Introduction
Budgeting is an essential skill that business ventures, governments, and individuals should develop. It allows one to estimate one’s income and expenses for the foreseeable future and make necessary purchases or investments within the determined budget. Nevertheless, financial circumstances may force different persons and entities to borrow money. There are numerous perspectives on debt and the relationship between borrowers and lenders.
The Christian Bible discusses debt in depth, arguing that it is acceptable to both borrow and lend money, and that the funds loaned out are to be repaid in full. Some biblical writings argue against debt, stating that it damages one’s relationship with God. Therefore, the research question can be formulated as follows: How does the biblical perspective on debt apply to the contemporary culture of normalization of debt and credit of individuals, businesses, and governments? It is argued that Christianity approves of debt accumulation and leveraging in specific circumstances. It insists on debt repayment being a moral obligation, supporting the standard of debt leveraging and opposing the standard of bankruptcy.
Debt and Reasons Behind Borrowing
Debt has been the focus of discussion in economics, business, ethics, and religion for centuries. It can be defined as money borrowed by one party from another under the condition of it being paid back at a mutually decided later date, with or without interest (Chen, 2022). Many businesses are built on debt, with owners borrowing money to start a company, as it is a highly costly venture. Governments may lend funds to major organizations and borrow from other nations to finance expensive endeavors to further various social and economic causes. In addition, individuals may get into debt to make large purchases or investments that they would otherwise be unable to make under normal circumstances.
Biblical Insights on Lending
Christian scriptures thoroughly contemplate the concept, including the circumstances in which borrowing funds is acceptable and when it should be avoided. Christian texts clearly indicate that borrowing money is acceptable, as different situations may arise that require individuals to fulfill their obligations to their families and society. For example, the First Epistle to Timothy addressed the obligation to provide for one’s family in chapter five (1 Timothy 5:8, 2022).
The failure to help the members of the household is viewed as a rejection of the Christian faith and is equated to being “worse than an unbeliever” (1 Timothy 5:8, 2022, para. 1). Therefore, the Scripture suggests that in dire circumstances, it is acceptable for one to borrow money to help people in one’s care. As God demands such care be provided, it is the responsibility of the persons of faith to do everything in their power to follow this command, translating into borrowing money being viewed as acceptable.
Furthermore, the Scripture instructs people to lend money to those who are less fortunate than they are. In particular, the Gospel of Matthew asks to “give to the one who asks you, and do not turn away from the one who wants to borrow from you” (Matthew 5:42, 2022). Lending money is encouraged as it can be viewed as a form of helping others, and the support of family and members of one’s society is one of the highest commands in Christianity.
This help should be accepted with gratitude and repaid to the best of one’s ability. Borrowing and not giving back is viewed as an act of a wicked person (Psalm 37:21, 2022). Thus, paying one’s debts is a moral obligation in Christianity. Full debt repayment in the Christian faith can be contrasted with contemporary laws allowing bankruptcy and freedom from debt.
Biblical Insights on Borrowing
However, the choice to borrow money can be viewed as damaging to the relationship with God in Christianity. Specifically, Philippians reminds us that God “will supply every need of yours according to his riches in glory in Christ Jesus” (Philippians 4:19, 2022, para. 1). Therefore, to borrow money is to distrust His ability to provide and to deny Him the opportunity to do so.
The current normalization of debt and borrowing money to fulfill one’s desires and further one’s socioeconomic status contradicts Scripture’s insistence on God providing for the faithful. In addition, risk-taking with investment is encouraged, as the Parable of the Talents praises the servants who took the risk and doubled the money given to them by the master (Roller, 2021).
Leveraging one’s debt is encouraged, echoing the modern tendencies of companies to borrow money from investors to make additional profits (Chen, 2022). However, Scripture warns against the relationship that may be formed between the lender and the borrower, noting that the latter can become a “slave” to the former (Proverbs 22:7, 2022). Overall, Christian texts advise caution when borrowing money and dealing with debt.
Conclusion
In summary, borrowing money and debt management remain the focus of discussion in different fields, including business and religion. The Christian Bible allows people of faith to borrow and lend money, emphasizing the help and support these actions can provide to one’s household and society. Moreover, Christianity discourages the common practice of bankruptcy, as full debt repayment is a moral duty of the borrower. Although leveraging one’s debts is somewhat encouraged in the Scripture, one should carefully consider whether to borrow money, as the relationship with God and the relationship with the lender may be affected.
References
1 Timothy 5:8. (2022). Bible Gateway. Web.
Chen, J. (2022). Debt. Investopedia. Web.
Matthew 5:42. (2022). Bible Gateway. Web.
Philippians 4:19. (2022). Bible Gateway. Web.
Proverbs 22:7. (2022). Bible Gateway. Web.
Psalm 37:21. (2022). Bible Gateway. Web.
Roller, R. H. (2021). Interest rates, investments, microfinance, insurance, and risk management through the lens of Scripture: Biblical faith integration in a financial markets and institutions course. Christian Business Academy Review, 16, 57–64. Web.