Perspective on Debt
Elder Perspective: Biblical Viewpoints on Debt & Lending
By , Elder & Pastor of Theological Development
There is quite a bit on the subject of lending and debt in Scripture. Most of it is in the Old Testament and most of it concerns the lender more than the one borrowing. There are three main categories of Biblical material that give us an overview:
1. Lenders are blessed and helpful to others.
The general tenor in the Bible is that there are times when lending is not only acceptable, but very good and helpful and glorifying to God.
If among you, one of your brothers should become poor, in any of your towns within your land that the LORD your God is giving you, you shall not harden your heart or shut your hand against your poor brother, but you shall open your hand to him and lend him sufficient for his need, whatever it may be. (Deuteronomy 15:7-8)
Give to the one who begs from you, and do not refuse the one who would borrow from you. (Matthew 5:42)
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, for he is kind to the ungrateful and the evil. (Luke 6:35)
Whoever is generous to the poor lends to the LORD, and he will repay him for his deed. (Proverbs 19:17)
See also: Psalm 37:26; Psalm 112:5
2. There are challenges with borrowing.
Debt is a position of vulnerability. It is never condemned as evil. The Deuteronomy passages suggest that debt implies defeat and a desperate situation of abject loss. The passages in Romans do not prohibit debt but argues for paying back what is owed (see vs. 7 - context is important) and to do so in love.
The rich rules over the poor and the borrower is the slave of the lender. (Proverbs 22:7)
For the LORD your God will bless you, as he promised you, and you shall lend to many nations, but you shall not borrow, and you shall rule over many nations, but they shall not rule over you. (Deuteronomy 15:6)
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. Owe no one anything, except to love each other, for the one who loves another has fulfilled the law. (Romans 13:7, 8)
See also: Deuteronomy 28:12-13, 44; Nehemiah 5:4; Isaiah 24:2
3. There are guidelines for lending.
The rules of lending have the overtone of being just and not taking advantage of the one in need. Interest was generally not exacted and, in any case, the transactions were to be governed by justice.
If you lend money to any of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him. If ever you take your neighbor’s cloak in pledge, you shall return it to him before the sun goes down. (Exodus 22:25-26)
You shall not lend him your money at interest, nor give him your food for profit. (Leviticus 25:36-37)
You shall not charge interest on loans to your brother, interest on money, interest on food, interest on anything that is lent for interest. You may charge a foreigner interest, but you may not charge your brother interest. (Deuteronomy 23:19)
See also: Deuteronomy 24:10; Ezekiel 18:13
So how do these viewpoints apply to our Mission Expansion Project?
1. There is no absolute prohibition concerning borrowing.
The closest verse to an absolute prohibition is in Romans 13:8, and reading it in context assumes that one will pay what is owed and do so in love. Lending is viewed positively, which also suggests that there are times when the lending/borrowing scenario is positive. Borrowing definitely has pitfalls and is generally viewed as an indication of weakness and perhaps failure, but not necessarily. Finally, most passages dealing with borrowing are in times of crisis and in desperate circumstances. The condemnations are generally surrounding injustice and exploitation of the poor and needy. Our situation now is not that of injustice of exploitation.
2. The negative aspects of lending/borrowing in the Bible are generally in the context of personal involvement on the part of one person to another.
We are to help each other when there is a need and not see it as an opportunity to gain an advantage or take advantage of another’s woes.
3. There is a positive nuance of lending/borrowing that is not in a personal context.
In Matthew 25:27 and Luke 19:23 there is a positive slant presented. Matthew 25:27 reads, “Then you ought to have invested my money with the bankers, and at my coming I should have received what was my own with interest.” (Luke 19:23 is similar). These verses are not exactly like our situation, but there seem to be some connections—probably more than the other verses on debt.
The message is to be faithful stewards of what the Lord has given. One should use all resources at their disposal (obviously appropriate resources and with appropriate means) to further the cause of the Kingdom. The transaction is based on good financial practice (notice the “bank” verbiage) and is not personal as much as it is institutional.
4. Our plans are to borrow strategically with a conservative and planned repayment schedule.
We plan to raise over two-thirds of the total cost of the building and to pay back the remainder within five years or less.
5. Could it be that we are not able to pay back what we owe?
That is a remote possibility, but we have planned prudently considering that the majority of the funds will be in hand before completion of the project, interest rates are very low, and we have a strong group of people supporting this need for more space to carry out our mission. If all that is not enough (and human effort alone is not enough), we trust God will supply all our needs (see Philippians 4:19, which is in a context of money). Some argue faith as the basis for not borrowing, but it seems that faith is also crucial to believe God will supply our needs in terms of debt service.
6. Being prudent stewards by borrowing at this time seems more faithful than waiting.
Here are some stewardship thoughts: we are currently debt-free and own assets that outweigh the amount of debt we may incur. We have thousands of supporting people who have a vision of God’s work here. We also are in a time of low interest loans and building costs are at a very low level. In light of Matthew 25 and Luke 19, it would be inappropriate for us not to take advantage of the bank’s ability to help us to move quickly to take advantage of the time in which we live.
Other resources to consider on the topic of debt & lending:
- The Treasure Principle by Randy Alcorn. He does not speak specifically to this question but presents a generally good overview of money and using it for the kingdom.
- Paper by John Piper concerning their church’s decision to use debt to expand. Several of the points in this paper came from his argument.
- Article from Crown Financial Ministries which takes a position different from the one in this paper.