Debt
Most do not consider the Bible to be the applicable source and it is overlooked for its useful information. On the topic of accounting and debt the Bible makes it clear that we should avoid debt, “The rich rule over the poor, and the borrower is slave to the lender.” (Proverbs 22:7 NIV) In our previous accounting course we learned that when taking out a loan, or borrowing money, you have to repay that principle plus whatever interest has occurred based on the rate applied. While it may seem like a quick fix when in need of funding you are a slave to your lender until your debt is paid off whether you have the money or not. With a high debt-to-equity ratio your company will appear to be risky (Wild & Shaw 2010 p525). The Bible also heeds …show more content…
From a biblical standpoint, accounting is the act of managing all aspects of one’s life, monetary and spiritual, and taking into consideration how these decisions affect your family and their wellbeing. The textbook states that service company managers “seek and rely on accurate cost estimates for many decisions” (Wilder & Shaw 2010 p10). Luke 14:28 asks, “Suppose one of you wants to build a tower. Won 't you first sit down and estimate the cost to see if you have enough money to complete it?” (NIV). Regardless of the tower that you build, one that houses multiple offices for a business or a spiritual tower that houses your beliefs and family, accurate accounting records of both aspects, financial and spiritual, are vital in making decisions that are beneficial to business as well as personal …show more content…
Some may view cosigning as simply helping a friend in need without paying anything. However, it can be very dangerous for the cosigner. If the borrower does not pay their debt, the cosigner has full responsibility of those payments. Someone must pay. The cosigner is bound by law to pay if the borrower does not. Also, a cosigner may struggle to receive any other type of loan while they are already bound to a cosigning loan. According to Justin Pritchard, “Co-signing can be risky even if the primary borrower repays the loan: when you co-sign, other lenders can see that you’ll potentially have to repay the debt, so they may be more hesitant to lend to you individually” (pp 6.). Although, helping a neighbor is an act of kindness, potentially placing yourself in debt to help the neighbor is not a good idea. Proverbs speaks truth about this type of act, “The rich rules over the poor, and the borrower is the slave of the lender” Proverbs 22:7. Proverbs 17:18 also states, “One who has no sense shakes hands in pledge and puts up security for a neighbor.” The bible is a great source when searching for guidance on how to help a neighbor. The Lord wants us to lend a hand to anyone in need, however taking the time to pray about the situation and asking the Lord for direction is a wise choice and will also help the
Most do not consider the Bible to be the applicable source and it is overlooked for its useful information. On the topic of accounting and debt the Bible makes it clear that we should avoid debt, “The rich rule over the poor, and the borrower is slave to the lender.” (Proverbs 22:7 NIV) In our previous accounting course we learned that when taking out a loan, or borrowing money, you have to repay that principle plus whatever interest has occurred based on the rate applied. While it may seem like a quick fix when in need of funding you are a slave to your lender until your debt is paid off whether you have the money or not. With a high debt-to-equity ratio your company will appear to be risky (Wild & Shaw 2010 p525). The Bible also heeds …show more content…
From a biblical standpoint, accounting is the act of managing all aspects of one’s life, monetary and spiritual, and taking into consideration how these decisions affect your family and their wellbeing. The textbook states that service company managers “seek and rely on accurate cost estimates for many decisions” (Wilder & Shaw 2010 p10). Luke 14:28 asks, “Suppose one of you wants to build a tower. Won 't you first sit down and estimate the cost to see if you have enough money to complete it?” (NIV). Regardless of the tower that you build, one that houses multiple offices for a business or a spiritual tower that houses your beliefs and family, accurate accounting records of both aspects, financial and spiritual, are vital in making decisions that are beneficial to business as well as personal …show more content…
Some may view cosigning as simply helping a friend in need without paying anything. However, it can be very dangerous for the cosigner. If the borrower does not pay their debt, the cosigner has full responsibility of those payments. Someone must pay. The cosigner is bound by law to pay if the borrower does not. Also, a cosigner may struggle to receive any other type of loan while they are already bound to a cosigning loan. According to Justin Pritchard, “Co-signing can be risky even if the primary borrower repays the loan: when you co-sign, other lenders can see that you’ll potentially have to repay the debt, so they may be more hesitant to lend to you individually” (pp 6.). Although, helping a neighbor is an act of kindness, potentially placing yourself in debt to help the neighbor is not a good idea. Proverbs speaks truth about this type of act, “The rich rules over the poor, and the borrower is the slave of the lender” Proverbs 22:7. Proverbs 17:18 also states, “One who has no sense shakes hands in pledge and puts up security for a neighbor.” The bible is a great source when searching for guidance on how to help a neighbor. The Lord wants us to lend a hand to anyone in need, however taking the time to pray about the situation and asking the Lord for direction is a wise choice and will also help the