Debt is killing pastors. Rural small church pastors are especially at risk because of the small pay packages that most rural churches can afford. Lets just say that pastor Billy is just graduating Seminary. Billy accepts a call to a small rural church. Billy is excited about his first pastorate but struggles EVERY day because the financial struggle takes a heavy toll on his family. Billy has consumer debt, student loan debt, and the every day bills we all have. Oh yeah. . . Billy also has two kids and a wife to take care of. Billy’s wife is taking care of the kids at home because the cost of day care would exceed her income. Here is what Billy’s income to debt ratio might look like.
1. Billy, like many of his church members, has more credit card debt than he should. $200.00 per month
2. Billy has a mortgage b/c the church doesn’t have a parsonage and even if they did have a parsonage Billy and his wife prefer to live in their own home. (Pastors like privacy and equity as much as the next guy.) $850.00 per month.
3. Billy, like most of his church members, has two car payments. $400.00 per month
4. Billy’s utilities shake out like this:
A. Electricity = $110.00 per month
B. Gas = $45.00 per month
C. Phone / Internet = $75.00 per month
D. T.V. = $60 per month
E. Cell Phones = $70.00 per month
5. Billy is still paying for his and his wife’s student loans: $300.00 per month
6. Since Billy and his family like to eat they go to the grocery every week: $600.00 per month
7. Fuel for the cars: $240.00 per month
8. Car Insurance: $70 per month
Total Expenses: $3,020.00 per month or $36,240 per year
Pay package for a Tennessee Church running 50 -100 people in Sunday School: $41,785 per year
$41,785.00 – $36,240.00 = $5,545.00
$5,545.00 represents what is left out of Billy’s pay package to purchase health insurance, ministry reimbursement, ministry tools, and continued education costs.
Billy’s options: 1. Billy’s wife reluctantly works two jobs. One to pay for day care and one to pay bills. 2. Billy works another job (if his church will let him) but this takes time away from ministry. 3. Billy is forced to resign and go to a suburban church with a suburban pay package.