“The rich rule over the poor, and the borrower is servant to the lender.” — Proverbs 22:7 (NLT)
This verse from Proverbs offers a clear insight into the biblical perspective on debt. The phrase, “The borrower is servant to the lender,” illustrates how debt can become a heavy burden, trapping us if we rely on it. Understanding this principle is essential, especially when navigating today’s economy.
Understanding the Biblical Perspective on Debt
In his article, “The Truth About Debt,” Dave Ramsey provides an impactful interpretation of Proverbs 22:7. He writes:
“I was confronted with this scripture and had to make a conscious decision about who was right — my broke finance professor, who taught that debt is a tool, or God, who showed the obvious disdain for debt.”
Ramsey’s reflection resonates with many who have felt the weight of financial strain. Debt can become overwhelming, and those trapped in it may feel like servants to their lenders. My spouse and I were no exception. For years, we struggled with credit card debt, which caused stress and limited our freedom. We have had to finance vehicles as well because we lacked savings, only to face monthly payments further limiting our money working for us.
Breaking Free from Debt
Our turning point on this perspective came when we enrolled in Financial Peace University (FPU). By committing to building towards a debt-free lifestyle, we learned the importance of proactive habits like saving for major purchases and building an emergency fund. Rather than facing ongoing financing of cars, we understand the importance of saving in advance and purchasing affordable used vehicles. This mindset change in itself brought relief.
Moreover, adopting these habits allowed us to experience the biblical principle of financial freedom. When we stop borrowing, we start living in alignment with God’s desire for us to be free from the burden of debt.
Debunking the Myths About “Good Debt”
Many people argue that debt can be a tool for financial growth. However, this view contrasts with the biblical perspective on debt. Proverbs 22:7 emphasizes that debt is a form of servitude, restricting our ability to focus on what truly matters.
Debt doesn’t just constrain finances — it can also limit our freedom to serve God. The obligations tied to repayment often overshadow opportunities to give, volunteer, or invest in ministries. God’s desire for us is to live freely and fully, without anything hindering our service to Him. Unfortunately, debt often becomes a hindrance or roadblock to this service.
Practical Steps to Avoid Debt
Here are some practical steps based on the biblical perspective on debt to help you avoid falling into financial traps:
- Build an Emergency Fund: Start small, then gradually expand it to cover 3–6 months of expenses.
- Plan Major Purchases: Save in advance for items like vehicles or appliances, avoiding the temptation of financing.
- Adopt a Budget: Track your income and expenses carefully to ensure you live within your means.
- Seek Guidance: Use financial resources like Dave Ramsey’s Financial Peace University for tools and strategies toward financial freedom.
By following these steps, you can gradually break free from debt and begin living in a way that honors both your finances and your faith.
Reflecting on Financial Freedom
What does the biblical perspective on debt mean to you? Have you experienced the weight of debt or the freedom of living debt-free? Share your thoughts with us and inspire others to take their first steps toward financial peace!