The New American Standard Bible translates Romans 13:8 as follows: "Owe nothing to anyone." This would appear to prohibit debt. The New International Version reads, "Let no debt remain outstanding." This translation would allow debt, but insists it be paid off as soon as possible.

Hudson Taylor and Charles Spurgeon believed that Romans 13:8 prohibits debt altogether. However, if going into debt is always sin, it's difficult to understand why Scripture gives guidelines about lending and even encourages lending under certain circumstances. If debt is always sin, then lending is aiding and abetting sin, and God would never encourage it.

Being in a position to lend money to others is a blessing, whereas being the borrower is a curse (see Deuteronomy 28:44-45). Unless there's an overwhelming need to borrow, it's unwise for God's children to put themselves under the curse of indebtedness. At the very least, Romans 13:8 proves that we shouldn't normally borrow, and should always pay off debt as soon as possible. The common practice of borrowing monthly and making partial payments violates this principle.

That "the borrower is servant to the lender" doesn't absolutely forbid debt, but it's certainly a strong warning. God says we're not to be servants of men (see 1 Corinthians 7:23). How can we be fully free to serve God when we're indentured to human creditors?

After warning against the dangers of indebtedness, several Christian books offer examples of cases when borrowing is appropriate. These exceptions include purchasing a house or a business, education, and even cars and furniture. Others make exceptions for so-called secured loans, those backed by collateral, such as a house or car, which could be returned if the debtor can't pay. Typically, we will rationalize that our particular situation is one of these exceptional cases. But we should never go into debt unless there are compelling reasons. If we think our situation is an exception, we should seek out several wise counselors to see if they agree. (I emphasize "wise" to discourage you from seeking counsel from someone who believes that debt is normal.)

Excerpt from Money, Possessions, & Eternity, Randy Alcorn, Chapter 17

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