Journal: Faith and Mission
Volume: FM 19:3 (Summer 2002)
Article: The Ethics of Debt
Author: Kenneth S. Williams

FM 19:3 (Summer 2002) p. 75

The Ethics of Debt

Kenneth S. Williams

M.Div./IP Student
Southeastern Baptist Theological Seminary
Wake Forest, North Carolina 27587

When the average person thinks about ethics and ethical issues, subjects like abortion, euthanasia, divorce, and remarriage come to mind. Most people would not consider debt a moral issue. There are, however, several items that must be considered before making the choice to spend borrowed money. The purpose of this paper is to look at differing views about debt and interest, then to search Scripture itself to show what God says about the morality of debt.

Introduction

The statistics that different surveys have brought forth are staggering. Debt has either directly or indirectly touched the lives of every American household. In 1986 Ron Blue wrote, “Our national debt recently went over two trillion dollars, or approximately $10,000 for every man, woman, and child in our country.”1 By 1993 that number had grown to over $3.5 trillion.2 Of course that number has grown significantly over the past eight years.

The sad fact is that most Americans gather so much debt in their lives and pay so much in interest that most of them cannot afford to save even a small amount. Andrew Feinberg reports that according to the Social Security Administration, only two percent of Americans reach age sixty-five financially independent.3 Thirty percent depend on charities, twenty-three percent continue to work, and forty-five percent depend on financial support from relatives.4 Eighty-five of every one hundred men sixty-five years of age and older are worth less than $250.5

Where does all this debt come from? Obviously, debt comes from mortgages on homes, loans on cars, and personal expenses via credit card use. Larry Burkett says, “The alarming fact about consumer debt is that it is available to virtually anyone and usually carries an annual finance charge of eighteen percent and higher.”6 The average household has credit card debt of more than $2,500, which can gather interest quickly if not paid off.7 Clearly debt is a problem, but is it an amoral issue, or are there ethical guidelines by which to abide? Where does interest fit into the ethical debate?

FM 19:3 (Summer 2002) p. 76

Views on the Ethics of Debt and Interest

The sources used for this ...