The Best Time to Reduce Debt

September 14, 2020

Is the economy doing well? Is the stock market at an all-time high? Is unemployment currently low in your area? If the answer is yes, why should you even consider eliminating or reducing your existing church debt now? Read on and we’ll tell you.

A great time to eliminate debt is when current economic conditions imply that church finances are strong and you are comfortably making those monthly mortgage. Why? Because we all know – the good times don’t last forever! When the hard times do hit, churches with little or no debt will weather the storm much better than those that don’t.

Learn From History

Historically good economic times are often followed by a recession. During these hard economic times many churches face really tough financial decisions due to their debt burden and some even face foreclosure.

Savvy church leaders know that the best time to raise major dollars (for important capital projects, including debt reduction) is precisely when things are good.

Why Act During Good Times?

You are initiating the campaign in a positive external climate, not a negative one. Campaigns carried out during tough economic times have a decidedly different atmosphere.

Your high-capacity givers, who are the key to success in any campaign, can and will be more generous during a positive economic climate. Stable and high performing portfolios make generous giving easier.

You are being a proactive leader, not a reactive one. Your congregation will appreciate your foresight. Your key givers will be especially appreciative, that’s how they operate. (Think of the Old Testament story of Joseph in Egypt…saving up during seven “fat” years, to get the nation through the seven lean ones.)

So, take a first step to get rid of that church debt now, when you don’t really have to. It’s counterintuitive, but when the next recession comes along (which it ultimately will), you’ll be really glad you did!