Page 67 - Managing Your Resources - Student Syllabus - short combined

2. When the amount you owe (your liability) exceeds the value of the asset, then you are in debt. For
example, if you purchase a new car for $10,000.00 and put down $2000, then you owe 998,000.00. But
the problem is, as soon as you drive the car OFF THE LOT, it depreciates $10,000, so you owe more than
the value of the car. Even if you sold the car, you would not have enough money to pay off the lender
what you owe. This is true with any depreciating asset – furniture, electronics, clothes, etc. Any time
the amount you owe exceeds the value of the asset, you are in debt.

3. You need some money for an emergency and have not saved for it. You ask for an advance on your
wages from the company you work for. They, in kindness, give you an advance. However, you have
received money for which you have not worked. You are, therefore, in debt until you work and pay off
the advance.

4. You borrow money from a person or lending institution with the promise to repay over a period of
time, generally with interest, you are in debt. Even if there is no interest involved, you are still in debt
for the amount you borrowed.

10.4 Let’s Practice

1. True or False The Bible says that when we borrow from someone else, we enter into
a unique relationship with the lender.

2. True or False Nowhere in Scripture is going into debt specifically forbidden.

3. The system of working a budget is a good suggestion for managing your
money.

4. The key rule in using the system above is that you do not ________________ when it comes to
borrowing from one fund to another.

5. According to Proverbs 22:7, the lender becomes the _______________ and the borrower becomes
the in their relationship with one another.

6. The problem with debt is that the person who borrows gives up all his personal ______________
and _______________________.

7. The word __________________ (Greek for slave) is used over _____________ times in the New
Testament.

8. The Greek Word, _____________means Lord or Master. We obtain salvation by confessing Jesus as
Lord, according to Romans 10:9.

9. In the NT, the slave can voluntarily remain a slave for his entire life. What outward sign was used to
demonstrate that a slave became a voluntary slave for life?

Your teacher gave you four definitions of DEBT. Fill in the blanks to demonstrate that you understand
what debt is….

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