borrowing money

[Guest]

Hi

Isn't there a scripture regarding how we are not to borrow money beacuse then we are tied to the one who loans it to us. I have been getting quite frustrated in finding it >

PLEASE if some one knows where it is let me know. Thank you SO much Glow

[_Steve]

You are probably thinking of Proverbs 22:7--"The rich rules over the poor, and the borrower is servant to the lender." This seems to make your point that debt places a person into a kind of bondage to the lender. In itself, however, the verse does not forbid borrowing.

Throughout scripture, borrowing (or the need to borrow) is seen as evidence that God is not blessing the person who has been brought to such straits (e.g., Deut.15:6; 28:12, 44). Borrowing is never called a sin, but it may, at times, be a consequence of sin.

God provides all the needs of the righteous (Phil.4:19), and we could conclude from this that a righteous person would be able to determine what his/her real "needs" are by observing what God has provided for. Most modern consumer debt is the result of waste or mismanagement of that which God has entrusted to be stewarded, or of an unwillingness to live within one's means.

This latter attitude strikes me as a violation of the general obligation of Christians to "let your conduct be without covetousness; be content with such things as you have. For He Himself has said, 'I will never leave you nor forsake you.'" (Heb.13:5).

The only scripture that is sometimes said to directly forbid borrowing money is Romans 13:8--"Owe no man anything except to love one another..." However, in the context, Paul's meaning does not seem to be, "Do not incur debt," but rather, "Do not neglect to pay off whatever you owe."

Both the law of Moses and the teaching of Christ encourage those who can afford to do so to lend to the poor (Deut.15:8/ Luke 6:34-35). This would not be a moral thing to do, if being in debt is itself a sin, since your lending to your neighbor places him in debt to you, and would thereby involve him in sin.

If we were to take a strict view of debt, we would have to pay ahead of time for every service, like utilities, telephone service, etc. As things are set up in our society, we use the service for a month, and then pay at the end of the billing cycle. This means that, from the time we use the telephone until the time we pay the bill, we are in debt for the service. This hardly seems to be the kind of debt that is discouraged by scripture, but a woodenly-applied ethic against debt would rule out such arrangements.

Therefore, I think we must conclude the following:

1. Being in debt is not forbidden;

2. However, it may be that we end up in debt due to poor stewardship decisions, and discontentment with the standard of living God has provided for (both of which are sins);

3. Those who have made such mistakes as have put them into debt should not be condemned (though they ought to repent, if they have sinned);

4. However, debt, even when morally innocent, is an undesirable condition, placing the borrower in a form of bondage, which is wise to avoid.

Personal debt is rarely really unavoidable in a prosperous nation like ours, though there are genuine cases of extreme poverty in the world, and also brethren whose previous mistakes have brought them into a state of need, where Christian charity may compel us to lend to others.

When we lend to a poor brother, God's law indicates that we should not impose interest (Lev.25:35-37/Deut.23:19-20), and Jesus taught that we should not insist upon repayment, but should be willing to release the needy from any financial burden that our generosity might impose.

The borrower cannot insist upon the lender's cancelling the debt (Ps.37:21), but the Christian lender should have the grace to do so nonetheless, if the borrower is incapable of repayment. We are even encouraged to lend to those, primarily, whom we know can never repay us, so that we will have a reward and repayment in the resurrection (Luke 14:12-14).

To be able to lend to the needy, and to die with others indebted to us, rather than with us having unpaid debts to others, is a Christian privilege in which we cannot participate while we ourselves are in debt. This is another excellent reason to avoid borrowing. May the Lord bless your basket and your store, so that you may lend to many, and not borrow.

[Guest]

Hi Steve Thanks so much for all your well thought out and biblically supported anwers. It helps alot. I tend to get to legalistic with myself some times with finances and reject borrowing any way I can. Which I think ultimately is being a good steward but in the case of lending out or giving to others which I can do more of if I do, and I truely enjoy, I can sometimes have trouble knowing where to draw a line. Your reply was very helpful as usual. I hope things are going well for you in your daily endeavors. God Bless you....Glow

[Guest]

Steve,

We have some friends who will not buy a house with a mortgage note because they do not want to be in debt to anyone (based on what they believe scripture says). While what they do is completely up to them, would this be something that we should consider as well?

-Rachel

[_Steve]

There are some purchases that can scarcely be made with cash, except by the ultra-rich. A house is one such purchase, and there are a number of considerations that might justify borrowing money in a case like this, even if one's general policy is to avoid debt.

1. Housing is not a frivolous or optional luxury. It is a necessity. Very few people can afford to purchase a house with cash. For most families, the only alternative to servicing a mortgage is the servicing of a landlord's mortgage with rent payments.

Since almost everyone must either pay rent or pay a mortgage, the latter may be the better stewardship. At least a mortgage will be paid-off in fifteen or thirty years, whereas, without owning property, rent will have to be paid until you die. Also, the money paid on your own mortgage may someday provide free housing for your children, whereas the rent spent in paying-off another's mortgage provides nothing for your children's future, and only enhances the inheritance of someone else's children.

2. One of the Christian's objections to debt is that we do not know the future, and therefore cannot be sure that we will have the money in the future to repay what we borrow. If we are forced to default on the loan, then we become cheaters of the lender. We become the "wicked person" who "borrows and does not repay (Ps.37:21).

Acquiring a mortgage on a home is not regular indebtedness. It is the gradual exchange of one kind of wealth (money) for another kind of wealth (real estate) of equal value. The house belongs to the bank until it is fully paid off. With each payment, the house becomes yours a little more than it was before. You only own the part you have paid for, and can even lose that, if you do not pay off the entire loan. The part you have not yet paid for is not yours yet, so you are buying the property in increments. If you were to default on your payments, you have not wronged the lender, since they then get to repossess the whole house, and get to keep all that you have paid previously on it as well.

This is different from buying, say, a new set of golf clubs with your Mastercard. First, because you don't need them, and should not buy them if you can't afford them. Also, in such a case, you own the clubs completely before you have paid for them. If you can not continue paying them off, then Mastercard does not get the clubs back (nor would they want them, since they have depreciated in value). You might be able to sell the clubs to make good on the debt, but, since they are no longer new, you might get less for them than you still owe. By contrast, real property does not generally lose its value, but tends to appreciate in value. Therefore, the repossession of such property by the lender satisfies the debt, if it should come to that.

These considerations seem to put the purchase of a home into a different category from other purchases, in terms of the necessity and desirability of going into debt. I myself have owned two homes, but have avoided having a mortgage in both cases. The first home was given to me, fully paid for, by my grandmother, and the second was purchased with cash, from the proceeds of the sale of the first. I have been blessed to have no debt, even in my housing, but I know that not everyone can do this. Therefore, even though I believe that Christians should avoid indebtedness generally, I think that buying a home is a notable exception to the rule.

[Guest]

I completely agree with your analysis on buying a home.

On the subject of debt:
I wonder if we should be more inclined toward giving than toward lending, so the recipient does not have to be in the lower position of "servant?". Rather, he may enjoy the equal status of friend.