Hoosier, are you perfect? No lies, no lust, no envy, greed, sloth…? I expect not (just like me). Boom! We just got killed by snipers and go to stand before judgement. Do you expect that you will enter heaven as you are now? Will heaven contain people still struggling with lies, lust, envy…?
No? Why not?
God has been pretty clear on the fact that he, too, believes in freedom of religion (and more specifically, free will). The freedom to either choose Him or reject Him. There is no reason to expect that He will take away our free will upon our deaths. This is why catholics believe there is a purgatory. Even those whose faith is in Christ, who have received joyfully the Graces of his redemption still need to learn to let go of our attachment to sin. If we don’t, we’ll make heaven into hell. God won’t allow that, but won’t force us to do it either.
Purgatory isn’t hell with a timer, nor is it a second chance. It has nothing to do with ‘punishment’ as we think of it in our culture. Purgatory is where we finish letting go of our attachment to sin so that we can enter heaven without trashing the place.
Indulgences have NOTHING to do with eternal consequences for sin. They cannot get a damned man out of hell. They do NOT remove your eternal guilt for your sins (Jesus did that, of course) Indulgences are, and have always (properly taught) have been a penitential act in which the penitent makes some form of sacrifice as a recognition of his guilt for his sin and for the fact that his past sins still cause suffering both to himself and others. (An Indulgence, contrary to myth, has also never applied before the fact. A myth so common as to have actually have changed the meaning of the word in common usage!) They are a tool the church has discerned that helps man to become sanctified, not saved.
In catholic teaching, there is a communion of saints. The body of Christ is ONE. Those in purgatory being purged of the last vestiges of attachment to sin are allowed knowledge of the prayers said for them by saints still here on earth. Imagine this: Your brother is a rabid Packer fan and the two of you have been fueding for years. The Pack is in the Superbowl and he has tickets. The morning of the game, you break your toe and he skips the game to bring you to the hospital. That’s love and his sacrifice has the power to actually change your heart. Prayers for the dead are the same way. Indulgences that include sacrifices by the living have the same effect on those in purgatory whom God allows to SEE what their loved ones are up to on earth.
Are there abuses? SURE! Just like there are protestant preachers that stand up and say that if you contribute to their Rolls Royce purchase fund that God will give them back 5 times as much as you donate! Does that abuse mean that it is wrong to donate to the church? Of course not. The reforms of Trent do not repudiate the concept of man making a financial sacrifice to God out of love or pentitence, they merely acknowledge that allowing indulgences to be linked to money can have the appearance of scandal and can be used for ill gain by Judas clergy.
P.S. The wikipedia article would be fine except for the degraded definition of the word ‘punishment’ in our culture. In christian theological terms, punishment is less about angry venegeance and more about instruction in consequences. Change your viewpoint to that of a parent punishing a child and you might get it.