Life Beyond Debt - How the Church can help

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HOW THE CHURCH CAN HELP

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DEBT STATISTICS • Total UK personal debt at the end of September was £1,459bn.

Life Beyond Debt is an initiative of the Evangelical Alliance and its member agencies in response to the current economic crisis. The initiative was launched at a major conference in February 2009 addressed by former Cabinet Minister Hazel Blears MP, and sponsored by Kingdom Bank. The Bible is outspoken on issues of money, poverty and injustice and the Church should be equally vocal. With national networks, and local presence, the Church is uniquely placed to help those who are struggling with debt, unemployment or other financial pressures. By bringing the conviction that motivates our action together with the organisations and resources already established, the Church can extend its engagement and bring vital aid to those most in need.

The turbulent times that we are currently experiencing will leave an indelible mark on our economic and social landscape. As well as helping to make a practical difference in the communities where we live, now is a critical time to think about the role that money plays in our lives and what the Christian faith has to say about the way that the economic system is structured.

This booklet features some of the easiest ways that churches can engage with the subject of money.

Churches across the country are already involved in the activities outlined, and many more. It can be a little daunting to think of the challenges that face us and know how best to respond. The following pages offer a taster of how churches can think more about money within their congregations and reach out to the communities outside their door. Maybe there is something that you could start doing, or an idea that would help extend your current work. What could be worse than the Church being invisible when those living around us need our support?

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• Average household debt in the UK is £9,160 (excluding mortgages) rising to £21,300 for those households who have unsecured borrowing.

• The average interest paid by each household on their total debt is approximately £2,650 each year.

• A property is repossessed every 11.2 minutes.

• 2,247 people were made redundant every day between July and September 2009.

• 386 people are declared bankrupt or insolvent each day (that’s 1 person every 3.72 minutes).

• The Citizen’s Advice Bureau deals with 9,300 new debt problems every day.

• 3 million low earners (household incomes £12,000 to £27,000) worry ‘all the time’ about personal finances – double the 2007 figure.

• 31% of savers (15 million people) don’t think they have enough money to cope in an emergency.

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THE TIME

IS NOW! Debt destroys lives, damages relationships, drives out joy and lets in fear. No wonder the Bible speaks of release for those shackled by debt!

Miraculous provision is made for a woman whose children have been seized by a creditor (2 Kings 4:1-7). The law commands the cancellation of debts, generosity and the release of economic slaves every seven years (Dt 15:1-15). Jesus uses the cancellation of unpayable debt as a picture of forgiveness (Matt 18:21-35). The Church is uniquely placed to offer the hope of life beyond debt as well as practical and pastoral support in both the congregation and the local community.

To speak with integrity the Church has to walk its talk! We are called to be more than good

managers of money. The aftermath of a serious recession, with its uncertainty and anxiety, seems a crazy time to speak of our stewardship of all God has given, of generosity (Haggai 1:3). Yet the prophet Haggai knew that fear of financial insecurity drains us emotionally and spiritually. He would not allow God to be pushed to the margins, challenging Israel to restore the temple. Jesus must be Lord of our finances if he is Lord of all and if we are to speak of financial freedom in our communities.

Faithful stewardship takes seriously three aspects of our financial life.

1. Personal experiences

Do we have skills or ? Do money worries weigh us down?

Are we struggling with personal debt lth and possessions? wea on Are we open to Bible teaching experiences to share to set others free?

2. Scripture and spirituality Whose money is it anyway? Everything comes from God so financial decisions are spiritual decisions.

Free from both guilt and greed, we must receive with gratitude and give generously and joyfully.

3. Lifestyle expectations

guish us from the ey? Do our attitudes and lifestyle distin How do we plan, spend and save our mon of our possessions too strong? world around us? Is the gravitational pull

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A prophetic voice in a time of crisis

”

Our task as Christians is not simply to pull people out of the river, but to ask who is throwing them into the river in the first place (Jim Wallis)

”

In the light of the growing economic crisis gripping the UK, the Church has a clear duty to listen to, and speak up for, those most affected. Following in the tradition of the Prophets, churches in the UK have long been at the forefront of calling for political change to tackle the root causes of poverty and inequality.

As the economic crisis deepens it is critically important that churches understand the role that they can play, especially in their own communities. And also to hear from God how they can be a voice to those in positions of political influence and responsibility, to challenge them to put first the needs of those suffering the effects of poverty, debt, homelessness and destitution.One example of this is ‘Get Fair’, which brings together a broad alliance of churches and A century ago, while William Booth was setting up charities with the simple message: ‘For the sake the Salvation Army, Seebohm Rowntree was of the thousands affected by rising conducting groundbreaking research to shed light unemployment, debt and damage to relationships on the root causes of poverty. and family life it’s time to Get Fair’.

Twenty-five years ago, the churches led the way in challenging the social divisions of the www.getfair.org.uk 1980s with the publication of ‘Faith in the City’ and the establishment of Church Action on Poverty and the Church Urban Fund.

The Evangelical Alliance is currently developing a Make Poverty History showed that by major report looking at the economic crisis in the mobilising public opinion within the churches and light of Biblical values beyond, we could put pressure on our political leaders to bring about policies which could make global poverty history. Our task, and our challenge, is now to bring this hope back home.

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Money and Community Engagement In the current economic climate the local church is ideally placed to reach out to its local community, offering a range of help to people who may be suffering financially.

It is therefore essential that not only do we as Christians handle our money with Jesus’ priorities and principles but that we offer help to those in our communities who are struggling. Here are some ideas of going about this:

Credit Action [CA] also produces a range of guides for different groupings – such as Single Parents and Students – which can prove to be the difference between people being able to make ends meet or sinking into over-indebtedness. They also produce a Redundancy Guide which is available in printed form but, like all their guides, it is also downloadable for free from www.creditaction.org.uk

• Look at the information about CMA and CAP on the following pages, and contact them to see if they have a debt counselling centre nearby. If not consider setting up such a centre through your own church.

• If this is not feasible contact Credit Action for details of Consumer Credit Counselling Service and how you can help ‘hand-hold’ people through. 0800 027 4995 • Get people within your church trained on how to help those in the community with money and budgeting. Credit Action can provide such training.

• In either event think of ways you can publicise free debt counselling by using posters or debt cards etc.

• Consider taking a range of CA guides for distribution in your locality. For example, other churches have placed them in libraries and doctors’ surgeries.

• Take both cards and booklets for giving away in church based groups like ‘mothers and toddlers’ and youth groups.

• Educate your church – you can find out more on page 8.

Not many Christians realise that Jesus spoke more about money than virtually any other subject. He knows how important money, or the lack of it, is in our every day lives.

Whatever you decide to do by offering help in this area you could literally be a “Godsend” to many in your community and be able to forge closer links with many people at the same time.

Fortunately there are several Christian charities that offer real hope here. For example literally millions of people will be struggling with debt issues – many will not know where to turn and others will have gone to fee-charging firms. But the expertise of Christian debt counsellors from Community Money Advice [CMA] and Christians Against Poverty [CAP] is available in an ever increasing number of towns and cities and where they are not present people can get help through Credit Action’s sister charity – the Consumer Credit Counselling Service [CCCS].

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Practical action you can take Community Money Advice and Christians Against Poverty both offer services for churches seeking to establish debt advice centres.

If you affiliate with CMA you will be running your own independent debt advice centre, so it is vital you have a team committed to the work, and the backing of your church or community centre leaders. CMA can then provide training, guidance and practical support, both during your set-up period and when you are up and running.

When the doors of an advice centre open, you will be meeting and helping people whose lives are often torn apart by debt. Relationship breakdowns, loss of homes, addictions, shame, fear, anger and guilt, are all potential consequences of indebtedness. Your clients will bring various problems to you, from a fixed or low income client with relatively small debts, who can sometimes be helped by claiming overlooked state benefits, through to well-paid executives who have lost a job or been trapped by borrowing tens of thousands of pounds on credit.

Undertaking debt advice work is a big commitment, but if you decide it is right for you, CMA can provide the expertise to help you establish an effective, professional service, and you’ll become part of a family of over ninety centres across England and Wales that share your vision.

The rewards? Seeing people who have been crushed by fear start to find hope again; seeing people, who have been trapped by debt released and enabled to manage money well in the future; seeing lives transformed.

“

You are life savers. I didn’t know what to do or where to go and was ready to do something stupid. You have shown me that my life is worth living

“

Mr D. CMA Client

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Sarah’s Story We were in really dreadful debt. We had no money at all and struggled to do day to day things such as feeding our four year old daughter, Kayleigh. We were trying to pay back more than we had coming in.

A friend introduced us to Andy Jackson from Christians Against Poverty (CAP) Bracknell, and from that moment on everything changed – literally everything.

We were given a budget, which meant we could afford to feed Kayleigh and get her the new clothes that she needed.

We could suddenly do all the things that a parent is meant to do for their child. We could eat as well, which was amazing for us because we had been living on toast.

Andy got me a place at ‘Sparklers,’ which is the mother and toddler group at CAP’s partner church in Bracknell. I’m a very nervous person so I brought a really close friend, Carly, along with me. It was wonderful and we started going all the time. Then Carly asked me if I wanted to go to church with her and her partner, John, on Sunday. I agreed and came to an event called ‘The Xmas Factor’ where J. John was speaking.

It really spoke out to me. During the appeal, I found myself standing up wanting to ask Jesus into my life.

I was so impacted by the words and it all seemed so right. Then, at Easter, I got baptised along with Carly and John, which was fantastic!

In May, life got really hard when our son was stillborn. I was devastated, but the church never left us. Other friends in my life have come and gone, but friends from church stuck by us through thick and thin and made us see that we could actually make it through. With their help and prayers we have done.

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The Sound Of Silence...

With around 2,350 verses on wealth and possessions – compared, it is often said, to around 500 verses each on faith and prayer – it is interesting that the church is so silent on the subject!

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Those verses speak in many different voices.

They tell of the goodness and abundance of God’s gifts, challenging greed and the temptation to find identity in acquiring ever more stuff. The Bible speaks of release for the poor, for those in debt and challenges us to gratitude and contentment, reminding us that God is the ultimate owner of all we have and of the responsibility entrusted to us in wealth.

If we are to offer hope to those in debt in our congregations and communities we must break the sound of silence. We must give people permission to speak about money and to understand the richness of what the Bible has to say in the churches’ preaching, teaching and pastoral ministry.

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Churches must: • Be faithful to the breadth and depth of biblical teaching on money and possessions. Talk money when the Bible does, not over-spiritualising the texts or making them serve our lifestyle choices.

• Connect the spiritual life with how we handle money and its power in our lives (Luke 16:10). Money talk should be a normal part of preaching, teaching, discipleship, mentoring and spiritual direction.

• Give people permission to talk about money, to share their hopes, fears and joys. Leaders must preach with honesty, humour, sensitivity and vulnerability as those on a shared journey, not experts who have reached a destination.

• Address money holistically: spending and saving; the wise use of credit; and the dangers of debt. Simple financial planning, budgeting and money management should sit easily in our teaching ministry with prayer or spiritual gifts.

• Teach the grace of generosity and the discipline of giving as the hallmark or litmus test of authentic discipleship around money. Giving talk must not be constrained by the annual stewardship campaign or the capital appeal.

• Support clergy and leaders in this preaching and teaching ministry, knowing that they struggle with the same concerns as their congregations.

• Establish simple systems of pastoral and practical care for those who are burdened by debt or facing the financial impact of circumstances.

Money Makeover 12 steps to better looking finances!

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Allocate time: money management does not just happen!

Develop a plan: know what you want money to achieve for you.

Talk: communicate with your partner and older children. Don’t be too afraid, too embarrassed or too proud to ask for help or take advice.

Prepare a budget: know what comes in, what goes out – and deal with the difference. Make sure you receive benefits you are entitled to.

Think cash: You may use Direct Debits or a credit for big ticket items but use cash as much as you can to control the variables: all the small things that mount up!

Review regularly: a budget is only useful if we check out how we are doing.

Be aware of the pressures: our kids, advertising, our expectations, our peers.

Spend less than you earn: sounds obvious but it takes effort and practice.

Pay bills on time: again obvious, but we can be so busy, so anxious or just out of control – and that costs us money. Find a system that works for you.

Do your research: stay on top of your costs and look for ways of saving and increasing income.

Get help if you are in debt: don’t wait, don’t delay, don’t despair – but don’t think it will go away. It won’t.

Expect the unexpected: stay alert, have an emergency fund if you can.

Visit: www.stewardship.org.uk/money LIFE BEYOND DEBT 9

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Simplify your life

Sometimes as Christians we often don’t like to hear the harder messages Jesus spoke. We like to focus on the Jesus who is our friend, who carries our burdens, who comforts and protects.

But what about the Jesus who called us to deny ourselves to follow him (Luke 9:23)? The Jesus who loved the rich young ruler, but wasn’t going to make his message more palatable by telling the man that he didn’t actually have to sell everything and give it to the poor (Mark 9:21)? The Jesus who tells us to seek first God’s kingdom and that stuff like food and clothing will follow (Matthew 6:33)? Did he just say this to make life difficult and miserable for his followers?

Even though we live in a world today where many people in the West own more than they ever have before, the idea that possessions don’t equal happiness was just as true in the first century as it is today. Jesus knew full well the hold that possessions can have on people’s lives.

Take, for example, the rich young ruler mentioned earlier: his identity was so tied up in his belongings that he could not give them up, despite the promise of treasure in heaven. How true is this for people today? We allow ourselves to be defined by the status symbols that are our cars, the size of our houses, the exotic locations of our holidays.

We may declare otherwise but these things can quickly become more important to us than putting God first. We fail to take seriously Jesus’ words, ‘Do not store up for yourselves treasures on earth… but store up for yourselves treasures in heaven… for where your treasure is, there your heart also will be.’ Jesus didn’t say that money and possessions are inherently wrong.

Rather, our use of them needs to be directed towards putting God first, making him our treasure rather than our belongings. So, for example, in Luke 8:3 we see that Jesus relied on the wealth of women to support his ministry.

Jesus certainly knew how to enjoy a celebratory feast for a special occasion with friends, and he doesn’t want us to stop enjoying life either.

Our culture has become so tied to its possessions that we no longer realise the hold they have over us. Perhaps, too, we are so used to having what we want whenever we want it that we have lost the value of a feast – of saving some things for special occasions. Taking time to re-evaluate how we use our money and belongings might turn out to be releasing. We may realise what we can do without and how we can more effectively use what we do have for God’s purposes. With the money we save we can be generous, providing support for people we know who are in debt, or helping to resource ministries that offer a helping hand.

We might just find that this isn’t about dogmatic asceticism, a desire to take all the fun out of life, but that actually in simplifying our lifestyles, we discover more about what Jesus meant when he said he had come to give us life in all its fullness, life that finds its identity first and foremost in him, and not in what we own.

Could you Simplify your life?

Find out more at: www.simplify.org.uk

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Credit unions are financial co-operatives owned and controlled by their members. They offer savings and great value loans plus they are local, ethical and know what their members want. Many credit unions now offer a range of services including current accounts, benefits direct and ISAs. Because credit unions have a ‘common bond’ which determines who can join, this brings community into financial transactions. You are lending to, or borrowing from, people you are in relationship with. This is often based on an area where people live or who you work for.

www.abcul.coop

Charity foodbanks across the UK are feeding an increasing number of people in financial difficulty as the recession continues to bite. The response of churches and communities to this growing need has enabled UK foodbanks to feed over 24,000 people in the last year.

The Trussell Trust’s foodbank network has experienced a 71% growth in the number of people fed compared to 2008, and an even greater increase in enquiries from churches wanting to set up foodbanks in their own town. www.trusselltrust.org

Money ministries – a preventative approach: If a debt advice centre is too much, can you consider a ‘money ministry’ in your church? A money ministry stresses prevention as well as cure. It focuses on budgeting – a key step for those in debt and a key skill for all. Stewardship offers Personal Budget Coach training. A money ministry also addresses good money management and rich Biblical perspective on money through preaching resources and courses. Stewardship can provide details and resources to equip your money ministry. www.stewardship.org.uk/money

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Find out more www.eauk.org/lifebeyonddebt www.stewardship.org.uk/money Useful websites www.simplify.org.uk www.stewardship.org/recession www.creditaction.org.uk www.crownuk.org www.fsa.gov.uk

Debt help CCCS: 0800 027 4995 Full details of how to set-up a debt advice centre are available through Community Money Advice or Christians Against Poverty.

Christians Against Poverty: www.capuk.org Community Money Advice: www.communitymoneyadvice.com Citizens Advice Bureau: www.adviceguide.org.uk

Books to read Your Money and your life – Keith Tondeur Your Money Counts – Mark Lloydbottom 60 Minute Debt Buster – Katie Clarke The Money Secret – Rob Parsons The Money Revolution – John Preston

Resources ‘The Bible & Money’ Bible Study (Jubilee Centre) Quidz In (Care for the Family) Seasons of Giving (Stewardship) Crown Financial Ministries

If you or your church would like copies of this booklet to distribute please email lifebeyonddebt@eauk.org