What Does the Bible Say About Borrowing Money?

by ·

Money, debt, and lending are issues that touch almost everyone’s life, and the Bible offers a wealth of practical advice and timeless wisdom on these topics. Whether you’re considering a loan, facing financial hardship, or simply curious about biblical teachings, understanding what the Bible says about borrowing money can provide valuable guidance. This article draws primarily from the New Testament, Proverbs, and Psalms to answer the most popular questions people have about borrowing, lending, and debt-using clear, impartial language and including full Bible verses for reference.

Borrowing Money: Is It Forbidden or Permitted?

The Bible does not outright forbid borrowing money, nor does it present it as an ideal solution. Instead, it offers cautionary wisdom about the risks and responsibilities of debt. Proverbs 22:7 famously warns, “The rich rules over the poor, and the borrower is the slave of the lender.” (Proverbs 22:7) This highlights the loss of freedom and potential stress that debt can bring, but stops short of calling borrowing sinful.

Lending and Interest: What’s the Biblical Approach?

Lending to those in need is often encouraged, especially when done with compassion and without expecting interest or repayment. Luke 6:34-35 says, “And if you lend to those from whom you expect to receive, what credit is that to you? Even sinners lend to sinners, to get back the same amount. But love your enemies, and do good, and lend, expecting nothing in return, and your reward will be great, and you will be sons of the Most High.” (Luke 6:34-35)

The Old Testament, especially in Psalms and Proverbs, also discourages charging interest to the poor. Psalm 15:5 notes, “Who does not put out his money at interest and does not take a bribe against the innocent. He who does these things shall never be moved.” (Psalm 15:5)

Repaying Debts: A Matter of Integrity

The Bible places a strong emphasis on repaying what is borrowed. Psalm 37:21 states, “The wicked borrows but does not pay back, but the righteous is generous and gives.” (Psalm 37:21) Repayment is seen as a matter of righteousness and personal integrity.

The New Testament echoes this sentiment. Romans 13:8 advises, “Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.” (Romans 13:8) This verse is often interpreted as an encouragement to keep financial obligations in check and not let debt accumulate.

Borrowing for Personal Needs, Emergencies, and Major Expenses

The Bible doesn’t specifically prohibit borrowing for personal needs or emergencies, but it does urge careful planning and self-control. Luke 14:28 teaches, “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?” (Luke 14:28) This principle applies to borrowing: always consider your ability to repay before taking on debt.

For major expenses like a home or education, the Bible encourages preparation and wisdom. Proverbs 24:27 says, “Prepare your work outside; get everything ready for yourself in the field, and after that build your house.” (Proverbs 24:27) This suggests planning ahead and not rushing into financial commitments.

Debt: A Burden to Avoid When Possible

Debt is generally portrayed as a burden. Proverbs 22:7 again reminds us, “The borrower is the slave of the lender.” (Proverbs 22:7) While not inherently wrong, debt can limit freedom and create stress. The Bible encourages living within your means and seeking contentment rather than relying on borrowing.

Co-signing and Guaranteeing Loans

The Bible issues strong warnings about co-signing or guaranteeing another person’s debt. Proverbs 22:26-27 cautions, “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 22:26-27) Co-signing can put your own financial well-being at risk.

Credit Cards and Modern Borrowing

While the Bible doesn’t mention credit cards, its principles apply to all forms of borrowing. Self-control and responsibility are essential. Romans 13:8 again encourages, “Owe no one anything, except to love each other…” (Romans 13:8) If credit cards lead to unmanageable debt, it’s wise to reconsider their use.

Borrowing for Business or Education

The Bible treats business and personal borrowing similarly, emphasizing honesty and responsibility. Luke 16:11 asks, “If then you have not been faithful in the unrighteous wealth, who will entrust to you the true riches?” (Luke 16:11) Faithfulness in financial matters is crucial, whether in business or education.

When it comes to education, Proverbs 16:16 highlights the value of wisdom: “How much better to get wisdom than gold! To get understanding is to be chosen rather than silver.” (Proverbs 16:16) Borrowing for education should be done with careful planning and a clear repayment strategy.

Debt Consolidation and Financial Planning

The Bible doesn’t directly address debt consolidation, but it does encourage discipline and diligence. Proverbs 21:5 says, “The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.” (Proverbs 21:5) Consolidation may be helpful if it’s part of a disciplined plan to repay debt and avoid future borrowing.

Lending to the Poor and Generosity

Lending to the poor is viewed positively, especially when done with compassion. Proverbs 19:17 says, “Whoever is generous to the poor lends to the Lord, and he will repay him for his deed.” (Proverbs 19:17) Generosity is often contrasted with the burdens of borrowing.

Psalm 37:21 again highlights this contrast: “The wicked borrows but does not pay back, but the righteous is generous and gives.” (Psalm 37:21) The ideal is to be able to give rather than to borrow.

Forgiving Debts and Compassion

Forgiveness of debts is a recurring theme, especially in the teachings of Jesus. Matthew 6:12 teaches, “And forgive us our debts, as we also have forgiven our debtors.” (Matthew 6:12) This reflects the value of mercy and compassion in financial relationships.

While the Bible does not address modern bankruptcy laws, it encourages mercy and reconciliation. Compassion and forgiveness are valued over strict legalism.

Borrowing From Friends, Family, and Within Communities

The Bible does not prohibit borrowing from friends or family, but honesty and clear agreements are essential. Romans 13:7 advises, “Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed.” (Romans 13:7) Trust and integrity should guide these personal transactions.

Churches, Ministries, and Borrowing

The Bible does not specifically address borrowing by churches or ministries, but the principles of stewardship, faith, and responsibility apply. Romans 13:8 again reminds, “Owe no one anything, except to love each other…” (Romans 13:8) Any borrowing should be approached with caution and a clear plan for repayment.

Planning, Contentment, and Trust in Provision

Careful planning and contentment are recurring biblical themes. Luke 14:28-30 teaches the importance of counting the cost before making commitments. Philippians 4:19 assures, “And my God will supply every need of yours according to his riches in glory in Christ Jesus.” (Philippians 4:19) Trust in divine provision can reduce the temptation to borrow unnecessarily.

Money, Debt, and Spiritual Priorities

The Bible warns against letting money become a master. Matthew 6:24 says, “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 6:24) Spiritual values should guide financial decisions, including borrowing and lending.

Practical Takeaways from the Bible’s Teachings on Borrowing Money

Borrowing is not forbidden, but it is rarely encouraged. The Bible urges caution, wisdom, and responsibility in all financial dealings.
Repaying debts is a matter of integrity. Failing to repay is viewed negatively.
Lending should be compassionate, especially to the poor. Charging interest to those in need is discouraged.
Debt is a burden. Avoid it when possible and do not take it on lightly.
Co-signing is risky. The Bible warns against guaranteeing someone else’s loan.
Plan carefully before borrowing. Always consider your ability to repay and the impact on your life.
Generosity is preferred over borrowing. The righteous are described as generous givers.
Forgiveness and mercy matter. Compassion in financial relationships is a biblical value.
Trust in provision and contentment. Rely on wise stewardship and trust that needs will be met.
Keep spiritual priorities above financial concerns. Don’t let money or debt become your master.

Conclusion: Biblical Wisdom for Borrowing Money

The Bible’s teachings about borrowing money are practical, balanced, and rooted in wisdom. Borrowing is not forbidden, but it is never presented as the best option. The Bible encourages careful planning, responsible repayment, and generosity. Debt is portrayed as a burden that can limit freedom, so it is wise to avoid it when possible. If borrowing is necessary, it should be done with integrity, a clear plan for repayment, and honesty.

At the same time, the Bible calls for compassion and mercy in lending, especially to those in need. Forgiveness and generosity are held up as ideals, while greed and exploitation are condemned. Trusting in provision, living within one’s means, and prioritizing spiritual values over material gain are recurring themes.

In summary, the Bible’s message about borrowing money is one of caution, responsibility, and compassion. By following these principles, individuals and communities can experience greater financial freedom, healthier relationships, and deeper peace of mind.