While the Bible discourages people from going into debt and says that you are actually a slave to the lender, the Bible never overtly refers to debt as a sin. 

However, the Bible does refer to the heart issues that often lead us into debt - like gluttony, envy, pride, and comparison- as sin. So the better question for us to ask is not "Is debt a sin", but instead is "why am I going into debt?" 

Are you going into debt to try and make money fast? Are you trying to buy something you can't afford that isn't really a necessity? Are you leveraging out your family's future and happiness? 

Those are the bigger questions I would start by asking yourself. 

A. I am all for it! Some might argue that it doesn't make financial sense, but I have seen generous giving while being in debt become a secret key that unlocks an even greater place of provision in a person’s life. Remember that this isn't just a financial journey, but it is also a faith journey. Sometimes God will invite us to give generously while we are getting out of debt, but He also has a great plan for provision on the backside of it. 

The key is that this should all be done in the context of community and wise counsel.

But instead of just cutting giving first, why not start by cutting other expenses like cable, eating out, cell phone, landline, faster than needed internet, etc. 

A. I hear this one often when I tell people that car payment are a big drag on their finances. The normal argument is that you are paying the same amount in keeping your junker going than you would be in car payments for a new car. 

A. When it comes to purchasing non-essential items like furniture, appliances, etc. where the item would be over $500, where does that fit into the debt snowball process? 

Today, people own cars that are worth more than they make each year. That is just ridiculous. Honestly, I'm more of a simple man myself and just like my dad, I just want a car that will get me from point A to point B. 

But not everyone is like me. I would say for the majority of people you should never spend more than $10,000 to $15,000 on the purchase of a car. You can buy a fantastic used car in this range and below. 


I like the rule that you should never spend more than 10-20% of your gross annual income on the purchase of a car. So if you earn $50,000 before taxes, then you should not spend more than $5,000 - $10,000 on a car.

It might make you “feel” important, but throwing that much of your money towards a depreciating asset is not smart. 

This goes against everything that you will see being driven on the road, but if you don't want to have a car payment for the rest of your life, then you need to learn how to DRIVE within your means. 

Buying a home can be a great investment, but all too often people buy a home too quickly and don't count all the costs. So below we've listed some tough questions to ask yourself before you buy a home. 

A. This is the one area of debt that we think it IS okay to consolidate your student loans. Mostly because you will be working with large amounts of debt and the interest rates are going to be in the same range. 

Many times people start the home-buying process by asking the questions, "How much house can I afford?" This is usually the wrong question. The better question should be, "Am I at a healthy place financially to do this?" Here are 4 questions to help you answer that major one. 

1. Do I have an emergency fund in place?

• What happens when the washer goes out? What happens when the car's transmission goes out? You need to have some type of fund in place for when the "unexpected expected" happens.
• We encourage you to have an emergency fund of 2 to 9 months worth of bare bones expenses. If you have a home, then you want to make sure that you have an emergency fund that can cover your mortgage for several months in case you lose your job. 

Am I including all of the costs of owning a home in my budget?

• Purchase price, closing costs, house maintenance costs, increasing property taxes, etc. are all costs that we often don't calculate when just looking at the sales price of a house.
• When buying a home there are costs that you don't have to pay when you are renting that can blow your monthly budget right out of the water! You think you hate renting? Well, you will hate living in a house that you can afford, I promise you. 

Can I rent for a period of time while saving, so that I will be at a more secure place financially?

• While you are not having to pay all the expenses to upkeep your own house, put this money aside into a savings account. 

Can I actually afford this?

• We encourage people to keep their house payments anywhere from 25% to 35%
• Also, pay as large of a down payment as possible- with a goal of 20% or more (while still retaining an emergency fund)
• Have enough money to pay for the closing costs and fees with cash- otherwise you will be paying this out over 15 or 30 years with interest
• The purchase price should be no more than two-and-a-half times the family's gross annual income- but using only the main breadwinner's income

Remember when looking to buy a home: don't go at it alone. Proverbs 24:6 says, "for waging war you need guidance, and for victory many advisors." You need the input of a handful of people whose wisdom you can trust and who have your best interest in mind (not including a real estate agent or mortgage lender).