I got this info at http://www.gotquestions.org/self-love.html
Question: "What is the difference between mercy and grace?"
Answer: Mercy and grace are often confused. While the terms have similar meanings, grace and mercy are not the same. To summarize the difference: mercy is God not punishing us as our sins deserve, and grace is God blessing us despite the fact that we do not deserve it. Mercy is deliverance from judgment. Grace is extending kindness to the unworthy.
According to the Bible, we have all sinned (Ecclesiastes 7:20; Romans 3:23; 1 John 1:8). As a result of that sin, we all deserve death (Romans 6:23) and eternal judgment in the lake of fire (Revelation 20:12-15). With that in mind, every day we live is an act of God's mercy. If God gave us all what we deserve, we would all be, right now, condemned for eternity. In Psalm 51:1-2, David cries out, "Have mercy on me, O God, according to your unfailing love; according to your great compassion blot out my transgressions. Wash away all my iniquity and cleanse me from my sin." A plea to God for mercy is asking Him to withhold the judgment we deserve and instead grant to us the forgiveness we in no way have earned.
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