What Do We Do Now?
All Missions is Local

Becoming a Debt Free Church. . .Seriously!

I know that we live in an era where finances are the major stressors for many. Just a little over a year ago, we were considering how to cut salaries and ministries just to pay bills. We were sinking into the red at a pretty alarming rate.

Well, at that point, I laid out the financial circumstances to the church and after and through much prayer, God moved us to a place of ministry as a church where finances were no longer the biggest worry.

Now, just a little over 16 months later, we are in a real position to truly practice what we preach (or at least tell all good Christ-followers) regarding finances. 

The following is the text from an email being sent to all church members tomorrow, but I felt that sharing it here was appropriate. 

I want this to be clear. I share this information for these reasons only:

  • To the glory of God and God alone. That means, there is no glory here for anyone else, not me, not First Baptist Church, not the bank (definitely) but God alone.
  • To show that we cannot proclaim a biblical truth as a church and refuse to ever acknowledge that we, as a church, must also seek to live by the same truth.
  • To encourage those (other churches, families and individuals) going through difficult financial circumstances.
  • To express our desire to not only proclaim freedom, but to experience it. In this case, the freedom from debt.
  • To share my personal doubts and publicly repent for not believing.

I fully recognize that what I'm sharing here for some may seem like "putting the cart before the horse." In truth, we're not there yet. However, for the first time in my ministry I feel that we have a good, prayed over, biblically based, strategic plan as a church to become debt free in an amount of time that is actually very exciting. It's exciting because there's a good chance (unless God calls me home or elsewhere. . .no I'm not interviewing or seeking to go elsewhere) that I will be able to celebrate this future event with the people of God here at First Baptist.

So. . .here's the story:

Seeing the Light at the End of the Tunnel (Becoming a Debt Free Church)



It has been a pretty amazing year for First Baptist in so many ways. One way that God has blessed beyond our understanding has been financially. As you know, we were able to bless some incredible ministries and church plants last fall as well as pay off the loan on our bus and use some funds for capital improvements. As we move through the beginning of 2012, we continue to seek God's leadership for His church here as we strive to be the very best stewards possible of His resources.


We have proclaimed for years through messages, emails, blog posts and financial classes that the goal is to avoid debt. We are reminded of Solomon's wisdom in this area. . .

The rich rules over the poor, and the borrower is the slave of the lender. Proverbs 22:7 (ESV)

Yet, the reality is that most of our church members carry much more debt that they (i.e. we) should. While most of our debt is often wrapped up in our home mortgages, there is often added debt in the form of lines of credit, credit cards, car loans, etc.

My wife and I are doing what many of you are. We are systematically and intentionally working to pay off outstanding debt. Why? Because "the borrower is the slave of the lender." Debt keeps us from being able to use the finances God has blessed us with to do more ministry.

Remember when I read the list of stressors last Sunday showing the stressors that many in America face today? The top three had to do with finances (personal finances, work and the economy.)

As a church, we have collectively fallen into the pit of debt. While I am very pleased that over the years the church saw fit to purchase the property we now have and build the facilities we use each week, the truth of the matter is that the monthly payments keep us from using our funds to their fullness.

So, I'm excited to share with you that not only are we advocating as a church that people (especially Christ-followers) work toward being debt free, but we are modeling this.

Here's how.

Over the last seven years, we have focused on paying off debt and God has blessed with the ability to do so. We paid off a loan we came to call "The Giant" (i.e. the imagery was of David and Goliath), we paid off loans for homes on our property that are being used for the Korean Church and the Haitian Church. We were able to pay off the outstanding bus loan last fall. All in all, that's been very relieving and has moved us strategically to the place we are now.

Currently, we owe approximately $2.2 million in loans for our facilities. This is the total payoff for the worship center/music suite complex built in 1994 as well as our education/administration/gym facility built in the early 2000s.

Our loan currently has a 7.5% interest rate and is up for renewal on April 15.

Due to the economic state and lower interest rates now, our Stewardship & Finance Committee went to three banks to see if we could negotiate for a lower rate. The end result has us refinancing a 15 year note beginning in April for a little over $2.2 million at only 4.5% interest. We will keep our loan with our current bank (Well Fargo) and only pay somewhere between $600-$1000 in closing costs. There is no prepayment penalty.

That's a savings of 3% on $2.2 million. In layman's terms, "That's a chunk of change!"

Not only that, our current monthly mortgage payment is $22,262.83. With the new loan, our monthly payment will be $17,178.45. However, our plan is to continue paying the $22,262.83 rate. Here's why.

By paying the higher amount (which is what we're used to paying now) plus the extra $4,000 or so that is given monthly by church members designating a portion of their regular offering (over their tithes) toward the "Building Fund," we can pay off our remaining debt in about 8.5 years.

Let that sink in a moment. . . .8.5 years.

That's 7 years before the loan will come due.

The amount of money to be saved in interest alone is astronomical. It's six to seven figures, literally.

While 8.5 years may seem like a long time for some (mainly those who are about 10 years old) it truly isn't. As I think about how long I have been serving here at First Baptist (17+ years) it really comes into focus as being a short time. I never thought I'd see the day when these millions of dollars in loans could be paid off, but I believe God is leading us to to this and providing us the way.

This means that we are working to not add any more debt during this time. Though houses come up for sale (one is for sale right now) that could be used by our church for a variety of things such as staff housing, missionary housing, classroom space, storage, etc., we do not plan on purchasing any homes if another loan is needed. In other words, if homes come available and church members wish to come together and purchase a home or fund the purchase, we will see that as God providing the means. If we have to take out a loan. . .well, God will have to give us very clear instructions to do so, otherwise we will pass and wait upon the Lord.

One other thing - our Stewardship and Finance Committee has put in place an accrual account where we "pay" ourselves as we can into savings to fund the future replacement of church facilities and vehicles. This will, hopefully, put us in a place to not have to take out other loans for "emergency" upgrades and replacements.

This is the plan. We plan to work the plan and stay on course. I pray that as a church, we will all continue to give faithfully. As the church moves from being a "slave to the lender" so too can we as individual Christ-followers. It takes time. It's takes steadfastness. It means we must stay the course. We will not stop or slow down in the doing of ministry, but as we have seen in the past twelve months, as we serve and live and give faithfully, God provides all that we need for His sake.

To God be the glory!

I'm really looking forward to that day when we can "burn the note" and celebrate God's faithfulness and our obedience in this. Then, the $22,000+ that has been used monthly for mortgage payments can go directly to ministries and Kingdom growth. Oh, in case you need perspective, the monthly mortgage payment is larger than our preschool ministry annual budget. It's larger than our children's ministry annual budget. It's larger than our student ministry annual budget. It's larger than our senior adult ministry, single adult ministry, men's ministry, and women's ministry annual budgets combined. It's larger than our music ministry annual budget. Did you catch that? The monthly payment is larger than the annual budgets mentioned. Just think of the ministries we feel call to fund now (adoption, church planting, missionary placement, etc.) that could be done with the available funding. Well, I know, God always provided the funding for the work He is doing. It's just that the practical numbers side of me sees this and becomes excited about what God is going to do next.

I said it earlier, but let me repeat this - To God be the glory! Just want to make sure we don't think we deserve any of the glory here.

Keep praying. Keep serving. Keep giving. Keep doing ministry. . .for the glory of God.

comments powered by Disqus