The Biblical View of Debt: Wisdom, Warnings, and Guidance

“Debt is a common aspect of modern life, from mortgages and student loans to credit cards and business financing. But what does the Bible say about debt?”

I asked this question to ChatGPT. I think you will be interested in the answer.

While Scripture does not explicitly forbid borrowing, it provides strong warnings about its dangers and encourages wisdom, contentment, and generosity. A biblical perspective on debt involves understanding its risks, exercising prudence, and trusting in God’s provision rather than relying on financial bondage.

Debt as a Form of Bondage

One of the most well-known biblical warnings about debt comes from Proverbs 22:7, which states: “The rich rule over the poor, and the borrower is slave to the lender.”

This verse highlights a fundamental reality of debt: it places the borrower in a position of servitude to the lender. Debt restricts financial freedom, burdens individuals and families, and can create stress, anxiety, and even moral compromise. In biblical times, excessive debt could lead to literal enslavement, as debtors who could not repay their loans were sometimes forced into servitude. While modern financial systems are different, the principle remains the same—debt can limit personal and financial independence.

Biblical Cautions Against Debt

The Bible frequently warns against taking on unnecessary debt, urging believers to be cautious and responsible. Consider these verses:

Romans 13:8 – “Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.”

Proverbs 22:26-27 – “Be not one of those who give pledges, who put up security for debts. If you have nothing with which to pay, why should your bed be taken from under you?”

These verses do not prohibit debt outright, but they warn of its consequences. The encouragement is to avoid financial obligations that could jeopardize one’s ability to care for oneself and one’s family. When debt is unavoidable, it should be approached with careful planning and a clear repayment strategy.

Paying What is Owed

The Bible also emphasizes integrity in financial matters. If someone takes on debt, they are expected to repay it. Psalm 37:21 states, “The wicked borrows but does not pay back, but the righteous is generous and gives.” This verse underscores that failing to repay debt is not just a financial issue but a moral one. Christians are called to be responsible stewards of their resources, ensuring that their financial dealings reflect honesty and faithfulness.

Trusting God Rather Than Debt

One of the primary reasons people fall into debt is a lack of contentment or trust in God’s provision. Society encourages a consumer-driven mindset, often pressuring people to live beyond their means. However, the Bible calls believers to seek contentment and trust that God will provide for their needs.

Philippians 4:19 – “And my God will supply every need of yours according to his riches in glory in Christ Jesus.”

1 Timothy 6:6-8 – “But godliness with contentment is great gain, for we brought nothing into the world, and we cannot take anything out of the world. But if we have food and clothing, with these we will be content.”

Trusting in God rather than accumulating debt demonstrates faith and reliance on His provision. It also fosters gratitude and a mindset of stewardship rather than materialism.

Giving Rather Than Borrowing

Another biblical principle regarding finances is generosity. Instead of focusing on borrowing, Scripture encourages giving and helping those in need. Luke 6:38 states, “Give, and it will be given to you. Good measure, pressed down, shaken together, running over, will be put into your lap.”

God calls His people to be generous, and generosity is often hindered by debt. When individuals are burdened with loans, they have less freedom to support others, contribute to ministries, or invest in charitable causes. Living debt-free, when possible, allows for greater financial flexibility to bless others.

Is Debt Ever Acceptable?

While the Bible warns against debt, it does not outright prohibit it. There are instances where borrowing may be necessary or beneficial, such as purchasing a home, funding education, or investing in a business. The key is to approach debt with wisdom, ensuring that it is manageable, purposeful, and aligned with God’s principles.

Some guidelines for responsible borrowing include:

1. Avoid excessive debt – Only borrow what you can realistically repay without financial strain.

2. Have a clear repayment plan – Be diligent about making payments and reducing debt as quickly as possible.

3. Prioritize needs over wants – Do not take on debt to fund a lifestyle beyond your means.

4. Seek wise counsel – Proverbs 15:22 says, “Without counsel plans fail, but with many advisers they succeed.” Consulting with financially wise Christians or financial advisors can provide valuable insight.

Conclusion

The Bible provides a balanced view of debt. While it is not inherently sinful, it carries significant risks and should be approached with caution. God’s Word encourages believers to live within their means, be content with His provision, and exercise wisdom in financial decisions. By avoiding unnecessary debt, repaying obligations responsibly, and prioritizing generosity, Christians can honor God in their financial stewardship and experience greater freedom in their live.

So, what you think about the AI answer?

–Ken Weliever, The Preacherman