How Should A Christian Respond When Someone Owes Them Money?

We work, we earn, we save. But is that all there is? The book of Ecclesiastes gives us an entirely new perspective on money that impacts our day-to-day lives. Faith Phi's newest study, Wisdom Over Wealth, unpacks life-changing biblical truths about wealth, work, and contentment. This resource will help you grow in how you handle wealth by deepening your trust in God.

Request your copy of the Wisdom Over Wealth study with your gift of $35 or more by going to faithpi.com/slash give. The wicked borrow but do not pay back, but the righteous is generous and gives. Psalm 37, 21. Hi, I'm Rob West. When someone owes you money and doesn't repay it, it can stir up all kinds of emotions, frustration, hurt, even resentment.

Whether it's a friend, family member, or fellow believer, financial conflict can strain even the closest relationships.

So how should we respond when that debt goes unpaid? We'll explore that today and then it's on to your calls at 800-525-7000. This is Faith in Finance, biblical wisdom for your financial journey. When someone owes you money, it's easy to assume the worst. But before jumping to conclusions, Scripture invites us to lead with compassion.

Proverbs 14, 29 says, whoever is slow to anger has great understanding, but he who has a hasty temper exalts folly. The person who owes you money may be facing unexpected hardships, such as a job loss, medical expenses, or other financial difficulties. Ask how they're doing and if they need support or flexibility. You might agree on partial payments or a new timeline to find a workable solution. A compassionate approach can lead to honest dialogue and reflect Christ's love in action.

And before you reach out, make it an intention to pray. Ask God to give you wisdom, soften both your hearts, and bring peace to the situation. Your response can be a witness, not just a reaction. If the person is a fellow believer and Continues to avoid the issue, Jesus gives us a process in Matthew 18. First, speak with them privately.

If that doesn't work, bring along one or two other believers. If they still refuse to acknowledge the debt, a final step is to involve church leadership. The goal here is not shame, it's restoration. You're seeking what's right while also guarding the relationship. You want to create a path forward, not a wall between you.

In 1 Corinthians 6, Paul discourages believers from taking one another to court over civil disputes. His concern is our witness. He even says, why not rather be wronged? In other words, preserving unity and love within the church is more important than getting every dollar back. That said, Paul's teaching isn't a blanket rule against legal action in every situation.

He was talking about everyday disputes between believers, not serious wrongdoing or criminal behavior. If the situation involves fraud, abuse, or legal injustice, Scripture gives you the first. Freedom to seek justice through legal channels. Romans 13 affirms that civil authorities exist to uphold justice. Legal action is sometimes necessary to protect yourselves and others, especially when someone remains unrepentant.

For instance, if you're a business owner and non-payment threatens your livelihood, legal recourse may be warranted. But even then, your heart should be aligned with fairness, not revenge. Regardless of the outcome, whether you're paid back or not, Jesus calls us to forgive. Mark 11:25 says, Whenever you stand praying, forgive. If you have anything against anyone, so that your Father also who is in heaven may forgive your trespasses.

Forgiveness doesn't mean pretending the debt never existed. It means choosing not to carry bitterness. It's about releasing control and trusting God to handle the results.

Sometimes forgiving someone who hasn't repaid you is the very small act that draws them back to repentance. Other times, It's simply an act of obedience that frees you from carrying the weight of resentment. At the end of the day, unpaid debt is frustrating, but it's also temporary. Relationships, character, and witness last much longer than money ever will.

So, when someone owes you money, ask not only, how do I get this back, but also, how can I reflect Christ in this situation? When we learn to see this as an opportunity to show compassion and pursue peace, we reflect the generosity of a savior who forgave us when we had nothing to offer him in return. That perspective may not always result in getting your money back, but it will always honor God, and that's worth far more. If you'd like to go deeper on this topic, we've covered it in detail in the second issue of our quarterly magazine, Faithful Steward. It's filled with biblical wisdom and practical guidance to help you navigate financial challenges like this one with grace and integrity.

You can receive Faithful Steward directly in your mailbox each quarter by becoming a Faith Phi partner. Just give $35 a month or $400 a year to support our mission at faithphy.com slash give. That's faithfi.com slash give. We'd love for you to join us in equipping more believers to live as wise and faithful stewards. All right, your calls are next.

The number 800. 525-7,000. That's 800-525-7,000. This is Faith and Finance, biblical wisdom for your financial journey. We're just getting started.

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Great to have you with us today on Faith and Finance. The number to call to get in on the conversation is 800-525-7000. Again, that number is 800-525-7000. You can call right now. We'd love to tackle your, well, it's giving, saving, investing questions, whatever you happen to be thinking about today.

You can get in on the conversation. 800-525-7,000. You can call right now. We're going to head to New York State first and welcome Joyce. Go right ahead.

Hi, thank you so much.

So here's my question. I am in my fifties. And I am wanting to buy a House. I have money saved. For down payment.

But I'm thinking two things. One, Should I continue to steve? Yeah. Or should I buy with the down payment I have now? And the second part is Should I I do want to have a mortgage that's a little shorter or do I take a longer mortgage?

Yeah. So, yeah, that's my question.

Okay. Yeah, those are great questions.

So, let's tackle that first one right up front here. And that is, do you continue to save and wait for that, you know, perhaps a little larger home, or do you go ahead and buy something now that's a starter home? You know, I like as long as you keep the home purchase in the range of what fits in your budget.

So, typically, that means no more than 25% of your take-home pay going toward principal, interest, taxes, and insurance, the payment, and where you have at least 20% down. I kind of like the idea of you getting into a home, you know, something that can start appreciating. As long as you buy something that you feel like you can stay in for five to seven years, then I think that makes it worth it. If you're saying, no, this home that I could afford right now, you know, I feel like within two to three years, I'd be ready, kind of itching for something larger, then I would say, yeah, let's wait because the cost of the buying and the selling. The transaction, not to mention the cost to originate the mortgage, is going to be prohibited.

But if you can stay five to seven years, I kind of like you getting into the housing market and starting to take advantage of the appreciation. And then maybe when you're ready for that next home, rates are lower and you kind of, you know, roll into that next mortgage. Does that make sense? Yeah, yeah, no, that makes a lot of sense. I appreciate it.

Thank you. Yeah, absolutely. And then the second part of your question, remind me real quick. Um the second part is I really don't want to do a lengthy mortgage. I'd rather.

Get it done with as quickly as possible. But I also realize I'm 54 years old, and so I don't know what kind of timeline I'm looking at there. Yeah, so there's a couple of options there. I appreciate you reminding me of that.

So I would agree with you. Take as short a mortgage as possible.

Now, one strategy some people will do is they'll go ahead and get the 30-year mortgage and pay a little bit more in interest, a higher rate, but pay it like it's a 15.

So get the amortization schedule and send the payment as if it's a 15-year payback or a 20-year, whatever you can afford. The nice thing is, because it's a true 30-year, if you lost your job or you had some unexpected expense come out, you could fall back to that lower 30-year payment. But by paying it as if it's 15 or 20, assuming you have the income to do it, then you're going to get rid of it much sooner, if that makes sense. Do you follow? Yep, I get it.

Thank you so much. All right, Joyce. God bless you. To Oklahoma. Hi, Sheila.

Go ahead. Hi, my question is, my brother and sister have a trust. Together with three houses in it. My sister has since died. My brother is still alive.

and the trust has money in it already. He is thinking about selling one of the houses. Does the money have to go to the trust? Or can he keep the money? Yeah.

So who is the Grand Tour? Do you know? Of the trust. A financial institution has the money.

Okay, they're the many to begin with.

Okay. Well, the they're the trustee. The grand tour is the one that created the trust.

So was he the beneficiary, your brother, of your sister or of his sister's trust? Or were they both the grand tours? It was combined. Neither one were married. They had a lawyer that came in and created this trust for them.

Do the charge. And the money goes to a financial institution, then income will be distributed. to their nephews. And all 'cause I never had children. After your brother passes away.

Right, right.

Now, he has not passed away and yet.

Okay, let me just give you some general counsel here, and then I would talk to an attorney because, you know, these get complicated. I'm certainly not an attorney, but here's how this works.

So, a trust has a grandeur or multiple grand tours. If you have a joint trust, and that's the person that creates it. And as long as that trust is revocable and not irrevocable, then the grand tour or grand tours during their life can make changes. And you can put property in a trust. You can put other assets, cash and other assets in the trust.

So, if there was multiple grand tours, one has passed away, you would have to read the provisions of the trust. But, likely, what would be the case is that your brother, as one of the grantors, would be able to sell a piece of property in that trust, and the proceeds could stay in the trust, or he could take it out. The trust because it's revocable and he set it up. And it would only go into effect after he dies. And then the trustee, whoever has been named as the trustee, it sounds like it's a corporate trustee, would then be responsible for distributing the assets of the trust to whoever the beneficiaries are in whatever circumstances are named in the trust.

So it may be, you know, as they reach certain ages or graduate college or, you know, whatever the trust documents say. But if it's a revocable trust, he would likely be able to either leave the proceeds in the trust or take them out. The only complicating factor is you'd have to understand what the trust language says with regard to his sister's passing, if that was the other person who was the other grantor, as to what, you know, triggering events happen then. But generally speaking, with a revocable trust, while the grand tour is still living, he can basically do what he wants. And essentially, you're selling a property.

In the same way you would as if it was held in your name as long as he's alive.

Okay. Well, you answered my question. I just He could put the money in there if he wants to, he can take it out, whatever. But he's got control of it more or less. Potentially, I think, again, the only complicating factor is the other Grand Tor has passed away.

And so I think that's where getting some legal counsel just to make sure that you're reading the trust properly and you understand the implications of that.

So, again, this is probably a good idea for him to check back in with the attorney that created it if he has any questions about it, because both grand tours are not living any longer, only him.

So, I think that would be the only question that I would have, whether that has any bearing on this. But, generally speaking, when a grand tour is still living, the grand tour can do what they want with the assets of a revocable trust, keep them in, take them out, make changes. That's the purpose of the revocable trust. Thank you for calling, Sheila. We appreciate you being on the program today.

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More information is available at praxisinvest.com. Great to have you with us today on Faith and Finance. We're taking your calls and questions today. We've got room for you. If you've got a financial question, we'll try to give you an answer, but we'll do it through the lens of a biblical worldview.

The number to call is 800-525-7,000. That's 800-525-7,000. You can call right now. Charlotte, North Carolina. Hi, Russell.

Go ahead. Hello, sir. Thank you so much. My Social Security question is regarding my wife receiving a reduced amount on my benefits. I will start Social Security at my full retirement age in two more months.

If my wife begins Social Security at an early age, she's not 62 yet, but if she chooses to at 62, she'll get a reduced amount. I understand that. But should I pass? before her. And maybe she's two years older after she started her reduced amount.

will she then get one hundred percent of my benefit at a new reduced amount? Or will she be stuck with that same reduced amount percentage based on my one hundred percent benefit? Yes, I see.

So you're wondering specifically about the survivor's benefit at an age less than full retirement age, is that right? Yes, yes, for my spouse should be for the surviving spouse. But it's a transition that I can't find anything online about this. The transition is she takes the reduced amount while we're both still alive. I understand all of that.

But when I pass, if it's before her, she'll get 100% of my benefit at her full retirement age.

So, can she effectively pause her early benefit and then wait till she's full retirement age and they get my full amount? That's the transition I can't get an understanding of. Yeah, very good. You know, the key there is, and I can totally understand it because, you know, it is confusing. You know, in terms of the survivor benefit, if she is before full retirement age, so if she claims the survivor's benefit before her full retirement age, the benefit will be reduced by, it ends up being about four and a quarter, three-quarters percent per year for every year prior to full retirement age.

There are some exceptions, but it's only disability.

So she would really need to wait to full retirement age to be able to get that full benefit. I understand that, but what if she's getting? We're both still alive. She's getting maybe an 80% benefit of my 50% because we're both still alive. But when I pet, if I pass before her, then she would be entitled to 100% of my benefit at her full retirement age.

But she's been receiving benefits, say, for two years at a reduced amount of my 50%.

So now I'm gone, and she would now qualify for 100% of my benefit.

So, how does that transition work? Would she now reset, and now she's 64 years old, and she would get a reduced benefit based on my 100% benefit? benefit? Or would she be stuck with that earlier maybe a lesser percentage but now 100 rather than 50 i'm sorry if that sounds confusing Yeah, no, no. I mean, there's a lot, a lot of moving parts of that.

So I totally get it.

So basically, you know, when you talk about the transition from spousal to survivor, it does involve some pretty specific rules.

So essentially, if your wife was receiving spousal benefits before her full retirement age, it's reduced for claiming early. You've already acknowledged that. After your death, she is responsible for survivors benefits up to 100% of your benefit. If your benefit was $2,500 a month, she could receive the $2,500 a month at her full retirement age. In terms of the transition, there's an automatic notification.

So when you pass away, Social Security is typically notified via the funeral home or death certificate or so forth, or she can report that. And then the Social Security Administration will replace her spousal benefit with the survivor benefit. If it's higher, effective the month after your death. She can't receive both.

So that's, you know, I think, you know, the way that that goes down, and then again, the reduction for claiming survivors' benefits before full retirement age locks in for life, unlike the spousal benefits, which, you know, can increase if she switches to her own benefit later, if that makes sense. Yeah, uh but I I think I'm gonna have to rest in assuming that.

Social Security may recalculate at my death, whatever her benefit is. Uh as a survivor. Which I'm thinking would reset everything. And if she's less than full retirement age, she'll get a reduced amount of my 100%. understand that.

Yes, exactly.

So, what she could do would be if she's under the full retirement age, she could delay claiming survivor's benefits until the full retirement age, or she could take, you know, it earlier if needed.

So, that's the only one that does allow you to delay, whereas you can't do that with her own benefit versus the spousal. But on the survivor's benefit, she can.

So, if she wanted to get that full amount, she could either delay and then get the full amount at full retirement age based on your full benefit that you waited for, or she could switch immediately and take the reduced portion of your benefit as a survivor's benefit and get that higher amount starting right away. She would be able to make that choice.

Okay, that makes sense. It does. Thank you. I really appreciate that. You're welcome, Russell.

We appreciate you calling today. I know that can get confusing. And if you guys want to get numbers based on your own record, I would think scheduling a meeting with the Social Security Administration may not be a bad idea just to go down and actually pull out the numbers and kind of walk through it with them. And rather than talking in generalities, you can talk about exactly what's going on. But we appreciate you being on the program today.

We're going to finish in Macon, Missouri with Darwin. Go ahead. Hello there. My wife and I have a trust. Revocable trust.

Revocable trust, yes. Yes, sir. We have a property as all well as investments. We're going to we are thinking about moving to Illinois to a senior living facility. We wonder if Illinois will have any way that they can get their hands on that money and that property.

Yeah, no, unless there was some sort of a judgment against you or unless you spend down all of your assets and ultimately go on Medicaid to pay for a nursing home, let's say, in a Medicaid-approved facility, and then they try to recover some of that money out of your estate.

Now, a revocable trust does not provide protection against creditors like an irrevocable trust does. The only challenge is with an irrevocable trust, you lose control over it.

So, I like the revocable trust for efficiency in transferring those assets to the next generation. Not going to do a whole lot for you, though, in terms of creditor protection. And yes, the estate can recover or the government Medicaid expenses if you end up on Medicaid. But for the rest of your questions, I'd seek out the counsel of an attorney. Thanks for your call.

Folks, such a privilege to come alongside you each day, to encourage you, to hear your stories. We count it a privilege that you and Invite us into your journey as a steward of God's resources. And our goal is to be hopeful, to be encouraging, to be reverent as we deal with and approach God's Word, but always to point you back to Jesus. Here's my experience: when we get this area of our lives right, our finances, it has a ripple effect through every other area of our lives and ultimately will lead to a more intimate relationship with the Lord. That's our goal.

A big thanks to my team today: Taylor, Devin, and Pat. And we'll see you next time right here on Faith and Finance. Faith in Finance is provided by Faith Buy and listeners like you.