A leader must learn how to manage, and if possible, entirely avoid debt. This seems an odd and almost impossible lesson in a culture where debt is everywhere. As of 2024, the US debt stands at $34 trillion. This is 123% of our Gross Domestic Product (GDP), meaning we have more debt than the amount of money we generate annually in income, as a nation. That debt is $101,192 for every person living in the US.[1] This is not the worst national debt radio in the world—Japan’s debt is 260% of their GDP. Lest you think that it is impossible to be a nation without debt, countries including Switzerland, Sweden, Norway, Denmark, Singapore and Taiwan have no debt.
On a personal level, most Americans are carrying debt. We carry as US consumers a total of $17.06 trillion in debt. We owe on credit cards, mortgages, home equity lines, auto loans, student loans, personal loans and medical debt. The average person holds $101,915 in debt—that’s not public debt, but personal, private debt. Sorry men, but as a gender we tend to hold about $20,000 more debt per person than women. You don’t need to be told that crushing debt affects your mental health. Stress and worry, and anxiety over debt leads to ulcers, heart attacks, high blood pressure and depression. The deeper you go, the more your health is impacted.[2] Has living in debt become just an unhealthy but constant way of life?
More importantly, does the Bible teach us anything specific related to debt? Interestingly there are more than 2,350 Bible verses related to money. That’s more verses than on prayer and faith, combined. Jesus taught on money. Sixteen of his parables dealt with money. In the Old Testament we find a “wealth” of teaching about money. Consider:
Money little by little grows— Proverbs 13:11
Men have the ability to produce wealth—Deuteronomy 8:18
The blessing of the Lord may bring wealth—Proverbs 10:22
Diligent hands create wealth— Proverbs 10:4
A wise man saves for the future—Proverbs 21:20[3]
But the Bible also has much to say about debt. Specifically, we should avoid debt personally, and forgive others’ debts when we can:
Exodus 22:14—If anything is borrowed, it should be paid back. If what is borrowed is lost or injured, full restitution must be made.
Deuteronomy 15:1—Debt is to be released.
2 Kings 4:7—Pay your debts.
Nehemiah 10:31—Forgo the exaction of every debt.
Proverbs 22:26—Do not become guarantors for debts.
Matthew 6:12—Forgive us our debts, as we forgive our debtors.
Matthew 18:27, 30, 32, 34—Forgive because your debts have been forgiven.
Romans 4:4—Wages, like a debt owed, must be paid.
Perhaps the Bible’s clearest teaching on debt is Proverbs 22:7, “The rich rule over the poor, and the borrower is the slave of the lender.” Do you feel enslaved by debt? In a sense this is true because significant debt is the first financial burden that must be paid. Recent data shows that, although a healthy debt-to-income radio is around 30% or less, Americans on average are now paying about 60% of their incomes toward debt.[4] Debt has become so large on the personal and national levels in the US, that we’re spending about two-thirds of the income we generate just servicing and paying down what we owe on things we’ve previously purchased.
In the Bible, our sin is expressed as a debt. In Jesus’ model prayer (The Lord’s Prayer), He says we should pray, “forgive us our debts, as we also forgive our debtors” (Matthew 6:9-13). Jesus is not talking about how we handle money. The debt in this case is sin. Our sins are debts to God that require a payment, and the penalties and interest are steep. Scripture reminds us that “the wages of sin is death” (Romans 6:23). Nothing we can do will be accepted as payment for this debt. Since we cannot pay the sin debt, no matter what we do, we are enslaved to it. Another phrase we often see with respect to sin is that we are “drowning in it”. Psalm 38:4 says, “I am drowning in the flood of my sins; they are a burden too heavy to bear.”
Isn’t it interesting that the Bible so closely connects teaching about sin to the very same phrases when it comes to monetary debt? Perhaps God knew that as leaders we would have an easier time understanding the burden that sin places on us because we all understand the burden of financial debt. Now we can begin to more fully understand that freedom that comes when our sin debt is paid. Colossians 2:14 reminds us, “He forgave us all our sins, having canceled the charge of our legal indebtedness, which stood against us and condemned us; He has taken it away, nailing it to the cross.” In Christ the sin-debt has been paid!
God does not desire us to be in debt, either through sin or through money. Our sin debt is readily paid by our surrender to Jesus Christ. But our financial debt, because we do not view it as a weight drowning us, or a master enslaving us, we more readily agree to live with. Because our sin debt is paid, we are free to serve Christ with our lives. God wants us to see our financial debt in the same way–as a hindrance to our personal effectiveness for the Kingdom of God. Consider how monetary debt affects us, spiritually:
It creates overspending. It’s well-known that we spend 25-30% more when we use a credit card than when paying with cash. Debt spending feeds on itself. The discipline to only spend what you have means in almost all cases you will send less.
It is poor stewardship. Being free of sin’s penalty allows us to steward our lives for God’s glory. Likewise, being debt-free allows us to steward our finances generously. A recent study revealed that people who tithe generally have less debt—80% have no credit card debt, 74% don’t owe on their cars, 48% own their home and 28% are entirely debt free.[5] Debt reduces our ability to use our finances for God’s glory.
It is a bad example to the next generation. When your children see you in mountains of debt, it normalizes this lifestyle. They’ll more likely borrow their way into adult life and be faced with the same if not greater issues of debt. And let’s not forget the trillions that our nation has already spent that their generation will have to resolve!
It presumes a future without risk. Debt is okay as long as you don’t lose your job, don’t have inflated prices, don’t find unexpected expenses. Once a difficulty hits, debt becomes a burden that affects our decisions at crucial moments. Being without debt frees enables you to more readily account for an unknown future.[6]
Ready to move away from debt? It will take time, discipline, prayer, and most importantly, sound financial education. Here are some resources that might be helpful:
[1] https://www.pgpf.org/infographic/the-national-debt-is-now-more-than-34-trillion-what-does-that-mean
[2] https://www.experian.com/blogs/ask-experian/long-term-effects-of-debt
[3] https://www.envoyfinancial.com/participantresources/bible-verses-about-money-and-stewardship
[4] https://www.debt.org/faqs/americans-in-debt/demographics/
[5] https://www.christianpost.com/news/study-christians-who-tithe-have-healthier-finances-than-those-who-dont.html
[6] https://www.focusonthefamily.com/get-help/reasons-for-becoming-debt-free/
What is a healthy view of money and profit? Can we desire financial success, and still serve God with full devotion? It’s really a question of where our treasure—and heart—lies.