What Does The Bible Say About Debt?

Debt is a burden many people carry today. With rising costs of living, it can be tempting or even necessary to take on debt. If you’re wondering what guidance the Bible offers on managing finances and debt, this comprehensive article explores principles and verses on borrowing, lending, debt slavery, insolvency, and more.

If you’re short on time, the Bible generally warns against debt while recognizing its occasional necessity. Key principles include living within means, paying debts promptly, lending generously to those in need, and avoiding long-term debt slavery.

Old Testament Verses and Principles on Debt

Deuteronomy 28 – Blessings for Avoiding Debt

In Deuteronomy 28, God promises great blessings to the Israelites if they carefully follow His commandments. One of those blessings is that they will lend to many nations but will not need to borrow (Deuteronomy 28:12). Avoiding debt is presented as a blessing and reward for obedience.

This principle shows that it is wise to avoid debt whenever possible.

Some practical ways to avoid debt today include:

• living below your means
• saving up to purchase items rather than buying on credit
• establishing an emergency fund
• avoiding impulse purchases and non-essential spending

By proactively avoiding debt, we can claim the blessing promised in Deuteronomy 28.

Proverbs 22:7 – “The Borrower Is Slave to the Lender”

Proverbs 22:7 warns that “the borrower is slave to the lender.” This vivid language conveys the loss of freedom that accompanies debt. When we are in debt, our choices become limited and our finances are no longer fully our own.

Some ways this debt slavery manifests itself today:

• High monthly debt payments prevent investing and saving.
• Outstanding debts hurt credit scores, limiting ability to qualify for loans.
• Feelings of guilt, stress, or shame due to inability to repay.
• Constant worry about making monthly payments.

Proverbs 22:7 reminds us to take extreme caution before borrowing lest we lose control of our finances.

Leviticus 25 – Jubilee Release from Debt Slavery

In Leviticus 25, God instituted the Year of Jubilee, to take place every 50 years. During the Jubilee, all debts were canceled, slaves were freed, and land returned to original owners. This represented a full financial reset for the nation.

The Jubilee demonstrates God’s heart of compassion and His desire to liberate people from crushing debt burdens. Even ethical loans were canceled in the Jubilee. This shows that perpetual indebtedness is not part of God’s ideal plan.

While we may take on responsible loans today, we should maintain an attitude of freedom and view debt as a temporary tool, not a way of life.

Practically, we can honor the spirit of Jubilee by:

• Seeking God’s wisdom before taking on loans
• Paying off debts as rapidly as feasible
• Helping free others from debt through charitable giving and volunteer work

New Testament Guidance on Lending, Borrowing, and Debt

Matthew 5:42 – “Give to The One Who Asks You”

In the Sermon on the Mount, Jesus teaches his followers to be generous and care for those in need, saying “Give to the one who asks you, and do not turn away from the one who wants to borrow from you” (Matthew 5:42).

This encourages open-handed lending and warns against stinginess, selfishness, or greed. Lending freely reflects God’s gracious provision for us.

However, some biblical experts note this was not meant to promote enabling freeloaders or lack of personal responsibility. The broader context promotes wise stewardship of resources. For example, John Piper states: “Jesus does not mean that we shouldals blindly give what people ask for if that would support or encourage sin”

Luke 6:35 – “Lend Expecting Nothing in Return”

Jesus goes further in Luke 6:35, saying his followers should “lend, expecting nothing in return“. This underscores the importance of generosity, grace, and seeking to bless others rather than operate based on cold calculations of direct reciprocity.

However, this verse has also been interpreted more narrowly by some as specifically applying to lending within the Christian community of believers who were united by compassion. In that context, repayment may not have been expected or needed to maintain cohesion.

Romans 13:8 – “Let No Debt Remain Outstanding”

The apostle Paul provides additional guidance in Romans 13:8, saying “Let no debt remain outstanding, except the continuing debt to love one another”. This has been taken as a warning against unpaid financial debts piling up.

Paul seems to view owing money to others as a burden that should actively avoided if possible. Some commentators believe this verse even prohibits borrowing altogether, though that interpretation is debated.

• Generosity in meeting others’ needs
• Cautious, wise stewardship of resources
• Avoidance of unnecessary debt that could become burdensome

But interpretations do vary, so these principles should be applied case-by-case with wisdom and compassion.

Managing Debt Wisely as a Christian

As Christians, we strive to honor God in all areas of our lives, including how we handle our finances. Though debt is often unavoidable, the Bible provides timeless principles for managing it responsibly and avoiding the pitfalls of debt slavery.

Living Within Means to Avoid Debt

The Bible warns that “the borrower is slave to the lender” (Proverbs 22:7). To avoid debt slavery, Christians should budget carefully and live below their means. Tracking expenses, limiting unnecessary purchases, and saving up to buy items outright allows believers to avoid the entrapment of debt from the start.

Scripture praises diligent financial stewardship, stating that “the plans of the diligent lead surely to abundance” (Proverbs 21:5). By following a budget that aligns with Biblical values of simplicity and contentment, Christians can often cover costs through earnings and savings alone, eliminating reliance on loans or debt.

Seeking God’s Wisdom on Necessary Debt

Though ideal, a completely debt-free life is not always feasible. Scripture acknowledges this reality, offering guidelines for taking on necessary debt in a wise manner.

For major purchases like housing, Christians should pray for discernment before taking on mortgage debt or lines of credit. The Bible encourages believers to “ask God, who gives generously to all without finding fault” when facing decisions (James 1:5).

With His guidance, followers of Christ can determine if potential debt aligns with His will for their lives.

Scripture also provides practical advice, urging borrowers to consider carefully if they have the means to repay loans before entering agreements (Luke 14:28). By following this Biblical wisdom, Christians can avoid crippling debt levels and maintain integrity as they fulfill obligations.

Meeting Obligations and Avoiding Long-Term Debt Slavery

For Christians already carrying debt, Scripture offers encouragement and advice for preventing ongoing indebtedness. The Bible urges borrowers to “pay everything owed as it comes due” (Romans 13:7) and to quickly settle accounts to avoid compounding debt (Matthew 5:25-26).

Believers struggling with debt repayment can take comfort in God’s promises of provision (Philippians 4:19) and seek assistance from financial counselors or services like the National Foundation for Credit Counseling (NFCC).

By facing financial issues head-on with faith and diligence, Christians can honor obligations and avoid long-term debt slavery.

Though challenging, establishing budgets aligned with earnings, limiting unnecessary expenses, and paying debts promptly enables Christians to manage finances wisely. With guidance from Scripture and reliance on God’s strength, believers can tackle debt in a manner that brings glory to Him.

Conclusion

In summary, the Bible offers wisdom but rarely direct commandments on debt. Key principles include living within means, lending freely to help those in need, meeting obligations faithfully, and avoiding long-term insolvency or debt slavery.

With prayer and God’s guidance, Christians can make wise financial decisions, assist others generously, and find freedom from burden of unnecessary debt.