To you new folks, this is a little segment we call "Q&A Fridays". Q&A Fridays does not always (in fact almost never) comes out on Friday. You may submit questions via email, or by asking your question in the comments section of this blog. Your question may be about anything at all... Here is my standard intro...
Welcome to Issue #47 of Q&A Friday for Friday the 17th of December, 2008. I want to thank you all for your great emails and questions. I want to remind everyone of the rules by which I will be playing: Not all questions will be answered, and not all those that are submitted can be fitted into one issue. Those that did not make this issue (for length reasons) might be included in a future one. Questions might not be answered or included in the Q&A for the following reasons: The scope may be too broad, or it may involve a topic on which I have taught at length... ex: “Can you explain the whole Creation?”. The question might need to be asked more specifically, or with fewer presuppositions that I would have to handle before actually getting to the question (I do reserve the right to rewrite questions to make them more clear and understandable or to make them more amenable to the format here). Answering the question might drag me off of “message” or into an area on which I am currently teaching, but at a point where I haven’t gotten to yet. If the question is answered in an upcoming teaching, or would involve getting into a topic I have planned for the future, then I will likely choose not to answer it yet.
The question might be considered rhetorical, or might involve me bearing witness against myself... such as “Will you please go away?”
As always, send your questions to Q&A Fridays:
editor(at)lazarusunbound(dot)com.
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Just one really long Q today. More later...
Michael,
One of the things we are running into as we have been talking with an challenging some friends recently is the state of financial affairs.
Common scenario. Many were raised in liberal stuff oriented homes. They will freely admit this. Some are seeking to get out of the bondage they are in. One of our neighbors recently pulled their daughter out of public school. They are now home schooling them. The father then sold his 2005 pickup as he had 20K in debt on it and downgraded to a 96 pickup to help reduce his debt. But in spite of this they still probably have a good $150K in debt. This includes their mortgage on their 50 acres and home as well as ancillary debt. Even if they wanted to sell their property, in today's market it would not likely sell at this time. Because of past choices it will take them 12 years if all goes reasonably well for them to get out of debt, if both of them work. They are both getting close to 40. That puts them at the earliest close to 50. Their two kids will now be young adults.
I have been greatly challenged by your writings on separation from the world. I have been trying to understand how this can be implemented particularly in the lives of people who because of past choices are wrapped in financial bondage. I have not been able to think of many solutions. But at the same time waiting 12 years minimum, working one's life away while the kids grow up doesn't seem like a great idea. The dilemma? What would you say to someone in this scenario? They have definitely made some constructive changes, but at the same time they feel somewhat trapped and can't see what else they could do?
Any thoughts or considerations would be greatly appreciated.
Thanks.
Thank you for your questions. First of all, let me say that I am not giving anyone any financial advice. I am being asked my opinion, and so what follows is what I think about it. It is not necessarily the opinion of anyone else associated with me, or of the elders or authorities in our fellowship. It is my opinion based on how I see it. This is a very interesting and complicated set of issues, and I have chosen to answer it in this forum because I agree that many, many people are suffering under the same type of scenario and frankly there isn't much good information out there.
First of all, some comments on “debt”. When desiring to come to a right view on anything, it is critical that we examine what words really mean and their historical context before we just “sign off” on the status quo. We know that the way the world operates is contrary to the Word of God, and we know that the world has had centuries to redefine words, and to train minds and hearts to automatically obey and follow the god of this world.
Debt: Something contracted for. An obligation.
Obligation: 1. The binding power of a vow, promise, oath or contract, or of law, civil, political or moral, independent of a promise; that which constitutes legal or moral duty, and which renders a person liable to coercion and punishment for neglecting it. Any act by which a person becomes bound to do something to or for another, or to forbear something. In law, a bond with a condition annexed and a penalty for non-fulfillment.
Ok, this answer could literally fill several books, so it is important that I try to stick as close to the issue as possible. However, I do want to note that there are dozens of issues that would need to be very explicitly explained in order to give someone a good idea of how the kingdom of mammon has twisted the concept of debt and has emphasized unbiblical usury in the lives of men. I have often said that debt is slavery, and illegitimate debt is brutal, forced, unbiblical slavery.
Now, according to our definitions here from Webster's 1828 dictionary, debt is an obligation that contractually obligates us to fulfill our part of the contract (provided it is both legal and moral), and renders us subject to a condition (which can include coercion or punishment) if we do not fulfill the contract. The condition (coercion and/or punishment) is part of the contract and is legally able to be used by either party. Just because there is a contract, and two people agree to do something, does not make the debt legitimate. The action or transaction must be both legal and moral (meaning that for a Christian, it must be submitted to the higher law of God as it is defined in the scripture) for it to be a legitimate debt. For example, if you and an associate contracted (verbally or otherwise) for you to buy cocaine from the associate in order for you to use it and/or sell it – then the debt is illegitimate and non-binding. Your friend may see it otherwise and may attach “coercion or punishment” to your non-payment (for example, he may threaten to kill you if you do not pay him), but his threats and or actions are not legitimized by the contract. To draw out the example, if you were in debt $50,000 to a drug dealer, would you be legally or morally obligated to pay him? Of course not. You may want to pay if you do not want to die (the imposition of the coercion and/or punishment part contract by the other party may be illegal, but that doesn't mean you won't die if he shoots you), which means that by non-payment you are accepting the “coercion and/or punishment” phase of the contract, though it would be perfectly lawful for you to take all necessary means to prevent the illegal imposition of an illegal and immoral contract by a lawless person. In fact, I would say that in my opinion that it would be illegal and also immoral to pay the drug dealer, knowing that he will use the proceeds from the transaction to trap and enslave more victims. Extracting this out even further, if Christ set you free from cocaine addiction, what do you feel would be your moral and biblical obligation to a drug dealer? Would you put yourself and your family further into debt and perhaps put your family and the future of your children at risk in order to pay off a drug dealer, knowing that he will use your payment to enslave other people's children and other victims?
Now, I'll throw in another twist. What if the drug dealer had no power or ability to do you any harm? In fact, what if the drug dealer told you (as part of the verbal contract) when you got the drugs that IF you refuse to pay, his only power of “coercion and punishment” would be to bad-mouth you to other drug dealers. In effect, if you choose to utilize your contractual (legal and moral) right and obligation not to pay him, he would get together with all the other drug dealers and they would agree together not to sell you any more drugs! In fact, contractually you were free to not pay him so long as you were willing to be barred from illegally buying drugs from any drug dealer for a period of time.
I say all that to make the point that every debt agreement into which people have entered is not automatically legitimate and/or biblical. Now, some of the debt agreements mentioned in the question have been deemed “legal” by the current governmental authorities, and therefore the “coercion and/or punishment” elements of those contracts are enforceable by law. Every legitimate contract has the full penalty for non-fulfillment explained in the contract. For example, in the case of the purchase of a home or a vehicle, the contract generally stipulates that IF you exercise your contractual right not to pay for the vehicle or home any more, then they have the contractual right to retain ownership and possession of the home or vehicle. That part of the contract is legitimate, and it is utilized to mitigate the risk the creditor has in the transaction. All of this presupposes, of course, that the party making the loan is not engaged in an illegal, immoral, or unbiblical enterprise. For example, if you bought the car from someone who stole it, then all bets are off, even if you keep up your end of the bargain. If the person making a loan to you stole the money he loans you, then the contract between you is null and void. Keep that in mind as you read on. Any contract which is based on illegal, immoral, unbiblical, or un-constitutional activity is an illegitimate contract. It is void.
If someone stipulates in the contract that they are allowed to take (or foreclose) on the home or vehicle, then they are right, and you would be obligated to let them do so. In this case, the contract would be fulfilled, and there would and should be no other “coercion or punishment” for unfulfillment. However, in most of these contracts, the party making the loan stipulates further that they are allowed to take the item and sell it (usually at a loss) and then come to you for the difference between the amount they sold the item for, and the actual agreed upon amount in the original contract. In effect, this theoretically guarantees the party making the loan no risk. The portion of the contract guaranteeing the further payments after the house or vehicle has been taken back is unenforceable, and is nothing more than an illegitimate threat. In effect they are saying that the rest of the amount they say you owe is “unsecured debt”, meaning that there is no further “coercion or punishment” other than the damaging of your credit if you choose to exercise your contractual option not to pay. They are saying “If you don't give us even more money, we will get together with other banks and loan entities to make sure you don't get into any more debt. Their part of that portion of the contract is “if you don't pay us, we'll ruin your credit”. Your part of that portion of the contract is “if I choose not to pay you, I agree to have you ruin my credit”. In this case, both sides are free to exercise their legitimate options, and once they are exercised, the agreement is completed. Think of it this way... If you ask me for $25 and I say, I'll let you borrow it, but if you don't pay me back I will beat you up $25 worth. You then have a choice that you are being offered. You can pay me back the $25 OR you can let me beat you up $25 worth. That is the contract. You have a legitimate choice within the confines of the contract not to pay.
Ok, so if a person is in debt for a car or house loan, and they find that they are now unable to pay, they are legitimately and contractually permitted to let the asset go back to the bank or lending entity as part of the “coercion and punishment” portion of the contract. If the entity further threatens to harm the borrowers credit for non-payment, the borrower is legally permitted to exercise that option to fulfill the contract. In some states or principalities, the lender has further options under his “coercion and/or punishment” authority. He may sue in court to obtain further redress. He may seize or encumber other assets. In the past, a lender was permitted to have the borrower thrown in prison for a certain period of time, or until the debt is paid. All of these are legitimate (even if not moral or biblical) elements of a contract. They each provide the lender redress for his/her loss, and the borrower a legitimate “out” if they are unable or unwilling to pay. It is not unbiblical, immoral, or unethical for a borrower to exercise every contractual element provided for him. If the lender is not permitted to encumber other assets, or to have the borrower jailed, then that is because the state has considered those “coercion and/or punishment” outlets to be immoral or unethical.
Now, none of this really comments on the unbiblical and immoral basis for many of these agreements. Nor does it address the fact that Biblical law commands that all such debts be forgiven every seven years (Duet. 15:1-2). The Bible recognizes that we often enter into such agreements sinfully, ignorantly, and through immoral coercion. We are obliged to repent when we have made such grave errors (especially since they are usually due to covetousness and greed), and that we ought to be diligent to extricate ourselves from them. We ought to use legitimate and moral means to do so. For example, if you are in debt to a thief, you should repent and attempt to extricate yourself from that debt by whatever moral means available.
In my opinion, I would endeavor to get out of this type of debt (note I have not addressed other forms of debt yet – like credit card debt). First, I would recognize that the banks and lending institutions are criminal organizations, as we have seen recently when they went to an illegitimate government to steal (by force of arms) the money they need from the people. So, if you do not pay them, they want to use the force of government to compel you to pay. If they engage in bad business and are likely to go bankrupt, they:
a. Seek legal counsel to avoid payment of their own debts through bankruptcy, or
b. They threaten government with bankruptcy, seeking government “loans” or bailouts to secure their entitlement to continue forcing others to pay their illegitimate debts.
Note also that if these banks are unable to pay their own debts, they will file for “bankruptcy” which basically guarantees them the right to not pay their own debts. Every one of these corporations recognizes that non-payment is a legitimate and legal option, and they exercise their right to protect themselves via non-payment if they have to. Short of that, they have asked the government to steal the money from you in order to pay their debts. I see these organizations as criminal enterprises at war with the Kingdom of God.
Now, in my case, I have on previous occasions – when I realized the nature of these agreements – contacted the creditor and told them I would be returning the item that I had agreed to purchase with their ill-gotten mammon. If I had a truck that I could not afford or that required payments for me to keep, I would give the truck back. After doing so, the creditor would threaten to enforce his rights in the contract to get me to pay the difference between what I “owed” on the vehicle, and what the price for which the creditor chose to sell the vehicle. The contract allowed me to exercise my right to have the creditor report me to credit agencies if I did not pay the difference, and to allow him to do so if I was unable or unwilling to pay. We both exercised our rights in the contract, and the matter was over (not, of course, to the creditors satisfaction, because they are illegal, immoral, and unbiblical institutions) according to the law. The creditor had no further recourse in law.
Remember, these contracts stipulate the full rights and obligations. If there is a “coercion and punishment” (recourse) section to the contract, then that recourse section stipulates YOUR rights as well as the rights of the creditor. You are always free to exercise your right to suffer penalty, punishment, or recourse as a fulfillment of the contract.
Now, for most people, the total amount they think they owe is actually far, far lower than the amount they really owe. I believe every Christian ought to pay any legitimate, biblical, and moral debt that they owe (as John Gill says, “so far as they are able”) which means that every true contract (either verbal or written) ought to have a stipulation providing for Biblical means of redress if the debtor becomes poor and unable to fulfill his end of the contract. God's contract with man stipulated that God knew that man was poor and unable to fulfill his end of the contract, therefore there was “recourse” for a representative or substitute to come and stand in man's place to keep his end of the contract. The contract required absolute and total obedience to both the letter and the spirit of God's law, and the contract was between God and the representative for His elect people. Knowing that the natural man could not fulfill the contract, God (a wise, benevolent, and gracious creditor) provided for a substitute to perfectly fulfill the elect's end of the contract. This is our model of a just, biblical, and moral contract. God requires that creditors be merciful and to show grace to the poor, and His law requires creditors to discharge debt after a specific period of time in order to free man from debt slavery if he is unable to free himself. God has, therefore, provided for ways for us to escape debt slavery if we are just wise as serpents and harmless as doves.
The next part: UnDebt
Most people (and many Christians) today are enslaved by what I call “undebt”. This is what the world refers to as “Credit Card” (or unsecured) debt, which is not debt at all. It is not debt, because it does not fulfill the qualifications or definition of true debt. First of all, Credit Card companies are criminal organizations that do not lend real “money” at all. They are permitted by unlawful and unbiblical means to create or print money in an un-constitutional way, and to use this scrip to enslave people. When the CC company gives you a credit card, they are not giving you any lawful money at all. By way of a Ponzi scheme, they are promising businesses who agree to participate in their unlawful, unbiblical, and unconstitutional scam that they will “pay” them with mammon received from future transactions. When you receive a Credit Card, the CC company promises to print or create a certain amount of money to pay those who choose to give you products in exchange for the promise to pay from the CC Company. The CC company tells you (in your contract) that you need to pay them a certain amount of government money on a certain schedule, and in exchange for you doing so, they will give you the right to keep purchasing items or services. There is no “coercion or punishment” section, which means there is no real recourse on the part of the CC except that they promise that if you exercise your right to not pay them government money, they will get together with other creditors to stop you from using their services in the future (they will damage your credit). That's it, that is the complete contract. You have a right to pay them money (and therefore participate in their unbiblical and criminal enterprise), or you have a right NOT to pay them. The state (at least my state of Texas) does not allow them any other recourse if you do not pay them, except that they are allowed to stop giving you credit, and they are allowed to advise other creditors not to give you credit. This means that you are freely permitted to extricate yourself from the contract without paying, so long as you are willing to have your options for future credit removed.
So, in this example, the CC gives me a debt card which allows me to go receive items or services from other participants in the scam, and promises to pay those participants with the proceeds if enough slave victims are willing to give them lawful money for the fake scrip they originally issued. So I go buy a lamp from a store and the lamp “costs” $20. I go take the fake scrip card to the store, and they agree with the CC company to give me the lamp with a promise from the CC company that the CC company will send them real money taken from “payments” made from other recipients of CC cards. In this case, both the original builder and the retailer have been legitimately, morally, and legally “paid” according to their contracts with one another and the CC company. Each has validly fulfilled their end of the contract, regardless of how un-constitutional or unbiblical these contracts are. So, the builder or creator of the item and the store have been paid. The only entity that has not been paid (If I refuse to pay) is the CC Company, who has contractually agreed with me to let me not pay in exchange for harming my reputation with other lenders or creditors.
As I said, this is just a Ponzi scheme, because the CC Company had no real “money” in the first place. They are permitted (because they are banks and fall under banking regulations and laws) to “lend” up to 10 times more money than they have in assets or accounts. This is called “fractional reserve banking”. Further, since the CC Companies are generally banks, they are permitted to count “payments” as “deposits”. So, in effect, if I make a $10 payment on a lamp, they are permitted to issue another Credit Card to someone else with $100 in credit as a limit, and they use as the “reserve” or guarantee of that $100 the $10 payment I made to them. In effect, they are permitted to create or print money.
Now, the CC company knows that what they do is a scam and a Ponzi scheme. They know they are paying off investors with money given to them by later investors, which is the definition of a Ponzi scheme. They also know and agree that a certain percentage of their customers will not pay them. They not only accept this risk and pursue it, but it is added into their ways of doing business. Their “interest rate” is a product of their calculations of how much money they need to be bringing in to pay off previous investors, and how much “bad debt” they have written off as a risk of doing business. They are, then, gamblers. They purposely and with foresight send out Credit Cards to children, students, and those with no means to pay them off, knowing that a certain percentage of them will pay them off for at least 6 months. So, they will allow someone to go into debt for $500 knowing that that person will likely not be able to pay them back, and, as a part of their business plan, they hope that the person will pay them for at least 6 months (making minimum payments). They have figured out that if these people will pay for at least 6 months, they will have created enough new money to continue to pay their bills and their employees, and their actual “loss” will have been negated. If they can threaten and harass a certain percentage of non-payers into paying them even a minimum amount over what they expected from the beginning, then that amount will be considered profit and will allow them to create even more debt.
Whew... ok, so that is how Credit Cards are a criminal enterprise. These are your cocaine dealers. They sell a drug called “the image of prosperity” and they bank on covetousness, greed, and a love of the world. These people are at war with God, and they are in the business of unbiblically enslaving man. Credit Card debt is NOT legitimate debt, and, once I have come to understand the truth of their operation, and once I have repented of participating in it, and once I am sorrowful for my actions, I am not legally or biblically required to participate any more. I do not have to pay. (By the way, I do not have a credit card, nor would I want one). I am legally allowed to exercise my right to suffer their “coercion and punishment” by allowing them to ruin my credit. Their threat is actually the best thing that can happen to me. They come and say, “If you will not pay, we will agree with the rest of our criminal cabal to not let you get into any more debt!”. And I say, “Great! I agree and submit to that punishment! Thank you!”. I am not saying anyone should purposely go into CC debt in order to steal or profit from the system. I do understand that some people do this as an act of war against the system, and that is between themselves, their consciences, and their God. I have not done this, and do not do this. I am speaking about a situation where someone who, due to sin and ignorance, has gotten themselves into UnDebt and now legitimately wants to get out of it.
In my case, if I were in the situation laid out in the question, I would immediately take all of the “money” I had been using to pay off CC debt (if there is any) and I would use it to pay off any legitimate debt (personal debt first). This person ought to decide what they want/need to keep, and what they can do without. Getting into a cheaper truck is not enough IF there is still a payment on the truck. None of us should be in debt for a vehicle when there are good, cheap, debt-free ways to travel. They ought to seriously consider whether they need to keep their land and home. If they are in upside down, and they can make a go of it elsewhere with a few less acres and with little or no debt, then they should give the house and land back to the bank, salute, and say goodbye to it. They ought to sell EVERYTHING that is not mission critical and they ought to start pre-paying or double-paying payments on any debt they intend to or are obliged to pay off.
Ok, this has gone long, and I have much more I can say on the subject. Again, I am not advising anyone financially, and I am not advising anyone not to pay legitimate, biblical, and moral debt. Nor am I requiring that anyone agree with me, because I know many people do not. I believe God has provided a way for His people to be free, and I would like to see more people utilizing that way.
Now, like I said, I have more to say on the subject, and I have helped dozens of people get out of “debt” and to free themselves from the burden of debt. I hope that this opinion helps someone out there.
I am your servant in Christ Jesus,
Michael Bunker