Servant to the Lender

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Today I'm posting Proverbs 22:7, a verse that talks about the impact of being in debt. From the NIV:

The rich rule over the poor, and the borrower is slave to the lender.

Another phrasing from the Contemporary English Version:

The poor are ruled by the rich, and those who borrow are slaves of moneylenders.

And from the New Living Translation:

Just as the rich rule the poor, so the borrower is servant to the lender.

And finally from the Message

The poor are always ruled over by the rich, so don’t borrow and put yourself under their power.

This is the classic verse that so many use about being in debt. It gives a unique perspective on being in debt -- that when you owe someone something, you are a servant to them. How is this? It results because they now control at least a part of your life, telling you what you can and can't do with your money.

If you have just one loan and it isn't too much, you can likely manage it. But many Americans go overboard, stretch themselves too thin, and end up with many debts. Ask these people if they feel like they are in bondage and most will say "YES!"

This is one reason why I've been debt free for over 15 years now. Let me tell you, the emphasis is on the FREE part.

All this said, there is a debate about what being in debt is. Does it mean anything you owe anyone? Does it mean only amounts you can't pay back? Or something else?

What are your thoughts on this verse and the concept of debt?

Comments

[Matt]

When I say the phase "debt is enslavement" I get interesting looks and comments. People don't view debt in that fashion. They rationalize it as becasue people tell them it is "good debt" and "bad debt" or other catch phrases. How can you buy a house without a mortgage? How do you buy something with out a credit card? They don't like the response of you save for it.

The fact is debt is debt and you have obligation to pay it back. People try to get out of it with bankruptcy but there are unforgiveable debt like student loans. Many a student will wake up from there "dream of a college education" only to find a nightmare of debt.

It is sad that a generation of enslavement is happening in these "modern" times.

[Old Limey]

Matt has it right and it has got a tremendous amount worse since we came to America in 1958.

Year --- #Bankruptcies
1960 --- 110,000
1980 --- 300,000
2005 --- 2,100,000
2006 --- 600,000
2010 --- 1,500,000
2011 --- 1,500,000
2012 --- 1,300,000

Unfortunately we have a growing "Want All" segment of the population that for a variety of reasons have an income that's too low for the standard of living they need so they go into debt to get it.

[K D]

We have been debt free for ten years and it rocks. We do not have the largest or fanciest house ever but what we have is more than adequate for our needs. We have a child starting college in the fall and don't have to worry about financial aid, student loans, etc. It is so nice when money is just not an issue. Yes, debt is slavery.

[Old Limey]

It's a great feeling of relief and added security when you finally pay off the loan on your home and you get the statement from the lender to that effect. That's a time for celebration.

There's lots of free credit available through credit cards that have rewards and it certainly makes a lot of sense to use them when you make a purchase but ALWAYS pay them off in full every month.

[Elizabeth]

I agree totally. I have have been debt free for a total of 4 months. It rocks! I am so debt averse that even now, I shudder and shake at the thought of having to take out a loan (even a small one) for my daughter's college. I just don't want to be in debt again. You really are a slave.