Misconceptions About Debt and Credit with Dr. Shane Enete

Faith & Finance

The poet Ogden Nash once wrote, “Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.”

One thing’s for sure: getting into debt is much easier than getting out of debt, so the more you know about debt and credit, the better off you’ll be. Author Dr. Shane Enete joins us again today to discuss his take on that double-edged sword.

Dr. Shane Enete is an Associate Professor of Finance at Biola University and the author of the brand new book, “Whole Heart Finances: A Jesus-Centered Guide to Managing Your Money with Joy.”

Debt In God’s Word

Debt is often used in the Bible as a metaphor for bondage, emphasizing its severity. Both Jesus and Paul liken redemption to being freed from debt, highlighting the spiritual implications of financial burdens. Debt restricts our ability to fully express our identity in Christ and live freely according to God's will.

The biblical concept of Jubilee, where debts are forgiven, highlights God's desire for us to be free and return to our original inheritance, reflecting His provision and grace.

While usury, or lending that exploits and enslaves others, is condemned in the Bible, being in debt is more about wisdom than morality. Understanding the distinction between debt on appreciating assets (like education or a home) and depreciating assets (like a car or consumer goods) is crucial for making wise financial decisions.

Credit: Not Always Synonymous With Debt

Credit is often misunderstood as synonymous with debt. However, building good credit without borrowing is possible and beneficial. Credit is simply a measure of your trustworthiness to repay loans, and a good credit score can provide access to lower interest rates and better financial opportunities.

Credit cards are a double-edged sword. While they offer convenience, they also delay the consequences of spending, making it easier to overspend. This delay can trigger a dopamine response, making shopping more enjoyable but also more dangerous financially. It's essential to be aware of this psychological trap and manage credit card use wisely.

To avoid the pitfalls of credit cards, we recommend tracking spending daily and using digital envelopes for budgeting. These methods help make the consequences of spending immediate, encouraging more mindful financial decisions. Maintaining visibility over our finances prevents overspending and promotes wise money management. The FaithFi app is a great tool if you’re looking for a customizable money management tool to help you make good financial decisions every day. With the app, you can securely connect to bank accounts, track spending, and make the most of every dollar.

Living debt-free and managing money in a way that honors God allows us to excel in the grace of giving. This enriches our spiritual lives by continually experiencing the gospel through generosity. By applying biblical principles to our financial lives, we can experience greater joy and freedom.

On Today’s Program, Rob Answers Listener Questions:

• How can I find investments that align with my faith beliefs?
• My adult son is disabled and collects SSI and SSA. I retired early, but I am also a teacher seeking licensure. I'm not working right now until school starts again. The bank says they cannot use my son's income unless I'm a beneficiary. How can I become a beneficiary to show his income? And how would that impact me later on with the home if the government tried to take the house since he was receiving Social Security?

Resources Mentioned:

• Whole Heart Finances: A Jesus-Centered Guide to Managing Your Money with Joy by Dr. Shane Enete
• Faith-Based Investment Funds List
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)
• FaithFi App

Remember, you can call in to ask your questions most days at [phone]. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.