Debt Forgiveness: The Real Reason to be Debt Free

Long-Term Debt Was Not God’s Intention for His People

Long-term debt is a burden most Americans willingly carry. It’s practically required to have a house for a family. We “buy” a house by getting a 30-year or 15-year mortgage with a monthly payment we think we can afford if we keep our jobs. We never really own the house until we pay off the mortgage. What we bought was a long-term loan at an interest rate determined by market forces beyond our control.

We may “buy” a vehicle on a loan with another interest rate for five years to drive to and from our house to places where we may work and live and school and church. Then, to make our house livable, we “buy” furniture on zero interest loans that last two or three years. Next, we “buy” smartphones, computers, televisions, and other perceived necessities to communicate and entertain. Most of these things are on credit with outrageous interest rates and no payment plan dates.

What if I told you God never intended these kinds of long-term debts for His people? Let’s see what God told His people, the Hebrews, after they were liberated from Egyptian slavery and given the Promised Land.

At the end of every seven years you shall grant a release of debts. And this is the regulation for the release of debts: every creditor is to forgive what he has loaned to his neighbor; he shall not require it of his neighbor and his brother, because the LORD’S release has been proclaimed. --Deuteronomy 15:1-2 (NASB)

The seventh year was called the Sabbath Year. This was the year that God’s people were supposed to rely on His provision and not plant or harvest crops, because the land needed to rest. At the end of this year there was supposed to be a celebration of release from debts, which today we call debt forgiveness. In addition, the Hebrew lenders were not supposed to charge interest on their loans to their fellow Hebrews. God intended all loans in ancient Israel to be seven years or less at no interest. If the borrower did not complete the repayment, the lender was to give or write off the debt. It was a nationwide debt reboot.

What are the implications of debt forgiveness for our personal finances today?

• Your debt is not entirely your fault.

• Predatory interest rates and fees by lenders add to our debt burdens.

• Long loan schedules wear us down and rob us of our own investment earnings.

• Our loans should be seven years or less.

We have to hope our houses and cars are worth more than what we owe when it comes time to sell. But houses and cars were never meant to be investments, they were meant to be useful for a period of time. Could you pay for a house in seven years or less?

God's Purposes for Debt Forgiveness

What could possibly be the reason for Sabbath Year debt forgiveness? God gives two direct reasons and two indirect reasons. We’ll start with the direct reasons first.

However, there will be no poor among you, since the LORD will certainly bless you in the land which the LORD your God is giving you as an inheritance to possess, if only you listen obediently to the voice of the LORD your God, to follow carefully all this commandment which I am commanding you today. For the LORD your God will have blessed you just as He has promised you, and you will lend to many nations, but you will not borrow; and you will rule over many nations, but they will not rule over you. --Deuteronomy 15:4-6

The two direct reasons apply to both lenders and borrowers, if they listen obediently to the Lord and do exactly what He says. The lender should be willing to give to borrowers in need, whether or not they are fully paid back. The borrower should make an honest attempt to repay the debt to their honor and honoring the lender, rather than shamefully accepting the debt forgiveness. But notice the two direct reasons.

1. “...there will be no poor among you” – This individual reason smacks of socialism, but can you imagine living in a country without any poor citizens? Is that such a bad thing? There is no restriction on wealth, and every citizen has their basic needs met.
   

2. “God will have blessed you just as He has promised you” – God’s blessing in this case is national and two-fold. Israel would be in a wealthy position to lend to other nations (and fair interest is allowed) and Israel would rule other nations. Could you imagine Israel large enough and powerful enough to rule its neighboring countries and other indebted countries? The closest Israel ever came to this was during Solomon’s reign, and he didn’t even keep the Sabbath Year, which turned out to be not very wise.

What are the two indirect reasons for debt forgiveness? We’ll find the first indirect reason addressed to the lenders.

If there is a poor person among you, one of your brothers, in any of your towns in your land which the LORD your God is giving you, you shall not harden your heart, nor close your hand from your poor brother; but you shall fully open your hand to him, and generously lend him enough for his need in whatever he lacks. --Deuteronomy 15:7-8

Every Hebrew had a responsibility to freely lend to the poor. This is a heart issue, not a money issue. God wants His people to be generous to meet needs. God isn’t asking His people to give more than is necessary. But He is asking that they be willing to lend without expecting full payment in return. Payments allow the borrower to save face and restore honor by repaying the handouts. This concept is very similar to Christ’s second command to love others as we would want to be loved.

The second indirect reason for debt forgiveness and generosity also applies to the lenders, and it is also heart related.

Be careful that there is no mean-spirited thought in your heart, such as, ‘The seventh year, the year of release of debts, is near,’ and your eye is malicious toward your poor brother, and you give him nothing; then he may cry out to the LORD against you, and it will be a sin in you. You shall generously give to him, and your heart shall not be grudging when you give to him, because for this thing the LORD your God will bless you in all your work, and in all your undertakings. For the poor will not cease to exist in the land; therefore I am commanding you, saying, ‘You shall fully open your hand to your brother, to your needy and poor in your land.’ --Deuteronomy 15:9-11

Right off the top, the Lord says generosity eliminates mean-spirited thoughts, which are unworthy of His people. This is a holiness issue. God’s people were to be set apart from the other nations. In fact, not freely lending to the poor is sinful. Being poor is not sinful. Being generous with a right-spirited heart and not grudgingly results in God’s blessing on everything you do. Want to make a real investment? Generously and freely give to poor in need, not expecting to be repaid.

You may think the Sabbath Year generosity doesn’t apply to Christians, because this was Law for the Jews. Consider that Christ referred to this passage both directly and indirectly.

First, Christ directly quotes Deuteronomy 15:11 when admonishing Judas after he complained when Mary anointed Jesus’ feet:

“…For the poor you always have with you, but you do not always have me.” --John 12:8

Israel will always have poor as a consequence of not lending generously and not obeying the command for Sabbath Year debt forgiveness. Only God could pronounce this judgement.

Second, Christ alludes to Deuteronomy 15:7-10 in his parable of the vineyard master and the workers (Matthew 20:1-16) who he employs at various times during the day, yet they all receive the same reward at the end of the day regardless of how long they worked. In a Sabbath year, everyone has their debts forgiven regardless of how long they existed or how much they were. Both situations require generosity and grace by the lender. In this way, when God’s people generously lend to the poor, the lender learns how God feels when He forgives our sins and debts, and wipes out our guilt and shame, by His grace and the sacrifice of His Only Son. Usually when we think about the parable of the vineyard master and workers, we focus on the workers’ ungrateful attitudes and how we begrudge others who put their faith in the Savior on their deathbeds. In this case, think about the house master and how you would react in his situation.

Debt and Lending are Not Fair, But They Carry God’s Promises

Debt is not fair because it requires paying interest and fees for a long time; it feels like being punished for borrowing money. Lending is not fair because borrowers don’t make their monthly payments on time, default on loans, and squander money on things that don’t last and business ventures that fail; they break the lender’s trust and hurt their finances.

Unfortunately, life is not always fair. God didn’t set up debt forgiveness fairly. However, He did make it a contingency for a promise of blessing. Many families are in conflict over loans between family members that are not paid back quickly. Don’t you think that if you are the lender, and you obediently forgive a debt, that God will abundantly bless you in a way that will more than make up for your loss? If the debtor defaults on your loan, don’t you think that an all-knowing God sees that can make up for that default with additional blessing? And even if He doesn’t, you will be able to sleep well at night knowing you were obedient. When you are the borrower, honor your promise to pay back your debts. If you owe a family member, treat them better than you would treat the bank; accelerate the expected payments. It may take years. But you will be able to sleep well at night knowing you are being faithful. Who knows, God may give you an unexpected blessing to pay off your debts sooner than you expect.

Stay away from long-term debt as much as possible. Save, then spend. Repay your debts as quickly as possible. Give and lend to the poor with a generous heart, not expecting anything in return. Forgive one another as God has forgiven you. If you listen and obey, God promises to bless your faithfulness. Leave when and how much up to Him. Take God up on His Sabbath Year of debt forgiveness and find out what He will do.