George Muller on Debt and Romans 13

"My wife and I never went into debt because we believed it to be unscriptural according to Romans 13:8, "Owe no man any thing, but to love one another." Therefore, we have no bills with our tailor, butcher or baker, but we pay for everything in cash. We would rather suffer need than contract debts. Thus, we always know how much we have, and how much we can give away. Many trials come upon the children of God on account of not acting according to Romans 13:8.
p43, The Autobiography of George Muller

"Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed. Owe no one anything, except to love each other, for the one who loves another has fulfilled the law."
Romans 13:7-8

The above is quite an interesting point from George Muller on debt, and his conviction on the matter really makes you think. I've heard people say that verse 7 shows the Bible doesn't prohibit borrowing, it's just that you are to pay back what you owe in the manner you agreed. So credit cards, loans, and mortgages aren't necessarily bad things as long as you stick to your repayment agreements.

But then you throw verse 8 into the mix, "Owe no one anything", which is very straightforward. It's a phrase which really seems to limit the extent to which verse 7 applies. It basically says "just don't be in debt". Debt is bondage, and throws up all sorts of difficulties.

Verse 7 refers to taxes and revenue, and even respect. It is referring to on-going expenses that are unavoidable. You should pay your taxes, your household bills, your rent and such things. They're not so much debts but normal day-to-day expenses. You only become in debt if you miss a payment and get in arrears. So paying them is actually a means to keeping out of debt.

Verse 8 seems to specifically prohibit any sort of owing that isn't necessary. And it seems really personal – "Owe no one anything". It sounds different to owing tax to the government. It seems more like a friend, a neighbour, a local business, your bank. So don't owe your mate Bob £50. Don't rack up bills on your store cards or credit cards. Avoid your overdraft like the plague. As Muller says, it's better to suffer need that suffer debts.

What seems to sit awkwardly is all that stuff in the middle. Like loans and mortgages. What's unavoidable? When your boiler breaks down and you have to borrow a load of cash off your dad? And is a mortgage more of a good investment than debt? Is a business loan justified if it provides a means to generate income and cover the expense in the long run? Hmmm… there's always grey areas where you have to discern what's good, what's absolutely necessary and what can be avoided with better financial planning.