Sermon Tone Analysis

*The High Cost of Debt*

*Is it ever right to borrow?*

* *

*Intro:  *

The silence of an enjoyable evening is broken a ringing phone.

You dread getting out of your chair to answer it.

The caller on the other end gets right to the point.

“We haven’t received a payment from you in two months.

If you don’t send a check within two weeks, we will call the loan and repossess your car.”

You promise to pay the car loan, but you face a mountain of debt.

So you rob Peter to pay Paul.

The scenario goes on week after week, and month after month.

The mountain of debt has caused you deep stress and brought a strain on your marriage.

This scenario is repeated in household after household in America today.

*I.

The Nightmare of Debt*

Polonius wouldn’t have gotten very far in America today.

He's the Shakespeare character in “Hamlet” who warned, “neither a borrower, nor a lender be.”

Modern society, as we know all too well, is overrun with both borrowers and lenders.

About 43% of American families spend more than they earn each year.

Average households carry some $8,000 in credit card debt.

Personal bankruptcies have doubled in the past decade.

*Consumers owe nearly $2 trillion* \\ American consumers owed a grand total of $1.9773 trillion in October 2003, according to the latest statistics on consumer credit from the Federal Reserve.

That’s about $18,654 per household, a figure that doesn’t include mortgage debt.

The number is up more than 41% from the $1.3999 trillion consumers owed in 1998.

* *

*Americans carry more than $700 billion in revolving debt like bank credit cards and retail cards.*

·The average cardholder has 2.7 bank credit cards, 3.8 retail credit cards, and 1.1 debit cards.

That’s 7.6 cards per cardholder.

·The average household has more than $8,000 in credit card debt, up from about $3,000 in 1990.

An $8,000 debt at a rate of 18% interest will take more than 25 years to repay and cost more than $24,000.

·The average interest rate charged by credit cards is 14.71%.

·The total unused credit lines for bank credit cards was about $6,185 per person as of mid-year 2002.

·About 40% of active accounts are paid off monthly.

About 3% of credit card accounts are past due by 30 days or more each month.

·The most recent Federal Reserve study showed that 43% of U.S. families spent more than they earned.

On average, Americans spend $1.22 for each dollar they earn.

(MSN Money, http:~/~/moneycentral.msn.com~/content~/SavingandDebt~/P70581.asp?special=0401debt)

 

*            *There is a great deal of confusion in our day concerning what the Bible teaches about borrowing.

Some Christian authors, pastors and teachers dogmatically teach that it is a sin to borrow anything.

At the other end of the pendulum, there are leaders of Christian ministries and pastors who have gotten their ministries and churches deeply into debt.

It is not uncommon in our day to hear of churches and ministries filing Chapter 11 bankruptcy so that they can have court protection from creditors while they are reorganizing.

Some have even filed for Chapter 7 bankruptcy where the church has been dissolved and the assets sold to satisfy the creditors.

The Bankruptcy Act of 1978 made sweeping changes in the personal bankruptcy laws.

In 1978, there were about 50,000 personal bankruptcies in the United States.

By 1988, there were 500,000 personal bankruptcies.

Larry Burkett in his book */Victory Over Debt/* predicts that by the end of this decade there will be between three and five million personal bankruptcies a year (p.

169).

By 2001 there were more people filing for bankruptcy that graduated from college.

Now there are 32 million Americans at risk for bankruptcy (June 1, /Bureau of Labor Statistics’ Consumer Expenditure Survey/).

The boomers and the busters have grown up in a debt society.

At age, 65 only 2% of Americans are financially independent.

80% of all Americans have more debt than assets.

Financial Christian counselor, Ron Blue, in his book */The Debt Squeeze /*says: “Personal debt is rising as a percentage of disposable income.

The payment of installment debt in 1950 represented 10 percent of the average family’s disposable income.

In the 1980’s, that figure has increased to 25 percent.

When that much of a couple’s income is pre-committed to loan repayment, saving for the future becomes almost impossible.

Tithing -- or any giving -- may become the lowest-priority use of money.”

(p.

5).

Pastors and lay counselors are overburdened with counseling people who are deeply in debt.

If the United States hasn’t been able to balance its budget, how can a family or church?

If the personal debt of Christians is too high it affects their giving.

When a church is growing and needs to expand its facilities should it borrow to reach more people with the gospel?

If it doesn’t borrow will it loose an opportunity to reach the lost?

* *

“Credit-card issuers can more than make up for bad debts with earnings from double-digit interest rates charged to those who make monthly payments on their outstanding debt.

They’re willing to take the charge-offs because of the huge profits associated with the credit-card business.”

Larry Burkett tells of a psychologist he counseled who had 151 credit cards on which he owed over $250,000.

* *

*What does the Bible say about debt?*

* *

*II.

Basic Biblical Principles for Borrowing*

* *

*A.

Borrowing is not a sin.*

The Bible never condemns borrowing.

Borrowing is legitimate for the following reasons:

*1.

Jesus commanded believers to be liberal in lending.*

In the context of going the extra mile, Jesus said:  “Do not turn away from the one who wants to borrow from you.” (Matt 5:42).

*2.

The New Testament is very clear that it is legitimate to get interest on savings and pay interest for loans.*

In the parable of the talents (Matt 25:14-30) and the parable of the minas~/pounds (Luke 19:11-27), Jesus commends the wise servants for investing their master’s money and condemns the wicked servants for not putting their master’s money on deposit where it could collect interest.

If debt were a sin Jesus would never have condoned it.

*3.

Jesus admonished creditors to be lenient on debtors (Matt 18:33).*

If debt were a sin, Jesus would have condemned debt completely rather than admonishing mercy.

*4.

Paul taught in Romans 13:8 that no debt should be outstanding,* except the debt of love.

If debt were a sin, then he would have condemned even getting into debt.

*5.

The Israelites were commanded to loan freely to the poor (Deut 15:8)* and to give limited (seven years) loans to fellow Israelites and extended loans to foreigners (Deut 15:1-3).

If debt were a sin, no Israelite would have been allowed to make a loan to anyone.

*6.

The Old Testament writers never condemned those who had fallen into debt.*

In II Kings 4:1-7, Elisha doesn’t condemn the creditor (even though the statute of limitations had expired) for wanting his money or the widow for going into debt.

He resolved the problem by performing a miracle.

In Nehemiah chapter 5, Nehemiah does not condemn the poor for going into debt, but he does condemn the rich for their usury.

*7.

The Bible uses the concept of debt as a spiritual illustration*.

If it were a sin to incur debt, the Bible would never use it to teach spiritual lessons.

*B.

Take heed to the Biblical warnings about debt -- Prov 6:1-5; 11:15; 20:16; 22:7 Jer 15:10; Matt 18:21-35; Luke 7:41-47; 16:1-13.*

* *

*1.

Debt may require quick settlement of accounts -- Prov 6:1-5.*

(Prov 6:1-5 NIV)  My son, if you have put up security for your neighbor, if you have struck hands in pledge for another,/ {2} /if you have been trapped by what you said, ensnared by the words of your mouth,/ {3} /then do this, my son, to free yourself, since you have fallen into your neighbor's hands: Go and humble yourself; press your plea with your neighbor!/

{4} /Allow no sleep to your eyes, no slumber to your eyelids./

{5} /Free yourself, like a gazelle from the hand of the hunter, like a bird from the snare of the fowler.

*2.

Debt often causes suffering -- Prov 11:15; 20:16; I Tim 5:8; Mt 18:21-35; Lk 7:41-47; 16:1-13.*

(Prov 11:15 NIV)  He who puts up security for another will surely suffer, but whoever refuses to strike hands in pledge is safe.

(Prov 20:16 NIV)  Take the garment of one who puts up security for a stranger; hold it in pledge if he does it for a wayward woman.

* *

(1 Tim 5:8 NIV)  If anyone does not provide for his relatives, and especially for his immediate family, he has denied the faith and is worse than an unbeliever.

* *

*The unmerciful servant -- Matt 18:21-35.*

(Mat 18:24 NIV)  As he began the settlement, a man who owed him ten thousand talents was brought to him.