident or a basic, low to mid-range appliance if it dies.

5. Pick up a side gig.

Having a side gig along with your regular job is a great way to bring in cash to help fund your emergency fund, which will help keep you out of debt. The best part? You don’t have to leave your house if you don’t want to. You can sell all kinds of things online.

If you are more of an out-and-about person, you can deliver pizza, groceries, or food. You could also pet sit or babysit or drive for Lyft or Uber. There are all kinds of possibilities. I’ve heard of people renting parking spaces, having their cars wrapped with advertising (my husband did this once), and renting out sports equipment, musical instruments, etc., to make money.

6. Be realistic; everything will not come at once.

It will take time to figure out and get used to a budget. They say to give it at least three months to get it under control. If you find you are spending too much in one area, try to cut it back. Once you figure out the budget, you may start putting away some savings. An important thing to note is it doesn’t have to be some major amount. It can be $20, $50, $100, or anything in between. Every bit counts, no matter how small. Even your side gig may not go off with a bang initially, but keep working at it, and things will improve. My point is that this takes time, so don’t beat yourself up if things aren’t going as planned.

Above all, trust the Lord on this journey, and if things get too frustrating, pray and ask for guidance. It’s easy for us to take on the world and think we have to “figure out everything,” but we don’t.

“Do not worry about anything, instead, pray about everything. Tell God what you need and thank him for all he has done.” (Philippians 4:6, NLT)

Tell him where you struggle with debt, whether it’s getting out of it or staying out of it, and he will help you.