The rich rules over the poor, and the borrower is servant to the lender. (Proverbs 22:7 NIV).

Have you ever wondered why people go into debt? Governments go into debt, major institutions go into debt, and even the church sometimes goes into debt. So why wouldn’t I go into debt? I’d say these are fair questions to ask. Governments, major institutions, and churches would become in debt because they have no cash for immediate expenditures, so they borrow or request a loan (usually from a banking institution). Debt appears to be the norm, but is this a twenty-first-century issue, or has it occurred in the past? Debt is an old problem. There are stories of debt from many years ago, even in biblical times. 

In times of Nehemiah, some people had gone into debt to feed their families (Neh. 5:2) or to pay their taxes (v. 4). While going into debt to feed your family or pay your taxes may be seen as the right thing to do due to necessity, sometimes the mere reason why people go into debt is that they want to have more than they have. Sometimes, it may be because people are unaware of biblical finance principles. What does the Bible say about debt?

The Bible has fifty-nine instances where debt is mentioned. How many of those fifty-nine citations do you think are positive instances? How many negatives? If you guessed that all fifty-nine instances were negative, you are correct. For example, in the Old Testament, “Do not be one of those who shakes hands in a pledge, one of those who is surety for debts.” (Prov. 22:26). In the New Testament, “Owe no one anything except to love one another, for he who loves another has fulfilled the law.” (Rom. 13:8). The Bible repeatedly warns us about the dangers of debt and urges us not to allow ourselves to be overwhelmed by it, especially when we have no realistic way of paying it back. While staying out of debt today may be challenging, we should do our best to adhere to the biblical principle. What should I do if I am already in debt?

Here are three steps to follow if you are struggling with debt: To the best of your abilities, avoid getting into additional debt before you are so indebted that you cannot repay it anymore. Second, when God blesses you with extra cash, do not spend it; instead, use it to pay off your debt. Lastly, pay your debt as soon as possible by arranging them from largest to smallest. Do this by paying the minimum in all your debts except for the largest one. Once the largest debt is fully paid off, use the money you spent on paying for it and reduce the next in line with the extra payments until you are debt-free. While it appears simplistic here, creating this financial habit will ensure you direct yourself to a debt-free future and stay debt-free.

I have one last recommendation for you. In the New Testament, the Apostle Peter shares with us wise words: “Give all your worries and cares to God, for he cares about you.” (1 Pet. 5:7 NLT). Yes, this verse applies to your financial well-being. Give your financial worries to God, who will take care of you.