Someone posted on Twitter…

@Debt basically enslaves the debtor.

Being a Pastor, he then tried to give flesh to his generalist assertion with a quotation from the bible, thus..

“The rich rules over the poor, and the borrower is servant to the lender.” (Proverbs 22:7)

The Borrower is not always a servant to the Lender. In fact, in most cases, the reverse is the case : The Lender is the servant to the Borrower, or if you prefer, the Borrower is the Master to the lender.

I once wrote an article.. Popular Wisdom Is Often Plain Stupidity

Many popular sayings are simply great sounding, but are often incomplete, not always (completely) true, or outrightly incorrect.

To counter the assertion that…

the rich rules over the poor,

isn’t there another saying to the effect that,

Vox Populi, Vox Dei

Since the poor are usually in the majority, one can easily extrapolate that the masses have a louder voice, and indeed determine who rules (in a democracy, every man is entitled to just one vote, irrespective of wealth).

Is it not said, there is safety (strength) in numbers?

Is the Borrower truly always a servant to the Lender?

How about situations in which the Borrower and the Lender are the same (like the Board Members of a bank granting themselves approval for loans, then refusing to pay back, and the bank then writes off the loan…something I call smart stealing?

photo courtesy -

photo courtesy –

As a matter of fact, there are many situations where, the moment power (money) changes hands, the Borrower becomes the Master of the Lender. The Lender would be praying for the well being and long life and prosperity of the Borrower. For some loans, you cannot afford that the Lender becomes cold hearted. (He could have you eliminated for instance, if it is a personal loan!).

How exactly are you his Master? You take him to court with all the delays, and justice not being sure of being received?

The one who posted the Twitter message also forgets that the Lender needs the Borrower just as much as much as the Borrower needs the Lender. One cannot exist without the other, and the professional Lender is out of business without the Borrower (his client).

This, it is not a Master vs Servant relationship, by any means .

The idea being canvassed by the Twitter post is that all debts are bad. That, debt enslaves.

Not really!

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Debt can actually free you from poverty. This is through the proper use of OPM – Other People’s Money

There is good debt, and there is bad debt. It depends what the borrowed money is applied to.

Here is an exposition on the concept :

Bad Debt vs Good Debt

Bad debt is debt incurred to purchase things that quickly lose their value and do not generate long-term income. Like borrowing at interest to buy that Samsung Galaxy phone.. when it would ordinarily not be your current focus

Conversely, borrowing is “good debt” when…

The borrowed sum is used to purchase an asset that brings some value..usually pecuniary

If you borrow to build a house which you let out, that’s an example of a Good Debt.

When used intelligently, debt can be of tremendous assistance in building wealth, and the fastest way is to use OPM correctly.

Conclusively, not all debt is bad. Debt, like electricity is not good or bad. It’s a matter of what it is used for, the purpose.

Consequently, the Borrower is not inferior, or a slave to the Lender. It is a symbiotic relationship!

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