Have you ever wondered what the Bible says about debt?
If you have ever fallen down a social media rabbit hole, it is likely you have come across someone’s family, a recent college graduate, or some other young professional holding up a victorious letter board showing that they are debt free.
That “board of victory” usually states how much debt they paid off, how quickly they paid it off, and sometimes – a Bible verse.
A Bible verse?
Is being debt-free Biblical? Or, if someone has debt, are they less Holy?
To help us understand what the Bible really says about being debt-free, I interviewed a Master of Divinity, Cyrus Waters.
Cyrus helps us understand what God says about debt, discusses what we should do if we leverage debt for investment purposes, and shares things we should consider as we navigate through our debt-free journey.
Interview with Cyrus Waters, M.Div.
Cyrus Waters, M.Div., holds a Master’s in Divinity and Master’s in Theology with an emphasis in Old Testament. As a Bay Area native, Cyrus has a reputation for keeping it real and relevant. If you are ever privileged to hear him preach, you will quickly find yourself relating to his analogies and convicted by his authenticity.
Here is what Cyrus shared on what the Bible says about debt –
When is it sinful to have debt?
Even though the Bible does not say debt is sin, it does discourage debt because it can be burdensome and even troublesome.
And, although having debt may not be sinful, debt can be a consequence of sinful actions.
Irresponsible Stewardship
Our money belongs to God, not to us. This is why the Bible calls us to be responsible stewards.
By definition, a steward is someone who manages another person’s property.
We are managers, not owners, of what He gives to us.
So, it is sin to make reckless decisions that put us in need of debt. For example, when someone impulsively gambles away all of their money to where now they are indebted, sin was involved in their decision to irresponsibly manage God’s resources.
Unlike the gambling example, not all stewardship decisions are “black and white.” To determine when it is sinful to take on debt, a lot of self-examination is required.
Pretending to be Rich
People should not make rash decisions to take out a loan for a house, for school, or a car just so they can “appear” as if they are wealthy.
In God’s eyes, is not good to front or fake as if you are wealthy just for show.
Wicked Motives
We also need to check our motives.
Having debt for the purpose of greed, coveting, or selfishness is wrong. Taking on debt for the purpose of fabricating your own life will end up in ruin.
Also, taking up debt that you know you will not pay back is wicked.
So debt in itself is not sinful, but the motivations of taking on debt can be sinful. The Bible encourages us to be debt-free and to owe nothing to anyone except to love one another.
Having said that, we do not live in an ideal world where we can always avoid debt and pay for everything in cash. Sometimes, taking on debt may be necessary to progress and make a living.
It is important to pray, strategically plan, seek counsel, and examine your heart if you decide to take on debt.
Being debt-free has become a popular goal in Christian finance circles. How does being debt-free make us more Christ-like?
Being debt-free does not automatically make someone more like Christ, but being debt free certainly can give us the opportunity to be more like Christ.
Being debt free allows the Christian to be more like Christ by increasing our capacity to give more.
Capacity to Give
When we decrease our monthly debt payments, we can give more to the Church, missionaries, church or family members who are in need, non-profits, charities, and so forth.
Being generous to others demonstrates love.
If Christ gave His life for us, we can at least give financially or even materially to others.
In fact, when Christians want to talk about money—investing, budgeting, saving, creating generational wealth are usually the topics we want to learn about or talk about.
While these are great aspects of finances that Christians should become knowledgeable of, what goes missing in the topic of finances is giving.
Capacity to Serve
When Jesus had His ministry on Earth, He cared both for the spiritual and physical needs of others. Being debt-free should allow us to serve those in need and maybe even bless them with gifts.
Capacity to Provide Generational Wealth
Check out 10 Biblical Principals to Help You Manage Money Well for perspective on what the Bible says about generational wealth.
Jesus uses several analogies to compare our sin to debt (Matthew 6:12, Colossians 2:13-14 and others). Why does He do this?
I believe Jesus uses the analogy of comparing our sin to debt for multiple reasons.
[In this response, the debt Cyrus is referring to is “bad” debt. This includes credit card debt, payday loans, excessive student loan debt and other debt that does not improve our net worth. Keep reading to learn what he has to say about “good” debt.]
Familiarity
First, it is because debt is something everyone is familiar with. Jesus used illustrations that His listeners were accustomed to based on their day-to- day living.
He used agricultural illustrations, illustrations using family relationships and so forth.
Everyone is familiar with money.
And, many people, both in the time of the New Testament and today, understand the weight of debt.
Which leads to my second reason as to why I believe Jesus makes this analogy.
Similarities
Agreeing to debt brings the same consequences that sin brings.
Think about it.
What does [bad] debt do to a person? It weighs them down, they feel burdened, maybe even guilty for taking it. They may even feel hopeless, in that they cannot do anything to be free from it.
Debt obligations can cause stress and even strain on a family. Debt can also limit a person’s ability to attain things that they want such as a home, car, vacation, further education, etc.
When you are in debt, you are enslaved.
Now, think about what sin does. It causes almost the same types of problems as debt.
Sin brings shame, guilt, family problems and other issues. Sin enslaves people. Sin takes away your joy and peace, because it is a burden.
Pay Off
On the flip side, how does someone feel when they have paid off all of their debt?…
…They feel FREE!
We are all spiritually indebted to God for our sin, and the debt we owe Him is impossible for us to pay back because the price is eternal.
Fortunately, the Good News is that Jesus paid for our debt on the cross. Which is why in Colossians 2:14, Apostle Paul even uses the analogy of debt to refer to sin by saying, “by canceling the record of debt that stood against us with its legal demands. This He (Jesus Christ) set aside, nailing it to the cross.”
God CANCELED, ERASED, WIPED OUT our spiritual and eternal debt! What a blessing!
Forgiveness
Since God has forgiven us of our sins, we can forgive others of their transgressions (or debts) towards us as well.
In the parable of the unforgiving servant, Jesus shows us how hypocritical it is if we receive forgiveness and do not forgive others (see Matthew 18:21—35).
Should Christians leverage debt to increase wealth (for example, take out a loan to purchase investment property)?
A Christian can leverage debt to increase wealth for the future, however some things must be considered.
Consider Transitory Nature
We must remember what James 4:13—14 says:
“Come now, you who says, ‘Today or tomorrow we will go to such and such city, and spend a year there and engage in business and make a profit. Yet you do not know what your life will be like tomorrow. You are just a vapor that appears for a little while and then vanishes away.”
We must not leave God and our transitory nature out of the equation when it comes to planning for the future. We also must know that we can take out loans, make investments, purchase property and more, but God does not promise that all Christians will attain wealth.
Consider Risks
It is important to consider that there is always a risk when taking on debt for the purpose of trying to increase wealth. There is nothing wrong with making calculated risks in life as long as prayer and seeking wisdom is involved (Proverbs 16:3).
Create a Plan
In addition, there should always be a plan when taking on debt. Within that plan, paying off debt should be a priority so that your resources can be more useful in the Kingdom of God.
What are some helpful scriptures to consider before deciding whether to take on debt?
There are plenty of Scriptures that come to mind with this question.
Scriptures on Wisdom
The first one is James 1:5 which says, “If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given.”
While making big decisions like deciding if you should take on debt, prayer needs to take place throughout the whole decision making process.
Scriptures on Prayer
Prayer helps you to not be hasty in your decisions, and helps you to think and weigh your options.
Prayer also forces you to trust God.
Proverbs 3:5—6 says, “Trust in the Lord with all your heart, and lean not on your own understanding. In all your ways, acknowledge Him and he will make your paths straight.”
Trusting God is key.
Scriptures on Obedience
Also, obeying God is key.
Proverbs 16:3 says, “Commit your work to the Lord, and your ways will be established.”
God blesses obedience. Submitting to the will of God by obeying His Word will lead to God blessing the decisions you make. When you are immersed in Scripture and you follow His Word, you will become wise to where you will make the right decisions, even when it comes down to money.
Scriptures on Counsel
Another overlooked tip regarding the area of finances is seeking wisdom from people you trust. For instance, if you are married. you definitely want to talk about money with your spouse.
Also, there are supplementary resources to seek out including financial advisers, your pastor, or maybe even your parents.
Maybe you have close friends who are wise with their money. These people can give advice as well as accountability on how you manage your money.
On this topic, two Scriptures come to mind.
Proverbs 11:14 says, “Where there is no guidance, a people falls, but in an abundance of counselors there is safety.”
Proverbs 15:22 says, “Without counsel plans fail, but with many advisers they succeed.”
In Conclusion
Finally, Proverbs 22:7 says, “The rich rules over the poor, and the borrower is the slave of the lender.”
This verse is a good reminder that when you take on debt, you are enslaved to the lender. So, when you borrow money, you are obligated to pay back to the lender. This is true whether you take on “good” debt or “bad” debt. Plan to pay off debt accordingly.
As you can see from the responses above, the Book of Proverbs is a great book for understanding godly principles around debt and financial stewardship.
If you want an introduction to what the Bible says about money, Proverbs is the place to start.
Cyrus Waters is a Husband to Morgan, father to Hazel (daughter) and Ocean (son). He has a Bachelor of Arts in Anthropology, minor in Philosophy and Religion at San Francisco State University (2014). He also holds a Master’s in Divinity (2017) and Master’s in Theology emphasis in Old Testament (2020) at The Master’s Seminary. In addition to his 9-5 career, Cyrus is the Youth and Young Adult Minister at Fairview Heights Baptist Church in Inglewood, CA.
To read more from Cyrus, check out his website, Poema.