What does the Bible say about handling debt?

Definition and Context of Debt

Debt, in Scripture, refers to the obligation incurred by one person who borrows goods, money, or services, with a promise—spoken or written—to repay what is owed. The Bible addresses this topic in various passages, highlighting its moral, spiritual, and practical implications. The term “debt” can also extend beyond financial situations to encompass moral and spiritual obligations. However, for this entry, the focus is on the practical, monetary dimension of debt and how believers should handle it.

Origins and Biblical Background

In ancient Israel, trade, agriculture, and lending were integral parts of community life. The Mosaic Law regulated lending practices to protect both borrowers and lenders. Archaeological discoveries—such as the Elephantine Papyri from about the 5th century BC—provide historical examples of financial transactions and loans in the Near East, confirming the biblical context of similar customs (though the specific scriptural accounts carry divine authority for believers). These documents support the historical reliability of the biblical narrative, which often references debt within its broader societal framework.

God’s Instruction for Lending and Borrowing

Scripture contains specific directives on lending, showing the heart and compassion God intends for His people:

• “If you lend money to one of My people among you who is poor, you must not act like a creditor; you must not charge him interest.” (Exodus 22:25)

• “You shall not charge your brother interest on money, food, or anything that may earn interest.” (Deuteronomy 23:19)

These passages reveal a concern for fairness and kindness. While lawful business lending can have an interest attached (especially in broader commercial contexts), God’s people were repeatedly instructed to show mercy when lending to those in dire need.

Warnings about Surety and Co-Signing

Scripture repeatedly advises caution regarding guaranteeing someone else’s debt or co-signing:

• “He who puts up security for a stranger will surely suffer, but the one who hates indebtedness is secure.” (Proverbs 11:15)

• “One lacking sense shakes hands in pledge and becomes guarantor for his neighbor.” (Proverbs 17:18)

These warnings illustrate the potential risks of entangling oneself in another person’s obligations. This caution aims to prevent undue financial burden and relational strain.

Responsibility and Repayment

The Bible upholds the importance of repaying debts promptly and with integrity:

• “The wicked borrow and do not repay, but the righteous are gracious and giving.” (Psalm 37:21)

• “Pay everyone what you owe: taxes to whom taxes are due, revenue to whom revenue is due, respect to whom respect is due, honor to whom honor is due.” (Romans 13:7)

In many biblical teachings, a believer’s credibility and witness are tied to faithful stewardship, which includes paying back lenders. Reliability in financial matters reflects character and upright living.

Attitudes and Heart Condition

Beyond the act of repaying, Scripture addresses the disposition of the heart. Jesus taught that our treasure, including financial practices, often reveals our primary devotion (Matthew 6:21). Therefore, Scripture encourages generosity and warns against greed. Debt can become an idol, fostering anxiety and misplaced dependence, whereas reliance on God fosters peace and spiritual growth.

Additionally, Paul’s statement “Owe no one anything except to love one another” (Romans 13:8) is frequently cited to emphasize keeping debt minimal or eliminating it entirely, aligning one’s heart with service rather than servitude.

The Principle of Release and Jubilee

Under Mosaic Law, debt release was established to prevent perpetual servitude:

• “At the end of every seven years you must cancel debts…every creditor shall cancel what he has lent to his neighbor.” (Deuteronomy 15:1–2)

Every fiftieth year was declared a Jubilee (Leviticus 25), during which debts were canceled, and property returned to original families. This system underscored God’s provision and intended social harmony, ensuring that poverty would not become a multigenerational curse. It also demonstrated the temporary nature of earthly possessions and the ultimate sovereignty of God over all resources.

Practical Wisdom and Avoiding Excessive Debt

Proverbs underscores the danger of being enslaved by debt:

• “The rich rule over the poor, and the borrower is slave to the lender.” (Proverbs 22:7)

This proverb highlights how excessive, lingering debt can erode personal freedom and security. Wisdom literature in Scripture consistently advocates diligence, contentment, saving, and sober-mindedness in finances to avoid the pitfall of overwhelming debt.

New Testament Perspective on Stewardship

In the New Testament, while there is no explicit prohibition of borrowing, the emphasis remains on responsible stewardship and faith in God’s provision. Believers are reminded to be conscientious with their resources for the benefit of family (1 Timothy 5:8) and ministry to others (2 Corinthians 9:6–7). Paying debts aligns with the overarching biblical ethic of honesty and reflecting God’s character in all areas of life.

Practical Considerations for Modern Application

1. Maintain a framework of contentment, recognizing needs versus wants (Philippians 4:11–12).

2. Budget responsibly and plan ahead (Luke 14:28).

3. Seek counsel from wise, mature Christians and experts when considering large financial commitments.

4. Provide for basic needs without neglecting generosity and charitable giving (Proverbs 3:9).

5. Prioritize complete repayment of outstanding debts as part of faithful stewardship (Romans 13:7–8).

Conclusion

From Genesis through Revelation, Scripture upholds a consistent teaching that debt should be approached with caution, compassion, and integrity. Lending and borrowing can serve practical purposes, especially to address genuine need, yet believers are reminded to exercise wisdom, avoid enslavement to creditors, and honor their obligations. The overarching biblical principle is stewardship—using God’s gifts responsibly to reflect His provision and character in every facet of life, including the handling of debt.