Does the Bible say anything about going into monetary debt?

WHAT DOES THE BIBLE SAY?

The Bible encourages us to be generous and wise when it comes to finances (Psalm 37:21; Romans 13:8). In Old Testament times, God told the Israelites they could charge interest on loaned money to a stranger but not an Israelite brother (Deuteronomy 23:20). Instead, they were to support a poor brother as if he were a sojourner and even offer him a place to live (Leviticus 25:35–37). God seemed to link this instruction with His own generosity of delivering the Israelites out of Egypt (Leviticus 25:38). Similar to the Israelites, we should extend generosity to others as God has been generous to us (Ephesians 2:8; Matthew 18:23–35). Additionally, if going into debt seems our best option given our unique circumstances, we should ask for God’s wisdom (James 1:5). Ultimately, we should use wisely what God has given us (Luke 16:10-11; 2 Corinthians 9:6-8). While we should deliver to authorities what is owed to them, we should avoid collecting continual outstanding debt to others and “owe” each other only love (Romans 13:1–8).

FROM THE OLD TESTAMENT

• God instructed the Israelites not to charge interest when making a loan to a fellow Israelite who was poor (Leviticus 25:35–38). This law put the lender in a position to extend some of the same type of generosity God extended to the Israelites.
• On the other hand, God did allow the Israelites to receive back a fair interest rate on loaned money from a stranger (Deuteronomy 23:20).
• Psalm 37:21 says, "The wicked borrows but does not pay back, but the righteous is generous and gives." We can apply this Proverb to our own life, taking care to pay back to our debtors what we owe them but also giving generously to others.
• Debt can become a form of slavery, which is a reason it is best to avoid it if possible.
• Proverbs 22:7 warns, "The rich rules over the poor, and the borrower is the slave of the lender."

FROM THE NEW TESTAMENT

• We should respond to God's forgiveness, grace, and mercy by being forgiving, gracious, merciful, and generous with others (Matthew 18:23–35).
• While the point of the Parable of the Talents is not about financial investments, Jesus seems to imply that there is nothing wrong with investing money into a bank in which interest can accumulate over time, since in His parable, this is what the wicked servant should have done with his Master’s money (Matthew 25:27).
• Romans 13:6–7 tells us we are to respect authority and give what we owe to them (e.g., taxes) Anyone who takes on debt should plan to repay it, and to do so in a timely manner.
• Romans 13:8 says, "Owe no one anything, except to love each other, for the one who loves another has fulfilled the law." We should avoid accumulating outstanding financial debt if possible, but to continuously “owe” love to our brothers and sisters in Christ.
• God provides us an escape of sorts from the slavery of sin and a promised future with Him. He does not charge us "interest" on this, but offers salvation and life to us freely (Ephesians 2:8-10).
• It is best to avoid debt if at all possible. But, again, the Bible does not prohibit borrowing money. We should ask God for wisdom on the matter (James 1:5).

IMPLICATIONS FOR TODAY

The Bible has much to say about how to handle our money. We should strive to live debt-free if possible, but this is not always an option. If we do borrow from someone, we should repay that debt. On the other hand, if we choose to lend money or other goods to someone, it is an opportunity to extend Christ-like love, patience, and generosity to the person who is in debt to us. The law in Leviticus 25:35–38 helped poor people to climb out of poverty without humiliation or making their debt hole deeper. Although the lender would lose money and the interest that might have gained, he was to make this sacrifice for the benefit of another and out of grateful understanding for the deliverance God freely gave him. The loan was intended to help the poor—-not as a means of financial gain for the lender. Taking into consideration God’s extravagant generosity to us, we can take after the Israelites’ example and be generous with those who owe us—-remembering God’s goodness and faithfulness to us.

UNDERSTAND

• The Bible warns against accumulating debt.
• We are called to pay our debts, including to the authorities God has set over us.
• God’s generosity toward us should impel us to be wise and generous in lending to those in need.

REFLECT

• How does the Bible’s wisdom about finances help you manage yours?
• What impact has God’s generosity toward you had on your behavior toward lending to others?
• What are some ways that you’ve used your money to help others?

ENGAGE

• How can conversations about lending and money be used as an opening to share the gospel?
• What biblical wisdom can be applied to circumstances in which we’re not sure if we should lend to someone (i.e., someone who frequently asks for money)?
• In conversations with others about God’s character, how might the issue of money and lending be relevant?