How do I know when it’s okay for my church to engage in debt? Some of you are cringing at the thought of even engaging in church debt. We all want to be debt free, but that’s not always the opportunity. Consider these questions: Is your current debt at 1x your annual income or less? Are you taking in more money than you are spending? Are you in a growth position? Are you maxing out every opportunity? Do you have 3-4x your annual income in cash reserves? Do you have cash to fund upfront expenses?