DEBT:

What God Has To Say

 

Director Of Hephzibah House

508 SCHOOL STREET

WINONA LAKE, INDIANA 46590

 

Proverbs 22:7   “The rich ruleth over the poor, and the borrower is servant to the lender.”

 

A Troubling Truth

We are living in a time of national and worldwide financial crisis.  Some economic forecasters are issuing dire warnings of this being worse than the Great Depression that began in 1929 and lasted until World War II.

Solomon issues an ancient maxim in Proverbs 22:7 that is as current as the morning newspaper: “The rich ruleth over the poor, and the borrower is servant to the lender.”  Rich people have power and influence over poor people, and others, who though they may not be poor, will be in the same condition of servitude if they allow themselves to get indebted to a person, bank or other entity.

An individual will by design or default, lose his independence and elements of freedom the moment he arranges for a debt.  By this Biblical measure, millions of Americans are “servants” to their creditors, including many who are believers.

No matter the century, country, or people group, no one can contravene this truth of Scripture.  No one can recklessly spend their way to prosperity.  Quite to the contrary, prodigality and profligate living put one inevitably in servitude to one’s creditors. 

The Lord blesses thrift, hard work, good stewardship, and learning to be content with one’s station in life.  Living beyond one’s means, not controlling one’s desires, and refusing to save for crises will predictably place a soul in debt and servitude.

 

The Average American

The average American has accumulated about $18,700.00 in debt through charge accounts and credit cards.  This, in addition to his mortgage, places enormous pressure on him.

Also, he has not one, but several credit cards, some of which have been utilized up to their credit limit.  Because of pressures upon him, he cannot pay off the balance, and elects to pay the “minimum payment due”, which, if he continued to do, would take decades and include usurious, confiscatory interest payments.

The “good life” of reckless, irresponsible living took away the caution of our countrymen, and their wise saving for a crisis all disappeared.  In 1975, Americans saved 14.6 cents of every disposable dollar, this was com- mendable.  In the early 1980s it was 12.5 cents, in the early 1990s it was 7 cents, in 2001 it was 3.5 cents, and in 2004 it was down to 1 cent!  Finally, in 2005, we achieved a negative savings rate of -.05 cents.  In other words, we were not only saving nothing,  we were going into debt with every paycheck.

Ominously, a negative savings rate has only occurred in two other years of our national history: 1932 and 1933, right during the Great Depression!  Now that prosperity is becoming an elusive memory of the past, suddenly, Americans are saving again.  I would judge this is not because we have all studied our Bibles, but because of abject fear and uncertainty.

To give consumers a better understanding of how we as Americans have followed an irresponsible and reckless way of life, consider this: we represent approximately 5% of the world’s population, but are responsible for 75% of the world’s net borrowing!

Spending and borrowing one’s  way to prosperity seems to work at first, but now we are reaping the whirlwind of catastrophic and exceedingly painful consequences for our greed, covetousness, and lack of self control.

 

An Old Testament Warning

Under the Theocracy in Israel, God’s people were only allowed to borrow for a seven year period (Deuteronomy 15:1-6).  This gave God’s people a seven year window to work their way out of a crisis, and/or learn to live by better principles.  One could, in the extreme, do this seven times if he was unteachable, but then his property would return to his family in the Jubilee (Leviticus 25:28).  In other words, even if one generation failed, the sweet Lord refused to see a man’s heirs dis-possessed of their property, and they could decide to live a responsible, God- pleasing life.

However, Capitalism is not a Theocracy.  Without a Christian base and conscience, Capitalism is merciless.  An individual can not only financially ruin his life, but make his heirs the victims of his lust and self gratification.

 

Modern American Expedience

One of the hallmarks of our faulty thinking is the almost total acceptance of installment debt.  As Americans, we no longer think as our grandparents: Can I afford this, and if not, I will save until I can.  Instead, we desire something and then begin to crunch the numbers, (or a helpful salesman will do it for us), to see if I can afford the monthly payments.

 

This thinking includes elements of presumption, a sin soberly described by the half brother of our Saviour, the Apostle James (James 4:13-16).  In other words, I can assume this debt burden because I will always enjoy my health, strength, good job, and stable income. Scripture teaches us our lives will be rudely interrupted by trials and our peace and tranquility will be adversely affected by temptations (James 1:23; 1 Peter 1:7). 

Practical experience witnesses to these truths of Scripture.  Millions of Americans, especially in the last several decades, have reported to work and found a sign on the door, indicating their company has closed.  Later, it is discovered the company has moved to another country to take advantage of cheaper wages.

It is not, will I experience a crisis, but when and what form will it take?  Therefore, it is incumbent upon us to prudently save for these unanticipated events that intrude into our lives: Proverbs 22:3 “A prudent man forseeth the evil, and hideth himself, but the simple pass on, and are punished.”

 

Debt Repayment, A

Moral Necessity

As we unthinkingly pull out our credit cards, sign on for installment debt, and in sundry ways, thoughtlessly encumber ourselves, we forget a nagging reality: debt must be repaid!  In fact, God says whoever seeks to somehow escape repayment is “wicked”.  Psalm 37:21 “The wicked borroweth and payeth not again.”

In 2 Kings 4:1-7, the Lord describes an impoverished widow of a godly, deceased prophet.  Her predicament was so dire, that the creditor was going to take away her sons as bondslaves.  Please note in this dramatic narrative that the Lord, speaking through the prophet Elisha, did not excoriate the creditor for being heartless and unkind to a poor widow.  Notably, she was, even in her impecunious, desperate condition, expected to pay the debts her husband had accumulated.

Since the Scriptures teach that a person is “wicked” who seeks to avoid paying his honest debts, how can we then use a court and a judge to avoid payment of any debts through bankruptcy?  An earnest believer must come to terms with this question.

 

Changing Our Thinking

And Our Ways

Even as believers, we must face the fact we can be carried away with the ways of this world.  These ways include instant gratification instead of developing sales resistance, living beyond our means instead of learning to be content, and thoughtless, irresponsible spending as opposed to thrift, frugality and saving.

It is not humiliating to purchase used and useable merchandise rather than new.  It is not beneath our dignity to frequent garage sales, thrift stores, salvage shops, day old bread stores, and shop for generic products.  It is a virtue to develop thrift, patience and contentment as a part of our character.

If I have $5,000.00 for a car, I had best not buy one that costs $50,000.00!  If I need a washer and dryer, but have only half the money needed, I can be content with a used set!

Chronic debt is bad policy for an individual, business, church or nation.  Our country used to lend money to other nations until about 1985.  It was then that our national character had been so corrupted that we became a debtor nation.  As Deuteronomy 28:43-44 indicates, whoever does the lending is the “head”, and whoever does the borrowing is the “tail”.  Moreover, this is in the context of God’s curse on the individual (or nation) that plays fast and loose with His laws.

 

Strive For The

Biblical Model

The New Testament principle of Romans 13:8 is best: “Owe no man anything but to love one another.”  If we are in debt, we should be making disciplined and active plans to get out of debt, whether it takes months or years to do so.  By the grace of God, financial freedom is an attainable goal. We must be led by the Holy Spirit instead of having our walk with the Lord chained and burdened by our debts.

Picture hearing your Pastor explaining how a missionary loved and appreciated by your church is in need of emergency cancer surgery.  Your Pastor goes on to explain he is led to have the church receive a special offering to be a help to this precious saint.  With one mind, the whole church gladly agrees with his plan.  Then, as the offering is received, you suddenly remember every dime you have is required for an installment payment the next day.

This is why some missionaries go without.  This is why some Pastors are either unpaid or underpaid.  This is why some churches close their doors.

This is why the Lord’s work suffers, because many of God’s people have refused to learn contentment, self-control, and proper stewardship.  May the Lord help us to learn these vital lessons and each achieve financial freedom!