What Does The Bible Say About Debt?

What Does the Bible Say About Debt?

There are over 2,300 instances where the Bible mentions money. It is evident that God cares about how we accumulate and use our money. It is also clear that money can consume us if we are not careful. As followers of Christ, it is important that we seek to honor him in all areas of life, and that includes honoring God with our money.

We know that we should spend our money wisely and that we are to give back to God what is ultimately his.

But what does the Bible say about debt?

Is it a sin to go into debt? Is it a sin to take out a loan?
Why do Christians seem to hate debt?
What if I currently have debt?

Here’s the big list of money topics in the Bible, and here is a list of over 100 Bible verses about money.

Bible Verses About Debt

Let’s check out some Bible verses about debt to start out.

Proverbs 22:7
The rich rule over the poor,
and the borrower is slave to the lender.

Proverbs 22:26-27
Do not be one who shakes hands in pledge
or puts up security for debts;
if you lack the means to pay,
your very bed will be snatched from under you.

Matthew 6:24
No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money.

Psalm 37:21
The wicked borrow and do not repay,
but the righteous give generously;

Nehemiah 5:3-5
Others were saying, “We are mortgaging our fields, our vineyards and our homes to get grain during the famine.”
Still others were saying, “We have had to borrow money to pay the king’s tax on our fields and vineyards. Although we are of the same flesh and blood as our fellow Jews and though our children are as good as theirs, yet we have to subject our sons and daughters to slavery. Some of our daughters have already been enslaved, but we are powerless, because our fields and our vineyards belong to others.”

Bible Verses About Lending Money

Psalms 112:5
Good will come to those who are generous and lend freely,
who conduct their affairs with justice.

Matthew 5:42
Give to the one who asks you, and do not turn away from the one who wants to borrow from you

Deuteronomy 15:6
For the Lord your God will bless you as he has promised, and you will lend to many nations but will borrow from none. You will rule over many nations but none will rule over you.

Why Do Christians ‘Hate’ Debt?

Have you noticed that some Christians seem to hate debt??

In many Christian circles, debt and being a faithful follower of Christ are like oil and water – they just do not mix. Many believe that debt leads to greater sins or that it is a sin to have debt in general.

It is common to turn to one of two Bible verses when it comes to dealing with debt and those are Proverbs 22:7 and Matthew 6:24 (see above) which both seem to tell the story that debt and accumulating money are evil.

As we saw in those Bible verses about debt, it is evident that debt should not be taken lightly. We need to take great caution when it comes to borrowing money.

There’s no doubt that choosing to finance something instead of paying cash for it can put many of us in a tough situation if we face future complications. It also hinders our chances of reaching financial independence.

However, since the Bible also seems to condone lending at the same time, I would say God isn’t totally against the idea of debt altogether – meaning that having debt is NOT a sin. So where is the line when it comes to using loans?

What Does the Bible Say About Debt?

4 Things The Bible Says About Debt

1. Make Well-Informed Decisions

Where does the Bible mention making well-informed decisions about debt? Well, it doesn’t explicitly say that, however, there are numerous occasions where the Bible tells us to be wise and shrewd. We can apply these teachings to any area of life and that includes instances when it comes to debt.

Not only that but we are also called to excellence in all areas of our life, including how we manage our money. Avoiding debt is a great way to practice excellence when it comes to money management.

2. Debt is a Form of Slavery to be Avoided

(Proverbs 22:7, Matthew 6:24, Nehemiah 5:3-5)

Every cent you owe to a lender, plus interest, handicaps both your ability to survive now and your ability to save for the future. (Tithe.ly) Debt keeps us enslaved. This is probably the most evident truth about debt written throughout the Bible.

3. Do Not Neglect Your Debt

(Psalm 37:21, Proverbs 22:26-27, Romans 13:7, Ecclesiastes 5:4)

Okay, so you have some debt. Do not ignore your debt. The faster you can pay it off the sooner you will be free and the more money you can save in the long run! The Bible tells us to pay back what we owe. So do not forget about those debts.

Create a debt payoff plan and work diligently to pay it off.

4. Pay Your Debt In Order to Achieve Financial Freedom

(2 Kings 4:7)

“She came and told the man of God, and he said, ‘Go, sell the oil and pay your debts, and you and your sons can live on the rest.’” One of the steps in achieving financial freedom is to get rid of all your debts. That way you can start investing for your future.

On a side note, I also would recommend continuing to be generous and to tithe while paying off your debt. There is a lot of evidence throughout the Bible that tithing is the key to experiencing true freedom in your finances!

Check out this inspirational story of someone continuing to tithe while paying off her debt!

What The Bible DOES NOT Say About Debt

The Bible does not ever say that having debt is a sin.

If you have ever had, currently have, or are planning on using debt in the future, you are not sinning.

The Bible explains that debt is definitely not a good thing, however, it never says that having debt is sinful. If the Bible gives the thumbs up to lending to people this surely means that it is not sinful to have debt.

There are many times where the Bible says we should not lead other believers to sin, so if having debt was sinful it would be contradictory to allow lending money to other believers.

God always provides for us, that is a promise. Typically we see God providing in other ways rather than through debt. Though that doesn’t mean he can’t provide in this way, but God can provide in bigger ways rather than through using debt. Again, loans are not bad, however, it gives you something to think about the next time you want to purchase something using a credit card!

Before Taking Out a Loan

Being able to borrow money is a very useful and helpful tool. For example, buying a house would be nearly impossible for many families without the help of banks lending money in the form of mortgages.

Similar to how the Bible describes many areas in life, we need to check our motives before we jump into something.

Things to Consider Before You Decide to Use Debt

Why do you need the loan?
What are the benefits of using this loan?
How do you plan to pay it off?
What are your true motives behind using this loan?
Can you budget to afford the loan payments?
Does buying this item go against your values?
Have you prayed about it?
Do you have an emergency fund in place to cover this expense if something were to happen?

These questions will help you decide where your heart is in this situation. If you are looking to buy a new car ask yourself why before financing it. Is it to impress or keep up with your neighbor down the street?

What is in your heart and what is your mindset when it comes to money. Are you building for your own personal gain or are you bringing others up as well?

Have your motives in the right place, your heart in the right place before God, and recognize the very real issues you’ll be facing as you accept debt.

How to Not Let Debt Rule You

The point to all of this is that debt isn’t necessarily evil. The issue is that those who have a debt problem have one because they let emotions control their financial decisions.

There are those who will work multiple jobs in order to pay for the house and/or for the car they don’t have time to enjoy. Those who are financially healthy think differently, they evaluate the numbers first, check their emotions second, and then make a wise decision.

Financially Healthy Decision Making

Evaluate the numbers
Check your emotions
Make a wise and informed decision
Plan to pay off debt early
Work with a money coach to help you stay on track

The Bible commends being shrewd when it comes to making financial decisions. We see this in Luke 16 in the Parable of the Shrewd Manager. Money is a tool, and we need to use it wisely. There is nothing wrong with intelligent leveraging.

Why You Should Avoid Debt

It Enslaves You
You End Up Paying More For That Item
It keeps you from building wealth

The Bible tells us that we become slaves to debt when we use it to finance our lives.

Think about your student loans, your mortgage, or your car payments. Do you not feel enslaved to those debts? We are stuck paying them for years. When it comes to education, housing, and transportation there are plenty of options out there besides using loans.

Our society has made financing the norm. However, the Bible tells us the complete opposite. We need to challenge the conventional assumptions about money and start thinking about our finances through a Biblical lens.

Debts enslave us.

God has released us from our bondage to sin, so it begs the question, why would we want to enslave ourselves to another form of bondage – debt?

Not only does it enslave us, but when we look at the big financial picture when it comes to loans, using financing automatically means we will end up paying more for something in the long run than what it actually costs to begin with.

Interest is only good when it is earning us money, not taking more of it away.

Before you make that next big purchase, think about it a little more. Figure out what your intentions are with that purchase. If you come to the decision to make the purchase try finding different financing options before jumping straight to taking out a loan.

What do you think about debt?
Do you have a negative or positive relationship with financing?
How have loans helped you in the past and how have they hindered your future?

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