Biblical Principles Of Debt: What The Bible Says About Borrowing

Biblical Principles Of Debt: What The Bible Says About Borrowing

  • November 27, 2025
  • / Debt

For many South Asian individuals and families thriving in the competitive landscape of the US, the pursuit of financial success is often entangled with the burden of debt—whether it’s managing large mortgages, student loans, or navigating cultural expectations for spending. This pressure can create significant stress, a concern that transcends mere economics and touches the very core of our well-being and faith.

As a financial expert, I understand that true, lasting debt relief requires more than just a budget spreadsheet; it demands a foundational change in perspective. The Bible offers timeless wisdom, providing a comprehensive framework for financial management rooted in the concept of stewardship: the belief that everything we possess belongs to God, and we are simply managers of His resources.

This guide is designed to be a non-judgmental, practical exploration of biblical principles concerning debt and borrowing. We will explore key scriptures not as rigid rules, but as guiding lights to illuminate a path toward financial integrity, discipline, and ultimately, the peace that comes from responsible stewardship. We aim to equip you with the spiritual truths and actionable financial strategies necessary to find freedom from the anxieties of debt in the American context.

The Foundational Principle: God’s View of Money, Stewardship, and Trust

Before diving into specific rules about borrowing, we must establish the core theological principle that underpins all biblical financial teaching: God is the ultimate owner of everything.

The scriptures are unequivocal on this point. Psalm 24:1 declares, “The earth is the Lord’s, and everything in it, the world, and all who live in it.” This means your career, your assets, your bank accounts, and every dollar earned are not fundamentally yours.1 They are His. Acknowledging this truth is the foundation of Christian financial wisdom.

This perspective immediately defines the believer’s role as a steward. A steward is a manager, an administrator, or a trustee of another person’s possessions.2 We are called to manage God’s resources with diligence, prudence, and integrity, seeking to use them to honor Him and provide for our families. This concept transcends mere budgeting; it is a spiritual discipline.

Debt Compromises Stewardship Freedom

When we take on debt, especially consumer debt, we forfeit a significant degree of our freedom as stewards. The ability to give, save, and use our income as directed by faith is severely limited when a large percentage is contractually obligated to creditors.

While the Bible doesn’t strictly forbid all borrowing (such as necessary business capital or a mortgage), it consistently presents debt as a precarious position to be avoided. It compromises the agility needed for effective stewardship. If a steward is bound by rigid monthly payments and high interest rates, they have fewer resources to respond to the needs of the church, support a ministry, or even simply weather a sudden job loss without financial panic.

The Link Between Financial Anxiety and Trust

Financial anxiety is often a symptom of two related issues: a lack of disciplined preparation and a lack of complete trust. When we fear the future because our finances are fragile or overburdened by debt, it reveals a weakening of faith in God’s provision.

The antidote to this anxiety is diligent preparation rooted in trust. Proverbs 21:5 reminds us that “The plans of the diligent lead surely to advantage, but everyone who is hasty comes surely to poverty.”5 Good stewardship—planning, saving, and avoiding excessive borrowing—is not an act of self-reliance, but an act of obedience and trust.6 It demonstrates that we believe God will honor our diligence. By managing His resources wisely, we position ourselves for peace and prepare for any eventuality, minimizing the need to compromise our freedom through unnecessary borrowing. This foundational understanding sets the stage for examining the specific principles we must apply.

The Bible’s Four Core Teachings on Debt and Borrowing

The Bible provides clear, practical instruction regarding financial obligations, framing debt not merely as a transaction, but as a condition that affects one’s liberty, integrity, and ability to serve. These four core principles form the spiritual guardrails for all borrowing decisions.

Principle 1: The Borrower is Slave to the Lender (Proverbs 22:7)

Perhaps the most quoted scripture regarding debt, Proverbs 22:7 states, “The rich rules over the poor, and the borrower is the slave of the lender.” This verse is a powerful metaphor, not just a casual observation. It describes the loss of personal and financial agency that accompanies debt.

In the fast-paced, consumer-driven US financial system, this “slavery” manifests itself in several profound ways:

  1. Loss of Income Control: Every dollar committed to a debt payment is a dollar you cannot choose to save, invest, or give. The interest payments, especially on high-interest debt like credit cards or predatory loans, represent hours of your labor surrendered to the lender, effectively enslaving future earnings.

  2. Loss of Flexibility: Debt removes your ability to change course. If you wish to switch careers, move to a cheaper city, or start a ministry, crushing debt can tether you to your current circumstances out of necessity, not choice.

  3. Emotional and Spiritual Burden: The stress of large debts impacts physical health, family relationships, and spiritual focus. This anxiety becomes a “master,” diverting attention away from stewardship and trust in God.

For the South Asian American individual, understanding this verse is critical, as easy access to credit in the US can quickly escalate debt. The biblical mandate here is clear: pursue financial independence with diligence to ensure your freedom—and your paycheck—remains subject to your own stewardship decisions, not the terms and conditions of a creditor.

Principle 2: The Command to Repay and Honor Your Word (Psalm 37:21 & Romans 13:7-8)

While the Bible advises against borrowing, once a debt is incurred, the principle of integrity takes absolute precedence. Repaying what is owed is a command tied to personal righteousness and respect for governing authorities.

Psalm 37:21 states, “The wicked borrows and does not pay back, but the righteous is generous and gives.” Defaulting on a loan is categorized as a characteristic of the unrighteous; it is a violation of the sacred commitment made in the contract.

Furthermore, Romans 13:7-8 instructs us to, “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 one another…”

  • Honoring Contracts in America: In the US, financial contracts are legally binding, and the ability to honor them is reflected in your credit score. From a biblical perspective, maintaining a good credit score is an act of integrity and honesty. It demonstrates to the world that your word—the contract—is trustworthy.

  • The Actionable Plan: This principle requires a clear, actionable plan. It’s not enough to want to repay; one must plan to repay. This involves creating a budget that prioritizes debt service and seeking professional debt relief solutions when payments become unmanageable, always aiming to satisfy the obligation rather than evade it. For the believer, a financial default is a moral failure, underscoring the necessity of wise borrowing choices from the start.

Principle 3: Avoiding Surety and Cosigning (Proverbs 6:1-5)

This principle is particularly relevant to the collective, family-oriented culture often found in South Asian communities, where there is immense pressure to provide financial support, often through cosigning loans.

The book of Proverbs offers a stern, repeated warning against entering into surety, which is the act of putting up collateral or cosigning for another person’s debt.

Proverbs 6:1-5 paints a dramatic picture: “My son, if you have put up security for your neighbor, have given your pledge for a stranger, if you are snared by the words of your mouth… Go, hasten, and plead urgently with your neighbor. Give your eyes no sleep and your eyelids no slumber; deliver yourself like a gazelle from the hand of the hunter…”

  • The Warning: When you cosign, you assume the full legal responsibility for that debt. You are, in effect, incurring the debt yourself without receiving the benefit. If the primary borrower defaults (due to loss of job, illness, or mismanagement), the burden falls entirely on you.

  • A Call for Prudence: The Bible advises frantic, urgent action to get out of such a pledge. As a financial expert, I emphasize that this is not a lack of compassion, but an act of prudence. Your primary responsibility is the stewardship of your own household.

  • Alternative Help: Instead of cosigning, a more biblically sound way to help a loved one is to give them a limited, specific gift of money that you do not expect to be repaid. This maintains clear financial boundaries and protects your own financial stability, ensuring you remain a steward who can truly help others in the future.

Principle 4: Lending with Compassion and Expectation of Return (Deuteronomy 15:7-8) 

While the first three principles focus on the borrower, the final principle addresses the lender, offering a complete picture of financial relationships.

The Mosaic Law provided distinct rules for lending to fellow Israelites, particularly those in poverty. Deuteronomy 15:7-8 mandates compassionate lending: “If among you, one of your brothers should become poor… 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…” This lending was often required to be interest-free, reflecting a posture of charity.

  • Charity vs. Commerce: This scripture establishes a critical distinction: lending to the poor for subsistence is an act of charity, tied to one’s moral duty, and should be treated differently than commercial lending.

  • Modern Relevance: We can apply this today by distinguishing between:

    1. Lending for Profit: Loans made by commercial banks or financial institutions, where interest is an expected and legitimate return for the risk and cost of capital.

    2. Lending for Aid: Providing funds to a family member or friend in genuine, desperate need. In such cases, one must be prepared to treat the loan as a potential gift, understanding that enforcing repayment could lead to a breach of the higher command of love.

This principle teaches us that financial dealings are always spiritual. As lenders, we are called to be generous; as borrowers, we are called to be disciplined. The biblical goal is to ensure that our financial choices—both lending and borrowing—are always governed by integrity and compassion.

Implementing Biblical Wisdom in a US Financial Context: Practical Steps

Applying centuries-old wisdom to a modern, complex financial system like that of the United States requires concrete, actionable steps. The goal of financial freedom is achieved not just through conviction, but through meticulous discipline and the use of proven financial tools. Here is how to translate the principles of stewardship into a clear strategy for debt relief and wealth building.

1. Establishing a Zero-Based Budget and Tithing

The biblical call for accountability in stewardship demands that we know exactly where every dollar of God’s resources is being allocated. This is achieved through a zero-based budget—a system where your income minus all expenses (including savings and debt payments) equals zero. Every dollar is given a job.

Practical Steps:

  • Tithing First: Aligning spiritual duty with financial discipline means treating Tithing (the first 10% of your income) not as an optional expense, but as the first mandatory line item on your budget. This demonstrates faith in provision and simplifies the remaining decision-making.

  • The Blueprint: Track all income and project all expenses for the month. Give every remaining dollar a category (rent, groceries, utilities, debt, savings). If you have money left over, you assign it toward a financial goal (e.g., debt payoff or emergency fund). If you spend more than you earn, you must immediately adjust an expenditure. This approach ensures you are the master of your money, fulfilling your stewardship role diligently.

2. Prioritizing High-Interest Debt Repayment

Once the budget is established, the surplus must be aggressively directed toward eliminating the high-interest debts that threaten your financial stability. Removing these chains is the fastest route to regaining financial autonomy and becoming a more effective steward. High-interest burdens, such as revolving credit card debt or expensive personal loans, are the most urgent targets.

Two popular, effective methods for prioritizing repayment align with stewardship principles:

  • The Debt Avalanche: This method prioritizes paying the debt with the highest interest rate first, regardless of the balance size. Mathematically, this saves the most money and minimizes the total amount of interest paid, aligning with the mandate for wise management of God’s resources.

  • The Debt Snowball: This method prioritizes paying the smallest debt balance first, regardless of the interest rate. Once paid off, the freed-up payment is “snowballed” onto the next smallest debt. This method provides quick psychological wins, helping maintain the discipline needed for a long-term debt-free journey.

Whichever method you choose, consistency and dedicating the maximum available surplus are the keys to successful debt freedom.

3. Building an Emergency Fund (Trusting God, Preparing Diligently) 

Diligent preparation is an act of trust. Proverbs 21:20 reminds us that “Precious treasure and oil are in a wise man’s dwelling, but a foolish man devours it.” A well-funded emergency fund is that treasure—a financial hedge against unforeseen crises like medical emergencies, job loss, or sudden travel needs.

  • The Purpose: The fund’s sole purpose is to prevent a financial shock from forcing you to fall back into high-interest borrowing. It is a buffer to ensure that when a crisis hits, you remain free from the lender’s grasp.

  • The Goal: The recommended target for a fully funded emergency reserve is typically three to six months’ worth of essential living expenses. If your income is irregular or your job stability is lower, aiming for nine months or more is prudent.

  • The Process: After securing Tithing and establishing your budget, the emergency fund should be the next financial priority before aggressive debt repayment begins. Keep this money safe, liquid (easily accessible), and separate from your daily checking account. It is the practical manifestation of trusting God while simultaneously preparing diligently for the challenges of life.

Addressing Financial Stress in the South Asian American Community

The financial challenges facing South Asian Americans are often layered with unique cultural pressures that can make adhering to biblical principles of debt especially difficult. Successfully managing finances requires not only following the wisdom of the scriptures but also navigating these community-specific dynamics with grace and firm boundaries.

The Immigrant Hustle and Debt Load

Many individuals and families from South Asia come to the US motivated by the “immigrant hustle”—the relentless drive to succeed, often carrying the financial burdens of extended family in their home countries. This often results in aggressively pursuing large debts, such as:

  • High Mortgages to secure status and housing in expensive areas.

  • Large Student Loans to ensure the next generation secures high-income professions.

  • Business Loans taken out quickly to seize entrepreneurial opportunities.

While ambition is commendable, the biblical principle of avoiding “surety” and “slavery to the lender” teaches caution. Taking on excessive debt out of obligation or haste, rather than diligence, leaves no margin for error. A steward’s commitment is first to the financial integrity of their immediate household.

Balancing Cultural Expectations with Christian Discipline

Another major source of debt is the cultural expectation for lavish spending. Large, expensive weddings, costly gifts, and the pressure to display visible markers of success—such as luxury cars or large homes—can be financially devastating. This conflicts directly with the biblical call for simplicity, contentment, and discipline.

  • Rejecting Worldly Pressure: True wealth, according to the Bible, is not measured by visible assets but by spiritual peace (1 Timothy 6:6).

  • Prioritizing Stewardship: A responsible steward must be willing to respectfully decline spending that jeopardizes their family’s financial stability and their ability to honor God with their resources.

Communicating Financial Boundaries with Respect

For many South Asian individuals, establishing financial boundaries with extended family can feel like disrespect or a failure of duty. However, Christian stewardship demands clarity and discipline.

When facing requests to cosign or provide loans that threaten your own stability, apply the following approach:

  1. Lead with Love, Act with Logic: Always treat family with respect, but be firm about your financial commitments.

  2. Offer Alternatives: Instead of cosigning, offer practical, non-debt solutions. For instance, provide a non-repayable, budgeted gift, or help them connect with a local financial counselor. This honors the call to generosity while protecting your household from the risk of surety.

  3. Maintain Transparency (Within Limits): Explain that your financial planning is based on a commitment to debt-free living and disciplined stewardship, which limits your ability to take on external financial liabilities.

Ultimately, your greatest offering to your family and community is not a large check or cosigned loan, but the stability and peace that come from managing God’s resources wisely and maintaining freedom from the yoke of debt.

From Burden to Blessing: Seeking Financial Freedom

The journey to financial freedom is a marathon of faith and diligent action, not a sprint. We have learned that the Bible consistently frames debt as a burden that hinders our highest calling of stewardship. By applying the principles of avoiding surety, honoring our word, and prioritizing financial discipline through tools like the zero-based budget, you are actively choosing to exchange the anxiety of indebtedness for the peace of responsible management.

Remember that true wealth is not measured by the size of your house or the car you drive, but by the financial stability that allows you to serve and give freely. If the burden of debt is currently overwhelming and you find yourself struggling to make minimum payments, this is the time to seek immediate, qualified assistance. Do not face this struggle alone.

If debt is overwhelming, take the courageous step today and seek guidance from a certified debt relief counselor or a financial advisor who understands both faith-based principles and the complexities of the US financial system.

 

Written by Bhupinder Bajwa

Bhupinder Bajwa is a Certified Debt Specialist and Financial Counselor with over 10 years of experience helping families overcome financial challenges. Having worked extensively with the South Asian community in the U.S., he understands the cultural nuances and unique financial hurdles they may face. He is passionate about offering clear, compassionate, and actionable guidance to help individuals and families achieve their goal of becoming debt-free.