Avoiding Consumer Debt

By Dave Gemmell

A survey of Adventist Pastors revealed eight different factors that may allow pastors to retire as millionaires. In this Best Practices series, I’m sharing each of these eight factors in bite size pieces. Coming in at number five in correlation strength is ‘Avoiding Consumer Debt.’ Those whose net worth is anticipated to be over one million are more likely to avoid consumer debt than those whose net worth is anticipated to be less than a million’ (see bar graph).

Participants were asked ‘Over your lifetime, how successful have you been in avoiding consumer debt such as credit card debt, personal loans, etc’. The possible answers ranged from ‘always, ‘usually’, ‘sometimes’, ‘rarely’, or ‘never’.

The over ‘one million anticipated net worth’ participants were more likely to select ‘always’ and ‘usually’. The under one million were more likely to select ‘sometimes’ and ‘rarely’. This is not a coincidence. Consumer debt destroys attempts to build net worth.

Not all debt is equally bad. Some debt can play a role in a pastor’s finances. For example, a modest student loan might be the only way a ministerial student can obtain a degree and be hired as a pastor. A home mortgage might enable a pastor to purchase a home and build up home equity. Credit cards can be handy financial tools (with all kinds of perks), as long as they are paid off completely by the end of the month. However, consumer debt, paying for consumable goods over time, is seldom a good idea.

At an interest rate of 22%, I view credit cards as little plastic loan sharks, and potentially far more dangerous. If you just pay the minimum payment, it will take many years to pay off your debt, and a $1,000 purchase could end up costing you as much as $10,000. Pastors are not paid enough to be indulgent in consumer debt. If you find yourself in a situation where you have consumer debt, seek help immediately.

The key to avoiding debt is to live beneath your means. If you don’t have your credit card paid off completely by the end of the month or find yourself taking out personal loans, then you are living above your means. This requires that you spend less than you make. If you want to retire as a millionaire, don’t live like a millionaire now.  

Author’s note: These articles are condensed from the full report of the study that was presented at the 2022 CALLED Pastors’ Family Convention and can be downloaded here: If you would like to dialogue with the author you can email him at davegemmell@gmail.com.

Dave Gemmell recently retired from NAD Ministerial and is enjoying spending more time with his family, especially his three grandsons.