Churches and faith-based groups helping with debt and financial education.
Many churches, synagogues, faith based groups and other places of worship across the country have expanded their goals as well as missions. Over the years, numerous congregations, interfaith groups, and denominational ministries have expanded from strictly spiritual support to more holistic care including debt-relief guidance, financial literacy workshops, and budgeting classes. Find more details below on financial literacy and debt reduction programs offered by many churches.
Why churches step into this role
Places of worship have often been looked at (by many people no matter their faith or lack of it) as anchors in their communities. When economic pressures intensify, it becomes natural for faith communities to respond to immediate material needs. As many faith based groups try to offer some form of financial help and more. But many are now going further, by offering structured financial education, debt counseling, and in some cases small interest-free or low-interest loans. The idea is not only to help now, but to help prevent future crises by strengthening financial resilience.
Because these services come from a trusted, local institution, many people feel more comfortable turning to a church or local faith based group (synagogue, mosque, etc.) than to government or private agencies. Also, many faith groups emphasize dignity, confidentiality, and compassion in how they offer aid.
- They are often more nimble, localized, and closer to the people than large bureaucracies.
- They can combine spiritual, emotional, and financial support.
- They can prevent people from turning to predatory lenders by offering a safer alternative.
- By teaching budgeting and financial resilience, they help prevent recurring crises.
Types of debt help, credit counseling and financial education offered by faith-based organizations
One of the most common programs you'll find in church settings is a structured curriculum or class series focused on “living within means” and managing debt. Dave Ramsey’s Financial Peace University (FPU) remains widely used: it is a 9-lesson (often delivered over 9 weeks or more) video-based class covering topics such as budgeting, emergency funds, debt compounded, and investing. Many congregations buy the license and offer it to their community; participants typically pay only for the workbook (often ~$100). For locations of FPU debt counseling and budgeting classes, more information is at https://www.ramseysolutions.com/money/financial-peace/class.
- It remains widely used in congregations and community centers and has helped nearly 10 million people to date. In one example, participants in the Catholic Charities Bible Chapel program paid off their home mortgages, held yard sales to pay down credit card debt, and reconsidered purchases that involved using loans. As a result of this debt reduction based service, the families were able to establish a well funded emergency cash fund and there are some who cut up their credit cards. The programs is often combined with other programs that help people get out of debt.
There are Christian as well as faith based credit counseling agencies. They combine mentoring and faith based teachings with the standard services such debt management plans. They often operate the same programs as “non-religious groups (when it comes to debt help, credit repair, etc.) but a big difference of the Christian groups (as well as Jewish and Islamic) is the mentoring and general advice. Everything is free as well as non-judgmental. Read more about Christian free credit counseling agencies.
- For example, Everence (dial (800) 348-7468 or website: https://www.everence.com) offers confidential budget and debt counseling (at no cost for multiple sessions) and partners with Lutheran Social Service Financial Counseling to serve individuals referred by churches. Christian Credit Counselors, a nonprofit partner to Crown Financial Ministries, provides debt management plans and counseling grounded in biblical stewardship.
- Jewish Family and Children’s Services and Islamic relief organizations operate local programs that may include short-term financial aid or counseling tied to budgeting, housing, and programs that help people pay down their debt. If you prefer a secular route, the National Foundation for Credit Counseling can also connect you to certified nonprofit credit counselors.
Additional debt relief programs, money management and credit counseling services are arranged as well. Many churches are also providing access to emergency low cost loans. This can be invaluable for desperate families that are out of all other options. There are a few benefits in turning to a church for these funds, and the main one being is they mandate debt counseling in order to apply for money. The service also stops members of the community from turning to high priced payday lending companies.
- The debt counseling and loan programs are for individuals of all faiths. Not only that, but immigrants, refugees, and families living in poverty (that are out of the mainstream banking system) also turn to these services. There are many ways to apply, and find how churches offer loans.
Faith-based credit counseling and mentoring
Many churches host or affiliate with faith-based credit counseling entities that merge standard debt counseling with spiritual mentoring. This gives people not just a budget plan, but accountability, encouragement, and a values-based context for changing spending habits. Or look here for a list of ways to get help near you.
The services tend to be wide ranging. Today, it is very common for the historical place for spiritual nurture to also help people with their basic needs and also provide financial guidance.
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