Is debt a sin? - Money - TouchPoints

Matthew 18:23“Therefore, the Kingdom of Heaven can be compared to a king who decided to bring his accounts up to date with servants who had borrowed money from him.”

In his teaching on forgiveness, Jesus used this parable that uses the lending or borrowing of money as normal and acceptable, implying that it is not in itself sinful. Money itself isn’t the problem; the love of money is.

Proverbs 22:7Just as the rich rule the poor, so the borrower is servant to the lender.

Although borrowing money is not, in itself, sinful, we must be careful and wise when we borrow so we don’t become a slave to debt. Usually, it is wise to avoid borrowing money, unless that is our only option.

Proverbs 6:1-4My child, if you have put up security for a friend’s debt or agreed to guarantee the debt of a stranger—if you have trapped yourself by your agreement and are caught by what you said—follow my advice and save yourself, for you have placed yourself at your friend’s mercy. Now swallow your pride; go and beg to have your name erased. Don’t put it off; do it now! Don’t rest until you do.

Just as we should be careful about borrowing money for ourselves, we should also be careful about signing on to guarantee someone else’s debt. If we legally bind ourselves to someone else’s loan, it can enslave us to debt just as surely as taking the loan ourselves. It may seem compassionate and loving to help a friend or neighbor qualify for a loan, but if we do this, we need to be able and willing to pay it all in the end.

Psalm 37:21The wicked borrow and never repay.

Romans 13:8Owe nothing to anyone—except for your obligation to love one another. If you love your neighbor, you will fulfill the requirements of God’s law.

Although incurring debt may not be sinful, the failure to repay a debt is.