Black Enterprise, November 2002

There’s something extraordinary going on at Mount Carmel Missionary Baptist Church in Norfolk, VA. Sure, there’s the praying, clapping of hands and singing of hymns. But upon the pulpit sits a jar filled with cut-up credit cards — a testament to what makes this church unique. And along with paying their tithes, the members of the congregation are quite faithful when it comes to a far more secular ritual — paying off their debts.

“You can’t serve both Mastercard and the Master,” is Bishop C. Vernie Russell’s mantra. Once a month, Russell, 49, leads the congregation in a “debt liquidation revival.” He selects a family to be delivered — the decision is made through divine inspiration — and the congregation contributes money to pay their arrears. The average gift ranges from $25 to $100, though some have given as much as $1000. In just 15 months, church members donated $340,000 to pay the debts of 59 families. “Last month we raised $18,044 in 10 minutes,” Russell says. “We got two families completely out of debt and raised $6000 towards helping the third.” The revivals will continue until every family is debt free.

While this idea might appear novel, Russell says he was motivated by a biblical passage from the Book of Acts that describes how the early Christians shared what they had. “No man lacked anything,” says Russell, “Those who had possessions sold them and the money was distributed as needed.” Mount Carmel’s 5000 parishioners — a mix of blue-collar workers, military personnel and professionals — span the economic spectrum and similarly share their wealth, as described in DOFE Principle No. 7. They contribute money to pay the debts of others, despite their own bills, and donate their old cars to deserving families rather than trading them in.

Russell’s mission is as much about helping oneself as it is about assisting others. He teaches parishioners basic financial planning, urging them to close credit card accounts and pay their smallest bills off first so that they can see their accomplishments. He also focuses on DOFE Principle No. 5: becoming a disciplined and knowledgeable consumer. “If you’re in the 33 percent tax bracket, Uncle Sam automatically takes 33 cents of every dollar,” Russell explains. “If you buy something, here in Virginia the sales tax is 4.8 percent, so that’s 38 percent gone. When you charge something, you pay 21 percent interest. Now you’re talking 59 cents of every dollar gone and you wonder why you’re struggling with 60 percent of what you’re making not coming home!”

His words have inspired church members to tackle bill paying more aggressively. “Before Bishop began preaching about being debt free, we were just sending the minimum payments,” says Rita Robichaux, 52. She and her husband Mariano, 55, worked overtime and paid off about $2000 on two credit cards before the church gave them the remaining $6000 in October, 2001. “I used to spend a whole lot of money on things I didn’t really need,” says Ms. Robichaux. “Now, I can do without them. My whole concept of spending has changed.”

Every three months, each family that is delivered must attend a seminar on staying solvent, and there is an informal obligation to contribute at least $300 at subsequent revivals. No major purchases can be made for seven months, and even then, items should be made with cash as opposed to by credit. Thus far, all of the families that have been “delivered” have remained debt free. And as the debts diminish, church donations rise. Russell says that the amount tithed has increased by 25 percent in the past year — Mount Carmel takes in more than $2 million annually to pay operation costs and fund community projects.

Russell practices what he preaches. Having at one time worked three jobs to pay credit card debts that mounted when he was first married, he now has one credit card, American Express, that he pays off every month. He has written a book, “Upon This Rock,” that outlines the debt liquidation program so that it can be implemented in other churches. Here are some of the principles he teaches:

Know what you owe. Pearl and Stanley Thomas didn’t know how much debt they had until Russell started holding revivals. They didn’t have credit cards but had accumulated almost $11,000 in unpaid bills. “We wouldn’t have been able to say how much we owed if someone had offered to pay those bills,” says Pearl, 40. “Being more aware of the debt made a difference in how we went about eliminating it.” She and Stanley, 45, both worked overtime and began by paying off their smallest debts first. They managed to pay off about $2000 in seven months; the rest was taken care of by the church.

Set up your own layaway program. “When I was growing up, we had layaway, but the money you paid went to the purchase price, not the interest,” says Russell. When it comes to making big purchases, he suggests doing the same — open a savings account and put away money each month until enough has accumulated to pay for the item.

Break the chain. “Bishop really promotes doing something for yourself,” says Ms. Thomas, who was inspired to start her own sewing business. She in turn is teaching her children sound money management principles to the point that her 10-year-old daughter chides her when she uses a debit card. “She says ‘Mommy, you know what Bishop said about using credit cards!’ I have to explain that this comes directly out of our account!”

Russell also tells the story of a woman who not only paid her debts, but saved enough money to buy a home. “She’s moving out of an area where there are drugs and crime and she’s breaking a circle. It will make a difference not only in her life, but in those of her children’s lives and grandchildren’s.”