What Does the Bible Say About Debt?

Debt is an integral part of modern economic systems, impacting individuals and nations. Borrowing and lending, from personal mortgages to government bonds, facilitate growth and consumption. This article explores the wisdom found in ancient texts, specifically the Bible, to shed light on perspectives regarding debt, lending, and broader financial management. It aims to provide insights into how these principles can inform contemporary financial decisions.

Perspectives on Borrowing

Individuals considering debt assume a significant responsibility to repay what is borrowed. Borrowers are ethically obligated to honor their commitments. Failure to repay is a serious matter, highlighting the importance of integrity in financial dealings. This responsibility extends to ensuring a clear path to repayment before taking on an obligation. Borrowing without a certain method to repay funds is cautioned against, as it presumes on an uncertain future.

A warning within these texts states that “the borrower is slave to the lender.” This phrase underscores the potential for financial dependency and the power imbalance in debtor-creditor relationships. It cautions against excessive debt that could lead to a loss of financial freedom or personal autonomy. The texts also advise against becoming “surety” for others, which involves co-signing or guaranteeing a loan without sufficient means to cover the debt if the primary borrower defaults. Such practices are imprudent, exposing an individual to significant financial risk for another’s obligation.

Before acquiring debt, prudence is encouraged. This involves carefully assessing one’s ability to repay and the true necessity of the loan. While borrowing is not explicitly forbidden, it is often presented with a negative connotation, suggesting it is better to avoid it. The emphasis is on self-sufficiency and financial stability, allowing one to lend to others rather than needing to borrow.

Principles for Lenders

Lenders are guided by principles emphasizing compassion, particularly towards those in financial distress. Lending to the poor is an act of kindness, with the expectation that generosity brings its own reward. This transforms lending from a purely transactional activity into an act of support for community well-being. It highlights a moral obligation to assist those in need without exploiting their vulnerability.

Ancient law prohibits charging interest, or usury, to fellow community members, especially the poor. This prohibition aimed to prevent the exploitation of vulnerable individuals and to foster an economic system based on mutual support rather than profit from hardship. While charging interest to foreigners was permitted, the internal community was expected to operate on a different ethical standard. This distinction underscores a communal responsibility to protect one another from financial oppression.

The ancient legal framework also included provisions for debt forgiveness. The Sabbatical year, occurring every seven years, mandated the release of debts owed by fellow community members. This practice aimed to prevent perpetual indebtedness and reset economic imbalances, ensuring individuals and families had opportunities for a fresh start. Building upon this, the Year of Jubilee, observed every 50 years, called for a broader economic reset, including debt release, freeing those enslaved due to debt, and returning ancestral lands. These periodic cancellations promoted social equity and prevented the permanent concentration of wealth.

Broader Financial Stewardship

Beyond borrowing and lending, a wider framework of financial stewardship guides resource management. This perspective emphasizes that all possessions are entrusted to individuals by a higher power, making wise management a moral imperative. Resources are not to be hoarded or used solely for personal gain, but managed with diligence and purpose.

Avoiding greed is a recurring theme, as the pursuit of excessive wealth is a potential source of trouble and dissatisfaction. The texts caution against the love of money, identifying it as a root of various harms and a distraction from more meaningful pursuits. Contentment with what one possesses is encouraged, fostering a mindset that values non-material aspects of life.

The importance of saving and planning for the future is highlighted. Individuals are encouraged to set aside resources for anticipated needs, demonstrating foresight and responsible management. This practice protects against financial hardship and enables individuals to be prepared for unforeseen circumstances. Generosity and giving are fundamental aspects of stewardship. This includes supporting religious institutions and assisting those in need, reflecting a commitment to shared well-being.

Applying Ancient Wisdom Today

The principles concerning debt, borrowing, and financial stewardship, though ancient, retain relevance today. While modern economies rely heavily on various forms of debt—such as mortgages, student loans, or business loans—the underlying wisdom encourages thoughtful engagement. The caution against becoming a “slave to the lender” still applies, urging individuals to avoid debt burdens that could compromise their long-term financial stability or well-being. This means carefully evaluating loan terms, understanding repayment obligations, and ensuring debt serves a productive purpose rather than enabling immediate consumption.

For lenders, the ancient emphasis on compassion and ethical practices remains pertinent. Modern financial institutions, while operating on interest, can still embody these principles by offering fair terms, transparent disclosures, and support for borrowers facing hardship. The concept of debt forgiveness, exemplified by the Sabbatical year and Jubilee, resonates with modern bankruptcy laws. These laws provide a legal mechanism for individuals to receive a fresh start when overwhelmed by unmanageable debt. Like their ancient counterparts, they aim to prevent perpetual financial bondage and facilitate economic recovery.

The broader principles of financial stewardship encourage a balanced approach to wealth. Avoiding excessive greed and prioritizing responsible management can guide investment decisions and spending habits. Saving for the future, maintaining emergency funds, and planning for retirement align with preparing for anticipated needs. Giving back to the community through charitable contributions or supporting causes reflects the ancient call to generosity. These enduring principles provide a framework for individuals to navigate complex financial landscapes with prudence, responsibility, and consideration for the well-being of others.