What Does the Bible Say About Borrowing?

The Bible does not forbid borrowing, but it certainly discourages the practice. Borrowing is always presented in a negative or cautionary view. To illustrate, several quotations from the New International Version of the Bible are presented here.

Significance

Although the Bible does not encourage borrowing, it also does not prohibit doing so. For example, one quality of a righteous man that is found in Ezekiel 18:7, says he "returns what he took in pledge for a loan." The most basic requirement the Bible declares for a borrower is to repay. Romans 13:8 states, "Let no debt remain outstanding." Psalms 37:21 (NIV) specifies that "the wicked borrow and do not repay." This is a very straightforward judgment about people who do not pay back their loans.

Effects

Proverbs 22:26-27 says, "Do not be a man who strikes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you." Here the Bible offers sound advice about not taking on unsecured debt, which can land the borrower in a world of trouble if something goes wrong and he cannot pay it back. The Bible also cautions not to sign over collateral that you cannot afford to lose.

Warning

The Bible warns against co-signing loans. Proverbs 17:18 says: "A man lacking in judgment strikes hands in pledge and puts up security for his neighbor."

Expert Insight

Proverbs 22:7 says: "The rich rule over the poor, and the borrower is servant to the lender." When you borrow, you give away an inadvisable amount of power over yourself, your finances and your future to a bank or any other issuer of credit.

Considerations

The Bible also has something to say about lending. Psalm 112:5 states, "Good will come to him who is generous and lends freely, who conducts his affairs with justice." But the Bible does command against usury and Ezekiel 18 goes so far as to call usury an abomination. Biblical scholars differ as to whether usury in the Bible refers to excessive interest, or any amount of interest. Several verses in Exodus, Leviticus, and Deuteronomy require lenders to not charge any interest whatsoever. Despite all the admonishments against borrowing and the commands to repay any amount taken in loan, the Old Testament makes it clear that all unpaid debts are to be canceled by the lender after seven years. Deuteronomy 15:1-2 is quite explicit about this, "At the end of every seven years you must cancel debts. This is how it is to be done: Every creditor shall cancel the loan he has made to his fellow Israelite. He shall not require payment from his fellow Israelite or brother, because the Lord's time for canceling debts has been proclaimed."

Resources

• Biblical comments about borrowing
• The Biblical injunction to cancel debts after seven years