What the Bible Says About Forgiving Debt (2024)

If someone you care about owes you money, the most loving thing you can do for them is to let it go.

You loaned money to a close friend or family member, and they’re having some trouble paying it back. What should you do? God wants you to let it go. To understand why, let’s spend some time looking at what the Bible says about forgiving debt.

Personal debtcan seriously threaten relationships. Debt creates an uneven relationship between two people, making one person a slave and the other person their master. God didn’t intend for us to live in that kind of unbalance with people, and the friction caused by such arrangements can actually damage relationships. If you really value your relationship with someone, forgiving their debt will help you preserve the core friendship that matters most.

But forgiving someone’s debt isn’t just a strategic relationship decision — it’s also the strong teaching of scripture. Study what the Bible says about forgiving debt, and you’ll find that it has a multitude of benefits. Today, we’re going to examine three.

1) Forgiveness increases love.

Forgiving someone’s debt may help save your relationship. But Jesus takes the idea even further. He says forgiveness doesn’t just rescue a relationship, but actually makes it better.

2) God hates usury.

Sometimes people lend money to friends or family members to help them through hard times. People who are especially shrewd with money might also attach interest to the loan in order to motivate the borrower to repay it quickly, or simply to make little bit of money on the deal. But that’s a dangerous practice that God warns us to avoid.

There are dozens of places in scripture where God forbids usury and lending at interest. For today, we’ll focus on just one. In Deut. 23:19-20, God makes it clear that His people should not loan money to each other at interest:

19Do not charge a fellow Israelite interest, whether on money or food or anything else that may earn interest.20You may charge a foreignerinterest, but not a fellow Israelite, so that theLordyour God may blessyou in everything you put your hand to in the land you are entering to possess.
See Also
When Someone Owes You Money

The injunction against charging a brother interest is clear here. What’s fascinating is that fact that God did allow the Israelites to charge interest to a foreigner, but he didn’t allow interest to be charged to a compatriot. This reinforces what we’ve been saying about debt and relationships: God prohibited the Israelites from charging interest to each other because He knew that it would warp their relationship and cause disunity among the people. The principle holds true today: Exploitative debt is both wrong and dangerous.

3) Forgiving others unlocks forgiveness for you.

Ultimately, any discussion about forgiveness will ultimately circle back around to Jesus Himself. Through His work on the cross, Jesus purchased forgiveness for all of us who accept Him. But accepting that forgiveness requires that we forgive others, too.

Jesus makes this clear in the parable of the unmerciful servant, which you can find in Matthew 18:21-35. The whole passage is worth a read, but let’s focus on verses 32-35, where the Master chastises a servant who was forgiven a huge debt, but then ruthlessly pursued a fellow servant for a small sum of money.

32“Then the master called the servant in. ‘You wicked servant,’ he said, ‘I canceled all that debt of yours because you begged me to.33Shouldn’t you have had mercy on your fellow servant just as I had on you?’34In anger his master handed him over to the jailers to be tortured, until he should pay back all he owed.
35“This is how my heavenly Father will treat each of you unless you forgive your brother or sister from your heart.”

Here, we see two things clearly: God forgives us our debts, and He expects us to do the same.

If you have loaned money to someone and are considering what to do next, understanding what the Bible says about forgiving debt should make a big impact on your decision. God forgives us infinitely, and He expects us to do the same for others.

What else does the Bible say about money?

Figuring out what the Bible says about forgiving debt is just one of the many financial questions you’re likely to face in life. But you’re not alone — God has a lot to say about how to handle your money.

For years, I’ve been helping people find financial freedom in God’s word, and I would be honored to do the same for you. My free e-book, “God’s Master Plan for Your Money,” is full of encouragement and practical tips to help you start your own journey to financial freedom. You can get your copy instantly by filling out this form:

As an expert in biblical teachings and financial wisdom, I can confidently affirm the depth of knowledge required to interpret and provide insights into the concepts presented in the article you shared. The article addresses the delicate intersection of personal relationships, financial transactions, and spiritual principles, drawing from the Bible to guide individuals facing situations where a loved one owes them money. Let's break down the key concepts discussed in the article:

Forgiveness and Relationship Preservation: The central idea is that forgiving someone's debt is not only a strategic decision for preserving a relationship but also aligns with the biblical teaching of forgiveness. The article emphasizes that personal debt can strain relationships, creating an imbalance akin to a master-slave dynamic. The act of forgiving debt is portrayed as a way to maintain the core friendship and strengthen the relationship.
Biblical Reference - Luke 7:41-43: The article refers to a specific biblical passage, Luke 7:41-43, where Jesus uses a story about forgiveness to illustrate the dynamics of love, sin, and forgiveness. The lesson drawn from this passage is that forgiving a significant debt not only rescues a relationship but also deepens the love between individuals.
God's Disapproval of Usury - Deut. 23:19-20: The concept of usury, the practice of charging interest on loans, is discussed in the article with reference to Deuteronomy 23:19-20. It highlights God's prohibition against charging interest to fellow Israelites but allows it for foreigners. The article suggests that charging interest within the community is discouraged to prevent harm to relationships.
Parable of the Unmerciful Servant - Matthew 18:21-35: The article refers to the parable of the unmerciful servant in Matthew 18:21-35, where Jesus emphasizes the importance of forgiving others as a response to receiving God's forgiveness. This parable reinforces the notion that forgiving others is not only a moral duty but also a prerequisite for receiving God's forgiveness.
Forgiveness as a Reciprocal Act: The article concludes by highlighting the reciprocal nature of forgiveness. It asserts that forgiving others is tied to one's acceptance of God's forgiveness, emphasizing that God expects individuals to extend the same grace and mercy to others that they have received.

In summary, the article weaves together biblical teachings, parables, and ethical principles to guide individuals facing financial challenges within personal relationships, advocating for forgiveness, love, and adherence to biblical principles in handling debts.