Key points:
A Biblical view of debt suggests that while borrowing is not a sin, acquiring certain types of debt can stem from heart issues.
Living debt-free can increase your capacity to give.
Christians can responsibly leverage debt for investments by ensuring every financial decision is filtered through the lens of Godly stewardship.
A Biblical View of Debt: An Interview with Cyrus Waters, M.Div.
While having debt doesn’t make you “less holy,” the scriptures offer warnings about the burdens of borrowing. To understand the Biblical view of debt, we interviewed Cyrus Waters, M.Div. to discuss how to honor God with our resources.
Q: When is it considered sinful to have debt?
Cyrus: Although the Bible doesn’t say debt is a sin, certain types of debt can be a consequence of sinful actions.
- Irresponsible Stewardship: We are managers, not owners, of God’s money. It is a sin to make reckless decisions—like gambling or impulsive spending—that force us into debt.
- Pretending to be Rich: Proverbs 13:7 warns against “fronting” wealth you don’t have. Taking a loan just to appear successful is a heart issue.
- Wicked Motives: Borrowing with no intention to pay it back (Psalm 37:21) is clearly labeled as wicked. 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.
In summary, 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.
Q: How does a debt-free life make us more Christ-like?
Cyrus: It doesn’t happen automatically, but it gives us the opportunity to be more like Him.
- Capacity to Give: When you aren’t tied down by monthly payments, you can give more to the Church, missionaries, and those in need. Generosity is the most talked-about financial duty in the Bible.
- Capacity to Serve: Jesus cared for spiritual and physical needs. Being debt-free frees up your time and resources to serve others without the “weight” of financial slavery.
- Capacity to Provide Generational Wealth: Check out 10 Biblical Principles for Managing Money: A Q&A with Ryan Tolan for perspective on what the Bible says about generational wealth.
Q: Jesus uses debt as an analogy for sin (Matthew 6:12, Colossians 2:13-14 and others). Why does He do this?
[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.]
Cyrus: He uses it because everyone understands the weight of it.
- 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, 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.
- Similarities: Just as [bad] debt causes stress, guilt, and a feeling of being trapped, sin enslaves the soul.
- The Payoff: The feeling of paying off a loan is “Freedom!” We were spiritually indebted to God, a debt we could never pay. Colossians 2:14 tells us Jesus “canceled the record of debt” by nailing it to the cross. We are now free.
- 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).
Q: Should Christians leverage debt for investments, like real estate?
Cyrus: You can, but you must consider three things:
- Transitory Nature: James 4:13–14 reminds us not to leave God out of our business plans.
- Risks: There are no promises of wealth. Always seek wisdom (Proverbs 16:3) before taking a calculated risk.
- The Goal: Have a plan where paying off the debt is a priority so your resources can return to being useful for the Kingdom.
Q: What scriptures should we study before borrowing?
Cyrus:
- Scripture on Prayer: While making big decisions like deciding if you should take on debt, prayer needs to take place throughout the whole decision making process. 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).
- Scripture on Obedience: 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. (Proverbs 16:3)
- Scripture on Wisdom: Seek 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. (Proverbs 11:14 & 15:22)
“If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given him.” (James 1:5).
Conclusion
Proverbs 22:7 reminds us that “the borrower is the slave of the lender.” Whether you are dealing with “good” debt or “bad” debt, the goal is the same: to manage God’s resources with integrity. Pursuing a debt-free life isn’t just about a bank balance; it’s about freeing yourself to follow God’s calling wherever it leads.
About the Expert
Cyrus Waters, M.Div., holds a Master’s in Divinity and a Master’s in Theology with an emphasis in the Old Testament from The Master’s Seminary. He is the Pastor for High School Ministry at Golden Hills Community Church, married to his wife, Morgan, and a father of four.. Cyrus is known for his authentic, “keep it real” approach to scripture and his passion for Biblical stewardship.
Disclaimer: This material is for informational purposes only and is not intended as tax, legal, or accounting advice. Consult your own advisors before making significant financial commitments.
General Information Only: This content is prepared by The Little CPA for informational and educational purposes only. It does not constitute financial, tax, legal, or investment advice. While we strive for accuracy, the rapidly changing nature of tax laws—means this information may not apply to your specific situation.
No Professional-Client Relationship: Your use of this website or engagement with this content does not create a CPA-client relationship. You should consult with a qualified professional who is familiar with your individual financial circumstances before making any significant financial decisions.
Spiritual & Personal Autonomy: Discussions regarding church financial health and Biblical stewardship are intended to provide a framework for evaluation and are not a substitute for personal prayer, discernment, or spiritual counseling. The Little CPA does not endorse or guarantee the financial stability of any specific religious institution. Choosing a place of worship is a deeply personal decision that involves factors far beyond financial metrics.
Third-Party Risk: References to specific software, banks, or storage providers are not endorsements. We are not liable for any issues, data breaches, or financial losses that may arise from your engagement with third-party vendors.
Tax Substantiation Warning: Per 2026 IRS guidelines, donors are responsible for obtaining written acknowledgment from a charity for any single contribution of $250 or more before claiming a deduction. Tax benefits for charitable giving vary based on your filing status (Itemized vs. Standard Deduction) and your Adjusted Gross Income (AGI).
Past Performance: Any examples of tax savings or investment returns are for illustrative purposes only. Past performance does not guarantee future results.
