Owe the bank or the bank owns you?

When you borrow from a bank, they usually requires the signing of a loan agreement along with a promissory note saying that you will pay off the debt. Sometimes, the bank will even ask for a personal guarantee.

Loan agreements are are exhaustive, detailed documents that are full of fine prints. They often place restrictions on the borrower, such as controlling the their extension of credit, limiting salaries, restricting capital spending and influencing many decisions. If you violate any part of the loan ageement, the bank can declare the loan in default and require immediate repayment.

Although it may be necessary for you to borrow money in order to accomplish your financial objectives or to service a mortgage, don't make such a decision rashly.When you borrow from the bank, you become a servant to the banker. Remember what proverbs 22:7 says: The rich rules over the poor, and the borrower becomes the lender's slave.

The average American family uses 45 to 75 percent of their household income for a 30-year mortgage to buy a home. Americans and most of the western world live in a debt-ridden society that is now virtually dependent on a constant expansion of credit to keep the economy going. That is certainly not based on God's financial principles. Borrowing is discouraged and, in fact, every biblical reference to it is a negative one. When you borrow, you must repay.

The primary danger of long-term debt would be job loss. Other dangers would include inflation, negative compounding, high interest rates, etc. Although debt is not a sin, the scriptures discourages the use of debt. "Let no debt remain outstanding, except the continuing debt to love one another." Borrowing is never God's best for His people.

If you are in financial difficulty, the Bible does show many ways to overcome any financial crisis. Many of these principles are laid out in our successful course, the Scriptural Financial Freedom series. To learn more, you can download the Small Groups kit from our estore.

Today's Bottom Line

It is very easy to get into debt, but nearly impossible to get out of debt.

The Bible does show many ways to overcome any financial crisis. Many of these principles are laid out in our successful course, the Scriptural Financial Freedom series. To learn more, you can download the Small Groups kit from our estore.

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