I am a Christian in Debt. What Should I Do?
Introduction
Being in debt can be a stressful and worrying situation for anyone, but as Christians, we can take comfort in God’s Word and the principles it provides for handling debt in a wise and godly manner. Though debt is rarely ideal, Scripture does not forbid borrowing or lending. With prayer, God’s guidance, and adherence to biblical financial principles, Christians can honor God even in the midst of overwhelming debt. This article will explore what the Bible says about debt, provide guidance for Christians who find themselves in debt, and offer hope through God’s power and provision.
The Bible on Debt
Though the Bible does not explicitly prohibit debt, it does warn against it and provide guidelines for handling it responsibly. Scripture encourages living within one’s means, cautions against hasty pledges, and warns of the dangers of debt:
Proverbs 22:7 – “The rich rules over the poor, and the borrower is the slave of the lender.”
Romans 13:8 – “Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.”
Psalm 37:21 – “The wicked borrows but does not pay back, but the righteous is generous and gives.”
Proverbs 22:26-27 – “Be not one of those who give pledges, who put up security for debts. If you have nothing with which to pay, why should your bed be taken from under you?”
While debt is not forbidden, these verses advise caution and warn of the pitfalls of owing money, namely loss of freedom and peace. Scripture commends living responsibly within one’s means and advises against hasty pledges.
Principles for Handling Debt Wisely
For Christians already in debt, Scripture provides guiding principles for handling it honorably and restoring financial stability.
1. Trust in God’s provision – While debt repayment can seem impossible, remember God owns everything and can provide abundantly (Philippians 4:19). Look to Him as your ultimate provider.
2. Make debt repayment a priority – After basic needs, debt repayment should take priority in budgeting. Tithing need not cease, but additional giving may need to pause (Proverbs 3:9-10).
3. Avoid further debt – Until existing debts are repaid, take on no new debt if possible and use cash for purchases (Proverbs 22:7).
4. Communicate with creditors – Speak with creditors right away. They may allow a modified repayment plan that works for both parties (Matthew 5:25-26).
5. Seek godly counsel – Meet with financial counselors, especially those familiar with biblical financial principles, to help formulate a repayment plan (Proverbs 15:22).
6. Consider professional help – Christian credit counseling services can negotiate with creditors and develop manageable payment plans (Romans 13:8).
7. Create a budget – Track income and expenses and trim excess spending to direct all possible funds toward debt repayment (Proverbs 21:20).
8. Increase income – Within limits of health and priorities, consider ways to ethically bring in additional income to repay debt faster (Proverbs 14:23).
9. Sell unused assets – Unneeded possessions can be sold to immediately pay down debt (Luke 14:33).
10. Persevere in repayment – Debt repayment is hard work requiring self-control and perseverance. With God’s help, it can be done (Proverbs 13:11).
Let these principles guide efforts to honor God and creditors alike until the debt is gone.
Finding Hope Amid Debt Through Scripture
For Christians weighed down by debt, Scripture offers great hope and reassurance:
1. God is greater than any debt – No amount of money owed can overpower an omnipotent God (Psalm 24:1).
2. True riches are found in Christ – No matter how little money you have, in Christ you are eternally rich (Luke 16:11).
3. God forgives and redeems debt – Just as creditors show mercy, God forgives our moral debt to Him (Colossians 2:14).
4. God provides daily bread – As He provided manna in the wilderness, God can supply daily needs during debt repayment (Matthew 6:11).
5. God rewards faithfulness – For those honoring obligations, God notices and will bless faithfulness (Proverbs 28:20).
6. Lasting rewards await – Earthly debts and riches fade, but faithful stewards gain eternal rewards (Matthew 6:20).
7. Relief and restoration will come – In His timing, God will bring relief, restore fortunes, and open new doors (Job 42:10).
8. All things work for good – For those who love God, even debt will work for eventual good (Romans 8:28).
Rather than hopelessness, Christians in debt can have confident hope in God’s presence, power, and promises. He will walk with them through this financial valley to restoration.
Practical Steps for Debt Repayment
For Christians desiring to honor God in the process of debt repayment, here are some practical initial action steps:
1. Ask God for wisdom and guidance through prayer. Lay the debt burden before Him.
2. Review all debts and organize them from highest interest rate to lowest.
3. Stop borrowing immediately and begin tracking every expense.
4. Based on total income, create a detailed monthly budget that directs maximum possible funds to debt repayment.
5. Contact creditors to explain the situation and request modified repayment plans. Be upfront and honest.
6. Consider debt consolidation loans or nonprofit credit counseling to reduce interest rates and consolidate payments.
7. Eliminate unnecessary expenses and lifestyle inflation. Make sacrifices now to achieve freedom from debt faster.
8. Look for ethical ways to increase income and direct this towards debt repayment.
9. Remain patient, trusting God to help you persevere. Celebrate each debt milestone!
10. Maintain biblical priorities like tithing and caring for family while eliminating excess spending.
Implementing practical steps like these, alongside trusting in God’s provision, can equip Christians to honor God and make steady progress towards freedom from debt.
Conclusion
Navigating overwhelming debt can be frightening, but Christians have reason for hope and confidence in God. Though debt is rarely ideal, Scripture provides guiding principles for handling debts honorably before God and man. By avoiding further debts, persevering in repayment, and trusting in God’s provision and care, Christians can rest in God’s sovereignty knowing He will supply strength for each day and each debt payment until financial freedom is restored. Though the road is long, God promises to complete the good work He’s begun in our lives (Philippians 1:6).
