When Borrowing Money is a Responsible Act

There are a multitude of Bible verses that speak to the hazards of borrowing money. And they speak a truth: being in debt that is hard to manage can force a compromise of the person who is in debt. Owing money is about more than dollars and cents â“ it’s something that can plague the soul and force decisions that the borrower might not have to otherwise make.

And yet, we live in a world that is structured around debt. It is impossible for anyone in the middle class to get a four-year college degree, purchase a home or even purchase an airline ticket without taking out a loan (with a credit card). Whether that loan comes from a family member, a credit union, a bank, a credit card or another type of lender, a loan still amounts to debt.

Because of the cultural-situational necessity of borrowing, we have legal instruments that help all involved â“ lenders and borrowers â“ approach these loan agreements with honor and honesty. When you agree to a repayment plan, and you honor the agreement, you are fulfilling your obligations. Sometimes, insurance is built into such plans â“ such as the PMI (private mortgage insurance) attached to home loans where the down payment is less than 20 percent of the home’s purchase value. That insurance is taken out for the sake of the bank, and the borrower pays the premium because it is a required responsibility built into the lending agreement.

Quick loans (such as paycheck cash advances) are in many ways the same thing. This is the kind of loan that is readily found online (here is one example, the quickquid loan), replacing the bricks-and-mortar version of quick loans that have existed for decades. The borrower needs to weigh whether this type of short-term loan at a modest amount is the right thing to do.

The decision might be seen as the following choice, between (a) and (b):

(a) The purpose of the fast cash loan is to purchase a plane ticket to visit an ill relative, or to pay bills on time (to avoid late fees or service cut off), or to repair a car that is necessary for commuting to a job.

(b) The purpose of the quick loan is to take an R&R❠trip (such as a beach vacation), purchase gifts, purchase finer clothing or entertainment electronics.

For reasons that should be obvious, choice (a) is the most responsible choice. All of which is to say, your reasons for using the loan funds â“ in addition to honoring your repayment agreements â“ are the means for evaluating the rectitude of taking out the loan .