What Your Loan/Debt is Really Costing You
March 28, 2025
Borrowing money is so common in our culture that it seems normal. While the Bible places no outright prohibitions against borrowing, it does offer some cautions. Mostly, if you’re not careful, it warns that borrowing can put you in a form of bondage.
Just as the rich rule the poor, so the borrower is servant to the lender. Proverbs 22:7, NLT
And the Bible reminds us that Christ came to set us free.
You were bought at a price; do not become slaves of human beings.1 Corinthians 7:23
So, before borrowing, consider these three costs.
1. The Financial Cost
Even a relatively small amount of debt can end up costing a lot. For example, let’s say you have a $3,000 balance on a credit card charging 21 percent interest. And let’s say it requires a minimum monthly payment of three percent of the balance or $15, whichever is more. If you make the minimum payment each month, it will take you 193 months to pay it off. That’s 16 years! And you’ll pay more than $3,750 in interest.
Generally, if you’re going to use a credit card, it’s best to charge only what you had planned to spend (if you have $75 budgeted for clothing, you can charge up to $75 for clothing). Then track what you charge as if you paid cash (that $75 counts against this month’s clothing budget). Last, pay your balance in full each month.
If you’re going to take out a mortgage or finance a car purchase, see how much you’ll end up paying over the life of the loan. It can be an eye-opener!
2. The Emotional Cost
Carrying debt can be stressful. The monthly payments narrow your financial margin (the gap between your income and expenses). That leaves you all the more vulnerable should you incur a large unexpected expense or get let go by your employer.
Before you take out a loan, know what the monthly payment will be and plug that into your monthly budget. Imagine paying that amount each and every month. What will that do to your margin? How will it impact your ability to give, save, or invest?
3. The Spiritual Cost
Borrowing money can cost you more than interest payments and sleepless nights. It can come with a spiritual cost as well.
The ease of borrowing may tempt you to avoid praying over something you need or want. Why wait when you can have it now? But maybe God intends to give you the very item you’re planning to buy with debt. And that may be the highest cost of all—that it robs God of the opportunity to bless you.
Again, the Bible does not prohibit borrowing. However, before you swipe or sign on the dotted line, be sure to consider the costs—all of the costs!
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Matt Bell is the author of Trusted: Preparing Your Kids for a Lifetime of God-Honoring Money Management. He speaks at churches and conferences throughout the country and writes the MattAboutMoney blog.
This article should not be considered legal, tax, or financial advice. You may wish to consult a tax or financial advisor about your individual financial situation.
