Getting out of debt starts with facing the full picture, making a simple plan and taking one steady step at a time, with God's grace and good support. Scripture does not shame people who are in debt, but it does encourage us toward freedom, and free practical help is available in Australia.
This article is general information only and is not financial advice. Please consider your own circumstances and seek professional advice where needed.
Debt can feel like a heavy weight. It can affect your sleep, your marriage and your peace. If you are struggling, please know you are not alone. Many families in our community are facing rising costs and mounting bills. There is hope, and there is a way forward.
What the Bible says about debt
The Bible speaks honestly about debt. Proverbs 22:7 (NKJV) says, "The rich rules over the poor, And the borrower is servant to the lender." Debt can limit our choices and our freedom.
Paul writes in Romans 13:8, "Owe no one anything except to love one another." Some read this as a complete ban on borrowing. In context, though, Paul is talking about paying what we owe, including taxes and respect (Romans 13:7). Most Bible teachers understand it as a call to meet our obligations and to keep love as the one debt we never finish paying. Scripture elsewhere assumes that lending and borrowing happen, while warning us to be careful.
So borrowing is not automatically sin. But debt is often a burden, and God cares about our freedom.
God cares about families in debt
In 2 Kings 4:1-7, a widow came to the prophet Elisha in tears. Her husband had died, and a creditor was coming to take her two sons as slaves to pay the debt. God did not shame her. He provided for her in a remarkable way. She was able to pay her debt and live on the rest.
This story reminds us that God sees families under financial pressure. He is compassionate, and He is involved. His help does not always come in the same way. Sometimes it comes through a miracle, and often it comes through wisdom, hard work, generous people and good advice.
Grace before the plan
Before we talk about steps, here is something important. Your worth is not measured by your bank balance. "There is therefore now no condemnation to those who are in Christ Jesus" (Romans 8:1).
Shame keeps people stuck. Grace helps people move. You can face your debt honestly because you are already loved and accepted by God.
Six practical steps to get out of debt
Step 1: List every debt
Write down everything you owe. Include credit cards, personal loans, car loans, buy now pay later accounts, overdue bills and money owed to family. Note the balance, interest rate and minimum repayment for each one.
Our free Get Out of Debt Kit includes a debt list, a snowball planner and a repayment schedule to help you.
Step 2: Stop adding new debt
This is hard but important. Put away the credit card. Pause buy now, pay later accounts. If possible, remove saved card details from online shopping sites.
Step 3: Build a small buffer
Set aside a small emergency fund, even a few hundred dollars to start. This stops you reaching for the credit card when something unexpected happens, like a car repair or a sick child.
Step 4: Choose a repayment method
Two common approaches can help:
- Debt snowball. Pay the minimum on every debt, then put any extra money toward the smallest balance first. When it is gone, roll that payment onto the next smallest. Early wins build momentum.
- Debt avalanche. Pay the minimum on every debt, then put extra money toward the debt with the highest interest rate first. This usually saves more money over time.
Both work. Choose the one you are most likely to stick with.
Step 5: Talk to your lenders
If you cannot keep up with repayments, contact your lenders early. Ask about a hardship arrangement. In Australia, many lenders must consider hardship requests, and they may be able to reduce or pause repayments for a time.
You do not have to do this alone. The National Debt Helpline on 1800 007 007 offers free, confidential financial counselling. A financial counsellor can help you understand your options and can even speak to lenders for you.
Be careful of companies that promise to make debt disappear for a fee. Free services are often the best place to start. The Moneysmart website (moneysmart.gov.au) has more information.
Step 6: Celebrate and keep going
Every debt paid off is worth celebrating. Mark the moment with your family. Keep going, one step at a time.
What about giving while in debt?
Many people ask whether they should keep giving while they pay off debt. This is a personal decision to make prayerfully. Paul wrote, "if there is first a willing mind, it is accepted according to what one has, and not according to what he does not have" (2 Corinthians 8:12).
God is not asking you to go without food or fall behind on bills in order to give. Generosity can begin small and grow as your situation improves. Read more in Grace-Centred Generosity.
Look after your heart
Debt affects more than your finances. It can affect your emotions, your sleep and your relationships. Talk openly with your spouse. Pray together. Share the burden with a trusted friend. Galatians 6:2 says, "Bear one another's burdens, and so fulfill the law of Christ."
Try this week
- List every debt using the Get Out of Debt Kit.
- Put away one card. Remove saved card details or freeze one credit card.
- Start a buffer. Move even a small amount into a separate emergency account.
- Pick your method. Choose the snowball or the avalanche and write down your first target debt.
- Make one call. If you are behind, call the National Debt Helpline or your lender this week.
- Pray together. Ask God for wisdom, peace and provision.
If your family is in a crisis and cannot cover basic needs, our financial assistance page explains how Rhythm may be able to help. For a simple budgeting plan, read Biblical Budgeting for Families.
A prayer for freedom from debt
Father, thank You that You see my situation and You care. I bring You my debts and my worries. Thank You that there is no condemnation for me in Christ. Give me wisdom to make a good plan and strength to keep going. Lead me to the right help. Provide for my family, and fill my heart with Your peace. In Jesus' name, amen.
Come and visit Rhythm
At Rhythm Church Aura, we believe in practical faith that makes a real difference in everyday life. Join us any Sunday at 9:30am at the Nirimba State Primary School hall, 100 Park Avenue, Nirimba. We would love to meet you.
Scripture quotations taken from the New King James Version®. Copyright © 1982 by Thomas Nelson. Used by permission. All rights reserved.
Common questions
Is it a sin to be in debt?
Scripture does not say that borrowing is a sin, but it does warn that debt can become a burden. If you are in debt, there is no condemnation. There is grace and a way forward.
What is the debt snowball method?
The debt snowball means paying the minimum on every debt, then putting any extra money toward the smallest debt first. When it is paid off, you roll that payment onto the next smallest debt.
Where can I get free help with debt in Australia?
The National Debt Helpline on 1800 007 007 offers free, confidential financial counselling. Their counsellors can help you understand your options and talk to lenders.
Murray planted Rhythm Church in 2019 and leads it with his wife Kathy. He is a credentialed Australian Christian Churches pastor with a Master of Leadership from Alphacrucis University and more than 25 years in pastoral care, community development and missions.
