Debt and depression: Borrowing money

Borrowing and its Negative Repercussions

Borrowing money is a typical occurrence in today’s world, with enormous amounts of debt amassed through consumer loans, credit cards, mortgages, and commercial loans. Borrowing allows one to appreciate an experience or asset sooner than they would have otherwise (Gathergood, 2012). Borrowing, on the other hand, has negative repercussions. The first natural result is debtor bondage. “The rich reign over the poor, and the borrower is the lender’s slave” (Proverbs 22:7, New International Version). Second, borrowing is based on the future, which the Bible warns against. “Now listen to those who claim, ’Now or tomorrow, we’ll go to this or that place, spend a year there, do business, and make money.’” Why, you do not even know what will happen tomorrow. What is your life? You are a mist that appears for a little while and then vanishes“ (James 4: 13- 14, NIV). Borrowing gives a false sense of security which limits resourcefulness.

Cosigning and its Risks

Cosigning is an agreement to pay a borrower’s debt if they default. The Scriptures warn against cosigning a loan in the book of Proverbs. ”Whoever puts up security for a stranger will surely suffer, but whoever refuses to shake hands in pledge is safe“ (Proverbs 11:15, NIV). The Scriptures warn against borrowing in a couple of instances. However, in case one borrows money, they are also bound to some obligations. ”Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor“ (Romans 13:7, NIV).

References

Gathergood, J. (2012). Debt and depression: causal links and social norm effects. The Economic Journal, 122(563), 1094-1114.