Final Answer:
LDS leaders have emphasized that legitimate types of debt include those incurred for education, a home, and other essential needs. They encourage responsible financial management, stressing the importance of avoiding excessive debt while acknowledging the necessity of certain investments in personal and family well-being.
Step-by-step explanation:
LDS leaders have addressed the issue of debt in various statements, highlighting the importance of responsible financial stewardship. They recognize that some forms of debt can be legitimate and even advisable, especially when related to essential life pursuits. For instance, obtaining a loan for education is considered an investment in one's future earning potential and ability to contribute to society. The principle aligns with the understanding that education is a valuable asset that can enhance an individual's skills and opportunities.
Similarly, leaders have acknowledged the appropriateness of taking on debt to secure a home—a fundamental aspect of providing stability and security for a family. Owning a home is often viewed as a wise long-term investment, and obtaining a mortgage can be a practical means to achieve this goal. However, leaders caution against excessive or unnecessary debt, emphasizing the need for prudence and careful consideration in financial decisions.
While the scriptures and teachings of the LDS Church do not provide specific numerical guidelines regarding debt-to-income ratios or allowable amounts, the emphasis is consistently on avoiding unnecessary debt and practicing self-reliance. The broader principle is to manage finances wisely, considering both present and future needs.
Individuals are encouraged to seek personal revelation and exercise sound judgment in financial matters, understanding that responsible debt management is part of a larger commitment to temporal and spiritual well-being.