When Christians take on debt, they are generally making assumptions about the future and about God himself. Consider some of the following assumptions, and see if any resonate with you personally:
Assumption One: My personal situation will stay the same. (I won’t lose my job or my business revenue won’t fall or my health will be fine.)
Assumption Two: God doesn’t know what my needs are, so I’ll borrow in order to get what I want.
Assumption Three: I need more than God has actually provided.
Dangers of Debt
Here are a few examples of the dangers of debt:
Goods or services that are purchased for consumption (e.g. holidays) disappear instantly, yet the debt remains behind, incurring interest.
Depreciating Assets, such as cars, decline in value rapidly over time and the loan can often be greater than the value of the asset.
Debt stops you from living the life of extravagant generosity.
Debt can trap you into a fixed set of circumstances which can’t be changed easily, e.g. your mortgage is so big, that you are unable to move to a lower paid job, which you would prefer.
Debt can prevent you from meeting needs of your family and others.
Debt can result in a violation of your core beliefs.
Reasons not to Borrow – Learning to Shun Debt
There are many good reasons not to borrow money:
• Debt impacts more than just you – The other people in your life are affected by the debt you have, e.g. your spouse and children. When you take out a loan, consider how this debt will affect them over the next few months/years.
• Interest – It is often said that rent is “dead money”. If that is so, it is also true of a mortgage. The Interest you pay will ensure that the amount you borrowed is way below the amount you will pay in the end.
• Stress – Debt is one of the greatest sources of financial pressure, stress and marriage troubles. By eliminating the debt in your life, you can also reduce the tension you feel and experience financial freedom.
• Stronger Marriage – Nowadays, close to 50% of first marriages fail. Money issues happen to be one of the most cited reasons for divorce. Working with your spouse to reduce your debt can also help to build a stronger, lasting marriage.
• Credit Score – Defaulting on your debt will not only have a negative impact on your credit score, but it will also impact your access to loans. Even further, outright bankruptcy can affect your job options.
• Financial Freedom – God wishes us to be free.
He sent His one and only Son to die for our sins so we could experience real freedom, forgiveness and acceptance. Debt is another tool which Satan can use to chain us and keep our mind on worldly stresses and cares. Ultimately, God wants us to depend solely on Him.