What Does Scripture Say About Debt? Our Christian Debt Free Journey
What Does Scripture Say About Debt? Our Christian Debt Free Journey
After we had been married for four years, we read a book called The Total Money Makeover by Dave Ramsey, and it completely opened our eyes to how we could better manage our money. We were new parents and wanted to set ourselves up well for the future. As Christians, we also wanted to understand what Scripture says about debt and how we could steward our money faithfully.
Once we made the decision to pay off all our debt, we announced it to our family and friends because we knew it would mean a drastic, temporary lifestyle change.
The first thing we did was sit down together and make a budget. I remember the first three months being the hardest. It took us a while to figure out how to budget in a way that allowed us to have the money for groceries before we needed to buy them. I still don’t know why that part felt so complicated.
We would put the groceries on a credit card and pay it off a week or two later when our paycheck came in. But to live in a way where you pay cash for everything, we needed to figure out how to have that $200 for weekly groceries before we shopped. This was back in 2016/2017, by the way. Our grocery budget as a family of 5 is much larger today!
Once we got through that hurdle, everything became smoother, and we grew excited to put every penny toward debt. If you are new to budgeting, expect it to take at least 3 months before it clicks.
The Baby Steps We Followed
If you aren’t familiar with the Dave Ramsey program, it follows 7 baby steps. You can't move on to the next step until you finished the one prior. Here’s how it works:
STEP 1: Put all your savings toward your debts and leave $1,000 in the bank as a mini emergency fund. If you don't have any savings, you would use this step to build $1,000 in the bank. We also paused our 401k contributions temporarily so we could put more cash toward debt. This step was the scariest, but I trusted the process. It’s important that if you choose this route, you go all in and work hard to get past Baby Step 3 so you can turn everything back on.
STEP 2: Pay off all your debts starting with the smallest ones first. These “quick wins” help you gain momentum and free up more cash for the remaining debts.
STEP 3: Once all your debts are paid off, continue the momentum to save up a 3–6 month emergency fund.
STEP 4: After your emergency fund is fully funded, begin saving 15% of your income for retirement. At this step you can start adding fun things back into your budget, but with awareness of the bigger goals ahead—Baby Steps 5 and 6.
STEP 5: Once retirement is going, begin saving for your kids’ college.
STEP 6: After you have college savings started, begin putting extra money toward your mortgage to pay it off early.
STEP 7: Once your house is paid off, you are completely debt-free and able to live generously.
Recently, we just moved on to Baby Step 6.
What Does the Bible Say About Debt?
Throughout this process, we kept coming back to what the Bible says about debt and stewardship. We knew that the money we had was from God and it did not belong to us. We wanted to be wise stewards of the gifts the Lord had given us, and we wanted to honor God with the resources we had. We know He blesses us so we can bless others, and having debts would prevent us from being able to give generously.
Scripture speaks about living with wisdom, self-control, and freedom, as well as not borrowing because you will become a slave to the lender. Isn't that the truth? We wanted to be free and obedient. We also wanted to remove any opportunity for stress to creep into our marriage due to finances.
Proverbs 22:7
The rich rules over the poor, and the borrower is the slave of the lender.
Psalm 37:21
The wicked borrows but does not pay back, but the righteous is generous and gives;
How Much We Paid Off and What It Took
We ended up paying off $30,000 in 13 months. It actually would have been sooner, but in the middle of our debt payoff journey we had to cash-flow two emergency surgeries. My husband got appendicitis on July 4th, and then the following January (when the insurance deductible resets of course) he had emergency kidney stone surgery. So we really paid off closer to $40,000 in 13 months when you include those medical expenses.
We’ve now been debt-free since 2017, and it has truly been one of the biggest blessings for our family. I know money can be one of the top stressors in a marriage, and I’m so thankful we got it under control early on.
Why We Still Budget Every Month
To this day, we build a monthly budget before the month begins. We know every bill that comes through our account, what we spend on groceries, and we plan ahead for things like Christmas gifts, car insurance, haircuts, dog medicine—literally everything.
Budgeting may feel stressful at first, but I promise it brings so much control and freedom.
If you are drowning in debt and unsure how to make it from month to month, I really encourage you to read his book and start as soon as possible. I didn’t take any formal class because the book explains everything clearly. I also listened to his podcast, and most of my questions were answered by other callers.
For example, I wanted to know if I could take a vacation while on Baby Step 2 (paying off debt). The answer was no. That money should go toward the debt. One summer without a vacation will not ruin your life. It’s practicing self-control and denying yourself for a season so you can reach bigger goals.
Getting out of debt is not easy. It takes sacrifice. We didn’t eat out. We didn’t go on vacations. We didn’t make big purchases. We learned to be content with what we had and stopped being impulse shoppers.
Now, we’re on Baby Step 6 and eager to accomplish it. If we had not followed this program, I truly believe our life and marriage would look very different. We’ve learned tools that will bless our kids and make a generational impact as we steward well the resources God has given us.
Tips That Helped Us Get Out of Debt
- Print out a debt thermometer and hang it on your fridge. Seeing it every day kept us motivated and reminded us what we were working toward. It also let friends and family know our goal. Celebrate every time you get to color in another bar on your chart.
- Build a budget before the month begins. Know which paychecks will cover which bills. For example, my husband gets paid on the 10th and the 25th. His check on the 25th covers the first half of the following month. So the January 25th paycheck becomes our money for early February, and the February 10th check covers the second half of February. This ensures we have the money before the bills hit.
- Use the EveryDollar app and EveryDollar.com. I build our budget in Excel and then transfer it into EveryDollar so we both can see and track our spending in real time. You must be diligent and categorize every purchase, but it keeps you on the same page and aware of what’s left in each budget category.
- Cut everything you can. Stop eating out. Stop shopping on Amazon. Cancel unnecessary subscriptions. Cut as much as possible so every dollar can be directed toward your goal.
- Tell your family and friends. It’s hard enough to tell yourself no, but even harder to tell friends or family you can’t participate in something because you’re paying off debt. But be bold and proud. You’re doing something difficult and important, and the people who love you should cheer you on.
- Listen to the podcast to stay motivated. I had a 90-minute commute, and I listened to the Ramsey Show every day. Hearing other people’s stories kept us inspired and reminded us why the sacrifice was worth it.
- Get creative and look for ways to increase your income. Sell things, pick up extra work, or find small side hustles. Every extra bit helps you knock out debt faster.
Cheering for you. 🎉
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