Debt Management from a Christian Perspective: Lending, Borrowing and Avoiding Debt

Discover what the Bible says about lending, borrowing, and debt as a Christian author shares insights on managing your finances and avoiding debt.

Debt is a reality that most people face at some point in their lives. It can be hard to manage, and it can lead to financial stress and anxiety. As Christians, we are called to be wise stewards of our resources and to avoid debt whenever possible. However, there are times when we may need to borrow money or lend money to others. In this article, we will explore what the Bible says about lending, borrowing, and debt.

Lending and Borrowing in the Bible

The Bible has a lot to say about lending and borrowing. In the Old Testament, lending money was considered an act of charity. In Deuteronomy 15:7-8, we read, "If there is among you a poor man of your brethren, within any of the gates in your land which the Lord your God is giving you, you shall not harden your heart nor shut your hand from your poor brother, but you shall open your hand wide to him and willingly lend him sufficient for his need, whatever he needs."

This passage shows that lending money to those in need is a way to help them out of difficult circumstances. However, the borrower is expected to repay the loan. In Psalm 37:21, we read, "The wicked borrows and does not repay, but the righteous shows mercy and gives." This verse emphasizes the importance of repaying debts. Borrowing money is not a sin, but failing to repay it is.

In the New Testament, we see Jesus teaching about lending and borrowing. In Luke 6:34-35, he says, "And if you lend to those from whom you hope to receive back, what credit is that to you? For even sinners lend to sinners to receive as much back. But love your enemies, do good, and lend, hoping for nothing in return; and your reward will be great, and you will be sons of the Most High. For He is kind to the unthankful and evil."

This passage teaches us that lending money should not be done with the expectation of receiving something in return. Instead, we should lend out of love and compassion for others. We should also be willing to forgive debts if necessary. In Matthew 18:21-22, Jesus tells the parable of the unforgiving servant, who owed a large debt to his master. The master forgave the debt, but the servant refused to forgive a smaller debt owed to him by another servant. Jesus concludes the parable by saying, "So My heavenly Father also will do to you if each of you, from his heart, does not forgive his brother his trespasses." This parable emphasizes the importance of forgiveness and mercy in our dealings with others.

Avoiding Debt

While lending and borrowing are sometimes necessary, the Bible encourages us to avoid debt whenever possible. In Proverbs 22:7, we read, "The rich rules over the poor, and the borrower is servant to the lender." This verse shows that debt can create a relationship of servitude between the borrower and the lender. The borrower is beholden to the lender and must work to repay the debt. This can lead to financial stress and anxiety.

In Romans 13:8, we read, "Owe no one anything except to love one another." This verse encourages us to avoid owing anything to anyone. While this may not always be possible, it should be our goal to be debt-free. This means living within our means, avoiding unnecessary purchases, and saving for emergencies.

Managing Debt

If we do find ourselves in debt, there are ways to manage it effectively. The Bible teaches us to be responsible with our finances and to seek wise counsel. In Proverbs 15:22, we read, "Without counsel, plans go awry, but in the multitude of counselors they are established." This verse emphasizes the importance of seeking advice from wise and experienced individuals. This can include financial advisors, pastors, and other trusted mentors.

We can also manage debt by making a budget and sticking to it. In Luke 14:28-30, Jesus says, "For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it—lest, after he has laid the foundation, and is not able to finish, all who see it begin to mock him, saying, 'This man began to build and was not able to finish'?" This passage shows the importance of planning and budgeting. We should carefully consider our financial situation and make a plan to pay off our debts.

Conclusion

In conclusion, the Bible has a lot to say about lending, borrowing, and debt. While lending money can be an act of charity, we should be careful to lend out of love and compassion rather than the expectation of receiving something in return. We should also be willing to forgive debts and avoid debt whenever possible. If we do find ourselves in debt, we can manage it effectively by seeking wise counsel and making a plan to pay it off.

FAQs

Q: Is it a sin to borrow money?
A: No, it is not a sin to borrow money. However, we should be responsible with our finances and avoid debt whenever possible.

Q: Is it a sin to lend money with interest?
A: The Bible discourages charging interest on loans to fellow believers. However, charging interest on loans to non-believers is not condemned.

Q: Should I lend money to family and friends?
A: Lending money to family and friends can be a way to help them out of difficult circumstances. However, it is important to set clear terms and expectations for repayment.

Q: What should I do if I am struggling with debt?
A: Seek wise counsel from financial advisors, pastors, or other trusted mentors. Make a budget and stick to it. Consider debt consolidation or other strategies to manage your debts.

Q: What does the Bible say about bankruptcy?
A: The Bible does not specifically address bankruptcy. However, we are called to be responsible with our finances and to seek wise counsel in managing our debts. If bankruptcy is the best option for your situation, it should be done with the intention of honoring your debts and making things right with your creditors.