The Bondage of Debt

One of the worst forms of human bondage is financial debt. Indeed, throughout most of history, debt could literally land one in prison.

During the 1700’s and 1800’s in England, ten thousand people were imprisoned for debt each year. However, the prison term did not count as paying the debt. Instead, an inmate was typically required to repay the creditor in full before being released. In addition, debtors were expected to pay for their own keep while in prison. This meant that sometimes people starved to death.

People are still locked up for being poor

Imprisonment for debt was outlawed in the United States in 1833. Yet Americans are still finding themselves behind bars for unpaid bills due to unequal state laws and ignorant judges.

Zealous collection agencies often file lawsuits which require debtors to appear in court. When the debtors don’t appear (often because they were not notified!), judges then issue warrants for their arrest. They can then find themselves behind bars for “failure to appear” or “contempt of court.”

People can also find themselves imprisoned for failure to pay court fees and fines associated with other legal matters that didn’t, in themselves, result in jail time. Stacking additional fines and fees against people who are already in debt only puts them into a deeper hole. It is an immoral way of profiting from human suffering.

Debt is a major industry

With fines and fees and “payday” loans, credit cards and signature loans and personal loans, auto loans and mortgages, debt is a very profitable industry. They want everyone to be in bondage to them.

Credit cards are especially sneaky because they are easy to get, easy to use, and they offer the tempting option of paying only a “required minimum balance” each month. Credit card companies don’t want you to pay off your total balance each month because that lets you avoid the ridiculously high interest rates they charge.

The “Financial Sector” has become an increasingly larger part of our economy. Yet they produce nothing. They are merely intermediaries between savers and borrowers. Their game is to make money using other people’s money. They take money from savers and investors and they perform all kinds of clever acrobatics with it. Meanwhile they profit from both sides by taking various fees from the savers and interest from the borrowers.

What are we to do?

On a personal level, the scriptures teach us to be generous and to lend and give freely.

Give to him that asketh thee, and from him that would borrow of thee turn not thou away.

Matthew 5:42

And we are admonished to responsibly return any items we have borrowed and to pay any debt we owe.

And I would that ye should remember, that whosoever among you borroweth of his neighbor should return the thing that he borroweth, according as he doth agree, or else thou shalt commit sin; and perhaps thou shalt cause thy neighbor to commit sin also.

Mosiah 4:28

And again, verily I say unto you, concerning your debts—behold it is my will that you shall pay all your debts.

Doctrine and Covenants 104:78

But we are to be very careful about going into debt, and we should never go into debt to our “enemies.”

Pay the debt thou hast contracted with the printer. Release thyself from bondage.

Doctrine and Covenants 19:35

Behold, it is said in my laws, or forbidden, to get in debt to thine enemies;

Doctrine and Covenants 64:27

Bottom Line: If you absolutely must borrow money, be sure choose your master carefully.

The rich ruleth over the poor, and the borrower is servant to the lender.

Proverbs 22:7

Source: Marie Diamond, “The Return of Debtor’s Prisons: Thousands Of Americans Jailed For Not Paying Their Bills,” Think Progress, December 13, 2011.
— “Debtors’ prison,” Wikipedia.
Benjamin Landy, “How the Financial Sector Consumed America’s Economic Growth,” The Century Foundation, February 25, 2013.