The Unintended Consequences of Debt

by Guest Author: Cory De Silva

You already know the obvious consequences of debt: stress, bankruptcy, and rocky marriages. But let’s talk about the hidden consequences:

  • A lack of generosity
  • Stolen joy
  • Loss of freedom of choice

Unintended Consequence of Debt #1: It Kills your Ability to Give

Four months ago, a young father approached me for financial help. He was losing his apartment and needed some cash to house his family. I wanted to contribute, but could only give $100.

Because of my debt, I was limited on how much I could offer. I knew debt could wreak havoc on my finances, but I never thought it’d prevent me from helping others. This realization broke my heart. 

Unintended Consequence of Debt #2: It Steals your Joy

When my wife and I were buried in medical bills, we argued daily. There was zero peace. Thankfully, God was bigger than our problems, and we passed through this difficult season. 

However, we still had work to do: make calls, apply for financial assistance, and set up payment plans. It was a humbling experience, and it required trust in God. 

Now, almost a year later, we’re halfway out of our debt. We’re saving for a home and are on the path to debt-free living. It feels like a miracle! 

Black and white sketch of pile of cash on fire

Unintended Consequence of Debt #3: It Steals your Freedom of Choice

Sometimes debt is unavoidable. You take it on for education, mortgages, or a business loan, and it takes years to pay back. 

Life can also deal you an unfair hand, where there’s no alternative but to turn to debt for survival. When this happens, what do you do?

What does the Bible say about Owing Debt?

There are a handful of verses that talk about debt. But the one I’ll mention is in Genesis, when an uncontrollable situation (famine) reduced an entire nation to bondage. 

It involves the story of Joseph, a young Hebrew who was put in charge of Egypt. To prepare for a famine, Joseph began stockpiling food. Several years into the crisis, the nation ran out of grain and the people panicked: 

“When that year was over, they [the Egyptians] came to [Joseph] the following year and said, ‘We cannot hide from our lord the fact that since our money is gone and our livestock belongs to you, there is nothing left for our lord except our bodies and our land. Why should we perish before your eyes—we and our land as well? Buy us and our land in exchange for food, and we with our land will be in bondage to Pharaoh. Give us seed so that we may live and not die, and that the land may not become desolate.’

So Joseph bought all the land in Egypt for Pharaoh. The Egyptians, one and all, sold their fields because the famine was too severe for them. The land became Pharaoh’s, and Joseph reduced the people to servitude, from one end of Egypt to the other.” —Genesis 47:18-20 (NIV)

Isn’t that staggering? The Egyptians begged themselves into bondage because there was no way out. 

Point is, sometimes debt is unavoidable. But regardless of the reasons, one unintended consequence of debt is that it steals your freedom of choice. 

AI painting of a middle eastern country experiencing famine.

Your Assignment for this Week

Take some time to really scour your expenses. See if you can slash outflows and stabilize your budget. As the saying goes, “the first rule of holes is to stop digging.”

Making Hard Decisions

In my own life, my wife and I’s biggest instability was our cost of living. We were renting in Los Angeles, where a tiny apartment was $1600 a month. Cash was tight and we had to use credit cards to buy groceries.

In the end, we made the painful decision to relocate to my parents’ home. Was this decision easy? Of course not. But we didn’t have many other options.

Another solution was to give one of our cars to a friend in need. It was tough having only one vehicle, but the money we saved from insurance and maintenance each month was worth it.

Obviously, some people can’t afford to move or downsize their vehicles. If that’s you, I deeply empathize. 

In Summary

Scour your housing, auto, and living expenses. Identify areas where you can cut costs. Secure a surplus so you can start the debt snowball process–one of the easiest ways to get on top of your liabilities.

God is on your Side

Even if your situation looks dire, don’t be discouraged. God is on your side. Ask Him to put wind in your sails and fast-track your mission toward Financial Health. 

Meet with a professional who can show you different payment strategies–especially the debt avalanche and debt snowball processes. My dad, Stephen, is a great resource for this. When I first met with him almost a year ago, I was so embarrassed, but in just a few months, I’d already begun to see breakthrough. A little bit of humility and a lot of help from the Lord can go a long way. 

PS: If you need help overcoming debt, check out my dad’s lesson, “Debt Avalanche & Snowball,” from his Practical Tools Collection. After you finish the video, schedule a free 15 minute Zoom session with him so you can begin to craft a plan for debt-free living.