Thursday: Term Limits and Borrowing Points
Read Deuteronomy 15:1-5. What did the Lord require of His people as revealed in these verses?
In harmony with other seven-year statutes (Exodus 21:2; Leviticus 25:3-4), not only the slaves or servants and the land were regulated, but also the lenders. Because the lenders did not want to forgive any debts, the longest anyone could be in debt was seven years. Whatever else we can take from these verses, they do show that the Lord cares about these kinds of financial issues, especially whenever it concerned fellow Israelites. These verses do show also that the Lord acknowledged the reality of debt, no matter how bad it generally was. He also emphasized that it was to be avoided as much as possible.
Image © Krieg Barrie from GoodSalt.com
Today, by contrast, many parts of the world have loans for 30 and 40 years for home purchases. It seems that one reason houses cost so much is that credit is available to provide loans to purchase them.
Meanwhile, many people, parents, and students wonder about borrowing money for an education. As a rule, getting a college degree will enhance a person’s income capability for the rest of his or her life. Some people might have to borrow some money to pay for their education, but keep in mind these factors. You have to pay it back with interest. Try to get all of the grants and scholarships that you can qualify for. Work and save all you can for school. Take only courses that will lead to a job. Have parents help. In Bible times, parents gave their children farmland so that they could make a living. Today that “inheritance” should likely be an education so that they can become independent adults.
In an ideal world, there would be no borrowing and no debt. But because we don’t live in an ideal world, there might be times when it is necessary to borrow. Just make sure that you have the best deal possible, and the best interest rate available. Then borrow the very minimum that you need, and pay it off as quickly as possible to save on interest costs. In principle, however, to whatever degree humanly possible, we should seek to avoid debt, and by following biblical financial principles in our everyday lives, we can go a long way toward avoiding unnecessary debt and the terrible strain it can put on us and our families.
| If you have lent people money, how honest and fair and kind are you in your dealings with them? How would you fare before God when you have to answer for those dealings? (See Eccles. 12:14) |
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Here is a bit of a reality check. Wow, I never thought I would be teaching business maths in Sabbath School. Here is the current housing loan situation in NSW, Australia. The average home loan is around $750,000AUD and interest rates are typically about 4.5% with terms usually around 30 years. That works out to about $4000 a month in repayments.
Interest rates are currently on the rise, and typically a 1% rise will add several hundred dollars to the repayments per month. Another issue is that prices of real estate are currently falling, so in a situation where you are forced to sell because you cannot keep up the payments, you could end up with a significant shortfall which you would still have to pay off.
Now, I am not going to give you a full business finance course in a comment, but, I want folk to be aware of some of the issues with managing your finances appropriately. Should we discuss this in the Sabbath School lesson? We can quote Scripture to one another and deliver nice little platitudes about managing for the Lord, but in the end, we have to live in a real world and apply Christian principles in a practical way -- and even do the maths that you skipped in high school because it was boring!
I once stopped a church from being built because the church members, largely pensioners, and manufacturing workers, were considering taking out a considerable loan to build a new church. They were talking about stepping out in faith and the Lord would provide, etc. I did the calculation in front of the meeting showing how much they would need to put into the local church offering each week. It was well beyond their means. But, the Lord moves in mysterious ways. A couple of years later, another church nearby had to be sold to a shopping complex for a staggering sum of money and there was sufficient to build a new church for both congregations that was beyond their vision.
Our faith should lead us to do the sums and make wise decisions. We have to evaluate the risks and ask ourselves the hard "What if ...?" questions. Faith is not an excuse to ignore strategic planning.
End of Christian Business Finance 101.
(So thanks, Maurice! You're amazingly guided by the Holy Spirit to write all of these wise words!)
Although I have followed the health and academic fields, I'm conscious that math is applied to every single one of today's careers! One thing that I learnt from my math teacher (I had the same math teacher from 5th grade of elementary school to the end of high school, who just passed away last year) is that God is all about perfect numbers! -- so perfect that He is able to raise whatever amount of anything "from scratch", certainly because His math is not like ours! God's math regarding money and financial means is super merciful! He has faith in fallen humanity, not because of our abilities, but simply because He is essentially Love! At the same time as He says "do not lend or borrow money!", He releases the debtor at the 7th year of debt! He deals with both standpoints, from the one with the means to lend, to the one who wants to borrow, and to the one who is in debt. To me, God shows His mercy and teaches the math of practical life in such way that it seems totally crazy to modern capitalism. Glory and honor be to the One Whose appreciated love can revolutionarily change a heart!
I believe, when dealing with people to whom I have lent money, I should be honest, fair, and kind. I should be mindful that I am ultimately accountable to God for my actions and be sure to exercise justice and mercy in my dealings with those I have lent money to. I strive to be equitable in my dealings, showing both compassion and generosity to ensure the persons I have extended money to are not unduly burdened or taken advantage of. According to Ecclesiastes 12:14, “For God will judge every deed, including every hidden thing, whether it is good or evil.” Therefore, I must be sure to be honest and fair in all of my dealings with those to whom I have loaned money if I want to fare well before God.
Considering the bigger picture of wealth, it appears to me that focusing one’s life on the accumulation of material ‘wealth’ is the antithesis to living to lay up treasures in heaven by being a faithful steward of that which the Father has blessed us with.
Matt. 6:24 points out that we cannot serve two masters. When asked to help someone, one needs to seriously consider the willingness/ability to potentially give up/lose that which was given/lent. Being willing to forgive a debt goes a long way toward peace of heart and mind.
The focus is either on using time, energy, talent and opportunity to accumulate ‘wealth’ to bolster one’s standing in this world, or to live the life of a faithful steward of ‘God’s wealth’. 'Frugal' and 'Generous' are siblings, always considering and maintaining the fairness aspect between receiving and sharing by including the interest of others in the decision-making process – Matt. 25:14-30.
The good steward does not want any of God’s resources given to him to go to waste. William, in his blog -- “Love is the one debt that will never go away” -- points this out so clearly. I agree, our wealth is more than ‘material wealth’; it includes everything we were given to live -- physical, emotional, and spiritual wealth/blessings, including time, strength and health, as well as sharing the ‘comfort of inclusion'. 1 Peter 4:10.
I do not think stewardship can be successful without the renewal of our heart and mind. I remember, after settling into my commitment to submit my life’s goals and objectives to the wisdom of my heavenly Father’s way of life, everything fell into place. It became a welcomed task to let go of all that still ‘reflected’ the darkness of this world.
I submit that successful living in this corrupt world with its many tentacles trying to ensnare the unsuspecting is only possible when following the clear path of God’s truth and light. To love God, His wisdom and way, with all your heart, not leaning on one’s own understanding, being a good and faithful steward of God’s multiple blessings with those less fortunate, is the only way of life.
I think you hit upon an important point when you said that if we lend money to someone, we need to be prepared to forgive. For me, that resolves the tension between not being surety for debt and being kind in your dealings with people who owe you money. We should never lend money unless we can shoulder the risk of never seeing it again.
I'm not going to say debt is a good thing, but I feel the lesson perhaps could distinguish a bit more between bad debt and debt that actually makes sense. (I hesitate to call it good.)
Debt in the OT would have generally happened to people who had mismanaged their resources or fallen on hard times. There was no need for mortgages as each family had an inheritance of land. So comparing the two societies and implying we shouldn't have mortgages longer than 7 years seems inappropriate.
I have a house mortgage and I feel that is one form of debt that makes a lot of sense and may actually be more God-honoring than the alternative. It would depend on the part of the world, but in my neck of the woods, rental rates are comparable or even higher than an equivalent mortgage payment. And renting is throwing money away and gaining absolutely no equity (in this day and age, investing money earns a pittance for interest). Yes, we should save for as big a down payment as we can manage and yes, we should do what we can to pay it off quickly, but I think generally no one should feel guilty for borrowing for a home.
I agree, Christina. I see home and education debt as an investment. But, we still need to be very sure we are in line with what God wants for us. In other words, we almost certainly don't need the mansion with 26 rooms for a family of 4; or an education that has no practical use and will never be paid off.