"Render therefore to all their dues: tribute to whom tribute is due; custom to whom custom; fear to whom fear; honour to whom honour." (Romans 13:7, King James Version).

Often, many Christians take this passage to mean that they should not ever get into debt. However, many Christian financial ministries make a distinction between good debt and bad debt. And it is apparent that the Lord does as well. After all, if you buy a home, and make the payments as agreed, youare rendering dues to the lender. But this is not a blanket invitation to get into debt.

Debt for purposes of vanity

Christian finances is really about being a good steward of what you have. This means that you use your money wisely and, for most things, pay as you go. Getting into debt because you believe that "everyone else" has something, or because you want something frivolous and expensive that you do not really need is not showing good financial stewardship. This type of debt can lead to heartbreak and trouble. The idea is to use debt for good purposes.

Good debt and Christian finances

There are types of debt that are considered good. CBN points out the following:

"Good debt can be described as debt that helps you build equity or increase your net worth. For example, education loans usually are considered good debt because in the long run more education generally translates into higher earning power. Most people borrow money for a mortgage to get a home—if the home purchase was a wise investment that increases in value and adds to your net worth, then it would be considered good debt. Another example of good debt might be loans to run a small business—for example, if you borrow money at 7 percent and use that money to make a 15 percent or 20 percent return, then it would be considered good debt because you are using the loan to increase your net worth. Good debt includes loans that help to build your financial future."

When using good debt to be a good steward of your financial future, though, it is important to remember to avoid excess. A good education at the best school you can afford is different from wantonly borrowing a great deal of money simply to get an Ivy League degree. The same principle applies to a home. There is no reason to get a massive house if it is really beyond your means to pay back (remember Romans 13:7!).

Make sure that your good debt decisions don't turn bad by putting undo financial hardship on the family to pay it back.