Debt

Christians And Debt

In many ways, this article is a companion to the previous post on Christians and employers. Many of the exact same principles are in play. Let me just note again, that it is not my intent to sound like one who is coming from an elevated position of perfection down onto others who have made large mistakes.

For the record, I have about $15,000 in school debt, and by the time I am done with my education, I anticipate having somewhere between $40,000-$54,000.  So I am part of the audience here – let there be no illusions about that.

Let me also say that I do not believe in tithing, but rather in proportional giving. I believe that Christians should give as they are able and willing – with no minimum or maximum limits on gifts. This view is explained well in Decision Making and The Will of God by Garry Friesen.

Debt Now and Then
We have to remember that there are some fundamental differences between debt in the Ancient Near East and Roman world. Debt in the modern world is a generally stable way to extend purchasing power and manipulate time preference in order to secure goods or services which otherwise would be more difficult to obtain. Debt, especially at low levels of unsecured debt and even higher levels of secured debt (for, say, a house) is a relatively stable and secure tool in a personal or family budget. No one in the modern western world risks debt-bondage – or even bears anything remotely similar to the kinds of risks in the ancient world. There is a lot of debt in the modern world that is probably less risky then transporting a cart of goods 30 miles in the 1st century AD.

There are also some similarities. Debt today, just like in antiquity, can place people into contracts which conflict with their obligations to God. Debt can be an indicator of a love of money (which is a root of many evils). Debt can hinder or even conflict with Christian giving. Debt can be incredibly unwise, imprudent and risky – akin to gambling or casting lots.

In this respect,  what the bible has to say about debt is entirely relevant to the Christian today – whether it is addressed specifically or by implication (as with vows and contracts). Moreover, our approach towards debt can reveal the motives of our heart and show us our need to depend more on God.

Debt and Giving
There are a couple of questionable views out there about the relationship between debt and giving. First, should people in debt be giving? By this, I mean people without an income (such as students) or whose income is substantially affected by debt. I believe the bible addresses this topic by way of principle here:

Brethren, if a man is overtaken in any trespass, you who are spiritual restore such a one in a spirit of gentleness, considering yourself lest you also be tempted. Bear one another’s burdens, and so fulfill the law of Christ. For if anyone thinks himself to be something, when he is nothing, he deceives himself. But let each one examine his own work, and then he will have rejoicing in himself alone, and not in another. For each one shall bear his own load (Galatians 6:1-5).

Yes, this is a passage about sin, not debt. But there is a principle here – bear one another’s burdens, but beware, lest we also become burdens to others! It is echoed here:

Let nothing be done through selfish ambition or conceit, but in lowliness of mind let each esteem others better than himself. Let each of you look out not only for his own interests, but also for the interests of others (Philippians 2:3-4)).

The passage carefully instructs us to look out for our own interests, and also the interests of others. Financially, we esteem others as better than ourselves when we ensure that they do not have to support us. By ensuring our financial independence, we free up the resources of others (and ourselves) to be of most use to others.

We need to be employed and self-sufficient, putting food on the table and a roof over our heads. Our first source of welfare is our own work! And then, out of our surplus, we give to those who are unable to meet these basic needs. But we cannot give what we ourselves do not have! This entrenches us deeper into dependence on the charity of others – and drains resources from the church.

Student debt, especially where students are living off loans (often government loans to boot!) is a position of reliance – not self-sufficiency. Students giving from their loans borrows from Peter to pay Paul. The student is putting himself further into debt to fund people who are also not self-sufficient. The church should be funded by a surplus after work, not from the ability of someone to get easy, low-interest government loans with no security. Churches should consider whether they are, in fact, doing harm if they accept or encourage those in these kinds of situations to give.

Now this doesn’t mean people in debt cannot or should not give. Most debt these days is manageable by low monthly payments freely agreed by both debtor and creditor. In this case, there is still likely a surplus from which to give. And this addresses what I believe is another questionable practice – believing that debt exempts a Christian from giving.

It is easy to claim that one is a student or in debt and therefore “doesn’t have any money.” But the fact is, that if one has enough money to have basic housing, food, clothes and water – and then, even after debt payments, enough for coffees, nights out, household decorations, video games, sports, entertainment and so on – then one has enough to give. Even those in debt need to assess their spending habits, and consider where their treasure lies, for there their heart will be also.

Bankruptcy
Part of the discussion last time centred around keeping your vows. This is also true of vows to repay money. With lax and consumer-friendly bankruptcy laws, it is easier than ever to take out money with either the intent not to repay or be dishonest in repayment. This is not for Christians – we need to repay our loans.

Being in a lot of debt is a scary thing. I can say confidently, the prospect of being in more total debt than I will make in a year is a terrifying concept for me – even if all my math tells me that I will be able to handle the monthly payments. I can’t imagine what it is like to be facing down the prospect of payments at half or more of my monthly income for ten, twenty or thirty years. The temptation to default has got to be impressive.

This article on CNN in March got my attention. It’s from a woman named Samantha Hillstrom who went into $115,000 of student loan debt and is now whining for a bailout because her payments are $1,200 a month on an entry-level salary. She’s claiming she wasn’t informed about what the loans would cost her! I have taken out student loans, and I can tell you that they do a good job of scaring the crap out of you about your repayments. When I took out this year’s loans, I was so terrified that I threw a good chunk of my savings at last years debt. And if I ever feel like I’m getting in too deep, I am just going to quit, get a job, and go back to it sometime in the future. The risk of bankruptcy, and effectively robbing people for thousands of dollars, is not an acceptable choice.

For more fun, read the comments on that article. It will give you a good idea just how pervasive this attitude is.

Debt and the Family
There’s a lot more to be said about debt, but it all comes back to the main principle – a debt is a vow to repay, often with interest. Be aware that this vow doesn’t conflict with any Christian responsibilities such as giving or family. A lot of women, for example, are getting into loads of student debt for careers which may last a couple of years before staying home with children – effectively saddling their families with debt that is never intended to be repayed. Of, if the woman goes back to work, along with the husband who is already working, who then is responsible for the children? A nanny? The state?

But debt can signal that career is becoming an idol for men too. Does a man’s debt for schooling, training, big boy toys, cars or other things interfere with his ability to provide for his family – for the raising of his children. Is this putting pressure on the wife to work to make up for his spending? The biblical model calls for the man to be responsible for providing – not to pursue career. There is a difference.

You may also be interested in:

1. The Local Church
2. Links: Obama Implosion, Student Debt and Stossel to Fox
3. Tithing and the Language of Christian Giving
4. Obama: Stop Short Term Economic Thinking (But Here is a Quick Fix!)
5. Biblical Christian Giving Part III: Commentary on Philippians 4:10-20