Page 69 - Managing Your Resources - Student Syllabus - short combined

Study Section 11: The Problem with Debt

11.1 Connect

We want to continue this lesson on the subject of debt. The Bible has a lot to say about it,
and it has a tremendous effect on our ability to manage God’s resources. So in this lesson
we want to look at the PROS and CONS of going into debt. Is there a time when God allows
you to go into debt? When is debt appropriate? Let’s answer these questions in this
lesson.

11.2 Objectives

1. The student should be able to describe the seven problems with debt supported by Biblical
references.

2. The student should be able to explain two areas of living that make debt acceptable for a
short term.

3. The student should be able to explain the difference between appreciating and depreciating assets
and see how debt is managed among these types of assets.

11.3 The problem with debt

1. Once you enter into a debt transaction, you owe a lender the repayment for the loan.
And just as a slave, you must give up all freedoms. For example, say you borrow a large sum
of money for a house. You must repay the loan, normally on a monthly payment schedule
over a set period of time. You entered the contract for 10 years. Two years after paying on
your debt, God calls you to go to another country and become a missionary to the lost. The
problem is, you are not free to obey the Lord and go, because you cannot leave your house
and debt. You have become a slave to the repayment. Before you can obey the Lord, you must
somehow be released from the debt, probably by selling your house. But what happens if the house will
not sell? You are NOT FREE to obey, because of your debt.

2. Another problem with debt is that you presume on God. When you borrow money, you are actually
borrowing the money based on future money you will make to repay the loan. You are basically taking
an “advance” on your earnings to repay based on future earnings. The questions you must ask yourself
are these: “How do you know that God will provide in the future the same amount of income He is
presently providing?” “How can you obligate God to provide future funds to repay your debt?”

God is under no obligation to pay your debts. Nowhere in Scripture does God promise to pay your
debts. He promises to meet your needs, not your debts. By entering into debt, you are in a sense telling
God that HE MUST provide the money you have obligated yourself for by entering into debt. You are
presuming upon God. Not good!

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