Debt causes pain. It introduces a financial risk. It is better to be the lender as a Christian, but you have to have the right attitude going into the agreement if you borrow.
Tune in this week as Rylee dives into the hot topic of finances and debt, good and bad. Listen as he discusses the intentionality behind borrowing money as Christians, why it’s important to be good stewards and repay our debts, and how receiving God’s wisdom and word is the path that ultimately leads to wealth!
In this episode, you will learn:
- What the Bible says about going into debt (4:20)
- When the Bible allows for you to borrow money (8:20)
- The difference between good debt and bad debt (9:31)
- Why borrowing money can help you become a good steward (20:06)
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[00:00:00] Rylee Meek: [00:00:00] God’s got a plan for your life. Absolutely does. If you’re in debt up to your eyeballs right now, and you’re like, I don’t know how to get out of this, follow those principles. Right. It begins by receiving his wisdom and walking in his way. As you do this, you’re going to continue to discover the path that ultimately leads to wealth.
[00:00:35] [00:00:30] the King’s council helps you discover. In deploy your God given talents. Now our vision is to get you on the right path to your framework of success. By focusing on the five power pillars, spiritual, mental, emotional, physical, and financial. Now the King’s counsel is not your average coaching program. It’s much more than that.
[00:00:58] It’s a tribe [00:01:00] of like mindseted men and women bonded by faith. Henry relationship that you can do life with. Now, we’re traveling across the United States this summer to a city near you, and we want you to join us in creating the next wave of faith-based entrepreneurs, ready to become the CEOs of their life.
[00:01:22] Visit King’s counsel coaching.com today to speak to one of our team members about how you can [00:01:30] level up in all areas of your life. This episode is brought to you by gospel canvas gospel canvas is re-imagining Christian art for today’s generation of Christians. That exclusive collections are custom unique and a beautiful reminder of the power of salvation and hope.
[00:01:50] Now these pieces will. Any space in at high character and motivation that you can see touch and experience on a [00:02:00] daily basis. Visit gospel canvas.com today and use the promo code king 15. To get 15% off your purchase at checkout that’s gospel, canvas.com using the promo code king 15. Enjoy the show. All right.
[00:02:19] All right, everybody. Welcome back to another episode of the Kings council podcast. You know who I am? I’m your host Riley meek. And today we’re going to dive into one of my favorite [00:02:30] topics specifically talking that when it comes to the Bible, we’ve talked a lot about entrepreneurship in the past. We talked about stewardship recently in one of our podcasts.
[00:02:38] And I’ve gotten a handful of questions DMD over to me, just in regards to debt, specifically into debt. And I wanted to take some time here just to talk with you guys about what the Bible actually says, because I mean, the Bible has a lot to say for good reason. There’s literally more discussion about money and ultimately really possessions [00:03:00] in the Bible.
[00:03:00] Then there’s talk about salvation. Right. And money has a very powerful way of exposing our hearts and ultimately our priorities as human beings. And if you guys have heard me talk at all about. You know that I’m, uh, a firm firm believer that money really, truly only makes us more of who we already are.
[00:03:23] It exposes our heart. And ultimately when it, when we really break it down as believers, we [00:03:30] see that it comes down. Ultimately to a matter of loyalty because we we’ve talked about this in the past that we can’t serve two masters. It says that we will either hate the one and love the other, or we’ll be devoted to one and despise the other.
[00:03:45] We cannot serve both God and money, but as Christians, how do we do this? Like, what does that actually mean? And really what it means is we must choose to love God. Rather than money for it. Cause we’ve talked about this [00:04:00] for the love of money is the root of all kinds of evils. So we must love God and have money serve us.
[00:04:09] So as we look at this in today, what I mentioned, we’re going to talk specifically about debt. What does the Bible teach us? Not only about money, but about debt, because it certainly warns us about debt and culturally today. There’s I mean, there’s an unknown. Array of just opportunities to go [00:04:30] into debt.
[00:04:31] Like so many people are burdened by student loans, car loans, mortgages on homes, and we carry credit card debt. Oftentimes 2, 3, 4 credit cards, right? We’re buying electronics where we’re financing our furniture within our homes or whatever it is. But before we know it. Deep deep, deep into obligations to financial, monthly payments and really debt.
[00:04:57] So the Bible warns us to be very [00:05:00] cautious about taking on debt. So it says be not one of those who give pledges, who put up security for debts. If you have nothing with which to pay. Why should your bed be taken from under you? Proverbs 22, 26 through 27. So debt it introduces financial risks. That’s what it does now.
[00:05:22] Sometimes this risk, it could be wise, right as with the, you know, maybe, uh, we’ll just call it a [00:05:30] reasonable mortgage payment or a wise business startup loan, or maybe this, it could actually be this, it could be a credit card balance. That can be fully paid each month, but more often than not, it’s usually not a good situation to go into debt, right?
[00:05:47] Because debt is a heavy burden, right. Those who go into debt or fall into debt, we’ll call it. It’s it’s heavy. It begins to just weigh on us. It can become just an emotional or worse yet [00:06:00] a relational. No, not only to the debtor and the lender, but as marriages, we lie awake at night, we’re regretting the money that we’ve spent or the commitments that we’d made.
[00:06:11] And so many couples just over time grow cold, they may grow distance and ultimately divorce because of just this weight of poor financial decisions. And if they’d only kept in mind, really Solomon’s words of the rich rules over the poor and the borrower is the [00:06:30] slave of the land. Again, Proverbs 22 7. So when someone hands us money, what we’re doing is essentially they take our autonomy and reduce our freedom.
[00:06:42] We’re now bound to them in what is almost like a master slave relationship. And that, that is not resolved until the debt is actually paid in full. If we look at like what debt actually is. So when we look at that, or we think about that, Oftentimes, the question is, well, is it a [00:07:00] sin to borrow money? Is it, am I committing a sin?
[00:07:04] If I have to, to get a loan for a home or a car or whatever the case is. Right. And in God’s word, it doesn’t necessarily prohibit the borrowing of money because if this was the case, it would also, uh, be wrong for us to lend money. And it’s clear that. As, as believers, we are to be the ones that actually lend money.
[00:07:27] As, as we read through scripture, it says that God’s [00:07:30] plan for his people is to be the lenders. It’s a, in Deuteronomy. It says the Lord will open for you. His good storehouse, his good storehouse, the heavens to give rain to your land in its season, and to bless all the work of your hand. And you shall lend to many nations, but you shall not borrow it.
[00:07:52] It says you shall lend to many nations. So therefore we have to understand that if lending isn’t sinful, it [00:08:00] certainly can’t be a sin to actually borrow. This is a reasonable statement that you shall not borrow. It’s because the people of God who walk in obedience to God’s word, we should be empowered with the provision of God.
[00:08:14] That we don’t have to borrow. So if we get back to the question here, is it a sin to borrow or does the Bible prohibit borrowing? And the Bible only prohibits a Christian from borrowing with the attitude that they’re [00:08:30] not going to pay it back. I’m going to repeat that. The Bible only prohibits a Christian from borrowing money or possessions of any sort.
[00:08:40] If their attitude going into that is that they will not pay it back. Right? When you borrow you, you must make plans to pay back what you borrowed. In fact, the Bible says actually, evil men borrow and cannot pay it back, but the good man returns. [00:09:00] What he owes with some extra that’s that’s Psalms 37 21. So this clearly makes it makes the assumption then that good men still borrow, right?
[00:09:11] The good man returns, what he owes with some extra. So is there such a thing then as good debt? Because this is oftentimes a question that I get is if debt is bad, is there such a thing as good debt? And here’s the. Yes, even though all that [00:09:30] produces pain of some sort, there is a thing of called good debt and it, when it comes to good debt, your goal, ultimately as with any debt, but only if we’re looking at good debt, your goal is always to pay it back as fast as you can in a good debt would be something that works for you over time.
[00:09:52] A bad debt is something that works against you over time. It’s pretty simple, right? Every type of debt that we owe is going to [00:10:00] fall into one of those two categories, it’s good or it’s bad, every single one of these debts. So an obvious example of good debt, which we all think of would potentially be. I’m going to say potentially here, because it’s, there’s still takes wisdom and discernment in these decisions.
[00:10:16] So if you’re renting, you probably shouldn’t buy another car. Until you become a homeowner, right? Owning your home is more than likely a good debt, not always the case, but more than likely a good debt [00:10:30] that will work for you over time. And as you repay your home loan, you’re building equity into your home.
[00:10:36] And that interest in that you’re paying each year is tax deductible. Uh, something here called the money game that we, that we have to still play just with culture and society that we have. Now there’s again, wisdom and discernment that, that needs to come into play in all of these decisions. So I encourage people to, to borrow money, to buy a home if they need to.
[00:10:54] Okay. If you can pay cash for it, not a problem, but if you need to borrow money to buy home, it’s probably a good [00:11:00] step for most people. As long as you can afford the monthly payment without taking away any other obligations specifically. Your tithe. If it’s taking away from your first fruits, giving back to God, what is already his?
[00:11:14] Absolutely a bad idea. Okay. This is the wisdom and discernment that needs to come into play. If you’re going to be a, you know, buying a home or maybe I would potentially encourage somebody to, as they get older, to keep buying a different home or a larger home, because the value that they have [00:11:30] invested over time, it’s been proven that a home is usually one of the better investments or an asset that you can acquire.
[00:11:38] Now. Some people would think that good debts would also be like, Education for your children, which if you know anything about my thoughts on the education system today, I think, you know that going hundreds of thousands of dollars in debt to ultimately become a servant and employee to work for somebody else, in my opinion is one of the worst [00:12:00] decisions that you can absolutely make now.
[00:12:02] Good debt that’s for another episode, if you haven’t heard me talk about this topic before, but a good debt could be. Maybe borrowing money for an initial order of inventory, or just to start your business. However, when it comes to any kind of loan you should seek counsel, right? Seek counsel with many advisors is usually a good thing.
[00:12:24] If it’s counsel that ultimately number one has your best interest at heart because not all council [00:12:30] has your best interest at heart. And it’s usually if I’m seeking counsel, I’m looking for counsel from somebody that has the fruit in their life that I want. So if I’m seeking counsel from somebody that’s had seven failed businesses, shame on me.
[00:12:45] That’s probably not the best person to, to look for, unless it’s. You know, something to not do right there. There could be that version of counsel, I guess, but if your loan to buy or to start a business is to, you know, alone borrow money to buy a [00:13:00] thousand t-shirts for your company, your startup t-shirt company, probably not wise counsel.
[00:13:06] Okay. So there’s other versions that you can start a business without going into debt. So when it comes to bad debts, there is a long list, a long, long list of bad debts. And most of us own things that we’ve purchased through revolving credit or other types of just high interest loans. Right now, there’s nothing wrong with, with owning a car.
[00:13:30] [00:13:29] Because we certainly need a car. Now, if you’re using that car to make money, that may make sense, especially if you can write a portion of that off. Okay. But. Again, I’m going to always go back to have wisdom, especially when buying a vehicle. I would rarely ever, ever suggest buying a brand new car. A car loses 30% of its value.
[00:13:54] The minute you drive it off the lot. So it typically doesn’t make sense to borrow money, to [00:14:00] buy one versus buying one that’s a few years old, right? Buy a pre-owned vehicle. If that’s what you’re looking for. Now some cases, a person has to borrow money to get their first car or maybe their second car, but it may, at the end of the day, it may be the only way that they can actually acquire a vehicle because they don’t have enough cash on hand to acquire a reliable vehicle.
[00:14:23] But again, make sure that it is a vehicle that is neat. Okay. So many of us [00:14:30] go into debt for something of a desire, something that we want, but it’s not necessarily a need or it’s not serving a purpose for us to continually use. Remember money is simply a tool. No matter if we look at money or talents or anything, that we are acquiring a possession, look of it as a tool.
[00:14:48] Is it producing fruit in our life? If you do have to get a car loan. I would never suggest getting a car loan for more than 36 months. Nowadays you can get [00:15:00] car loans for 60, 72 months crazy amounts of time. But I would suggest keep it under three years because in a year and a half, Your audio, your car payment, it’s essentially half paid for.
[00:15:12] And if you need to, you could actually trade that back in again, where people get over their head as they, they finance these things out for 5, 6, 7, 8 years in their, over their head. The moment they drive it off the lot. And they’re never going to be able to get out from out of under that, unless coming out of pocket and paying that [00:15:30] thing off.
[00:15:31] So, if you have to borrow for six or seven years, you’re always going to be upside down, meaning you’re going to owe more in principal and interest than what the vehicle is actually worth. Okay. So the wisest choice would always be to pay the car off and then begin to save for the next one. You’re going to need another car over time.
[00:15:48] So start to save for that car over time. More money. I just, I, I just talk about vehicles because it’s kind of an obvious topic, but more money is wasted on cars than any other [00:16:00] place. And when you start to have car trouble, you’re now you’re paying for money to fix a car that you still owe money on. It’s just, it’s a nightmare.
[00:16:08] It can absolutely be a nightmare of a situation when it comes to debt. So other bad debts would be things like something that you have to buy on a credit card. Now, if you pay your credit cards off at the end of every month, Then I would essentially say you are in charge of your credit life. However, if you’re carrying a balance for month [00:16:30] to month, You’re headed for trouble.
[00:16:33] And this is the problem in America. Most people are we’re overspending. We don’t have, we don’t make enough each month to not only pay off any debt we’ve already acquired, but to even cover the, the existing monthly bills that we owe that we have that we currently have. So it’s not borrowing that’s wrong.
[00:16:52] It’s the inability to repay. That causes us the trouble, the problems that we [00:17:00] have, right. Even if we had good intentions of paying it, this is where seeking counsel in wisdom is so important. I would tell some people not to borrow at all because they can’t pay back what they already have borrowed, but for others that can use the lenders money to create more money, borrowing could be a wise choice.
[00:17:21] Okay. So for example, I have a, for the multiple companies and businesses that we have, I have, I don’t really need to know probably a [00:17:30] dozen or so different credit cards for all the different businesses. And I use those for all of our businesses expenses, because what I’m doing is I’m earning rewards specifically airline miles, because I travel a ton and I’m able to use those rewards to generate more money within our businesses.
[00:17:50] So there, there is a period of time, or there is a situation when it does make sense to use something like a credit card, if, and only if I’m paying [00:18:00] that off every month and in the rewards that I’m getting, or if the rewards that I’m getting outweigh, anything that I would be potentially going into debt for.
[00:18:08] Okay. Because at the end of the day, we got to pay our debts as Christians. You must be true to your word in this means debts must be repaid. Debts are an obligation. We cannot walk away from them. In fact, we’ve got to do our absolute best to pay them back. According to the exact terms that were established, because again, in [00:18:30] Psalms, it says the wicked borrow.
[00:18:32] But does not pay back, but the righteous is generous and gives. So to refuse to settle our debts, it’s wicked. That sounds pretty bad. It’s wicked. It’s a, it’s a terrible demonstration of a believer of the Christian character. Okay, so debt’s not always wrong, but in most cases it’s not advisable. There’s a better part of wisdom to avoid the debt whenever possible to [00:19:00] enter it with caution, if we do need to, and to get rid of it as quick as we can.
[00:19:06] Okay. But there is a, if we’re using this as a tool, if we have wisdom, we’ve seeped out console, not all debt is bad. Okay. The Bible teaches us that when money is borrowed, There should be a secure payment plan going into it. Okay. There should be a secure payment plan where if we get back to the verse, the wicked borrows and doesn’t pay back, but the righteous is gracious and gives.
[00:19:28] This is very, very [00:19:30] clear. It doesn’t say that the person who borrows is wicked. I want you to make sure you hear me. It doesn’t say that the person who borrows is wicked, but the person who borrows in doesn’t pay it back. So what is condemned really is not the borrower itself. That’s not the sin. It’s the failure repay.
[00:19:48] Kay. So as believers, we’ve got to maintain our testimony for Christ, right? By borrowing wisely, by being good stewards of that debt [00:20:00] stewards of paying back our debts. Okay, so we gotta be paying close attention to the ratio of these debts over time. So borrowing money is it’s. As I mentioned, stewards, it’s a matter of stewardship in good stewardship.
[00:20:15] Okay. It’s the only time that borrowing is actually advisable or, or even considered K as much of us as much as any of us, I would like to buy a house with cash nowadays. The reality, most of us can’t, especially if it’s our first home, right. Unless we’ve inherited some [00:20:30] gross amount. Most of us are going to need to borrow money to, to get our first mortgage.
[00:20:35] But what’s most importantly is wisely managing that mortgage that’s stewardship. So only getting a monthly payment mortgage that is not going to take away from a number one. Again, my, the first fruits, me being able to tie then give back to God. What has already his. Okay, that’s going to be number one.
[00:20:55] When it comes to financial wisdom, I’m always going to tell you, because I’m the [00:21:00] prime example of how God will continue to bless that over time is stewarding in and maintaining that tide, always giving back to God. What is already his? Okay. God’s going to always bless you way more with the 90% that he’s allowing us to use or the 80% or whatever it is, but always giving back that, that first fruit to him, it’s a, it’s a matter of.
[00:21:23] Okay. God is always going to honor, your honor. Okay. So here’s the conclusion of this. [00:21:30] My conclusion of this kid, the Bible doesn’t teach that borrowing money is a sin. It clearly, it doesn’t say that borrowing money’s a sin. It certainly discourages debt and it clearly warns us. It gives us the dangers practical in spiritual dangers of.
[00:21:47] Why we shouldn’t go into debt, but as, as being wise stewards and how we manage our finances, that that is the most important part. So my key takeaway from all this is [00:22:00] if you can avoid debt, certainly avoid it, right? If you must borrow, borrow wisely with the secure payment plan in place, pay it off as aggressively as you can within.
[00:22:12] Of whatever your present situation is. If you have a good month in business, pay off more, always keeping a certain area of margin for the following month, that may not be as good, but always aggressively pay that debt off. I believe I personally believe that it should be our goal to, to [00:22:30] be debt-free right and not have to owe anybody anything.
[00:22:34] But if we’re using that money as a tool, we’re stewarding it wisely. That’s the most important part. Okay. So I threw together a few key takeaways or really just steps to make me live by. So number one, you’ve heard me say it multiple times here. Always give your first fruits to God. Okay. No matter how in depth you are, hear me on this.
[00:22:55] No matter how in debt you are, when it looks to you, like, I just don’t [00:23:00] have, I mean, if I could pay this debt off, I would get out of debt quicker. I’m telling you that’s not how it works. Give the first fruits to God, no matter how in debt you are, continue to trust God, give your first fruits to him by tithing to your local church.
[00:23:15] Okay. From there, then develop a budget. No. Okay. I’ve got the 90% or part of that budget should be giving above and beyond. God gives seed to the sower. So if you were going to continue to sow, you will continue to get seed. Okay. So I believe [00:23:30] some part of that budget should be given above and beyond. And again, this might not make sense to you logically, but there are spiritual principles at play here.
[00:23:38] So develop a budget include within that budget, knowing that your budget is only 90% of what money you have left that God has given us. Okay. We’ve honored him by giving the 10%, but included with that in that budget should be a budget to give above and beyond. And then let’s take a look at our household income, right?
[00:23:55] Like what we have to, to spend on our mortgage, [00:24:00] a car payment. If we have to food, just living expenses, Kate, this may be where we need to cut back and understand our budget. Isn’t necessarily what we want. It’s not your right to have those things. Okay. But if you steward it well, it’s something that you can grow into.
[00:24:17] Okay. So work out that, that payback plan, get yourself out of that debt. You know, you do not want to be a borrower. You want to be a lender. Okay. And with this has done by exercising. Self-discipline make that a [00:24:30] lifestyle. Seek counsel, get wisdom and maybe even start a wisdom fund where you’ve got one to three months of income for things that, that you weren’t expecting when things come up that’s budget.
[00:24:42] That’s set aside. Okay. So I’ll break those down again. Always give your first fruits to God, no matter what develop a budget include in that budget of giving. Be above and beyond. Work out a payback plan, exercise self-discipline as a lifestyle continually seek counsel and wisdom. [00:25:00] But on this wisdom and counsel from people that have the fruit in their life that you want and desire, and then once that’s happening and in place, you’re going to be able to have money set aside as that, that, that fund, that, that wisdom fund we’ll call it too.
[00:25:16] Tip to allow you to have that peace of mind of when something comes up when the car breaks down, whatever that situation is. So you’re not having to put it on a credit card to make payments, but you’ve now built it. You’ve built your [00:25:30] storehouse to be able to lend to others when need be. So God’s got a plan for your life.
[00:25:35] Absolutely does. If you’re in debt up to your eyeballs right now, and you’re like, I don’t know how to get out of this. Follow those principles, right? It begins by receiving his wisdom and walking in his way. As you do this, you’re going to continue to discover the path that ultimately leads to wealth.
[00:25:59] thanks for tuning in [00:26:00] to this week’s episode of the Kings council podcast. For more information on the Kings council and becoming the CEO of your own life. Visit Kings council coaching.com today, you can also follow us on. At King’s council coaching. We’ll see you next time. .