Jump directly to the Content

How to Avoid the Dangers of Debt

Everyone seems to be using credit which only adds to the desire to spend now and pay later. Is this wise?
How to Avoid the Dangers of Debt
Image: skynesher | Getty

It seems nowadays that the American economy is built upon debt. And that’s a shaky foundation. What is debt? Is it wrong for the Christian to be in debt? How can one get out of debt—and stay out? If you’ve wrestled with any of those questions, you know debt is a complicated issue.

Five Types of Debt

To begin with, let’s set up a framework for our discussion by focusing on the different kinds of debt. What precisely are we talking about when we say the word “debt”? We define debt as any money owed to anybody.

The first kind of debt is credit card debt. If you use credit cards, your spending level will be approximately 34% greater than if you use cash—and this assumes that you pay your credit card bills off every month. So the mere fact of having the credit card available indicates that you’ll use it to spend more than you would otherwise. Adding ...

Article Preview

This article is currently available to ChurchSalary subscribers only. To continue reading:

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is published with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations."

Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.

Lilly Endowment

ChurchSalary is made possible through funding from the Lilly Endowment Inc. As part of Lilly's "National Initiative to Address Economic Challenges Facing Pastoral Leaders," ChurchSalary—and our parent, Church Law & Tax—is committed to helping church leaders and pastors develop an atmosphere of healthy financial stewardship, especially in the area of church staff compensation.