Although Church leaders counsel against debt, they also realize that a family may need to borrow for some goals that might otherwise be impossible to achieve. For example, President Gordon B. Hinckley has explicitly stated that it is acceptable to go into debt for a modest home and an education. He commented:

Reasonable debt for the purchase of an affordable home and perhaps for a few other necessary things is acceptable. But from where I sit, I see in a very vivid way the terrible tragedies of many who have unwisely borrowed for things they really do not need (“I Believe,” Ensign, Aug. 1992, 6).

President James E. Faust stated: "Over the years the wise counsel of our leaders has been to avoid debt except for the purchase of a home or to pay for an education. I have not heard any of the prophets change this counsel" (“Doing the Best Things in the Worst Times,” Ensign, Aug. 1984, 41).

Even if you are going into debt for a home or an education, you should still use prayer and wisdom to make good decisions about debt. If you do go into debt, you should pay your debts off as soon as you can.

But what about business debt? While beyond the scope of this section, President N. Eldon Tanner has outlined some conditions under which business debt is acceptable. He said:

For most of us there are two kinds of financial debt – consumer debt and investment or business debt…Investment debt should be fully secured so as to not encumber a family’s security. Don’t invest in speculative ventures.  The spirit of speculation can become intoxicating. Many fortunes have been wiped out by the uncontrolled appetite to accumulate more and more. Let us learn from the sorrow of the past and avoid enslaving our time, energy, and general health to a gluttonous appetite to acquire increased material goods (N. Eldon Tanner, “Constancy Amid Change,” Ensign, Nov. 1979, 80).

Debt that is incurred to undertake a business endeavor is acceptable under the following general conditions: First, the debt must not jeopardize the personal or family finances of the business owners or managers. The family's security should not be put at risk should the venture fail. Second, the debt must be used for a valid business purpose or investment opportunity. Speculative ventures and consumption, under the guise of investment, should not be undertaken. Using debt to finance a speculative venture serves only to magnify the risk of the investment and is simply leverage. Clearly, just as speculation is against the counsel of Church leaders, debt for speculation is also against the counsel of Church leaders. Third, business debt must be incurred with an honest heart and with a full commitment to repay the money. D&C 104:78 counsels "And again, verily I say unto you, concerning your debts--behold it is my will that you shall pay all your debts." Failure to repay any debt--business debt included--is a form of dishonesty. With these principles in mind we will be better able to discern when debt may be appropriate for a business investment or not.