God's Word on Debt

Photo from here.

The Bible has a lot to say about debt. Let's start with two short stories that show where debt can lead:

"A certain woman of the wives of the sons of the prophets cried out to Elisha, saying, 'Your servant my husband is dead, and you know that your servant feared the LORD. And the creditor is coming to take my two sons to be his slaves.'" (2 Kings 4:1)

God miraculously rescued the widow, but debt nearly brought a catastrophe.

Note: Biblical slavery was nothing like the slavery we think of today. It was much better (temporary, the slave had rights, etc), but still not something to be desired.

In Matthew 18:23-34, Jesus tells the parable of two debtors (please read if unfamiliar). The main point is on forgiveness (including debt forgiveness, which we must be willing to sometimes do), but it also tells how prison and even torture were used when a debt went unpaid. Thankfully, these might not be the norm today, but people still do experience torture from debt in a figurative sense.

Let's continue:

[T]he borrower is servant to the lender. (Proverbs 22:7b)

You were bought at a price; do not become slaves of men. (I Corinthians 7:23)

Not having to borrow was a blessing God promised Israel if they would obey Him:

“For the LORD your God will bless you just as He promised you; you shall lend to many nations, but you shall not borrow; you shall reign over many nations, but they shall not reign over you.(Deuteronomy 15:6) 

“The LORD will open to you His good treasure, the heavens, to give the rain to your land in its season, and to bless all the work of your hand. You shall lend to many nations, but you shall not borrow. (Deuteronomy 28:12)

Conversely, under the sections of judgments for not obeying God's law is:

“He shall lend to you, but you shall not lend to him; he shall be the head, and you shall be the tail." (Deuteronomy 28:44)

When going into debt, people usually cannot afford to pay in full for what they're borrowing for. They assume that they will be able to pay the amount of the loan over time, but caution is required:

Do not boast about tomorrow, for you do not know what a day may bring forth. (Proverbs 27:1)

Come now, you who say, “Today or tomorrow we will go to such and such a city, spend a year there, buy and sell, and make a profit”; whereas you do not know what will happen tomorrow. For what is your life? It is even a vapor that appears for a little time and then vanishes away. Instead you ought to say, “If the Lord wills, we shall live and do this or that.” (James 4:13-15)

Finally:

Owe no one anything except to love one another, for he who loves another has fulfilled the law. (Romans 13:8)

Note: I've heard this could better be translated as "let no debt remain outstanding..."

There are more scriptures about debt, but these conclusions should be clear:

• Being forced to go into debt may be a sign of God's displeasure while being debt-free is a blessing.
• Borrowing should be avoided when possible. Going into debt needlessly is unwise.

Is going into debt a sin? We are not to turn from those who want to borrow from us (Matthew 5:42), and debt may sometimes be unavoidable, so I don't believe it's always a sin. If someone knew of the Scriptures above and carelessly took out a loan they didn't need anyway, I do think that would be disobedience to God's word.