Debt is an obligation to pay money or deliver goods under an express or implied agreement. Debt leverage is the amplification of the return and on equity when an investment or firm is financed partially with borrowed money. From a biblical worldview, the aspect of debt is against the teachings of Jesus Christ. However, it does not suggest that it is a sin to go into debt, but it means a lot of things about what to do when going into debt.
The advantage of debt is that the debtors often use borrowed funds to free up cash flow. In many cases, these funds are used to create to create more jobs either by expanding an existing business or starting a new business venture. As such, without debt the economy would not be viable; hence, the Bible does not depict debt as a sin. The reason is that there are cases where debt is unavoidable like in medical emergencies and during job layoffs. For instance, (Romans 13:8, KJV) is often used to prove that borrowing is sinful but this verse is concerned with relationship and not money issues.
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One con of debt as shown in the Bible, "It’s better that you should not vow than you should vow and not pay" (Ecclesiastes 5:5, KJV). From a worldview on debt, people have abused the power of borrowing by failing to return borrowed money. The majority of nation’s debts rise so much that they cannot repay what they owe. “For the love of money, is a root of all kinds of evil; By craving it, some have wandered away from the faith and pierced themselves with many sorrows” (Timothy 6:10, KJV). This portrays that monetary leverage has a disadvantage and it creates more greed among the people.
