A Q&A with Michael R. Wallin, CFP®, LUTCF, Optivise Advisory Services
Americans are carrying a record amount of debt. According to the Federal Reserve Bank of New York, total household debt stood at $18.8 trillion at the end of June 2026, including $1.26 trillion on credit cards, where interest rates now average more than 21%. We asked Michael Wallin how families can think wisely about borrowing.
Q: Is all debt bad? Not at all. Debt is a tool, and like any tool it can build or damage. Proverbs 22:7 warns that “the borrower is slave to the lender,” and that warning is real. But I’ve watched clients use a mortgage, a student loan, or a business loan as a stepping stone to lasting wealth. The question isn’t whether you borrow. It’s why you borrow and whether you intend to repay.
Q: What kind of borrowing should families avoid? Debt for impulse purchases, luxury items meant to impress others, or non-essentials. Those purchases lose value quickly while the interest keeps compounding. A $5,000 credit card balance at 21% costs roughly $1,050 a year in interest alone, money that could be saved, invested, or given. When debt becomes a way to feel worthy or keep up appearances, it creates financial bondage and limits your freedom to serve.
Q: How can I tell whether a loan is worth taking? Ask three questions before you sign. What is the money for? Will it meet a genuine need or help me earn more over time? And do I have a realistic plan to pay it back? If you can’t answer that last question with specific numbers and a timeline, wait. A common guideline is to keep total monthly debt payments below about 36% of gross income.
Q: Is it wise to borrow against my home? It can be, but it deserves care. Home-equity borrowing has grown steadily, with HELOC balances reaching $459 billion at the end of June 2026. Used for a clear purpose, such as starting a business or making a necessary repair, it can be a sound decision. Used to consolidate credit cards without changing spending habits, it often puts your home on the line to pay for yesterday’s purchases. Know your purpose and your payoff plan before you draw.
Q: If I’m already in debt, what’s the first step? Get a clear picture. List every balance, interest rate, and minimum payment. Stop adding new consumer debt, then pay down the highest-rate balances aggressively while staying current on everything else. Build a small emergency fund so the next surprise doesn’t land on a credit card. And keep generosity in the plan.
Q: What’s the bottom line? Be responsible. Borrow only when necessary, repay aggressively, and use debt to build assets, income, jobs, and ministry in your community.
—Michael Wallin – With more than three decades in financial services, Michael Wallin and the team at Optivise Advisory Services help families align their finances with their faith. For guidance on debt management or building a plan, call 855.378.1806.
Investment advisory services are offered through Optivise Advisory Services, LLC (Optivise), a SEC registered investment advisor.
