Stewardship
Lesson #10
When discussing buying & living styles, you must
always consider the dangers of debt.
Is debt a sin?
Or is it just not the wisest choice for our lives?
Are there times we need to be in debt?
Or should you do without necessities to be able to avoid
debt?
These are all questions that must be answered.
The
Dangers of Debt
Debt is not a sin. The
Bible discourages debt, but does not prohibit it.
Debt is never the real
problem; it is only symptomatic of the real problem – greed,
self-indulgence, impatience, fear, poor self-image, lack of
self-worth, lack of self-discipline.
Debt can be defined in
many ways. It is any money owed to anyone for anything.
There Are Five Kinds of
Debts
Credit Card Debt
Consumer Debt
Mortgage Debt
Investment Debt
Business Debt
Before purchasing an item, &
before going in debt for it, there are four questions to ask:
Does it make economic
sense?
Do my spouse & I
have unity taking on this debt?
Do I have the spiritual
peace of mind or freedom to enter into this debt?
What personal goals &
values am I meeting with the debt that can be met in no other way?
The difference between debt
& cash purchases may be illustrated with the example of the
purchase of a new car.
Car Purchased on Credit
Cost
of car: $10,000.00
Monthly
Payment at 12.5%: $265.80
Amount
Paid in Four Years: $12,758.40
Car Purchased with
Savings (Cash)
Cost
of Car: $10,000.00
Monthly
Savings at 6% in Four Years: $12,182.00
Total
Cost of Car: $7,818.00
The
fact is: Debt always mortgages the future.
Are
there times when you may need to borrow? Yes. But whenever you borrow
money for any reason, there must be a guaranteed way to pay it back.
Read
the following Scriptures for a Biblical view on debt.
Psalm 37:21
- The wicked borrows and does not pay back, but the righteous
is gracious and gives.
Romans 13:8
- Owe nothing to anyone except to love one another; for he who
loves his neighbor has fulfilled the law.
Proverbs 22:7
- The rich rules over the poor, and the borrower becomes
the lender’s slave.
1 Timothy 5:8
- But if anyone does not provide for his own, and especially
for those of his household, he has denied the faith and is worse than
an unbeliever.
Luke 12:15
- Then He said to them, “Beware, and be on your guard
against every form of greed; for not even when one has an
abundance does his life consist of his possessions.”
There are two rules for
borrowing:
The cost to borrow
(after-tax interest) must be less than the economic benefit received
(interest, yield, and/or growth in value).
There must be a
guaranteed way of repayment.