Jude finishes his dissertation on the false teachers troubling disciples in the first 19 verses of his letter.
In verse 20 Jude begins to establish what Christians are to do to avoid the fate of those caught in error. To combat error it is necessary to build oneself up via faith. Since faith derives from the word of God (cf. Romans 10:17), this entails study and application. It also requires prayer, and the obedience which is a prerequisite to any sustained relationship with God.
A proper application of our obedience is seen in our treatment of those in sin. It requires knowledge and discernment, allowing one to make a “distinction.” Is an expression of compassion required to save a soul? Or, is it more appropriate to act boldly, lest ungodly influences gain a hold, and lead to the fall of others. The key is “making a distinction” (22). Faithful Christians are to be sympathetic to all men, however, they can’t all be treated the same. Like the false teachers discussed, arrogance and destruction must be dealt with firmly.