In today’s culture, lots of people have experience with debt—and lots of people have opinions about it. Some say debt is a helpful tool, and others see it as something to avoid at all costs. If you’re feeling confused about debt, you’re not alone!
One thing is clear: debt can significantly impact both your financial health and your spiritual well-being. Thankfully, the Bible offers timeless, practical wisdom on how to approach existing debt and when to avoid it entirely.
What the Bible Says About Debt
God’s plan for us is freedom; being wise stewards of everything he’s given to us. And he doesn’t want anything to get in the way of our relationship with him. Because debt has the potential to do just that, learning and applying God’s principles is the key to handling your finances wisely so they don’t affect your spiritual health.
Key Bible Verses About Debt
The Bible has some crucial messages about debt:
We Should Avoid It
“The rich rules over the poor, and the borrower is the slave of the lender.” Proverbs 22:7
Debt is easy to fall into, especially when we’re not ready for unexpected expenses like car repairs, dental work, or rent increases. Add in emotional spending, online shopping, and pressure to keep up, and suddenly we're in over our heads before we even realize it.
If we’re not intentional, money slips through our fingers. Before we know it, what could have been avoided now makes us a slave to the lender.
It Negatively Impacts Our Mental Health
“All too quickly, the message [of Jesus] is crowded out by the worries of this life, the lure of wealth, and the desire for other things...” Mark 4:19
The burden of debt is one of the leading causes of stress and anxiety. It’s foolish to think it won’t impact our relationship with God and others. When we’re in a state of constant worry and stress, it makes it difficult for God’s peace to take root in our heart.
We’re Responsible to Pay It Back
“The wicked borrow and never repay, but the godly are generous givers.” Psalm 37:21
If we have debt, then in good faith we should do the work to pay it back. It honors God and pleases him when we follow through on our commitments.
It Can Be Cancelled
“At the end of every seventh year you must cancel the debts of everyone who owes you money. This is how it must be done. Everyone must cancel the loans they have made to their fellow Israelites. They must not demand payment from their neighbors or relatives, for the Lord’s time of release has arrived.” Deuteronomy 15:1-2
You may or may not know this, but certain debts may be cancelled after seven years in some states—a concept that dates back as far as the Old Testament! (However, this doesn’t apply to all debt. Taxes, student loans, child support, and fines usually stick around.)
This doesn’t mean we can just take out debt with the expectation that after seven years, we won’t have to pay it back. This principle is meant to teach us something deeper: that God values mercy and forgiveness. Through this principle, he models the mercy he wants us to extend to others.
Trust God With Your Finances
“Don’t worry about anything; instead, pray about everything. Tell God what you need, and thank him for all he has done.” Philippians 4:6
God knows our natural tendency to stress over financial burdens—and he has a better way! That’s why he tells us to pray about everything. Talk with him every day, telling him what you need. When we seek God’s provision, guidance, and peace, it opens the door for him to work in ways we’d never expect.
What Can I Do About Debt? It Depends on the Type.
Debt can generally be categorized one of two ways—and that informs the way we should approach it:
Productive Debt
Some reasons for taking on debt may be considered productive, like borrowing for higher education, a home mortgage, or to start a business.
But simply having a noble reason isn't always enough to justify going into debt. Debt is always a serious decision and should be approached with care and discernment. Consider more than just the purpose. Some good steps to follow are:
- First, talk to God and listen for his guidance.
- Talk it over with knowledgeable people you trust, who understand your values and your financial situation.
- Have a clear plan to repay the debt as quickly as possible.
- Ask yourself: Does the amount of the loan reasonably align with my current or projected income? Do the long-term benefits truly outweigh the financial and emotional weight of carrying this debt and the time it will take to repay?
Unproductive Debt
Productive debt is considered productive because it leads to growth. But other debts are more likely to hold us back—things like borrowing for rent, clothing, vehicles or appliances.
This kind of debt is nothing to be ashamed of, but it is something to take seriously. When left unchecked, it can become a burden on your finances, your peace of mind, and even your relationship with others—and God. That’s why it’s so important to pause, reflect, and move forward with wisdom.
If you’re facing a financial decision, or already feeling the weight of debt, here are a few helpful tips to consider:
- Talk to God and ask for his wisdom.
- Honestly assess if the item is needed or if it’s something you can live without. Are there other options?
- Compare the benefits of saving for it versus paying in smaller increments over time. (Remember, the total cost in the end adds up thanks to interest!)
- Can you keep up with the payments? Missed payments can lead to legal and financial consequences.
- Is it worth the stress on your financial, mental, emotional, and spiritual well-being?
Thinking through these things can help us be responsible with our money. After all, God entrusts us with our money in the hopes that we will handle it with care and discretion.
God Can Restore Any Situation
We want to tell you a story about Ken:
On the outside, Ken’s life looked fine. He had a good job, dressed well, and knew how to manage other people’s money. But behind the scenes, his finances were falling apart. Ken was drowning in over $100,000 of debt—and no one knew.
Deep down, Ken knew something had to change. That’s when he heard about Financial Peace University at his church and decided to sign up. What started as a class about money turned into something much deeper. God began working on his heart—gently urging him to open up and be honest about what he was facing.
Ken took a bold step and shared his situation with a few trusted friends. “If things are going to change,” he said, “then that change has to start with me.”
And that’s exactly what happened.
Ken began to approach his finances God’s way. He demonstrated his faith by putting God first—starting with giving, even just a small portion of his income. He built an emergency fund, cut back on spending, and rolled up his sleeves to tackle that mountain of debt, all while raising his daughters on his own. It wasn’t easy. In fact, it was one of the hardest things he’s ever done. There were setbacks, tough choices, and days he wanted to give up. But he didn’t.
Three years later, Ken was completely debt free.
But the story doesn’t end there. Along the way, Ken’s faith in God grew stronger than ever. His daughters watched him walk in discipline, trust, and obedience. They saw what it looks like to follow God’s way—and the peace that comes with it. That Christmas, Ken surprised his girls with a trip to Disney World. Paid in full. No credit cards, no stress—just joy.
Three years earlier, that kind of freedom felt impossible. But Ken learned that when we trust God and take the first step, he shows up in ways we could never imagine.
Ken’s story reminds us that no situation is too far gone. With God’s help, discipline, and support from others, freedom is possible. It may not be easy, but it is worth it.
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Debt is overwhelming, but help is available through resources like Financial Peace University, or Financial Coach Ministry—both of which you can sign up for through LCBC Church!
You can also learn more of what God to say about money and faith in this Bible Reading Plan More Than Money
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LCBC stands for Lives Changed By Christ. We are one church in multiple locations across Pennsylvania. Find the location closest to you or join us for Church Online. We can’t wait to connect with you!