What About Emergency Loans?

Photo from here.

So far in the series on living debt-free, I've written on general principles discouraging debt and I've suggested ways to avoid debt in specific areas. Lord willing, I will present ways to avoid debt in several other areas, but the topic of this blog is on what to do in hard times. Let's examine some scriptures:

“If there is among you a poor man of your brethren, within any of the gates in your land which the LORD your God is giving you, you shall not harden your heart nor shut your hand from your poor brother, but you shall open your hand wide to him and willingly lend him sufficient for his need, whatever he needs. (Deuteronomy 15:7-8)

‘If one of your brethren becomes poor, and falls into poverty among you, then you shall help him, like a stranger or a sojourner, that he may live with you. Take no usury or interest from him; but fear your God, that your brother may live with you. You shall not lend him your money for usury, nor lend him your food at a profit. (Leviticus 25:35-37)

“If you lend money to any of My people who are poor among you, you shall not be like a moneylender to him; you shall not charge him interest. (Exodus 22:25)

“Give to him who asks you, and from him who wants to borrow from you do not turn away. (Matthew 5:42)

“And if you lend to those from whom you hope to receive back, what credit is that to you? For even sinners lend to sinners to receive as much back. But love your enemies, do good, and lend, hoping for nothing in return; and your reward will be great, and you will be sons of the Most High. For He is kind to the unthankful and evil. (Luke 6:34-35)

Clearly, lending to the poor is commanded. As such, there is absolutely nothing wrong with seeking a loan in hard times if needed.

I do not want to look down on the poor with an attitude of pride, thinking "If only you had made better choices you'd be in no trouble." No! While laziness and foolish choices do have painful consequences, we are in a sin-cursed world where people face all kinds of problems they have no control over. Just look at Job: a very righteous man who was financially wise brought to ruin in a day. His friends wrongfully condemned him. It's so easy to look down at others until you find yourself walking in similar circumstances. It's in times when you face trials you cannot control that your heart pleads for understanding and compassion instead of judgmentalism. When you're not doing so well by the standards of the world, (financial, education, or whatever other status) it's easy to see why God wants us to value each other as image-bearers of God, not showing favor to the rich. Remember this and be willing to lend money to the poor at no charge. Or, if you are poor and in need of a loan, still remember this and base your evaluation of yourself on God's valuation of you. (If you are a Christian.)

If you've followed God's guidelines and are being blessed financially, thank Him. (As a caveat to the previous paragraph, I'll note that the Bible does indicate that God's blessings follow obedience, as even the case of Job illustrates: he was blessed prior to and then again after a period of trial. The trial, huge as it was, was the exception, not the rule.) Don't be haughty, though. Ask him how to steward what He has given you. One way to use your money is to lend it to poor Christians with no interest. What if there is no one worthy of it? Then repent: your standard is higher than God's.

Even though it is wonderful for Christians to obey God's commands to lend to those in need, I will in passing suggest a few ways to seek to avoid debt if possible. Of course, even if one does these, debt may be unavoidable, so don't feel condemned if you do need a loan. If in God's providence you do, then don't feel condemned or worried. (Of course, seek a non-interest bearing loan from a fellow believer, not one from a thieving banker or a credit card, if at all possible.)

A few ways to try to avoid needing emergency loans:

1. Pray.
2. Set aside an emergency fund.
3. Consider what possessions you could sell. Is downsizing your house or car an option?
4. Think about insuring expensive possessions and joining a Christian healthcare sharing organization (why don't Christians set up similar for house/car/other insurance?)
5. Ask for gifts instead of loans. (It may be more humbling, but if you ask for a gift that you don't need to repay--unless you reach better times--there will be less pressure.)
6. Cut back spending wherever possible if you are in or might soon be in a season of lack.