Debt is a growing problem for many families in Britain. In 2017 the average annual overspend for families in Britain was £900. It is estimated that £19bn is owed for utility bills, missed council tax payments and repayment of overpaid benefits. There has also been a rapid increase in borrowing on credit cards and poorer families are increasingly looking to payday loan companies for loans to cover daily living costs. The interest charged by these companies is astronomical.
It is only too easy to be enticed into taking credit when companies offer interest-free or low interest credit for new cars, furniture, the latest technological gadgets, new bathrooms and kitchens. The cost of getting everything needed for their children to go to school at the beginning of a new academic year has recently put real pressure on many families. Children experience peer pressure to wear high-cost clothes with designer labels and to have the latest smartphone and tablet.
Debt can be crushing. I remember visiting a man who was seriously in debt. He had been injured in a car crash and could no longer work. His marriage had broken down and he had run out of money. He was afraid of the post arriving because there would be more red letters demanding payments he couldn’t make. His bank refused to lend him any more money and he was afraid that one day the bailiffs would arrive. He was imprisoned in his house and deeply depressed. He needed someone to come alongside him. Together we were able to work through his situation and find a way to address his debts. Today Christians Against Poverty is one organisation which helps people to manage their debts and to face the future with hope.
The Bible also speaks about another debt we owe because we break God’s laws. In the Lord’s Prayer Jesus encouraged his disciples to pray “Forgive us our debts.” All of us have this debt problem, whether we are rich or poor. Every day we do and say things we know are wrong and so our debt to God increases. As many people try to ignore financial debts so we may push this debt to the back of our minds. But Jesus encourages us to face up to our moral and spiritual debt and to ask God to forgive us. Jesus died on the Cross to pay the price of our sins and so through him we can experience the joy of forgiveness and the cancelling of the debt we owe to God.
After all the talks and proposals there is still no resolution of the Greek Debt Crisis. Banks in Greece are running out of money because there are no more loans available from the European Central Bank and International Monetary Fund and ordinary people have withdrawn billions of euros from their accounts. The crisis is hitting all sections of Greek society. Unemployment is at 25%, pensions will be capped and an increase in VAT is unavoidable. This week the banks are closed and people are only allowed to draw a maximum of €60 per day from cash machines.
Massive national debts are a feature of our world today. The UK government debt is £1.56 trillion, which is 81% of our annual Gross Domestic Product. The annual interest payments alone are £43 billion. The reason we are not in the same situation as Greece is that our government is able to raise the money it needs to finance its debt because institutions and people believe we are able to make the repayments and so we also pay lower interest rates. It’s when you can’t pay your debts that the problem gets out of hand, as it has in Greece.
Personal debt is also an overwhelming burden for many ordinary people. One of the early credit cards encouraged people to take their credit because it “takes the waiting out of wanting.” People are encouraged to take the money now and pay later, often at high interest rates. Payday loan companies charge extortionate interest rates. It’s easy to get a small loan, but it’s very costly indeed to repay it.
The Bible reminds us of another kind of debt, which is even more serious, but to which we may give little thought. Each day of our lives our debt to God accumulates as we commit sins by breaking his commands. The debt we owe to him is overwhelming. The amazing message of the Gospel is that Jesus came from heaven in order to pay our debt by his death on the Cross. Each of us can come to God and ask him to forgive the debt we owe him.
The Welsh preacher, John Elias, wrote a hymn expressing his amazement at the wonderful kindness and love of God in Jesus. “And was it for my sin that Jesus suffered so, when moved by His all-powerful love he came to earth below? Thy holy law fulfilled, atonement now is made, and our great debt, too great for us, He now has fully paid.”