A Biblical Perspective on Debt

In the 22nd chapter of the book of Proverbs wise King Solomon made the following statement: "The rich ruleth over the poor and the borrower is servant to the lender." The word "servant" could more accurately be translated "slave". The borrower is a "slave" to the lender!

I just read another article on a major financial website in which the author said that in this era it was almost impossible to live without some debt and then he went on to say that there is such a thing as "good" debt. He listed student loans and mortgages as examples of good debt. I would beg to disagree with him on this point. While I do acknowledge that for most people a home will not be purchased without a mortgage I would still argue that it is not "good" debt. It would be best to buy the home outright with cash. The second best option would be to buy the home with a 15 or 10 year mortgage. Pay the house off as quickly as possible, use Dave Ramsey or John Cammuta's "snowball debt repayment" to accelerate the process! It is never "good" to have debt! The borrower is "slave" to the lender.

The argument is even more powerful for student loans. It is ridiculous for the typical student to borrow 30, 40, $50,000 or more to acquire a bachelor's degree that might not even equip them for a job that will help pay off the student loan in the next 20 years! You've probably heard of real nightmare scenarios where folks kept borrowing money to get the advanced degrees. I know of a couple of young people who have over $100,000 dollars in student loans. They will spend the entire body of their productive working years trying to pay off student loans, car payments, credit cards and mortgages! They will be slaves to the bank and the government! There is no such thing as "good" debt! It enslaves us!

Debt enslaves us financially. People who bite off more that they can chew in the form of education and housing can never afford to do some of the other things that life has to offer. There are wonderful activities like vacations, having children, supporting a local church and supporting the needy in the community. These activities are the essence of a meaningful life. If we are "strapped" with the responsibility of paying for your degrees and dwellings you may well miss out on the best that life has to offer. There is a myriad of research on the kind of physical stress that comes about when we have that sinking feeling that we are nothing more than a "slave" to our loans.

Debt enslaves us emotionally. We live in an age of Prilosec and Prosac! I am convinced that we are a medicated nation because we are a nation of people who are slaves to the lender! Depression and disillusionment are part of the fabric of "normal" American life because we have forsaken ancient advise about money and indebtedness.

Solomon was a very wealthy man. In fact, scholars have pointed out that during his lifetime, Solomon may have been the wealthiest man in the world! I believe that Solomon led Israel to be an affluent country because he encouraged them to flee from debt. We would do well to heed his ancient advise today. One of the first steps that we can take is to have a proper understanding of debt. There is no such thing as "good debt"! Try to live life without it and you'll never be a slave! Try to live your life without debt and the rich will never rule over you!
Do you have debt? Pay it off as quickly as possible and seek to be content with your station in life.

Brad Richardson is a pastor with over 24 years of experience teaching the timeless truths of the Bible concerning debt and money management. He is not only a teacher but a learner, who overcame the problem of debt in his own finances. You can discover debt relief without bankruptcy or debt consolidation at his site.

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