Reply DB 2 CF

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There will always be consequences when one borrows money. In fact, the borrower of the loan always loses, because they have to always pay more than the money they received. This is not to say that all debt is bad, because it definitely has its place. Going into debt can free up funds for individuals and businesses to grow that would be near impossible to achieve without saving up long term. Furthermore, loans can provide for people who need homes, cars, and medical bills paid so that they can keep providing for their families. I agree with Proverbs 22:7, in that whoever loans money does rule over the person who borrowed it. This is not to necessarily say that it is wrong to borrow money, but one must be aware that they risk financial entrapment if they cannot pay the required funds back.

Several other times in Proverbs, it mentions that it is unwise to pay off the loan of another individual. This is a great practice to live by, because it is better to encourage a person to take responsibility for the debt that they owe, then carry the load for them and have them not learn from their mistakes. The idea of co-signing a loan may be a good idea for married couples, who Biblically speaking are one body. However, in most instances it is unwise to co-sign a loan, because it encourages you and/or the other party to not take full responsibility of the money owed and can lead to financial ruin, even if one party pays their fair share. A poll done by CreditCards.com states that 4 in 10 co-signers lose money and that 1 in 4 co-signers credit score was damaged due to the other party. Additionally, 38% of the co-signers in the poll had to pay some or all of the other parties' debt (Kossman, 2016). In conclusion, it is obvious that there are inherent risks with going into debt and cosigning a loan. It is important as Christians to rely on God for our needs and not go into debt unless we feel that God wants us to.

Kossman, S. (2016). Poll: 4 in 10 Co-signers Lose Money. CreditCards.com. Retrieved from https://www.creditcards.com/credit-card-news/co-signing-

Borrowing money is something that most people will do within their lifetime. Additionally, many companies need to borrow money to finance business activities (Chen, 2020). Most Americans will borrow money in some form during a lifetime, where we are talking about a teenager who wants a 20$ forward on allowance or a couple purchasing their first home. Some of the natural consequences of borrowing money are having to pay interest. When we borrow in an official form we owe more than we borrowed because we have interest. I imagine many of us are already familiar with this in some way with a car loan or student loans. Another consequence is making payments.

Cosigning a loan is when someone cosigns for a person, it means that the cosignor would be responsible for the debt if the person defaults. People who don't have great credit or limited credit would do this. For example, when I was 19 years old I got my first apartment. I had no credit at all, so my father cosigned for me. I paid my rent, he simply helped cosign because I didn't have credit. This was a lease, but cosigning a loan happens in the same way for similar reasons. The verses from Proverbs cautions people against borrowing in general and against cosigning for someone. Proverbs does say it is not smart to cosign for an outsider, it can be a way to get hurt. These verses from Scripture do really caution us against cosigning or borrowing at all, however, I think when it's for family it is not really an outsider.

The obligations of anyone who borrows money is that they must pay it back in the agreed time frame and at the agreed interest rate. The verse from Psalm 37:21 shows how important it is to repay something if we borrow. The verses included in this discussion do seem to caution us against borrowing. However, we do see some areas in Scripture that encourage us to lend freely, without charging interest and lending to help others. Matthew 5:42 states "Give to the one who begs from you, and do not refuse the one who would borrow from you". Exodus 22:25 tells us not to be like a money lender and not to shark people for interest. Overall, Scripture wants us to give freely when we can. Scripture advises us to be careful and not end up a slave to the lender. Sometimes, borrowing cannot be avoided in the US. If we want a home, we will likely have to borrow unless we are very wealthy. We can borrow responsibly and always pay back what we owe on time. I believe if we give freely and borrow responsibly for things we need then we do serve God in doing that. If I buy a home for my wife and my children, I do believe that is serving the Lord. If I care for my wife and my aging parents I do believe that serves God. If I want a roof over my head I may have to borrow, but I must do it responsibly.

Chen, J. (2020). Debt financing. Investopedia, Retrieved from https://www.investopedia.com/terms/d/debtfinancing.asp

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