DEBT

1
DEBT

• Debt is not a sin, but many Biblical references
  to borrowing are negative.
• Proverbs 227 The rich rule over the poor, and
  the borrower is servant to the lender.
• Nehemiah 53-5 Others were saying, We are
  mortgaging our fields, our vineyards and our
  homes to get grain during the famine.

2
Debt and the Bible

• Still others were saying, We have had to borrow
  money to pay the kings tax on our fields and
  vineyards. Although we are of the same flesh and
  blood as our countrymen and though our sons are
  as good as theirs yet we have to subject our sons
  and daughters to slavery.

3
Debt and the Bible

• Ron Blue, a Christian financial planner, makes
  this statement regarding those who get deeply in
  debt, Debt is never the real problem, it is only
  symptomatic of the real problemgreed,
  self-indulgence, impatience, fear, poor
  self-image, lack of self-worth, lack of
  self-discipline, and perhaps many others.

4
Reasons for Borrowing

• To make large purchases.
• Financial emergencies. Every year approximately
  500,000 families have medical bills in excess of
  six months earnings. Close to 50 percent of all
  personal bankruptcies each year are the result of
  medical debts.

5
Reasons for Borrowing

• Convenience. Credit cards are more readily
  accepted than checks they enable you to write
  one big check rather than many small ones.
• Investment. Avoid unless you are a
  knowledgeable, experienced investor.

6
Drawbacks of Borrowing

• Getting in over your head. Ron Blue says debt
  mortgages your future. Debt allows you to live
  high now, but later you must reduce your standard
  of living (stop overspending) in order to make
  money available for repayment of the debt.

7
Drawbacks of Borrowing

• Compounding works against you.
• Example Assume you borrow 50,000 for 30 years
  at 10 to buy a home. You will wind up paying a
  total of 157,968 (438.80 monthly payment X 360
  payments 157,968) You pay 107,968 in interest
  over the 30 years!

8
Spiritual Dangers of Debt (Ron Blue)

• Borrowing presumes upon the future.
• James 413-16 Now listen you who say, Today or
  tomorrow we will go to this or that city, spend a
  year there, carry on business and make money.
  Why, you do not even know what will happen
  tomorrow. What is your life? You are a mist
  that appears for a little while and then
  vanishes. Instead you ought to say, If it is
  the Lords will, we will live and do this or
  that. As it is, you boast and brag. All such
  boasting is evil.

9
Spiritual Dangers of Debt

• A Christian who borrows should have a guaranteed
  way to repay the loan. To guarantee repayment,
  carry adequate life insurance and disability
  insurance. Avoid credit life insurance because
  it is extremely expensive.

10
Spiritual Dangers of Debt

• Is bankruptcy an option for a Christian?
• Psalm 3721 The wicked borrow and do not repay,
  but the righteous give generously.
• Psalm 221a A good name is more desirable than
  great riches.

11
Spiritual Dangers of Debt

• Borrowing may deny God an opportunity to work.
• Make sure your needs and desires are being met
  by Gods method and timing, rather than yours.
• Isaiah 558-9 For my thoughts are not your
  thoughts, neither your ways my ways declares the
  Lord. As the heavens are higher than the earth,
  so are my ways higher than your ways, and my
  thoughts than your thoughts.

12
Spiritual Dangers of Debt

• Debt creates Bondage to this world.
• Proverbs 227 The rich rule over the poor, and
  the borrower is servant to the lender.

13
Questions to Ask Before Borrowing (Ron Blue)

• Am I borrowing to fund a need or a greed?
• Is there a guaranteed way of repaying the debt?
• Are both my spouse and I free from anxiety about
  incurring this debt?
• Will the additional debt endanger our ability to
  pay tithes and give offerings, or in any way
  hinder our relationship to God?