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There are many ways that we can reflect God’s glory and there are as many, if not more ways that we can show others, and the world, that we DO NOT glorify and/or follow after God.

Today we will be broaching a touchy subject: Can going into debt glorify God?

Can debt make God look glorious?

 

Bible Verses about Debt

  • The borrower is slave to the lender (Proverbs 22:7)
  • And we know that in all things God works for the good of those who love him, who have been called according to his purpose. (Romans 8:28, NIV84)
  • for every animal of the forest is mine, and the cattle on a thousand hills. I know every bird in the mountains, and the creatures of the field are mine. (Psalm 50:10–11, NIV84)
  • “Note then the kindness and the severity of God: severity toward those who have fallen, but God’s kindness to you, provided you continue in his kindness. Otherwise you too will be cut off.” (Romans 11:22)
    • Israel presumed that, based on the fact that they were the chosen people, that they were good with God. But they didn’t realize that those things did not actually create a heart condition. When it comes to our debt, I don’t want us to just presume that God is going to make everything okay. God will work it all out, but it’s not always going to be in a straight and simple way. Don’t presume on God’s kindness. Remember that there is also severity. He will allow you to suffer for foolish choices. But even with that, His severity is also part of His grace. 
  • For the LORD your God will bless you, as he promised you, and you shall lend to many nations, but you shall not borrow, and you shall rule over many nations, but they shall not rule over you. (Deuteronomy 15:6, ESV)
    • We must recognize that the strict governance of how borrowing and lending was supposed to happen is drastically different than today’s world. For example: Usury in Bible times vs Interest in today’s world.

 

There are a lot of ways in which debt makes God look less glorious

This happens often when we run ahead of God because we don’t believe that God can bring in the money. In doing this, we short-circuit the blessing of God by going out and borrowing money from someone or going to a bank to get a loan.  Those that have debt and those who don’t have debt are in vastly different places, and that says something about the God that we worship.

 

Different Kinds of Guidance

Would we speak to the person or group differently when coaching a person or coaching a church? How would we walk an elder board through the discussion of whether or not they should borrow money for a building project, or wait until God provides all or most of the funding? How would we walk an ordinary person through the tough decision to take on debt?

 

Advice for the Ordinary Person

Is it possible for me to glorify God while using debt?

There are circumstances where using debt is always wrong.

  • Consumer Debt – Taking a loan out on a luxury that you don’t need is always a poor idea. You are not glorifying God by luxurious living. 
    • So whether you eat or drink or whatever you do, do it all for the glory of God. (1 Corinthians 10:31, NIV84)
  • Depreciating Assets – Taking a loan out on something that is depreciating in value.
    • How could there be wisdom in this? And how would this bring Glory to God?
  • Borrowing for Get-Rich-Quick Schemes – “Be on your guard against all kinds of greed; life does not consist in an abundance of possessions’” (Luke 12:15)
    • “Pyramid Schemes” / Multi-level Marketing could very well fall into this category. Be wise with how you get involved with these kinds of organizations. 
  • Budgetary Mishaps – People not paying attention to their budget and going into debt while tithing. 
    • You are not honoring God while tithing and going into debt. We’re not saying, “Don’t tithe.” But we are saying, “stop going into debt!” 
    • If you are tithing using a credit card, please stop. You may be faithful with tithing, but you are doing that while going into debt on the rest of your budget. You’re not sacrificing your income to give, you are tithing out of your debt.  You’re living on 100+% and tithing on a credit card above that. THIS DOES NOT HONOR GOD. He sees your entire financial picture.

 

Money is Fungible

Money in one category can be used for another category.

For example, in using an Ally savings account, one can set up different buckets (annual expense fund, emergency fund, giving, etc…). If I go through all of these things and I have a tax bill that’s bigger than my tax budget at that moment, I can go negative in that bucket by drawing from other buckets because money is fungible. It doesn’t really matter at the end of the day if I don’t have enough money in that one bucket. This is the same concept that’s going on when tithing while going into debt. We’re tithing money that might be going into our checking account. But instead of using that money to pay for essential expenses, those are going on your credit card. You’re going into debt in order to tithe. But, if you do “borrow” from one “bucket” of money, and you do not process a plan to pay it back into “that bucket” you may have a problem in the future! 

 

When could debt be a good thing?

We need to clarify that debt should be avoided if at all possible…PERIOD! But, the following items could be things that debt allows us to have and use, and be better off for in the end. 

  • Borrowing for something that appreciates in value. (i.e. not borrowing for consumption – real estate [depending on market], antique/classic cars, art,…)
  • Borrowing for a house to live in and enjoy (Again, your loans must make economic sense)
  • Borrowing to start a business. Be cautious when working with different lender services. Do your research and move forward carefully.
  • Borrowing for education. Your loans must make economic sense. Not all student loan debt is ‘bad’. However, don’t borrow a high amount if you will only make a small amount. Most of the time, however, we recommend avoiding student loan debt if at all possible. 

Notice that we have not said, encouraged, or endorsed borrowing for:

  • Vacations
  • Daily driving cars
  • Consumer debt (household items, furniture)
  • And much more

 

Advice for a Church

This is not necessarily the main focus of this episode, but it still is important to address and look at if corporate debt of a church can bring Glory to God.

The desire is always to remain debt free. If you have lived this way personally, you know the amazing feeling of being financially free to serve the Lord (not being bound to a second job or overtime). But what about a church?  Specifically, what about church debt when a capital campaign does not meet the expectation or there is a need for immediate maintenance/repairs that there is no cash to handle the expense?

 

When Debt is God honoring for churches:

In our opinion, it is very rare for us to recommend a church to take out a loan.  Here is a potential circumstance where we might recommend it. 

  • When you have to close a deal. 
    • If a developer is willing to sell you land for a reduced price, and you have to make a decision within a certain time frame, it could be wise to borrow money to purchase this land. But you must be careful when making this purchase. Is it your will or is it God’s will? If the funding hasn’t come through yet, but you have the ability to get the loan, it could be God-honoring to pick up this loan. But again, it all depends on the financial picture of the church and the faithfulness of the givers. 

We honestly have a hard time finding clear circumstances when we would recommend that churches take on debt. Most of the time, we recommend avoiding debt at all costs.

 

CAUTIONS:

  • Debt ALWAYS reduces the standard of living. In the case of churches, it could impact the church’s ability to serve and minister in the community due to the fact that the church is making regular payments on debt. By making payments on debt, you take opportunities away to support missionaries, pastors, and other ministries. Your focus will be on paying down the debt, and it may challenge your ability to have greater Kingdom impact.
  • Debt ALWAYS brings risks to the future of your local church. If you take a massive loan to build a building, and something happens that results in your giving going down, you could risk defaulting on the loan. You risk a large portion of the church budget going towards debt instead of ministering to your community and paying your pastors.

 

When Debt is NOT God honoring for churches:

Most of the time, we would say that going into debt as a church is risky, and a questionable decision. It is usually foolish to jump to debt as a solution to the problem, rather than waiting on God to provide. 

When has the church forgotten that God owns the cattle on a thousand hills (Ps. 50 10-11).  If God is wanting something to come to pass, then God WILL make it come to pass!  We are not to jump ahead of God and presume that what we want is what He is desiring for our church!

God owns it all and HE is still the great provider for you, me, and all of His local Churches!

We recognize that we are not the ‘norm.’ Nor are we the standard of righteousness in this arena. But in our experience, it is typically unwise for a church body to take on debt.



Stewardship Application

Can going into debt glorify God?

This is not a binary question.

 

There are a lot of “yes’s” and a lot of “no’s.”

To be able to determine if your debt (personal or church) brings Glory to God, it will require spiritual maturity and discernment. To come at this question with a “yes or no” approach misses the rich complexity of living in this particularly broken world in a God-honoring way. 

So, can you glorify God by going into debt? YES! 

There can be situations and circumstances in which debt may be the God glorifying case.

Can you go into debt in such a way as to dishonor God? YES…AGAIN!  

In almost every circumstance where you go into debt for materialistic purposes, it’s rarely, if ever going to make God look great.

When you personally go into debt for the purpose of ego and pride and looks, it makes you look like the hero, not God. 

And, when churches go into debt, not always, but more often than not, there is an element, if not a strong behind the curtain view of ego and pride. 

Listen for GOD’s voice in everything you do, everywhere you go; He’s the one who will keep you on track. (Proverbs 3:6, MSG)

 

 

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