Business Finance Homework Help

Topic: Implications and Responsibilities of Financing with Debt

Thread:  The world of finance teaches that borrowing money can be a high-risk,  high-reward option. Scripture has some passages that seem to clearly  warn people to be cautious about getting into debt. Read the following  Scriptures and write a thread of at least 250 words discussing what the  Bible does and does not teach about debt. At minimum, address the  following questions:

1. What are some of the natural consequences of borrowing money?
2. What is “co-signing” a loan? What advice does the writer of Proverbs have about the wisdom of co-signing a loan?
3. What are the obligations of anyone who borrows money?

Be sure to reference any Scriptures you use to answer  questions. In addition to Scripture, you must cite at least 1 article  that addresses the topic.

Scriptures to read (minimum…feel free to find more!): Psalm 37:21; Proverbs 11:15; 17:18; 22:7, 22–27

Reply:  Respond to at least 2 classmates’ threads and comment on their  observations about the implications of financing with debt. Be sure to  give specific examples and state whether you agree or disagree with your  classmate’s assertions. Each reply must be at least 100 words.

Respond to Dalton

There are many natural consequences of borrowing money which include debt and delayed savings to name just two. There are also spiritual consequences that can arise from borrowing which include a sense of independence from God. An interesting article I read says, “Borrowing may encourage an individual to feel that he is his own authority and that he does not need to wait for wise counsel or sufficient funds” ( George Kwame, 2020). The consequences of borrowing money can have a great impact on everyday life and spiritual life.

Cosigning a loan is basically taking responsibility if the primary borrower does not make the payments they are suppose to. Cosigning is a dangerous game because most of the time people who need cosigners have not had a good track record with financial responsibility. Proverbs 11:15 states, “He who is surety for a stranger will suffer, But one who hates being surety is secure”. The verse is directly stating that people who take respectability for another’s debt (cosign) are going to suffer and face problems. The back end of the verse clearly shows that people who avoid cosigning will be secure from the problems it faces. Overall, the Bible clearly directs believers to avoid cosigning because the issues it brings with it.

When borrowing a person has to pay the debt back and is responsible for fees that may arise. Psalms 37:21 states, “The wicked borrow and do not repay, but the righteous give generously”. Again, the Bible shows that the obligation a person takes on when borrowing is the repayment of debt. Repayment of debt is important because when borrowing a person gives their word they will repay the debt and are legally obligated. Morally as a Christian once someone has borrowed we are morally obligated to repay the debt.

Kwame, G. (2014, January 30). Are there consequences for borrowing money? Institute in Basic Life Principles. https://iblp.org/questions/are-there-consequences-borrowing-money.

Bible Gateway passage: Psalm 37:21 – New International Version. Bible Gateway. (n.d.). https://www.biblegateway.com/passage/?search=Psalm+37%3A21&version=NIV.

Christian View of Debt

Respond to Ashley

Motivation Behind Financing

When thinking about financing from a Biblical perspective the first question that should be asked is what is the motivation for seeking financing? Is it to get something without having to work for it or expand a business too soon? Proverbs 13:11 says, “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it” (2001, English Standard Version). That verse shows that financing should not be seen as a quick fix or shortcut, but instead, it should be an aid in a long-term business plan. Sometimes when people are scared or feel inadequate, it can be tempting to take the easy road. We should always make sure our identity is in Christ and we are trusting Him with our finances so He can help us make good decisions.

Know Your Neighbor

Proverbs 11:15 talks about how you can suffer if you co-sign with a stranger. It is not saying to never co-sign but to do it with caution and only with those that can be trusted. Co-signing can be a great thing that gives opportunities to people that otherwise would be financially out of their reach. My father co-signed with my sister in order to purchase a car. She has never defaulted, and it has been a great blessing to her. Co-signing should be a way that we support those we care about.

Limits the Bible Does not Set

Bosterud et, al. discusses how the Bible is silent on how long a loan term should be, and that very long terms could be seen as putting people in economic bondage (2019). If there seems to be no way to pay off a debt that will lead to a sense of hopelessness which a Christian should never place on anyone because Jesus came to give people a future and a hope. The feeling of hopelessness is in all the stories I have heard from people in extreme credit card debt. They feel like it is a mountain looming over them, a weight they cannot bear, and they feel like they will never be free from their lender. I believe a great deal of debt can be avoided through better planning and responsibility.

References

Bøsterud, M., & Vorster, J. M. (2019). Pastoral banking practice – A Christian-ethical and pastoral perspective on financing, credit and moneylending. In Die Skriflig, 53(1)http://dx.doi.org.ezproxy.liberty.edu/10.4102/ids….

English Standard Version. (2001). Crossway.