Is debt good or evil? It depends on the type of debt we are discussing. Scripture has much to say on the subject of debt, but it distinguishes between two different kinds of debt.
The first type of debt is a financial debt. The scripture is opposed to financial debt.
Financial Debt
As it relates to financial debt, the scripture looks down upon the idea of borrowing and considers borrowing a form of slavery to another. Years ago, we used to lead Crown Financial Bible Studies, and one of the chapters covered the issue of debt.
One of the scriptures shared was:
“The rich rules over the poor, And the borrower is servant to the lender. “ Proverbs 22:7
We had a Filipino lady in our class who was amazed at how scripture described a situation she had witnessed firsthand. She shared that in her country, if someone borrows money and can’t repay it, they become the lender’s servant for a period of time until the debt is paid off. She had seen a form of slavery due to unpaid debt!
I did not grow up with credit cards and didn’t even know what they were until I applied for a Macy’s credit card right after college. When the first time I paid a minimum on my statement and I saw the interest accrued on my purchase, I realized quickly that buying something on sale using credit cards is not a good deal and the best way to handle it is to pay it in full at the end of the month. We live in a debt-driven society and we presume upon the future by getting ourselves into various debts.
In American culture, people can be in deep debt without it being visible to others. Their debt might be owed to a bank or other lending institutions, so we don’t see the slavery in a literal sense. Nevertheless, it still binds people, keeping them in the bondage of paying off debt for years to come. College loans are another big form of debt that keeps young people in bondage to their debts for years and decades to come.
When it comes to financial debt, the scripture discourages it in all forms. If you borrow money for an investment with the hope of a return, that is generally a more reasonable approach. However, as we have seen during an economic crisis, even borrowing for investments like buying a home must be done with wisdom, moderation, and care. Otherwise people are in jeopardy of not affording their home. A person should be able to afford the debt over the long term and remain committed to paying it off. Borrowing should not be a strategy for quick wealth or for buying a dream home on a shoestring budget.
Sadly some debts occur to due to health reasons or job losses. However, many debts arise from living for today and not planning for the future. Credit cards are designed to encourage people to purchase things they can’t afford, often on impulse. This leads to paying off not just the original price, but also high interest, trapping people in perpetual debt. Whenever possible, unless it’s an emergency, we need to save for what we want. Slow, steady saving will bring prosperity in the long run (see Proverbs 21:5 ). In the short term, it allows us to buy things without borrowing, while developing self-control and patience. I’ve found that many times if I walk away from something and wait a few days, the urge to buy it disappears!
Scripture also discourages cosigning or lending on behalf of others because it puts us in a financial bind if they cannot repay their debt (see Proverbs 11:15). This is why it’s so important to avoid situations that could harm relationships or put us in financial jeopardy due to someone else’s inability to pay.
I will continue with this subject in the next devotional.
Image by Alan Cleaver from Pixabay