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Count the Costs
August 6, 2011

The United States is having difficulty figuring out how to pay its bills. We seem to have developed a habit of borrowing money without having a clear plan to repay what we have borrowed. Without considering the political and economic implications of this path we are on, the Bible does provide guidance on the topic of debt and forecasting, and one passage tells us we should count the costs.

Luke 14:28-30
For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it? Lest haply, after he hath laid the foundation, and is not able to finish it, all that behold it begin to mock him, Saying, This man began to build, and was not able to finish.

While this passage is intended to show the sacrifice of being a Christian, Jesus uses a real-world example that we can relate to. In today's easy-credit market, what we are forgetting is to give consideration to the repayment of debt. My grandfather taught that when one needs to borrow money it is because he or she is too poor to pay cash. We seem to have forgotten this basic idea as well. When a person chooses to get themselves into debt, the person often forgets that the cost involved is often a double-cost. When one needs to repay debt and make a car payment of $350 a month, two factors come into play. First comes the need to expend the $350. The second, and often overlooked factor that comes into playi s the reality that a $350 car payment precludes the use of those funds for other purposes. My philosophy is to afford a $350 car payment, one needs to be prepared for a $700 monthly hit on the budget. I think this is where many get themselves into trouble, and this is one of the reasons why the United States is having difficulty paying its bills. Another teaching of my grandfather was when one needed to borrow money, one should be most interested in the required monthly repayment, rather than the interest rate. He knew that a great interest rate that resulted in a burdensome monthyly repayment would not be sustainable. He taught that one could always repay more than the minimum that was due, and knowing that he was a reader of the Bible, I am sure he came across this verse on many occasions throughout his life.

Proverbs 22:7
The rich ruleth over the poor, and the borrower is servant to the lender.

We live in a time when debt to fuel a lifestyle is almost encouraged. With all of the apparent wealth in our nation, we forget that our wealth is an illusion created by debt and that what we have created more than anything else is a generation of servants who will be indebted to those who lend money. Drive through a neighborhood of new homes and it easy to see these are built to impress, but after making payments on a house for one year into a thirty year mortgage, how much of the principal is repayed? I remember looking back at this after the first year of my mortgage and realized I proudly owned the front door and hardware on it! I then realized it would be to my advantage to repay the mortgage as soon as possible.

There are other principles which come into play, and when it comes to debt the two most important to remember are to have a plan to repay the debt and to remember that the borrower is the servant of the lender. The choices facing the United States are likewise two. The United States can choose to repay its debt, or the United States can choose to be a servant to those nations that lend it money.

All verses are from the King James Version.
This site provided by Tom Laign. To all who may believe differently, I also extend peace and love.
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