One major problem with stating that we are saved by faith alone is that the Bible never says that, at least not directly. The only statement made about “faith alone” is negative:

“You see that a person is justified by what he does and not by faith alone.” (James 2:24)

Oops!

Does James really contradict Paul? I mean Paul says things like:

“For we maintain that a man is justified by faith apart from observing the law.” (Romans 3:28)
“However, to the man who does not work but trusts God who justifies the wicked, his faith is credited as righteousness.” (Romans 4:5)
“So too, at the present time there is a remnant chosen by grace. And if by grace, then it is no longer by works; if it were, grace would no longer be grace.” (Romans 11:5–6)
“For it is by grace you have been saved, through faith—and this not from yourselves, it is the gift of God— not by works, so that no one can boast.” (Ephesians 2:8–9)

Yet James insists that faith is insufficient:

“In the same way, faith by itself, if it is not accompanied by action, is dead. But someone will say, “You have faith; I have deeds.” Show me your faith without deeds, and I will show you my faith by what I do. You believe that there is one God. Good! Even the demons believe that—and shudder.” (James 2:17–19)

I think James and Paul are using words differently, as biblical writers often do. When Luke speaks of “apostles,” he almost always means the Twelve. When Paul speaks of “apostles,” he is usually referring to those sent out by the church as evangelists.

When James speaks of a faith that even demons have, he’s not speaking of the saving faith that Abraham had. When Paul talks about faith, it’s an active, obedient faith. James is addressing the lifestyle we live as a Christian; Paul is talking about how we achieve justification.

Using James’ terminology, we can’t be saved by faith alone; we also need works. Using Paul’s terminology, works have nothing to do with our salvation; it all depends on faith.

IF we understand how each author uses the words they use, we’ll see there’s no real conflict between their ideas.