Solari Action Network

[Catherine]

http://www.cbn.com/CBNNews/CWN/082302debt.asp

STEWARDSHIP
Church Frees 53 Families From Personal Debt

By Brian Connor
/CBN Reporter
/
Aug. 23, 2002

A Norfolk, Va., church frees its members from personal debt. So far, $300,000 has been collected.


CBN.com <http://www.cbn.com> – Bankruptcy filings by American consumers and businesses jumped 19 percent last year. A major reason, according to analysts, is the record high of consumer debt-a problem crushing many American families.

But here's the story of one church in Norfolk, Virginia, that decided to tackle the problem head-on.

Statistics show Americans are drowning in debt like never before, because consumers are still buying on credit. At the end of 2001, the American public's total indebtedness stood at a staggering 1.65 trillion dollars.

Ray Noftsinger is the executive director of Harbor Credit Management ,a nationally recognized consumer credit counseling agency. He sees America's debt problems firsthand.

Noftsinger said, "Debt is pretty much a self-imposed curse. You pretty much get yourself into debt…" He added, "There are two groups of people: one group has bad money management skills, and we've been helping them for years. But now, there's a new group. This group lives paycheck-to-paycheck, thinking tomorrow will be fine."

*Debt Causes a Crash or Years of Slavery*
"But it doesn't take much," Noftsinger said, "to send that second group into a financial tailspin!"

In addition, what he calls the "minimum monthly payment trap" can keep a person in bondage for more than 30 years.

According to Cardfacts.com, the average family's credit card debt was $8,400, at the end of 2001.

At 14.41 percent interest (the national average in November 2001), if you paid the standard 2 percent of your balance every month, it would take 428 months-35 years-to pay it off. The total interest you paid would be $12,089.49. So, instead of $8,400 you would have paid $20,456.49!

At an 18 percent interest rate, that same debt amount would cost more than $24,000 in interest, on top of the original $8,400. Thus, the total: $32,000, would take 656 months to pay off-almost 55 years!

This is why consumer debt is so devastating. So, with a debt of more than $17,000 William and Ladonya Steeger were on the verge of financial ruin.

William Steeger explained, "Debt was hanging over our heads like a boulder. I was in debt. My wife was in debt. Credit card bills, dentist bills, hospital bills."

The size of the Steegers' financial burden was almost too much for them to bear. Bad spending habits and poor money management were having disastrous consequences. William and Ladonya wondered how they would ever get out from under that weight.

*Now There is Help*
But help came from a surprising source.

Their pastor was concerned about them, and many others in his congregation, at Mt. Carmel Baptist Church in Norfolk, Virginia. Bishop Vernie Russell saw too many church members being devoured by debt.

Bishop Russell said, "It's hard for anyone to serve two masters. You can't serve MasterCard and serve the Lord as your Master. So, our goal was to pay off every family's debt, except for their house and their car."

In April of 2001-as part of a 40-day revival-Mt. Carmel began holding "Debt Liquidation" services, part of his 'Debt-free Revival' plan.

*Giving To Become Debt-free…?*
Members committed to give to one another and help each other get out of debt-and stay that way. Since then, dozens of families have seen their debt disappear, some in minutes, others over a few days.

Bishop Russell said, "As of today, we have gotten 53 families completely out of debt. The money given totals slightly over $300,000."

He added, "We have cut up more than 500 credit cards. And, we have carried all the other expenses of the church at the same time. We have not deviated from the church's budget. This debt reduction has been done out of the sacrifice of the people. Because whenever God gives you something to do, He provides the resources."

Randal and Ave Bullard were $3000 dollars in debt. Since being freed from that burden, they feel ready to face whatever the future may hold.

Ave said, "If hard times do come, I know God will meet my needs because that's what the Word says. So, I don't have anything else to worry about."

Randal said, "It's truly humbled me to know that those 'desires' are just desires, they're not needs that I have to have. It's disciplined me to be a better steward of what God's given us."

As more and more of its members become free of debt, the outreach opportunities for this local church are limitless.

And with bankruptcies at an all-time high and credit card debt stealing people's futures, there's no shortage of people who need their help.

*Debt-free Members Are Greater Givers*
Ladonya said, "Once we became freed-up from debt, we were able to give more freely then, to be able to help other people come out of debt."

Bishop Russell said, "Debt is a weight, and you cannot run this race looking unto Jesus as the Author and Finisher of our faith when you're weighed down with debt. That debt comes from us being more concerned by the cares of the world, than the cares of Christ."

After becoming debt-free, families aren't allowed to make any non-essential new purchases for seven months. From then on, cash-only purchases are strongly recommended and financial seminars and workshops are mandatory, (to teach good new habits and provide support groups).

Bishop Russell's goal is to continue the "Debt-free Revival" until the entire church membership at Mt. Carmel is entirely debt-free.

*The Idea Is Spreading*
The Mt. Carmel Baptist strategy seems to be catching on. One news source says a Baptist Church in Hackensack, New Jersey has taken up its first collection to free its own church members from debt.

The New Jersey church is planning four "Debt-free Revivals" every year until all 400 members are debt-free.