What Does the Bible Say About Borrowing Money?

The Bible offers extensive guidance on financial matters. Principles related to money, debt, and stewardship are recurring themes. This wisdom provides insights into borrowing and other financial actions.

Biblical Perspectives on Borrowing

The Bible does not forbid borrowing, but presents it with caution due to inherent risks. Proverbs 22:7 states, “The rich rules over the poor, and the borrower is servant to the lender.” This verse highlights that debt can lead to subservience, limiting financial freedom and creating obligation.

Warnings against debt are common in biblical wisdom literature. Debt can lead to stress, anxiety, and potential financial ruin if repayment becomes difficult. Living within one’s means and avoiding unnecessary financial obligations is emphasized, including prudent financial planning and careful consideration before incurring debt.

Romans 13:8, “Owe no one anything, except to love each other,” is often interpreted as a general admonition against accumulating debt. While some interpret this as referring to the “debt” of love, it also underscores fulfilling all financial obligations promptly. The Bible encourages avoiding perpetual dependence on borrowing.

Biblical Perspectives on Lending

Biblical teachings address the responsibilities of lenders, emphasizing compassion and justice. Lending, particularly to those in need, is presented as an act of generosity. Exodus 22:25 instructs, “If you lend money to any of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him.” This prohibition against charging interest (usury) to fellow Israelites or the poor aimed to prevent exploitation.

The historical context indicates that such loans were often for subsistence, not commercial gain, making interest oppressive. Deuteronomy 23:19-20 further clarifies this, allowing interest on loans to foreigners but maintaining the prohibition for fellow Israelites. This distinction reflects a communal responsibility within the Israelite society to support one another without profiting from hardship.

Lenders are expected to exhibit patience and generosity. Luke 6:34-35 encourages lending without expecting repayment, fostering an attitude of giving rather than seeking gain. This perspective emphasizes a higher standard of compassion, particularly when assisting those in genuine distress. Lenders should avoid exploiting others through financial transactions, aligning with principles of fairness and ethical conduct.

The Importance of Repaying Debt

Repaying what is owed is a strong biblical imperative. Psalm 37:21 states, “The wicked borrows but does not pay back, but the righteous is generous and gives.” This verse highlights the moral duty to honor commitments, portraying failure to repay as a characteristic of the wicked. Integrity and honesty in financial dealings are upheld.

Romans 13:7 reinforces this principle, urging individuals to “Pay everyone what you owe him: taxes to whom taxes are due, revenue to whom revenue is due, respect to whom respect is due, honor to whom honor is due.” This instruction extends beyond taxes to all forms of financial obligation, emphasizing the importance of timely and full payment. The Bible connects financial responsibility with a broader sense of justice and righteousness.

Failing to repay debts carries negative consequences, both practical and in terms of one’s reputation. Such actions can lead to loss of trust and strained relationships, underscoring the significance of upholding one’s word. The expectation is that individuals manage their finances with care, ensuring they can meet their commitments.

Understanding Surety

The Bible warns against surety, which involves acting as a guarantor or co-signer for another’s debt. This means pledging one’s assets or credit to secure another’s financial obligation. Proverbs 6:1-5 advises against entering such agreements, suggesting one should “Deliver yourself like a gazelle from the hand of the hunter, and like a bird from the hand of the fowler” if ensnared by such a pledge.

Proverbs 11:15 warns, “He who is surety for a stranger will suffer for it, but one who hates being surety is secure.” This verse highlights the significant financial risk involved, as the co-signer becomes responsible if the primary borrower defaults. The potential for financial ruin and loss of possessions is a recurring caution.

Proverbs 17:18 further states, “A man devoid of understanding shakes hands in a pledge, and becomes surety for his friend,” implying that such actions lack wisdom. The biblical counsel emphasizes prudence and self-preservation in financial commitments, suggesting it is generally unwise to take on another’s financial burden. While helping others is encouraged, the Bible advises caution in agreements that could jeopardize one’s own financial stability.