Good Debt vs. Bad Debt
Good Debt vs. Bad Debt Biblical Financial Wisdom for Life and Ministry Opening Scripture Proverbs 22:7 "The rich rule over the poor, and the borrower is slave to the lender." Introduction Many people think all debt is bad, while others think debt doesn't matter. The Bible teaches wisdom rather than extremes. Debt is a tool. Like fire, it can cook food or burn a house down. The issue is not debt itself but how and why it is used. I. Understanding Good Debt Definition Good debt is borrowed money used to create value, increase income, or build assets. Biblical Example In Jesus' parable of the talents (Matthew 25:14-30), faithful servants used resources to produce increase. Examples Starting or expanding a business Purchasing productive farm equipment Investing in education or training Buying assets that appreciate or generate income Key Principle Good debt should help create more value than it costs. Discussion Question What investments today could increase your family...