What Do The Scriptures Teach?
How Can We Apply These Teachings to Today?
by David Crank
We know that all that we have belongs to God. We are
stewards to whom He has entrusted certain money and possessions. Are we good
stewards of what we have been given? Are we good stewards in our practices
regarding borrowing and lending?
Borrowing and lending are not new. They have been a part of
life from the beginning. In simplest
form, they constitute a sharing of our possessions. Some sharing was in the form of outright gifts.
At other times something was shared with an expectation of it being returned
afterwards. The shared /loaned item might be a tool, an animal, or some form of
money.
But today we have complex monetary systems with many
financial innovations. Now we have home
mortgages, auto loans, credit cards, etc. Large companies authorize individuals
to borrow very large sums of money and to pay these back gradually over lengthy
periods. The easy availability of credit has contributed to many people
borrowing beyond their means to repay. Some families are deep in debt and struggling to meet their
obligations. Financial pressures from debt have contributed to divorces and to
stealing or other illegal activities.
Without question there are real dangers involved with borrowing money, but does
that mean we should never borrow? Under any circumstance? In any amount? And if we have borrowed money to purchase a
home or a car or for other purposes, should we now do everything possible to
pay off the loans immediately? Even to the point of selling all we can and
working long hours?
This is an area Lori and I have struggled with from time to
time, as I am sure many of you have as well. We aspire to be totally debt free,
have made great strides in that direction, but have not yet reached the goal.
The purpose of this article is to share some of the insights I have gained
while studying the Scriptures and attempting to apply them. It is not my intent
to condemn anyone in this matter, but to share my conclusions and encourage you
to examine the Scriptures and pray concerning what applications your family should
make. We should all remember that though there are many commands in the Word
for us all to follow, God sometimes calls us to walk slightly different paths
in other matters (See below).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
God Sometimes Calls Us To Different Paths
John the Baptist was called to an extremely separated life,
one in which he lived in the desert, eating locusts and honey, and wearing a garment of camels’ hair. But
Jesus was called to a life in the towns, eating normal food and drink and
wearing normal clothing.
The Recabites in Jeremiah 35 were commanded by their
ancestor to never drink wine and to always live in tents. They obeyed these
commands and God honored them for doing
so. Yet God never asked all men to live
only in tents and to never drink wine.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Principles Drawn From Scripture
1. Borrowing, in the broadest sense, does not appear to be
sin.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Romans 13:6-8
“For for this cause pay ye tribute also: for they are God's
ministers, attending continually upon this very thing. Render therefore to all
their dues: tribute to whom tribute is due; custom to whom custom; fear to whom
fear; honour to whom honour. Owe no man any thing, but to love one another: for
he that loveth another hath fulfilled the law.” (KJV)
”For because of this you also pay taxes, for rulers are
servants of God, devoting themselves to this very thing. Render to all what is due them: tax to whom
tax is due; custom to whom custom; fear to whom fear; honor to whom honor. Owe nothing to anyone except to love one
another; for he who loves his neighbor has fulfilled the law.” (NAS}
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
There are plenty of verses about the foolishness of surety
(guaranteeing the debts of others), but this is considerably different from
borrowing. There are also warnings about the borrower becoming the lender’s
slave, etc. But I find only one verse,
interpreted by some (including some teachers I highly respect) to forbid
borrowing. That verse is Romans 13:8. But on the other hand there are many
clear commands in both the Old and New Testaments to lend to others who are in
need.
Literally translated Romans 13:8 says “owe no one anything.” On first blush
that sounds like a prohibition against any sort of borrowing, even borrowing a
quarter for a phone call or a tool from your neighbor. Does this verse mean it is wrong even to borrow a book
from a library? Does it mean it is wrong to borrow a car to go pick yours up at
the shop or to take your child to the hospital emergency room? When applications
of a verse don't seem to make sense, it is wise to take a good hard look at the
verse again, in context and in light of other Scripture. It may be that your
interpretation is off the mark!
Does the English word "owe" fully and accurately
represent the Greek word that it translates? Does "owe" in this
context include anything borrowed that has not been returned? Is every one who
ever "borrows" considered guilty of "owing", in the sense
of this verse?
The first seven verses of Romans 13 speak of being in
subjection to the governing authorities. Paul tells us that all authority is
from God and that to resist authority is to resist God. In verse six he
explains our obligation to pay tribute/taxes to these same authorities. In
verse 7, we are told to render to all their dues or what is due them, whether
tribute/tax, custom, fear or honor. This is followed by the exhortation of
verse 8 to "owe no man any thing,
but to love one another".
The Greek word which is translated "dues" in verse
7, Strong's #3782 - opheile, is the plural noun meaning debt, the sum owed, or
the obligation. It is derived from Strong's #3784 - opheilo, the verb meaning
to owe or be under an obligation. This later word is the same used in verse 8
in “owe no man any thing”. This same word, translated as ”owe”, #3784, appears elsewhere
in the NT and in Paul’s writings. It is also commonly translated in the King
James as “ought”.
A debt is essentially an obligation. You are obligated, you
“ought”, to return the tool that was loaned to you. With a loan, there is an
expectation that it will be returned
within a certain timeframe or
whenever requested back. The obligation is to return the item when agreed upon
in the same condition in which it was loaned. Not returning the item when
agreed is to not meet your obligation. But keeping the item for the agreed upon
time and then returning it, consititutes meeting your obligation.
We are exhorted to pay rulers their “dues” (what is owed
them), such as taxes. Yet in the following verse (Rom 12:8), we are also
exhorted to owe no man anything. How can we help but owe taxes to rulers? Paul
is acknowledging we will owe many things to those in authority. How to
reconcile this? We need to be more careful how we are using our words.
We loosely use the word “owe” to refer to both a future
obligation and a current one. Within this context of Romans 13:8, Paul seems to
be using “owe” to refer only to current obligations. If we do not pay our taxes
when due, then we are “owing” and not meeting our obligations. If we borrow
money from a friend and do not repay when it is due, then we are “owing” and
have not met our obligations.
Do you now "owe" taxes for next year’s income? Do you "owe" today the rent
for the next year? Is not what you truly “owe” in these instances what is
currently due? If “owe” was meant to include these future obligations then it
would be impossible to “owe no man anything”.
Just as purchasing land creates a future obligation to pay
property taxes and a one year apartment lease creates a future obligation to
pay rent, a loan of money creates a future obligation for repayment on a
certain date (or dates). What you “owe”,
in the sense of Romans 13:8, is the amount now due and unpaid, not the amount
that will be due in future months and years.
I believe this passage is exhorting us to meet all of our
proper obligations on time. Return your library book, return the borrowed tool,
pay your taxes, rent, loan payments, electric bills, etc., when they are due -
don’t delay or be negligent in meeting your obligations! Though I am not a big
fan of the NIV translations’ dynamic equivalent method (because of the amount
of interpretation used in the translation), the NIV version of this verse does
seem to help clarify the true meaning: "Let no debt remain outstanding,
except the continuing debt to love one another, for he who loves his fellowman
has fulfilled the law". Love is one debt or obligation that is due at all
times and is impossible for us to completely fulfill. This debt can never be
fully discharged.
Though borrowing, in itself, may not be sin, borrowing and
not returning the item or paying back the money at the agreed upon time is sin.
It is not meeting your obligations and not keeping your word. In retaining what
was borrowed you deny its owner use of the item or money - this is not very
distant from stealing! Borrowing not intending to pay back is stealing. (Romans
13:8; Psalms 37:21)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Definitions of the English Words from Webster's Unabridged
Dictionary.
(Remember that the English words may not perfectly reflect
the meaning of the Greek or Hebrew.)
Debt - 1.That which is due from one person to another or
others, whether goods, money, or services; something owed. 2. An obligation or
liability to pay or return something. 3. The condition of being under
obligation to pay money to, or perform services for, another.
Borrow - to get, take or receive anything, as a loan
Loan - The act of lending; That which is lent; anything
furnished for temporary use to a person at his request, on the condition that
it shall be returned, or its equivalent in kind, with or without compensation
for its use.
Lend - to grant a loan; to grant to another for temporary
use, on the express or implied condition that the thing shall be returned, or
its equivalent in kind.
Owe - to have an obligation to pay; to be indebted to the
amount of.
Surety - something that makes sure, protects, or gives
assurance, as against loss, damage, or default; guarantee or security; A person who makes himself responsible for
another; specifically, in law, one who makes himself liable for another's
debts, defaults of obligations, etc.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2. We are responsible for returning the item borrowed on
time and in its original condition.
Whenever one borrows
there is a risk that the item borrowed will be damaged or lost or that the
money may not be available to repay on time. This risk does not excuse us from
the obligation to repay or return the item in the condition in which we
borrowed it. We may have had every intent to repay on time, but may have
foolishly borrowed too much or taken risks with the borrowed amount. To the
extent our negligence or foolishness was the cause of our inability to repay,
we are guilty. (Ex 22:14)
3. Borrowing can sometimes be very unwise and even
dangerous.
Borrowing can become a tool with which to live a lifestyle
that you really can't afford. A lack of contentment with what you have, coupled
with a lack of self control can result
in huge debts that you are unable to repay.
It is foolish to incur obligations which you are likely not to be able
to meet. If you borrow and fail to meet your obligations, you risk suffering
the consequences. These may be having
your home foreclosed on or your car repossesed, or in ancient times, yourself
sold as a slave to repay the debt! Lenders can also threaten borrowers with the
consequences to force them to do things they otherwise would not (a form of slavery). (Prov 22:7) There can be
bad consequences to not paying your debts when due!
4. We are commanded to both lend and give to others,
particularly to meet their needs.
In many places in both the Old and New Testaments we are
told to lend to others who are in need. Willingness to lend is described as a
characteristic of a righteous man. We are also told to give to meet others
needs. This would often seem the better course except that some in need refuse
an outright gift, but will accept a loan.
In such instances we may lend, but view it from our side as a gift, with
no expectation of receiving it back. There are also many instances when someone
has a short term but immediate need for something we have, but which we could
do without for a time. We should certainly be open to lending these (i.e.
tools, equipment, extra car, etc.). (Deuteronomy 15:7-8, 11; Nehemiah 5:10;
Psalms 37:25-26; 112:5-6; Matthew 5:42; Luke 6:34-36)
5. The Jews were commanded not to charge interest to their
countrymen.
As the Jews were forbidden to charge interest to their
countrymen, we should consider whether we should likewise forgo interest on
money loaned to family and Christian
brethren. I find no clear Biblical instruction on this, but seeing how strongly
interest from countrymen was forbidden to the Jews and knowing what a burden
compound interest can become, I strongly suspect the Lord is more pleased when
we forgo the interest. (Exodus 22:25-26; Leviticus 25:35-37; Deuteronomy
23:19-20; Nehemiah 5:7,10; Ezekiel 18:8,13)
6. Obligating yourself for someone else's debt is unwise.
It is generally very
unwise to obligate yourself to make good on someone else's debts and
obligations (surety). It is particularly foolish to do so for someone you do
not know or who is not a very close friend or family member. Guaranteeing
another's debt encourages unwise borrowing and may tempt him not to make every
effort to repay (since someone else will suffer the penalty rather than
himself). (Prov:1-5; 11:15; 17:18; 20:16; 22:26-27)
7. It is a blessing from God to be able to lend and not to
have need to borrow.
One type of blessing from God is to have much you can give
or lend to meet the needs of others but to have no need to borrow from
others yourself. (Deut 15:6)
8. We do not know what tomorrow will bring, therefore we
must be very cautious about debts we might be unable to repay.
The larger the amount and the longer the period over which
repayment is due, the greater the risk that our circumstances may radically
change and we may at some point be unable to pay when due. Therefore it is wise
to borrow as little as possible and pay off as quickly as possible. Less
financial obligations stretching into the future can reduce stress and worry
and provide more flexibility in case of sudden job loss, bad economic times, or
financial emergencies. (Prov 27:1; Jas 4:13-16)
9. Being financially debt free is a worthy goal, but should
not be your highest goal.
Being debt free, in the sense of having no monetary debts
owed to lenders, can be a very worthwhile family goal, but should not be your
highest goal. If eliminating financial debts becomes too large an obsession,
you may end up sacrificing your family for it. Our money is NOT the most
important aspect of our lives!
Applying Principles to Modern Reasons for Borrowing Money
Purchase of a home.
With the high cost of most homes today, purchasing a home
without incurring a mortgage is very difficult. It may take many years to save
enough to purchase a home outright. So what to do?
Some suggest renting rather than buying. Renting is a good
solution for some, but has shortcomings. Rents can be nearly as high (or
higher) than mortgage payments but without ownership. A monthly rent obligation
is not a great deal better than a monthly mortgage payment - both are debts in
the sense that you are obligated to pay an amount every month. If you cannot
pay, you will lose your home. But the mortgage is an ongoing obligation,
whether you leave your house or not. If your house cannot be sold for enough to
cover your remaining debt, then you will still be owing. Renting is often a
very good solution when you do not expect to live somewhere for many years. If
you were to buy and then sell only a few years later, the one time purchase
costs can easily result in a loss.
Some suggest first saving for a few years to make as large a
down payment as possible and then borrowing the remainder. Then
taking a shorter term loan (15 years or less) and/or paying down the
loan more rapidly than required. This reduces overall interest costs and allows
the mortgage to be paid off as quickly
as possible. Depending on interest rates, the monthly payment for a 15 year
loan can be much less than two times the payment on a 30 year loan. The
interest savings are huge! Buying a little less expensive house with the
shorter term loan can get you out of debt in half the time and saves you a
great deal of money.
Another approach is to save for a time and then buy a home
that minimally meets your needs, but which is well suited for future expansion
and improvement, as you have funds.
A similar alternative is to save up enough to purchase some
land and a small mobile home. Then over a number of years gradually build a new
home for yourself, as you have funds for materials and time to build. Since
perhaps half the cost of a home is in the labor, building as much as possible
yourself (with some help from family and friends) can save you a lot! Also much
of the money you formerly paid for rent can be used to buy materials for
building.
Others have suggested that parents should assist their grown children in buying
their first home. If Mom and Dad already own their home outright and have
significant savings that could be either given or loaned interest free, this is
great. However for most of us, this may not be very workable as available savings
are low and the number of children needing help may be high.
Automobiles.
Second to a home, the largest purchase many of us make is an
automobile. With prices for new cars easily running to $15,000 - $25,000, this
can be a very significant purchase! For many, it can take quite a while to save
up this amount. Auto loans are commonly
available over 3-5 year periods. Shorter periods keep the total interest cost
down, but you can still pay a lot of interest. Though we would all prefer to
save up the money and purchase our autos outright, this is sometimes difficult.
Depending on where you live and work, a car can be very necessary. And though
we may be saving to replace an older car, we can very suddenly and unexpectedly
end up without a vehicle due to accident or major breakdown. As with a house,
if you borrow, borrow little and pay back fast to reduce your interest costs
and risks of not being able to repay.
Auto loans can be avoided or minimized by: 1) buying a
cheaper car, a good used car or otherwise lowering the required purchase
amount; or 2) leasing rather than buying (many of the same disadvantages to
renting a home); or 3) doing without or borrowing a spare car from someone else
for a limited period while you save your money. Knowing that autos must be
replaced at some regular frequency, it is wise to save up money regularly for
future auto purchases.
Credit Cards.
Credit cards can be a huge convenience. They allow you to
make one payment for many bills, to buy over the telephone or internet, and can provide emergency funds in a crisis (i.e. traveling and running out
of cash, critical breakdowns before your
next paycheck, such as A/C breakdown in 100 degree weather; refrigerator dies,
major auto repair needed so you can get to and from work, etc.).
However, credit cards can also be very dangerous. If you
charge only what you can afford to pay and pay in full every month, just like
you pay your electric bill, then all is well. But it is easy to charge much
more than you can afford to immediately pay and then incur high interest
charges, increasing your indebtedness! Without good record keeping and self
control, credit cards can get you into a lot of debt that you might have a very
hard time paying off. My advice: only use credit cards if you have the self
control and discipline to not overspend and then always pay the entire balance
off each month, on time or before.
Though you may intend to pay the entire balance each month,
there is always the possibility of unforeseen circumstances forcing you to
carry over a balance for one month. If you are using the credit card wisely,
this should be very rare. If it happens repeatedly you are probably losing
control and need to cease using the card altogether before you get yourself
into a lot of trouble.
Weddings, Vacations, Appliances.
It is much preferred to save up money in advance for things
such as these. You should expect children to get married and appliances to
break down and try to be prepared. But when you have failed to save up adequately
and the time has come for a marriage or a crisis appliance purchase… If you choose to borrow, I would suggest
looking hard for ways to save money to minimize your debt. Don't get caught in
a substantial long term debt! When it
comes to expensive vacations, I think you would do better to forgo these until
you have money in hand.
College / Vocational School for Your Child.
This becomes a major source of debt for many people.
First decide whether college is really
the best thing for your child. If you expect it will be and believe that you
should pay for it, then you had better start saving a lot of money early! If
you must borrow money, don't multiply your debt by choosing expensive schools -
it is generally not worth it! Look at ways to reduce the cost by: having your
child live at home and commute to school, requiring your child to work and pay
for as much of the expense as possible, etc. Also, be sure your child is going
with a clear direction and is serious about the education. It is real shame to
see parents saddled with debt while their child drifts from one major to
another, running up the bills without solid progress towards a degree. [See the
article in issue #2 on Should You Send Your Child to College.]
Business Needs.
For those who own a business, particularly a capital
intensive one, this can be a difficult issue. Having few or no business debts
removes a significant burden than can make all the difference in the survival
of a business. However, the problem remains of how to purchase needed
equipment, raw materials, inventory, etc. These things are very hard to save
sufficiently for until the business is doing well enough to pay for them. The
need for debt can be reduced by getting others to invest in the company, but at
the cost of sharing the ownership and the profits with the investors. As much
as possible, it seems good to me to try and structure your business to really
minimize expenses and attempt to finance as much as possible out of the
proceeds of the business itself.
CONCLUSION
All that we have belongs to God. Whatever money He has given
into our hands, we are to be good stewards of it. Part of serving God with our
money is being willing to share with others who are in need, both by giving and
lending. Though the Scriptures do not condemn borrowing and seem to assume that
we will at times borrow some things from others, yet there are warnings about
borrowing and not being able to repay at the agreed on time. It is sin to
purposely default on your obligations. It is foolishness to put yourself at
significant risk of not being able to repay what is due. It is a blessing to
not need to borrow and to be able to give and lend to others. Avoiding monetary
debts is a worthy goal, but it is a less important goal than many others. Be
careful that your zeal to eliminate all financial debts does not cause you to
sacrifice more important goals.
Perhaps you have been taught differently concerning
borrowing and debt. Perhaps you have studied this matter closely and reached a
different conclusion than I have. If so, I simply urge you to examine the
Scriptures carefully for yourself and become fully convinced in your own mind.
Keep open to new insight and correction from the Lord, and keep your motives
fixed on pleasing Him rather than men. And don't be quick to condemn brothers
and sisters who may have reached a slightly different conclusion in a matter. I
will strive to do the same! "The
faith which you have, have as your own conviction before God. …" Romans
14:22 (NAS)
September/October 2000,
© Unless The Lord ... Magazine
