If you’re wondering whether you should pay off debt or invest, you’re not alone. When trying to set and reach financial goals, it can feel like standing at a fork in the road with two equally compelling signs:

➡ “Pay Off Debt – Freedom Awaits!”
➡ “Start Investing – Build Your Future!”

So which one do you choose?

Is it better to throw every extra dollar toward your student loans, car payments, and credit card balances—or to begin investing so you don’t fall behind in building wealth?

This is one of the most common financial questions out there. And as a Christian woman who wants to be a good steward, the decision carries even more weight. You’re not just managing money—you’re managing what God has entrusted to you.

Let’s walk through how to make a values-aligned decision between paying off debt and investing, with both biblical wisdom and practical guidance to help you discern your next right step.

The Biblical Case for Both Paths: Paying Off Debt Vs Investing

One reason the question, “Should I Pay Off Debt or Invest,” can be confusing is that both options are supported by Scripture. The Bible speaks clearly—and often—about money. Therefore we see truth on both sides of this financial fork.

1. Debt: “The Borrower is Slave to the Lender”

“The rich rule over the poor, and the borrower is slave to the lender.” — Proverbs 22:7

Debt can feel like a heavy chain. Overall, it restricts your options, causing anxiety, and stealing peace. Proverbs doesn’t mince words here. Debt is a form of bondage. While the Bible doesn’t forbid borrowing, it consistently warns against its dangers.

Paying off debt isn’t just about feeling better—it’s about reclaiming your freedom to serve, give, and follow God’s will without being entangled by financial obligations.

2. Investing: “Well Done, Good and Faithful Servant”

“You should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest.” — Matthew 25:27

In the Parable of the Talents (Matthew 25), Jesus praises the servants who multiplied what they were given. This wasn’t just about wealth—it was about faithful stewardship. Investing can be a wise way to grow what God has placed in your hands so you can serve future generations and advance the Kingdom.

So if both are biblical, which comes first?

The Steward’s Answer: Focus First on Paying Off Debt, THEN Invest

Here’s where biblical wisdom meets practical strategy.

While both paying off debt and investing are valuable, I firmly believe that in most cases, paying off debt should come first. Why?

• 💡 The Power of Focus – When you concentrate on one goal at a time, you make faster, deeper progress.
• 💰 Debt Eats Your Income – Every dollar sent to a lender is a dollar that can’t go toward your future.
• 📈 Wealth Grows When You Earn Interest, Not Pay It – Building wealth starts when compound interest works for you, not against you.

There are two exceptions:

• ✅ Take advantage of employer 401(k) matches (that’s part of your compensation!)
• ✅ Don’t delay all saving/investing for the sake of paying off a low-interest mortgage

But outside of those, becoming debt-free is the solid foundation on which to build your financial future.

The Heart Check: What’s Driving the Decision?

Before we get tactical, pause for a spiritual gut check.

Ask yourself:

• Am I making this decision out of fear or faith?
• Do I trust that God is my provider, no matter the numbers?
• Is my goal peace, pride, control—or stewardship and obedience?

God cares more about the condition of your heart than the size of your savings account. When your motivation is to honor Him, you can have confidence—even if your journey doesn’t look perfect on paper.

💡 The S.T.E.P. Framework: Discern Your Next Right Financial Step

This isn’t about finding a one-size-fits-all answer—it’s about finding your next best step. Before you jump in to your goals, here’s a simple framework to guide you:

S – Summarize

“Be sure you know the condition of your flocks, give careful attention to your herds.” — Proverbs 27:23

Start by gathering the facts:

• List all your debts (amounts, interest rates, emotional weight)
• Note any savings & emergency fund
• Review current investments (if any)
• Map out your income and monthly expenses

You need clarity before you can make wise, strategic decisions.

T – Tackle

“Let us throw off everything that hinders…” — Hebrews 12:1

Identify your biggest burden, then tackle that first to free up energy. What’s causing the most stress or limiting your progress?

• A high-interest credit card?
• A lack of savings?
• Disorganization or overwhelm?
• Disagreement with your spouse?

Bottom line: tackle your top obstacle first—it’s likely what’s stealing your energy, focus, and faith.

E – Establish

Once you have a bird’s eye view of your financial picture and have eliminated one major stressor standing in your way, it’s time to establish a full vision and list of goals you have financially (or in general—the two are usually connected!). Basically, this is your launchpad for long-term success and stewardship. Make sure the basics are in place:

• A $1,000 emergency fund
• A simple cash flow plan
• A weekly or monthly review system

Think of it as building your house on the rock—strong, sustainable, and storm-resistant.

“The wise man built his house upon the rock…” — Matthew 7:24

P – Prioritize

“There is a time for everything, and a season for every activity under the heavens.” — Ecclesiastes 3:1

Now that you’ve established your vision and goals, it’s time to put them in order. This isn’t about choosing one good thing over another—it’s about when to do each one. By having everything laid out, it’s usually easier to see what the next best step is. The bottom line—debt typically eats up the dollars that could be used for saving and investing. Therefore paying off debt first is often the best option. However, your unique goals and circumstances might call for a different approach. This is why it’s important to summarize a very clear picture of your financial situation, tackle your main stressor first, and then establish a vision and goals before setting priorities. 

Practical Examples: What This Can Look Like

Example 1: You Have $10,000 in Credit Card Debt

• Average Interest: 19%
• No emergency fund
• Not investing yet

Priority Plan:

1. Pause investing
2. Build a $1,000 emergency fund
3. Use the debt snowball or avalanche method to pay off the credit cards
4. Once paid off, build a full emergency fund
5. THEN start investing

Why? That credit card debt is eating up income that could be building wealth. Paying it off gives you breathing room and aligns with biblical wisdom about avoiding bondage.

Example 2: You Have $20,000 in Student Loans at 4%

• You have a 3-month emergency fund
• Your job offers a 401(k) match

Priority Plan:

1. Contribute just enough to get the employer match
2. Then focus on paying down your student loans
3. Reassess yearly as your income grows

Why? The match is part of your salary. Opting out of an employer match is saying no to free money! But even here, debt should still be a focus—not an afterthought.

Common Questions: Pay Off Debt or Invest

❓ What if I feel guilty for investing when I still have debt?
Guilt isn’t from God, but faith is. But if your heart is to honor Him, and you’re following a prayerful, thoughtful plan, walk forward with grace and confidence.

❓ Is it selfish to want to build wealth?
Not at all. Wealth, when stewarded well, is a powerful tool for good.

“Command them to do good, to be rich in good deeds, and to be generous and willing to share.” — 1 Timothy 6:18

Your Next Step: A Mini Financial Reset

If you’re feeling stuck or overwhelmed, you’re not alone—and you don’t have to figure it out solo.

I created The Mini Money Reset Guide to help you:

1. Identify stressors
2. Clarify your values
3. Review your spending
4. Create a simple plan
5. Take small, confidence-building steps

It’s the perfect first step toward aligning your finances with your faith and future.

👉 Download the Free Mini Money Reset Guide Here

Final Encouragement: Trust the Process

Friend, your financial decisions don’t have to be perfect—they just need to be faithful.

Whether you’re digging out of debt, planting seeds for the future, or somewhere in between—God is with you. He’s not looking for perfection. He’s looking for trust, obedience, and a heart surrendered to Him.

So take a deep breath. Make your plan. And remember:

You don’t have to do everything—you just have to do the next right thing.