Does the Bible counsel a Christian to pay off all debt before investing?
Let’s say someone has over $100,000 in student loans to be paid back over 30 years at a fixed interest rate of 2.8%...
And, for the sake of argument, let’s say that no tax deductions can be made towards interest paid towards this loan (as interest on a home mortgage can).
From the world’s perspective, the wisest financial advice would be to pay the minimum monthly towards this loan and invest the rest of your money, as 2.8% isn’t that difficult to beat, even with very low-risk investments.
But, what Bible passages speak to this?
Would you point out “stewardship” verses and say that we are to be good stewards of that which God has given, and thus should wisely invest the money rather than paying off the loan early?
Or would you point out other Bible verses that say things like “owe no man anything, but to love them”, and should therefore seek to be free of all debt to man and pay off the loan before investing any money?
Consider this verse and I hope you reconsider:
"Well then, you should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest."
I look forward to more Christian answers...especially from my contacts, as they get to this question.
There are many banks offering savings interest rates that are greater than 2.8%, so my original question stands. What do you counsel, for the glory of God in the management of your money?
The Bible exhorts us to be rich in giving. But, shall we give away all of our money without paying off our debt?
We are to be wise, no doubt...and the burden of the debt makes me a slave, in some sense, to this world.
But even putting some money in a savings account at 4% interest (instead of paying off the debt) would be so liquid as to obliterate the debt should the Lord later and suddenly call me to oversea mission work...and then, I would have extra to support that mission work or extra to give away.
I don't think the answer is so straight-forward.
Thanks for teh scriptures to read, so far.