Should churches go into debt? This question often elicits passionate responses from people at various points on the yes/no spectrum. . . . If your church does opt for debt, you’re making a weighty decision. Here are four questions to help you assess whether it is right to take on debt:
- Is the debt for a ministry need or want? “If you build it, they will come” is the wrong philosophy. Debt is not the time to take shots in the dark, hoping for a positive outcome.
- Can we pay off the debt quickly? Once again, this is not about hope. Can you actually pay off the debt in a timely manner? If the debt payoff requires a huge increase in giving over just a few years, it’s best to wait.
- What is the budgetary impact? Will this debt cause us to be on the financial edge? Will we need to reduce ministry budgets to account for the payment?
- What are our other options? Debt should not be a first resort. It may be easier, but that doesn’t mean it’s wiser. Consider all your options before diving into debt.
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