What Does the Bible Say About Debt and Borrowing?

The Bible offers guidance on financial matters, including debt and borrowing. These teachings provide principles for managing resources responsibly, helping individuals navigate financial decisions with integrity and foresight.

Biblical Principles on Debt

Biblical teachings emphasize that individuals are stewards responsible for managing resources wisely. This concept of stewardship underscores the importance of careful management of finances. Exercising wisdom in financial decisions is encouraged, involving planning and balancing current needs with future considerations.

While the Bible does not explicitly forbid debt, it often presents it with caution. A recurring theme warns against the dangers of surety, which is akin to cosigning for another’s debt. Proverbs, a book of wisdom, highlights the risks, indicating that those who guarantee a stranger’s debt may suffer financially. Living within one’s means is a consistent principle, encouraging contentment and preventing financial strain.

Borrowing from a Biblical Perspective

The act of borrowing is addressed with significant warnings in biblical texts, particularly regarding implications for the borrower. A teaching states that “the borrower is slave to the lender,” highlighting a potential loss of financial freedom. While not strictly prohibited, debt is generally discouraged, and prudence is advised.

Integrity and careful planning are paramount before taking on any debt. The Bible encourages seeking wise counsel before borrowing. The intention to repay is a fundamental expectation; failing to repay a debt is viewed as a moral issue. Individuals are urged to avoid excessive debt, borrowing only out of necessity and with a clear plan for repayment.

Lending from a Biblical Perspective

Biblical principles concerning lending emphasize generosity and compassion, particularly towards those in need. The Scriptures encourage open-handedness and a willingness to support the less fortunate. Lending to the poor is often presented as an act of kindness that is likened to lending to a higher power, with a promise of repayment. This perspective underscores a spiritual dimension to financial transactions, promoting acts of mercy rather than exploitation.

The concept of usury, or charging excessive interest, is condemned, especially when lending to vulnerable members of the community. Historically, this prohibition aimed to protect the poor from further economic hardship. While lending to fellow community members without interest was often mandated, charging interest to foreigners was sometimes permitted, reflecting different economic contexts. This distinction highlights a nuanced approach, differentiating between charitable loans to those in distress and commercial lending. The New Testament further emphasizes radical generosity and lending without expecting anything in return, reflecting a broader spirit of grace.

Repaying Debt and Financial Stewardship

Fulfilling financial obligations, especially repaying debts, is a significant biblical imperative. The Bible strongly encourages honoring commitments and avoiding default. Failing to repay a debt is portrayed as a characteristic of the wicked, reinforcing that repayment is not just a financial matter but a moral one. This principle underscores the importance of integrity in all financial dealings.

Individuals are called to be diligent and hardworking in managing their resources, ensuring they can meet their obligations. This connects to the broader concept of financial stewardship, where one manages resources responsibly and faithfully. Living within one’s means is repeatedly advised to facilitate debt repayment and avoid future financial entanglements. The ultimate goal is to live a life of financial integrity and responsibility, reflecting a commitment to honoring all agreements.