Biblical Perspective

One of the concerns that many have, when considering a debt relief or settlement process, deals with the moral and ethical implications of entering a process where one’s debt will not be completely repaid – and rightly so. We believe the moral and ethical concerns should be properly addressed.

We certainly are not condoning or encouraging anyone to carelessly ignore their just obligations by refusing to pay their debts.

But, although the Scriptures make it clear that we are to fulfill our rightful obligations, they also make many other things clear in regard to the areas of borrowing and lending. In Scripture, rules and restrictions are placed on the lender and God takes the position that certain lending practices are not to be allowed – as they would be abusive and enslaving – and, He forbids those practices.

If you are someone who would like to become involved with our process, but find it hard to understand how you could morally and ethically get rid of thousands of dollars worth of debt that you know you received goods and services for – then we would ask that you take some time to patiently & thoughtfully explore this page as we attempt to share what we have learned from many hours of study of both the Bible (God’s revealed Word) and the moral issues surrounding this process.

This page will hopefully explain the major reasons why we believe that this is not an unbiblical process, nor are we encouraging irresponsibility. In fact, it’s quite to the contrary! We encourage you to read on….

God’s position on usury, interest and acceptable loan practices….

Deuteronomy 15:1 & 2 makes this perfectly clear:

At the end of every seven years you shall grant a remission of debts.

And this is the manner of remission: every creditor shall release what he has loaned to his neighbor; he shall not exact it of his neighbor and his brother, because the LORD’S remission has been proclaimed. (NAS)

This seven year limitation on creditors and on loans was referring to unsecured personal debt, not loans on property or land (as mortgages would be). In Leviticus 25, God put a limitation on creditors regarding property and land loans and encumbrances to 50 years. Every 50 years would be the “Year of Jubilee”, and all properties and lands would revert to their original owners debt-free and lien-free. A creditor would have to be mindful as to how many years were left until the next Jubilee in granting a loan. For instance, if the next Jubilee would occur in 20 years, the creditor would only have 20 years to collect the debt – or it would be forgiven. But, if last year was the Jubilee, a creditor could grant a 49 year loan.

But, in the case of a loan not involving property or land, God specifically put a limit of 7 years on a creditor to collect the debt. If he didn’t collect it within 7 years, the debt was forgiven. The borrower was totally released from the debt. In fact, he was not even allowed to pay it.

In fact, our original US Laws on Bankruptcy, which made provision for the possibility of a bankruptcy in as little as 7 year intervals, were patterned after this Old Testament mandate.

Why would God make such rules? He knows that living under debt can become crushing and oppressive to a family. And, He also knows that those that have (the rich) have been known to take advantage of those that have not. When people are falling further and further into debt, they sometimes get desperate and are willing to borrow more and more – for longer and longer periods of time – just to get relief. This can lead to a sorrowful life.

So, God’s limitation on how long a creditor could keep one in debt (only 7 years) also put a limit on how much one could borrow. For, if a creditor loaned a borrower more than he could pay back in 7 years – the remainder was forgiven. So, the creditor had no advantage to “load up” a borrower with debt that would take a lifetime to repay. And, this prevented a borrower from being taken advantage of by an unscrupulous lender.

God even outlawed the charging of any interest on personal debt. He said that His people were not allowed to collect ANY interest from their neighbors and brothers.

“If you lend money to My people, to the poor among you, you are not to act as a creditor to him; you shall not charge him interest.” Exodus 22:25 (NAS)

God knew that creditors could use interest to unfairly “keep someone in debt” for the whole 7 year period, when the debt could have possibly been discharged much earlier if usurious interest wasn’t collected.

Again, God was seeking to protect His people from those with means that would be willing to enslave those without means (and with serious needs – who may become desperate enough to accept whatever terms they were being offered) from being taken advantage of. He, clearly, did not want people to be under the oppressive hand of debt for any more than a maximum of 7 years. And, He realized that there were some wicked enough to be willing to keep someone in debt to them for an entire lifetime, if not prohibited from doing so.

Now, how does this factor in to our modern system of borrowing and repaying? Is any of this applicable to today? Well, it is still a fact that God stands against those that use their riches to oppress and afflict others. Isaiah 10: 1 & 2 says the following:

Woe to those who make unjust laws, to those who issue oppressive decrees,

to deprive the poor of their rights and withhold justice from the oppressed of My people, making widows their prey and robbing the fatherless. (NIV)

And, God certainly does not approve of the rich closing ranks and all conspiring together to keep borrowers in personal debt for most of the best years of their lives – and that of their families.

But – is this what the banks are doing?

Yes – according to the US Government and the New York Times. In 2004, the Government’s Public Broadcasting System (PBS – funded by the Government) and the New York Times – together – did investigative research into how the credit card companies are conducting their business. The result of their research was a 1 hour documentary – written by the Government’s PBS and the New York Times – and it aired November 2004 nationwide on the PBS Network.

Secret History of the Credit Card

Segment 2 of this program deals with the conspiracy among the banks to enslave their customers to a lifetime of debt – largely as a result of the counsel of one of their major consultants, Richard Kahr.

Now – please follow this closely – Up until Kahr’s intervention, credit card companies were charging 5% each month on the unpaid balance as the minimum payment – or $25, whichever was higher. With a high interest rate being 21% back then (1.75% per month on the unpaid balance) this allowed 3.25% of the balance to go to interest each month. This would retire a $10,000 debt in about 9 years. If a person had a lower interest rate of 12%, they would retire a $10,000 debt in a little over 7 years.

Kahr convinced the major banks to drop the minimum payment to only 2% per month on the unpaid balance – and to increase the amount the people were allowed to borrow. So, people could now increase their credit card debt by 250% (going from $10,000 to $25,000 in debt) and their minimum payment would still remain as before – still $500 per month.

Desperate people quickly took advantage of this, unaware that this new system increased the time necessary to repay the debt from 7-9 years to 30-40 years, if still paying the minimum payment. By the time people had recognized this, many had spent to the max – and could barely afford the minimum payment. They had no way to escape from what had become a lifetime obligation of payment.

The banks closed ranks and, in collusion, quickly adopted this new plan – fully well knowing that they were trapping the unwitting borrowers into a 30-40 year obligation – from their original 7-9 year obligation.

Again, look at Isaiah 10:1 & 2

Woe to those who make unjust laws, to those who issue oppressive decrees,

2 to deprive the poor of their rights and withhold justice from the oppressed of My people, making widows their prey and robbing the fatherless. (NIV)

Isn’t this exactly what God has gone on record as saying He abhors? If the banks are not depriving the people of their rights, and withholding justice from the people – oppressing especially those without partners and fathers – then what are they doing?

God always opposes the work of the wicked and applauds the work of the righteous.

For example…

Scripture takes the position that God wants families to remain together. But, does that mean that God desires or expects anyone to remain in a home where they are forced to live with physical abuse and incest?

Of course not!

Again, God always opposes the work of the wicked and applauds the work of the righteous.

And – remember that God said that 7 years was the limit on the time you could pay on a loan. That restriction was placed on the lender – not the borrower. The lender would be the wicked one for holding one in debt too long – not the borrower.

Consider this. If you have $10,000 in credit card debt at 21% interest – making a minimum payment of 2% each month on the unpaid balance – after paying for 10 years you will have paid the bank over $20,400 on your original $10,000 “loan” – and will still owe them about $7425. You have only reduced your debt by $2575 in the last 10 years. And you will be continuing to make your payments for more than 20 more years.

Now – consider what this means if your total credit card debt is not $10,000 – but $20,000, or $30,000, or $50,000 – or more.

The same God who wants a child and a physically abused spouse to be free from abuse – wants YOU to be free from the injustice and abuse you have suffered at the hands of the wicked who are operating according to the rules of this world system, “Get all you can – anyway you can.”

We believe that the God who mandated rules many years ago to protect His people from this very threat from those who would be greedy at their expense wants to see you set free from those that are enslaving you unfairly today.

Many of you already are aware that the credit card companies do not lend you their own money – from their assets. They simply “monetize” your signature – converting your signature into money that just appears “out of thin air” – and then they profit by charging you interest, fees and penalties on this “credit” that has been extended to you – even though it originated from your own asset (your signature) and not from their assets. They create an entity (your spending ability) out of nothing, so they can profit by charging you for the use of this previously non-existent money. Their charging you for the use of these funds violates the usury laws of the United States, as they do not put their own assets at risk in doing so.

US Contract Law says that failure to disclose intent when signing a contract causes the contract to be null and void. Totally non-binding. Remember, the banks did not disclose to you they were going to willfully change the terms and conditions of your agreement for the express purpose of converting your credit card debt into a 30-40 year loan. They did not disclose that they were not loaning you their own money. And, they did not disclose that they intended to greatly increase your interest rate – due to factors that do not necessarily have anything to do with the nature of your loan with them – or your payment record with them. Federal Law says that this willful lack of disclosure causes the agreement to be null and void – Again, totally non-binding.

We believe the question to be answered is not whether God will allow you to be free of the bank’s tyranny over you. We believe the question is, “Why wouldn’t He?”

The credit card companies are clearly the ones that should be wrestling with the moral and ethical issues here – not you. The Law is on your side. And, God’s Word does not prohibit you from taking advantage of the provisions of the Law of the Land in areas where you have been unfairly enslaved and oppressed through the conspiracy of powerful people – and where the Law seeks to give you the protection you need.

These matters deserve your consideration for you, for your family, and for the areas where God wants to see you invest your funds – your Church and His work.