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What is the difference between free will and karma?

Karma has been produced because of free will

Firstly, Karma has been produced because of free will. Divine Will does not produce any Karma, for Divine Will is non-binding. But free will can be binding.

When we talk about free will, what do we mean by free will? Free will means that we have thought power and because of that thought power, we have the freedom to do what we like. That is free will. We decide on something, good or bad, and we do it; we do it because of free will.

Karma does condition free will. For it is because of our past experiences in life, and in previous lives, that you can think in a certain manner. If our experiences in life and conditionings were such that it would make us think to-day of doing good work, of helping people, constructive work, then we´d be doing constructive work spontaneously. But, if our condition is such that we do destructive things then that too, is done spontaneously.

How is a person to curb that? If he curbs it consciously, then he will suffer repressions within himself which will drive him insane. So,  this is where the conscious mind, although forced by this inner compulsion, can do something.

When the conscious mind argues the pros and cons of some wilful act, which we call free will, that person needs help, not to alter his sub-conscious mind, but to strengthen the good thoughts in his conscious mind. Then that person can get that good thought deeper down and alter the original sub-conscious pattern.
…Gururaj Ananda Yogi – UK 81-03

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