The Bible has a lot to say about debt and provides wisdom and guidance for Christians on the topic. Here is an overview of some of the key principles from Scripture:
1. Avoid going into debt if possible
Several verses encourage staying out of debt and living within one’s means. For example:
Romans 13:8 – Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.
Proverbs 22:7 – The rich rules over the poor, and the borrower is the slave of the lender.
While debt is not prohibited, the Bible warns that it can lead to bondage and it’s wise to avoid it when possible.
2. Use wisdom and sincerely evaluate the need before taking on debt
Sometimes debt may be necessary or prudent for large purchases like a home or education. The Bible encourages counting the costs wisely beforehand:
Luke 14:28 – For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?
Prayerfully evaluate if the debt load is absolutely needed and something you can manage.
3. Pay off debts and fulfill obligations
Scripture strongly warns against defaulting on debts. God expects debts to be repaid:
Psalm 37:21 – The wicked borrows but does not pay back, but the righteous is generous and gives.
Ecclesiastes 5:4-5 – When you vow a vow to God, do not delay paying it, for he has no pleasure in fools. Pay what you vow. It is better that you should not vow than that you should vow and not pay.
Make a priority of repaying any debts taken on and fulfill the obligations.
4. Manage debt wisely and limit overextension
For larger purchases like a house, it’s prudent to manage the debt wisely. This includes limiting other debts that may overextend your finances:
Proverbs 17:18 – One who lacks sense gives a pledge and puts up security in the presence of his neighbor.
Don’t go beyond your means by securing debt after debt and minimize the risk of default.
5. Avoid debt that could cause distress or ruin
Some debt, like co-signing for a loan, has inherent risks. Scripture warns against debt obligations that could lead to distress:
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?
Proverbs 11:15 – Whoever puts up security for a stranger will surely suffer harm, but he who hates striking hands in pledge is secure.
Avoid debt agreements where failure to pay would lead to serious consequences or total ruin.
6. Debt should not hinder generosity and giving
Debt repayment is important but should be balanced with continued generosity:
Deuteronomy 15:7-8 – If among you, one of your brothers should become poor, in any of your towns within your land that the Lord your God is giving you, you shall not harden your heart or shut your hand against your poor brother, but you shall open your hand to him and lend him sufficient for his need, whatever it may be.
Find a healthy balance between debt obligations and giving to others in need.
7. Trust God’s provision and seek His wisdom regarding debts
Believers should seek God for provision and wisdom in financial decisions involving debt:
Matthew 6:25-27 – Therefore I tell you, do not be anxious about your life, what you will eat or what you will drink, nor about your body, what you will put on. Is not life more than food, and the body more than clothing? Look at the birds of the air: they neither sow nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not of more value than they? And which of you by being anxious can add a single hour to his span of life?
Look to God as the ultimate provider and seek His direction for taking on or paying off debts.
8. Put spiritual riches above earthly possessions or wealth
Christians should view material wealth and debt in light of eternal spiritual priorities:
Matthew 6:24 – No one can serve two masters, for either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve God and money.
Matthew 6:19-21 – Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. For where your treasure is, there your heart will be also.
Eternal rewards should be valued above temporary earthly wealth attained through debt.
9. Practice contentment and trust God, not riches
Believers should develop contentment and trust God rather than riches attained by debt:
1 Timothy 6:6-10 – 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. But those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evils.
Develop godly contentment and seek fulfillment in God rather than debt-financed materialism.
10. Use debt cautiously and remain focused on eternal priorities
In summary, the Bible does not prohibit all debt but warns strongly about its risks and bondage. Believers are encouraged to avoid debt when possible, evaluate true needs, limit overextension, repay obligations, practice generosity, trust God’s provision, develop contentment, and remain focused on eternal rewards over temporary earthly wealth attained through debt.
Debt should be used cautiously with wisdom, sincere evaluation of necessity, and an eternal perspective. The principles from Scripture provide helpful guidance for Christians seeking God’s will regarding financial decisions and debt.