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Created by Ronald Blue Trust

First Things First—Paying Off Debt

First Things First—Paying Off Debt
Image: Dino Reichmuth / Unsplash


We believe to be an effective steward, it is important to follow a prudent investment process that is aligned with biblical principles and smart financial decisions. Ronald Blue Trust explores the benefits of paying off debt as your first step toward building a wise investment strategy.


The first decision when starting to save or invest is to ask what will give you the greatest return.

If you have a non-mortgage debt at 6% and your cash savings is earning 2%, you are losing ground each month. Paying off the 6% (or higher) debt provides a greater return than putting more into savings. That example is pretty easy, but what about when your savings return and debt cost are the same? Or how about when your savings return is greater than your debt cost?

There are no “pat” answers to these questions as every situation is unique. However, as with all other areas of life, the Bible provides us with helpful wisdom. Generally scripture says to avoid the use of debt. The Bible never condemns the use of debt, or calls it a sin, but it does encourage us to carefully weigh the impact of its use and to understand that the borrower becomes the lender's slave. The Bible does “call us on the carpet” for the failure to repay debts or using debt to presume upon the future.

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