What Is Debt Really Costing You?

Sigrid Wardlaw
June 12, 2025

Last week, we focused on setting financial goals that align with your budget, your values, and your vision for the future.
Over the next four weeks, we’ll shift toward clearing what may be standing in the way of those goals: debt.

Debt doesn’t just affect your wallet. It impacts your peace of mind, your relationships, your ability to give, and sometimes even your health. For many, it’s a quiet burden—normalized by culture, yet never designed by God.

But here’s the good news: you are not powerless. Scripture gives us wisdom. Stewardship gives us strategy. And God gives us grace.

Let’s talk about what debt really is, how it affects every part of your life, what the Bible says about it, and how to begin your journey toward lasting financial freedom.

💡 This Week’s Focus: Understanding the Real Cost of Debt
Debt is more than just numbers on a page. It’s spiritual, emotional, and physical. And while the world may treat it like a normal part of life, God calls us to something better—freedom.

When you’re in debt:

You’re spending tomorrow’s income today. You’re borrowing against your future, which limits your ability to respond to God’s leading in the present.
You’re giving away future freedom for present convenience. That couch or vacation may be long gone—but the payments remain.
You’re carrying a weight that God never intended for you to bear long-term. Debt may be widespread, but it is not God’s best. It creates pressure, limits options, and often leads to feelings of anxiety, shame, or discouragement.

Debt can sneak into our lives subtly—through emergencies, student loans, lifestyle inflation, or just trying to make ends meet. But whether it was a one-time crisis or years of overspending, the result is often the same: a sense of bondage.

📖 Verse of the Week
Proverbs 22:7 (ESV): “The rich rules over the poor, and the borrower is the slave of the lender.”
This isn’t just financial advice—it’s a spiritual truth. Debt creates bondage. But God desires freedom.

To begin your journey toward freedom, we must start with clarity and truth. That means asking some hard but necessary questions—and answering them honestly, with grace.

What is debt?

Debt is money borrowed with a promise to repay—usually with interest. It may come in the form of loans, credit cards, or unpaid bills, but all debt has one thing in common: it binds your future to a past decision. Debt is not always the result of poor planning—sometimes it's a response to hardship—but no matter how it begins, it places a claim on your income before you even receive it.

What types of debt exist?

Not all debt is created equal. Some debt is consumer-driven; some comes from crisis. Here are the most common forms:

Credit Cards – High-interest, revolving debt often tied to everyday spending or impulse purchases.
Student Loans – Long-term obligations for education that can follow borrowers for decades.
Auto Loans – Secured loans tied to depreciating assets that lose value quickly.
Mortgages – Secured debt for homeownership; often long-term but can be strategic when managed wisely.
Medical Debt – Often unexpected, unplanned, and emotionally heavy.
Personal Loans / Payday Loans – High-cost borrowing options, sometimes predatory, that create a dangerous cycle.

📖 What Scripture Says About Debt
God’s Word doesn’t call debt a sin—but it does give us serious warnings about its consequences. Debt creates obligation. And obligation can limit our generosity, restrict our ability to follow God’s leading, and rob us of the peace that comes with financial freedom.

Here are four key scriptures—and what they reveal:

“The rich rules over the poor, and the borrower is the slave of the lender.” — Proverbs 22:7 (ESV)
This is perhaps the most well-known verse on debt—and for good reason. It reminds us that debt puts us in a position of servitude. When you owe, you’re no longer fully free. Part of your income, time, and attention must serve that debt first. It limits your ability to live and give freely.
“Owe no one anything, except to love each other…” — Romans 13:8 (ESV)
Paul encourages believers to live in such a way that love is the only remaining obligation. While this verse isn’t a legalistic command to never borrow, it points to a life marked by freedom and integrity—where we meet our obligations and walk in ongoing love and generosity.
“The wicked borrows but does not pay back, but the righteous is generous and gives.” — Psalm 37:21 (ESV)
This verse contrasts the character of the wicked and the righteous. The righteous not only repay what they owe, but they go beyond that—they give generously. Debt can make giving feel impossible, even when our hearts long to be generous. Freedom from debt helps unlock that calling.
“The Lord will open to you his good treasury… And you shall lend to many nations, but you shall not borrow.” — Deuteronomy 28:12 (ESV)
In this covenant blessing, God describes what it looks like when His people walk in obedience: abundance, not lack. Borrowing isn’t God’s ideal—it’s a sign of dependence, not dominion. God desires His people to be in a position to lend and bless, not borrow and serve.

When you’re in debt, your decisions can feel driven by pressure instead of purpose. You may delay generosity. You may hesitate to step into something God is calling you to do.
But the heart of God is not restriction—it’s release. Not bondage—but freedom.
Let these scriptures remind you: God’s desire is not to shame you for being in debt—but to lead you out of it with wisdom, grace, and provision.

Why Understanding Debt Matters for Your Stewardship Journey

As believers, stewardship isn’t just about managing money—it’s about managing the resources God has entrusted to us with wisdom, integrity, and purpose. Debt affects more than your balance sheet. It can quietly reshape your heart, your habits, and your ability to walk freely in obedience.

Debt Limits Your Options
When a portion of your income is already spoken for, it becomes harder to say “yes” to opportunities God places in front of you—whether it’s giving, serving, saving, or simply being present. Debt ties up your freedom. And without margin, your response is limited—not by faith, but by financial obligation.

Debt Can Mask Deeper Patterns
Overspending and impulsive purchases are often symptoms of deeper emotional or spiritual needs. Whether it's stress, comparison, or trying to prove something, debt can reveal underlying habits that need healing, not just tightening.

Debt Distorts Your Perspective
When money feels tight, it's easy to believe God hasn’t provided enough. But often, the problem isn’t provision—it’s overextension. Living within your means allows you to see God’s faithfulness more clearly and develop contentment rooted in truth, not trends.

🎯 Weekly Challenge: Know Where You Stand
This week, take a deep breath and gather the facts:

Make a complete list of what you owe.
- Include the lender, balance, minimum payment, and interest rate.
Don’t judge yourself—just be honest. This is a starting point, not a sentence.

💬 Reflection Questions

Have I accepted debt as normal?
What would my life look like if I was completely debt-free?
Am I willing to trust God for a better way?

📢 What’s Coming Next
Next week, we begin the step-by-step journey to freedom: The 7 Steps to Get Out of Debt. They’re simple to understand—but powerful when applied.

🔁 New here or missed a few? You can read all the previous newsletters right here: financebyfaith.beehiiv.com

Blessings and financial peace to you!