What does the Bible say about Christian debt?

Overview of the Biblical Perspective on Debt

The subject of debt appears throughout Scripture, addressing spiritual, social, and practical dimensions. Several passages guide believers in managing financial obligations responsibly and importantly highlight attitudes of compassion and honesty.

Old Testament Foundations

The earliest prescribed instructions related to debt are found in the laws given to ancient Israel. These laws not only establish ethical guidelines but also reflect concerns regarding justice and mercy.

1. Lending and Borrowing in the Law of Moses

Deuteronomy 15:7–8 teaches: “If there is a poor man among your brothers … you are not to harden your heart or shut your hand from your poor brother. Instead, you are to open your hand to him and freely loan him whatever he needs.” This command underscores compassion toward those in need, urging openhanded lending.

Exodus 22:25–27 instructs that Israelites who loan to the poor are not to apply excessive interest or exploit them, reflecting a foundational expectation of fair dealings. Leviticus 25 extends provisions such as debt relief, reminding that all resources ultimately belong to the Creator.

2. Prohibition Against Usury Among God’s People

Deuteronomy 23:19–20 states: “Do not charge your brother interest … You may charge a foreigner interest, but not your brother, so that the LORD your God may bless you …” While commerce among foreigners could involve interest, charging interest to one’s fellow Israelite facing hardship was forbidden, highlighting righteous community conduct.

3. The Year of Release and Jubilee

Deuteronomy 15 sets forth a “year of release,” commanding the cancellation of debts every seventh year. Leviticus 25:10 describes the Jubilee—every 50th year—as a time of major societal reset, including the release of slaves and the return of property. Archaeological and comparative studies confirm that various ancient Near Eastern societies practiced periodic debt remissions, illustrating a broader cultural setting in which Israel’s divinely directed system of economic mercy stood out.

Wisdom Literature’s Emphasis

Proverbs reflects the moral implications of borrowing and lending. Proverbs 22:7 warns: “The rich rule over the poor, and the borrower is slave to the lender.” This proverb highlights how unrestrained borrowing can compromise personal freedom. Similarly, Psalm 37:21 declares: “The wicked borrow and do not repay,” associating unfaithful repayment with moral wrongdoing.

New Testament Instruction

In the New Testament, the moral and spiritual thrust regarding money and debt reaffirms integrity, duty, and a generous heart.

1. Fulfill Financial and Social Obligations

Romans 13:7–8 offers vital guidance: “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. Be indebted to no one, except to one another in love ...” This instruction calls believers to live diligently, honoring contracts, taxes, and debts so that their only ongoing ‘debt’ is the debt of love toward others.

2. Prayer for Daily Needs and Forgiveness

The Lord’s Prayer in Matthew 6:12 uses “debts” as a metaphor for sins, showing a spiritual parallel between financial indebtedness and the moral debt all owe to God. The concept includes acknowledging obligations—whether financial or spiritual—and seeking God’s grace and provision.

3. Generosity and Contentment

In passages like 2 Corinthians 9:6–7, believers are encouraged to be generous, reflecting God’s kindness. While not directly about borrowing money, a generous heart can mitigate excessive materialism that often leads to imprudent debt. First Timothy 6:6–10 cautions against the love of money, an attitude that may drive individuals into unwise financial decisions.

Practical Principles for Believers

While Scripture does not forbid every form of borrowing—there are permissible instances—certain guidelines emerge for a believer's approach to debt.

1. Consider the Purpose of the Debt

A loan may be necessary for essential needs or prudent investments. Yet wisdom dictates whether a debt aligns with a believer’s call to stewardship. Flippant borrowing for purely materialistic cravings contradicts principles of contentment (Proverbs 30:8–9) and responsibility.

2. Maintain Integrity and a Plan to Repay

Scripture expects that any debts will be repaid (Psalm 37:21). A Christian’s good name and their faithful witness grow through trustworthiness. Careful planning and budgeting, informed by passages like Proverbs 21:5 (which commends steady diligence), help ensure that obligations are honored.

3. Avoid Becoming a Slave to Lenders

Believers should remain aware of the risks that come with high-interest or oppressive debt. Proverbs 22:7 warns us of the deep dependency that can form. Striving for freedom from crippling financial binds preserves the capacity to serve God wholeheartedly.

4. Promote a Spirit of Generosity

The biblical model presents an ideal where followers of God love and support those in need (Romans 12:13). Wise financial stewardship not only prevents burdensome debt but frees believers to provide generously for others.

Addressing Common Concerns

Many believers wrestle with challenges like student loans, mortgages, and unexpected medical expenses. Applying biblical discernment means exploring how much debt, if any, is prudent, while balancing the reality of modern finance with time-tested biblical principles.

Financial counselors often stress creating an emergency fund and structuring a realistic repayment plan. These steps align with the biblical ethic of wisdom, careful planning, and personal responsibility (Luke 14:28–30).

Spiritual Dimensions of Debt

Although physical debt has real-life implications, Scripture also compares every believer’s moral standing before God to a debt we cannot repay on our own. Christ’s sacrifice pays a debt of sin beyond anyone’s ability to settle—this perspective can foster humility and gratitude, shaping how one manages earthly indebtedness and shows compassion to fellow debtors (Colossians 2:13–14).

Conclusion

According to Scripture, debt is not categorically forbidden, yet it is approached with caution. The principles of love, responsibility, honesty, and compassion set the tone. While believers should diligently repay their obligations and avoid unnecessary financial entanglements, they are also called to show grace to those who struggle.

Whether in ancient Israel’s community or the modern financial landscape, the consistent biblical message is one of moral integrity, a willing heart to help others, and a trust in God’s provision, keeping the ultimate goal: to honor God in all aspects of life, including how we handle debt.