A Tennessee church has wiped out nearly $8 million in medical debt for local residents through a remarkable act of “extravagant generosity.”

The Altar Fellowship in Johnson City partnered with a debt cancellation service to acquire the unpaid bills for just $50,000.

Pastor Mattie Montgomery told the Christian Post how the church had bought the medical debt of people from across six neighbouring counties where many residents struggle with addiction and poverty.

After purchasing the debt, the church sent letters to all those who owed money, stating "Jesus loves you, we love you. And it's our privilege to cancel this debt entirely.”

Montgomery shared how this act of generosity allowed a teenage congregant to share the Gospel with his non-Christian father.

The pastor hopes this gesture will inspire other churches to embrace “extravagant generosity” and be the “hands, feet, and wallet” of Jesus.

"We want people to know that, in a moment of crisis, the place they need to get to is to be with a group of people who follow Jesus," Montgomery said.