Monthly Archives: July 2017
Monthly Archives: July 2017
More and more of the companies are lowering their interest rate, but there aren’t many, if any who will go below the 30% mark, so you would still be paying back $1,300. Just imagine what you could do with that additional $300 or $400 that you had to pay back in interest. Those companies are out there to make money and they are going to stick it to you as much as they possibly can.
Borrowing money from a payday loan company is one of the worst things you can do. You find yourself in an endless cycle of borrowing money just to have to pay back more money. Chances are you won’t be getting off that wheel any time soon. And the payday loan companies are counting on just that.
If push comes to shove try to borrow the money from a friend or relative until your next payday so that you don’t have to pay so much money back in interest. The interest payments are the worst part of a payday loan and there is no way the company is going to waive that fee for you. That’s how they make their money.
Some weeks or months are better when it comes to income, however, if you start saving something out of your paycheck then you can start an account that will help you pay for whatever emergency comes up.
Another negative about those places is that once you borrow the money, pay it back when payday rolls around you more than likely still don’t have enough money to cover you through your next payday. So, what do you do? You go back to the same payday loan company and get another payday loan, that you will again have to pay interest on so that’s another $300 or $400 that you will lose in the second round.
Getting a payday loan might sound like a good idea in the beginning but generally it never turns out that way. Yes, it’s a fast way to get the money you need if you have an emergency that comes up and you don’t have the money on hand to pay for whatever it is you need. But, you should know that when you borrow that money you do have to pay it back– with interest.
The interest rates on payday loans vary from one company to another so you should at least shop around. They can range from 30% to 50% which is a HUGE amount of money. Let’s say you take out a loan for $1,000 just as an example. We’ll go mid-range on the interest at 40% on the loan and keep in mind it’s only until your next payday. Once you pay that money back you will have paid back $1,400– YIKES! That’s a lot more money than you needed in the first place.
What Does the Bible Say About Debt?
There are a number of verses in the Old and New Testament concerning debt, and one of the most noteworthy can be found in Paul’s Letter to the Romans. Romans 13:8 states that: “Let no debt remain outstanding, except the continuing debt to love one another”. This clearly states that as a Christian, a person has the responsibility to live a financially stable and debt free life, save for the continued love of his God, and fellow man.
So is debt considered a sin in the eyes of God?
In truth, there is nothing in the Bible that specifically calls debt a sin. However, there are many cautions about debt becoming a source of conflict or problem. For example, debt can become a problem if the source of the need is envy from a neighbor’s possessions or even greed.
According to 1 Timothy 6: 10: For the love of money is the root of all kinds of evil. Some people, eager for money have wandered from the faith and pierced themselves with many griefs. And Hebrews 13:5 states that:
Keep your lives free from love of money and be content with what you have, because God has said, ‘Never will I leave you, never will I forsake you.’
These two verses clearly indicate that the cause of debt is sometimes envy of the possessions of others, the love of wealth, and a lack of faith in that God will provide. In addition, the Bible clearly indicates that all debts should be repaid.
According to Romans 13:7, the Christian should: Give everyone what you owe him: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then, honor. Also, the Bible indicates that debt should be a temporary state of affairs. For example, in Deuteronomy 15: 1, debts should be resolved or cancelled, within seven years. At the end of every seven years you must cancel debts.
In summary, debt in and of itself is not a sin, however, the causes of debt, and the reckless borrowing of money can lead to sinful actions, so the Christian should make every effort to live responsibly.