In Episode 6 of this ‘Good with Money’ season, Simon and Bex discuss how we should navigate the issue of debt on our money journey.
Some key points of interest covered in this episode include the following:
- Simon starts off by explaining why debt is a relevant and important topic for all of us. [00:33]
- Simon talks about ‘good debt’ and ‘bad debt’, highlighting the importance of being able to distinguish between our ‘needs’ and our ‘wants’. [03:29]
- Another important skill is to be able to discern between ‘manageable debt’ and ‘unmanageable debt’, and to organise our financial affairs accordingly. [05:43]
- When reviewing what the Bible says about debt, Bex and Simon comment on the following verses: Romans 13.7-8, ‘Give to everyone what you owe them: if you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honour, then honour. Let no debt remain outstanding, except the continuing debt to love one another.’; Matthew 5.42, ‘Give to the one who asks you, and do not turn away from the one who wants to borrow from you.’; Matthew 6.12, ‘And forgive us our debts, as we also have forgiven our debtors.’; Proverbs 22.7, ‘The rich rule over the poor, and the borrower is slave to the lender.’ [08:16]
- Simon explores the various ways that we can get into debt and highlights behaviours (including distinguishing between ‘needs’ and ‘wants’ and talking to others about our spending habits) that can help us to steer away from unmanageable debt. [11:30]
- Setting our own expectations for expenditure or articulating our budgetary boundaries to others (eg through ‘loud budgeting’) can also be helpful ways of putting sensible limits on what we spend. [16:59] Bex draws attention to previous podcast topics dealing with this area: Season 8 Ep9: Top 10 Money Tips for Teenagers with Dave Hall, Youth Pastor (‘loud budgeting’ at 25 mins 26 secs); Season 4: Talking About Money; and Season 2 Bonus Episode 2: Press 'Reset' on Some of our Major Expenses. [18:05]
- In response to a question from Bex, Simon explains how the concept of delayed gratification – deliberately waiting until costs have been covered before enjoying something – can help us not only to spend within our means but also to gain pleasure from the anticipation of looking forward to something that has been paid for. [18:42]
- In his closing comments, Simon speaks about how we can be good with money and do good with money when dealing with the topic of debt. [21:10] He also mentions ‘Christians Against Poverty’ and ‘Citizens Advice Scotland’ as two highly respected organisations that can provide assistance to individuals struggling with unmanageable debt. [22:18]
- Wrapping up the episode, Bex draws attention to previous podcast episodes about ‘Debt’. In particular, the content covered in Episodes 6 and 7 of Season 1 and Season 7 Episode 3 could provide some...
