References:

Proverbs 22:7

Proverbs 17:18

Proverbs 22:26-27

Transcript:

This module will cover the basics of credit and debt management. Prudent management of credit is a necessary skill in our modern financial system which relies heavily on your reputation in the form of credit scores and credit reports. Credit impacts many aspects of your life - from the apartment you rent, or the mortgage payment on your home, to the premium in your auto insurance or your ability to rent a vehicle on vacation. 

The Bible has a few things to say about debt, and unfortunately, it is seldom cast in a positive light. Three proverbs stand out to me for their stern warnings around taking on or guaranteeing debts:

Proverbs 22:7b - “The borrower becomes the lender’s slave”

Proverbs 17:18 - “A man lacking in sense pledges, and becomes guarantor in the presence of his neighbor.”

Proverbs 22:26-27 - “Do not be among those who give pledges, among those who become guarantors for debts. If you have nothing with which to pay, why should he take your bed from under you?”

Debt fundamentally changes our relationships with whom we borrow from, and it can add a lot of stress to relationships where we promise to step in if the borrower is unable to pay. When creating a financial plan, we must hold these two aspects of credit and debt in careful balance - prudent use and risk in borrowing.