Q: Does the Bible teach that it is sinful to take out a loan of any kind? Is it wrong to mortgage a home or pay for an automobile over time? A: The Bible does issue a number of warnings about borrowing money. In deciding how to handle your finances, I think it is important to consider the intent of these passages, the times in which we live, and your own circumstances. Probably the most oft-quoted verse about borrowing money is the familiar Proverbs 22:7: "The rich rule over the poor and the borrower is servant to the lender." This proverb points out the hierarchical relationship between a borrower and a lender. Whenever money is exchanged for a fee, the lender holds the power and the borrower moves into a submissive role. If you owe money, that inevitable deadline will roll around every month. You have no power to stop the relentless fees, additional charges, mounting tally. The trap has been set. Without intense effort and self-control, the bondage will only worsen. Deuteronomy 15:6 also emphasizes the power-play inherent in the borrowing-lending cycle. In speaking of Israel’s blessings, Moses references the power and freedom God will shower upon them, as illustrated by their role as lenders. "For the Lord your God will bless you as He has promised, and you will lend to many nations, but none will rule over you." Clearly, borrowing money strips a person of control. The lender holds the power. However, you may be surprised to find that there is some Biblical precedent for taking out a loan. In speaking of a righteous man, Ezekiel 18:7, says he: "does what is just and right" and "returns what he took in pledge for a loan." Coming back to your question, I think it is important to make a distinction between the all-too-common practice of using "plastic" for everyday wants and taking out a car or home loan. The unfortunate truth is that America has become a nation of borrowers. Everything from drug-store incidentals to electronic equipment ends up on charge cards, landing Americans into mounting debt. Last year, 1,350,000 Americans filed for bankruptcy. The average American carries a credit card debt of $3,900 each year. At an 18% interest rate, paying the minimum amount each month (typically 2% of the balance), it will take 36 years to repay the loan and cost more than $10,000 in interest! No age group is immune. Undergraduate college students typically rack up $2,226 in credit card debt, with graduate students charging an average $5,800 on credit cards before they march. And that does not include the $12-$30,000 in student loans that walk down the aisle with them! If the borrower was servant to the lender in King David’s day, the modern borrower is in total, abject bondage! Investing in a car or home, however, may be a different matter. Most people need a vehicle in order to drive to the place where they are gainfully employed. Few people are able to place $15-20,000 on the table to purchase an automobile. Thus, the car loan becomes an important part of the total budget, enabling the borrower to earn a pay check. Having said this, I think it is important to choose sensibly when purchasing a car, avoiding unnecessary frills and paying as much as possible each month so that the car is still worth something when it is finally paid off. A three-year loan is preferable to a five-year. The point is to pay as little interest as possible. Similarly, the matter of home buying falls into a different category than racking up credit-card debt. Depending on the real estate market and the number of years you plan to remain in the area, mortgaging a home can be a good investment for your future. I believe that the Lord expects us to use all of our resources—mental, physical, financial—as wisely as possible. With His guidance, we can make informed decisions that will help us to provide for our families while we occupy this planet. Sandra Doran, Ed.D. is an associate superintendent for the Florida Conference of Seventh-day Adventists. She posts her monthly columns on her web site. Read them on-line at www.tagnet.org/powerlines.

Sandra Finley Doran, Ed.D. 2028 Bluff Oak St. Apopka, FL 32712-3945 (407) 889-5524 email powerlines@juno.com

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