Debt-Free Living by Larry Burkett – Book Review

“Debt-Free Living” by Larry Burkett stands as a significant contribution in the world of financial self-help and Christian literature.

It’s known for providing practical, biblically-based advice for managing finances and achieving freedom from debt.

Book Details:

• Title: Debt-Free Living
• Author: Larry Burkett
• Genre: Personal Finance / Christian Literature
• Publication Date: Originally published in 1989
• ISBN: 978-0802425669

About the Author:

Larry Burkett was a well-known figure in Christian financial counseling. His insights stemmed from both his deep faith and extensive experience in finance. He co-founded Crown Financial Ministries and wrote more than 70 books, advocating for responsible, Bible-based financial management.

Summary of Debt-Free Living:

“Debt-Free Living” delves into the perils of debt and offers strategies for escaping its grip. Burkett blends financial advice with Christian principles, emphasizing the need for budgeting, avoiding consumerism, and relying on God’s provision. The book tackles various aspects of personal finance, from mortgages to credit cards, underlining the importance of living within one’s means.

Selected Passages Randy Highlighted in the Book:

1. Read Deuteronomy 28:12, “The Lord will open for you His good storehouse, the heavens, to give rain to your land in its season and to bless all the work of your hand; and you shall lend to many nations, but you shall not borrow.” (8)
2. Biblical Principles of Debt
   Principle 1: The debtor is in servitude to the one who lends to him….
   Proverbs 22:7: “The rich rules over the poor, and the borrower becomes the lender’s slave. Principle 2: Borrowing is permitted in scripture (55)
3. Biblical Principles of Borrowing
   Principles of borrowing appear in God’s Word, although it needs to be remembered that these are principles, not laws. From time to time an overzealous teacher will present principles as if they were laws. They are not. A principle is an instruction from the Lord to help guide our decisions. A law is an absolute. Negative consequences may follow from ignoring a principle, but punishment is the likely consequence of ignoring a law God has given us. (57)
4. The principle of borrowing given in Scripture is that it is better not to go surety on a loan. (57)
5. The law of borrowing given in Scripture is that it is a sin to borrow and not repay. “The wicked borrows and does not pay back, but the righteous is gracious and gives” (Psalm 37:21) (57)
6. Principle 1: Debt is not normal….
   Regardless of how it seems today, debt is not normal in any economy and should not be normal for God’s people. We live in a debt-ridden society that is now virtually dependent on a constant expansion of credit to keep the economy going. That is a symptom of a society no longer willing to follow God’s directions. (57)
7. Principle 2: Do not accumulate long-term debt….
   The longest term of debt God’s people took on in the Bible was about seven years. During the year of remission (the seventh year) the Jew was instructed to release his brother from any indebtedness. “At the end of every seven years you shall grant a remission of debts. And this is the manner of remission: every creditor shall release what he has loaned to his neighbor; he shall not exact it of his neighbor and his brother, because the Lord’s remission has been proclaimed” (Deuteronomy 15:1-2). Thus the only debts that could exceed seven years were those made to non-Jews or from non-Jews. (58)
8. Principle 3: Avoid surety….
   By now you understand that surety means accepting an obligation to pay without having a certain way to make that payment. The most recognizable form of surety is co-signing for the loan of another. But surety also can be any form of borrowing in which you sign an unconditional guarantee to pay.
   The only way to avoid surety is to collateralize a loan with property that will cover the indebtedness, no matter what. (59)
9. Credit card purchases have become the most common form of surety in our generation. In this transaction one merchant sells you the material and another finances the purchase (except for in-store credit cards). In the event of a default, the return of the merchandise does not cancel the debt because the finance company has no interest in the merchandise. (59)
10. Principle 4: The borrower has an absolute commitment to repay…. 
    A Christian needs to accept the hard truth that God allows him no alternative to keeping his vows. That is why the Bible warns him often to be careful before making vows. “It is better that you should not vow than that you should vow and not pay” (Ecclesiastes 5:5). (59-60)
11. Even if you tithed, housing should never cost more than 40 percent of your spendable income after tithing. (70)
12. “Tithing is an important principle for a Christian because it demonstrates a commitment to God in the most visible area of our lives: the area of money. But God wants you to honor your word also. You have made an agreement with the court to pay your creditors according to the budget you submitted, so you must do so. One part of your long-term plan should be to reduce your monthly expenses so that you can give God His portion, too. But for now you’ll have to stick to the plan you have. I believe God will honor the commitment of your heart. He doesn’t care about the money nearly as much as He cares about your heart’s attitude. Tithing will be a part of the next stage of financial planning for you and Paul once the expenses are reduced.” (73)
13. In reality, less spending is the answer for the vast majority of debt problems. (76)
14. Also note that they committed the first portion of their income to God as a tithe. They prayed about repaying God’s portion and, once the last creditor was repaid, used Julie’s income for several months to repay their tithes. Mr. Woods told them that as far as he could tell, Scripture did not require or suggest a repayment of past tithes and offerings. After praying about what he said, they still committed themselves to repaying their tithes as a testimony that God truly was first in their marriage. (80)
15. The best recommendation I can give to anyone is this: pay back what you borrow and never borrow frivolously. Remember what Proverbs 22:1 says: “A good name is to be more desired than great riches. Favor is better than silver and gold.” (81)
16. “Offer to God a sacrifice of thanksgiving, and pay your vows to the Most High; and call upon Me in the day of trouble. I shall rescue you, and you will honor Me” (Psalms 50:14-15). (93)
17. As the Proverb says, “The plans of the diligent lead surely to advantage, but everyone who is hasty comes surely to poverty” (Proverbs 21:5). (98)
18. “A faithful man will abound with blessings, but he who makes haste to be rich will not go unpunished” (Proverbs 28:20). (101)
19. Genesis 2:24 indicates that the woman is to have the role of helpmate in a marriage. In 1 Peter 1:7 the husband is warned to treat his wife with grace and honor, lest his “prayers be hindered.” When a husband avoids or ignores his wife’s counsel on any matter, including finances, he should expect his prayers to be hindered. (102)
20. “Be anxious for nothing, but in everything by prayer and supplication with thanksgiving let your requests be made known to God…. And my God shall supply all your needs according to His riches in glory in Christ Jesus” (Philippians 4:6, 19). (104)
21. “Principle number one is to sell whatever you don’t actually need to live on and give the money to your creditors. Proverbs 3:27-28 says, ‘Do not withhold good from those to whom it is due, when it is in your power to do it. Do not say to your neighbor, “Go, and come back, and tomorrow I will give it,” when you have it with you.’” (136)
22. “And the last principle you need to apply is to think and plan before you act. As the Lord said in Luke 14:28-29, ‘For which one of you, when he wants to build a tower, does not first sit down and calculate the cost, to see if he has enough to complete it? Otherwise, when he has laid a foundation, and is not able to finish, all who observe it begin to ridicule him.’” (137)

Who Would Benefit From This Book?

This book is ideal for Christians seeking biblically-aligned financial guidance, individuals grappling with debt, and those interested in personal finance from a faith-based perspective. Key readers include “books for financial growth enthusiasts” and “inspirational reads for Christians.”

Popular Quotes from Debt-Free Living:

1. “Debt is not just a financial problem, it’s a spiritual problem.”
2. “True financial freedom is as much about the condition of the heart as the condition of the wallet.”
3. “A budget is telling your money where to go instead of wondering where it went.”
4. “God’s principles of finances are always at odds with the world’s practices.”
5. “Living debt-free is more than numbers; it’s about freedom and peace.”

Related Books:

• “The Total Money Makeover” by Dave Ramsey
• “Your Money Counts” by Howard Dayton
• “Rich Dad Poor Dad” by Robert Kiyosaki
• “The Financial Peace Planner” by Dave Ramsey

Readers who enjoyed “Debt-Free Living” might also find value in Bob & Linda’s book: Simple Money, Rich Life. Find the connections between financial principles and modern financial strategies to enrich your own financial life!