3 Biblical Principles for Debt With Sharon Epps

Dec 13, 2024

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They say that money is a good servant but a terrible master—especially when it comes to debt.

Surveys show that taking on debt ranks near the top of the list of financial regrets. Debt can make profound changes in your life and have spiritual consequences. Sharon Epps joins us to talk about that today.

Sharon Epps is the President of Kingdom Advisors, our parent organization. Kingdom Advisors is a group dedicated to training financial professionals to guide and advise you according to biblical principles.

Four Key Uses of Money: Live, Give, Owe, and Grow

Many of us face the challenge of managing debt, but approaching it with biblical principles can transform the way we handle our finances.

To help simplify money management, we can divide our finances into four categories: Live, Give, Owe, and Grow. These categories are like slices of a pie. Since the pie is limited, enlarging one slice means another must shrink. This analogy helps us view money as a finite resource that requires intentional stewardship. Today, we’ll focus on the "Owe" slice—debt—and explore biblical principles related to it.

What Does the Bible Say About Debt?

Contrary to popular belief, the Bible does not say that borrowing money is inherently sinful. However, debt is described as enslaving and can negatively impact relationships and decision-making. Proverbs 22:7 warns, “The rich rule over the poor, and the borrower is slave to the lender.” While debt isn’t labeled evil, its consequences make it something to approach cautiously.

Biblical Principles for Handling Debt

Sharon highlighted three key principles to guide believers in managing debt:

1. Repay What You Borrow

Psalm 37:21 teaches, “The wicked borrow and do not repay, but the righteous give generously.” This verse underscores the importance of integrity in financial commitments. Paying back what we owe reflects God’s righteousness in our lives.

2. Free Yourself from Debt Quickly

Proverbs 22:7 reminds us of the dangers of debt, urging us to escape its grip as soon as possible. Carrying debt limits our freedom and creates unnecessary burdens.

3. Serve God, Not Money

Jesus’ words in Matthew 6:24—“No one can serve two masters”—remind us that our ultimate allegiance should be to God. Debt can become a competing “master” if we’re not careful, dictating our decisions and priorities.

Practical Steps for Tackling Debt

If you’re struggling with debt, here are three actionable steps Sharon recommends:

1. Pray

Begin by committing your financial challenges to God. Align your heart with His will and ask for His guidance and provision.

2. Save Money

It might seem counterintuitive to focus on debt, but it’s essential to build an emergency fund—at least $1,000. This "debt insurance" prevents you from falling back into debt when unexpected expenses arise.

3. Pay Off Consumer Debt First

Prioritize paying off credit card and consumer debt. If you feel overwhelmed, seek help from organizations like Christian Credit Counselors, who can help you lower interest rates and accelerate debt repayment. Their debt management programs can help you pay off debt up to 80% faster by reducing interest rates. Visit Christian Credit Counselors to learn more.

Managing debt wisely is about more than just financial health; it’s about aligning our lives with God’s principles. By following biblical guidance, we can experience the freedom to live, give, and serve as God intended.

On Today’s Program, Rob Answers Listener Questions:

I'm wondering how I can ensure I'm working with a financial advisor who is a fiduciary and puts my needs first rather than just pushing their own products and limited options.
I have a 13-year-old son who has been making money doing yard work and lawn care. He now has over $2,000 saved and keeps asking me where he should invest this money. What would be the best place for a young teen to start investing and saving this money?
I'm in the process of selling a half-interest in a farm that I inherited from my mother, who passed away about a year ago. I don't know how the capital gains tax works in this situation. Since the farm has been in the family for 40 years, how does that affect the capital gains tax I'll owe when I sell it?
I drive a charter bus for a living, and I'm concerned about personal liability if I get into an accident on the job. What kind of insurance coverage should I seek to protect my assets in such a situation?

Resources Mentioned:

Remember, you can call in to ask your questions every workday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources.

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