Budgeting, Credit Cards, Credit Counseling, Debt, Money Management, Saving

Ask Chuck: Move Back from the Financial Cliff

By: Crown Financial Ministries, Chuck Bentley

Dear Chuck,

Our finances are stretched so thin that I am stressed out all the time. We live on a budget, but my husband and I both need some hope that it will not always be this way.

Living on a Financial Cliff

Dear Living on a Financial Cliff,

There is certainly reason for hope, so hang on!

Let’s put your challenges in a current economic context and then a Biblical context before I offer some practical tips to help you through this painful time.

Economic Context

With the lingering impact of inflation, a new CNBC survey reports that 70% of Americans say they, too, are feeling financial stress, and 58% report they are living paycheck to paycheck. The report pointed to several specific concerns, including a lack of savings and a dependency on debt.

“People are worried that the money they’ve saved won’t last and are worried they’re going to have to lean more on their credit cards and other sources of debt just to get by,” said Bruce McClary, a senior vice president at the National Foundation for Credit Counseling.

With rapidly increasing costs, higher interest rates, and a sense of economic uncertainty in the air, many are feeling like their finances are balanced on a razor’s edge with no margin for error.

Biblical Context

The Bible is full of people who had to face incredible amounts of stress. It is also full of principles and truth that help us to reframe our present circumstances. I am reminded of Romans 8:18–21:

I consider that our present sufferings are not worth comparing with the glory that will be revealed in us. For the creation waits in eager expectation for the children of God to be revealed. For the creation was subjected to frustration, not by its own choice, but by the will of the one who subjected it, in hope that the creation itself will be liberated from its bondage to decay and brought into the freedom and glory of the children of God. (NIV)

We live in a fallen world—in bondage to decay—because of mankind’s disobedience to God, but a promise of freedom and redemption awaits those who are children of God. Considering our eternal future, our present trials and tribulations are insignificant. Remember to keep your present cares and burdens in the context that this is not our home. We temporarily manage what God provides and seek to be faithful until we have finished our race.

Help in Reducing Your Financial Challenges

Three very practical steps will help you reduce the immediate pain you are in.

First, no matter how much or how little income you have each week or month, be sure that you are spending less than that amount. Think of the old game of limbo, where you have to bend your body to get under a bar without knocking it off. The bar represents your income. Your attempts to get under it represent your control over your spending. That is why a budget is so very helpful. You can adjust your expenses to ensure that you never exceed the height of the bar (your weekly or monthly income).

Second, build an emergency savings fund. You need at least $1,000 set aside to help with unexpected expenses. That is the bare minimum. Set a goal of saving three months of overhead. Emergencies always happen, so this is non-negotiable. In the CNBC survey, most of those who report living paycheck to paycheck say they do not have any money saved. This is like flying through the air on a trapeze bar without a safety net. It is scary! Crown has some free tools to help you get that accomplished. Perhaps you need to adjust your budget. You might benefit from our budgeting resources and a coach.

Finally, make a plan to reduce your debt and break any dependence on credit cards, store accounts, buy-now-pay-later plans, or payday loans. The largest expense in most American budgets today is the interest expense on debt. Just imagine how free you would feel without debt hanging over you each month. We partner with Christian Credit Counselors to help free people from this burden.

Thank you for writing. Please know that we want to help! May God give you His peace and the freedom you so desire.

Christian Credit Counselors is a trusted source of support in assisting people with getting on the road to financial freedom. Reach out to them today; they may be of great benefit to you.

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Budgeting, Debt, Money Management, Personal Goals

Ask Chuck: Help My Financial Anxiety!

By: Chuck Bentley, Crown Financial Ministries

Dear Chuck,

My husband and I are both working adults. With 3 kids at home and trying to care for some extended family here and abroad, I am increasingly struggling with financial anxiety. Now the holiday pressures are making it worse. Please help me deal with this! 

Family Financial Stress

Dear Family Financial Stress,

You obviously have a big heart…maybe bigger than your budget can afford.

The Bible says that we are to provide for our own immediate families (1 Timothy 5:8). This is a responsibility that the Lord has entrusted to us. When you add extended family members, here and/or those living in a different country, it is no wonder your stress is great.

Immigrants or children of immigrant parents face pressures that differ from many in the general population. Learning the language, navigating the culture, and the burden to succeed create tremendous stress. In my travels, I have seen how parents in some nations sacrifice greatly to give their children an excellent education. Once in the working world, these children are then expected to sacrifice for their parents. The pressure for a couple to support four aging parents along with their own children can be financially and emotionally crippling.

Financial Anxiety

Researchers at the Global Financial Literacy Excellence Center at George Washington University and the FINRA Investor Education Foundation found that prior to Covid-19, more than half of American adults experienced financial anxiety. The report shows that anxiety occurs in thinking about or discussing money. (This is without the very real pressures you and your husband are shouldering.) Women, young adults, those with financial dependents, and those who are low-income, unmarried, and unemployed feel most anxious. Respondents reported that too many expenses and monthly bills, especially medical expenses, were major factors contributing to high anxiety.

My Advice

First, establish a budget that primarily takes care of your immediate family. Meet with your husband, and discuss the appropriate distribution of the surplus funds that you discover in your budgeting process.

Next, set priorities for whom your budget will allow you to support, and then, determine how much can be allocated to them as the Lord provides.

Communicate to those whom you may not be able to support on a regular basis that you are sorry that you cannot continue. Let them know that you will help them establish a budget, and encourage them to try and take care of their needs themselves.

For those that may be totally dependent on your financial support and are unable to work or care for themselves, set some goals for what you may be able to do should the Lord provide an increase in your income, but live within your budget without compromise.

Make or improve your plan. If grandparents are living with you, possibly they can be asked to make some contribution to the needs of the family, like babysitting, doing household chores, shopping for discounts, cooking, cleaning, or running time-saving errands. Don’t rule out that some family members may be capable of generating income under the right circumstance or opportunity. A friend who operates an online business has his parents that live with them answering emails, praying with customers, and even filling orders.

Consider creative ways to give meaningful gifts that do not cost money. Often, a handmade card, a day spent together, or a poem or song will convey your love far more than a gift that comes in a box.

Reduce Financial Anxiety 

God’s Word gives us financial principles for our good. When we fail to know and live by God’s financial principles, we actually create circumstances that increase our stress. He also told us how to deal with anxiety. Here are some tips that have helped me:

  • Acknowledge Him as your Provider. He is a God of abundance, and He is faithful.
  • Live one day at a time. That means to keep your mind and emotions on today. Matthew 6: 25-34
  • When you are afraid, learn to pray and seek God’s guidance.
  • Cast your cares upon the Lord.
  • Practice gratitude. Give thanks to the Lord for three things every day. Philippians 4:4-9

The key to breaking the anxiety loop is faith exhibited by a deep trust in God’s character and an assurance of His promises.

Faith is a muscle that grows under tension. It is an exercise that must be practiced. Remember the words the apostles spoke to the Lord? “Increase our faith!” (Luke 17:5 ESV) Or, remember the father who brought his boy with an unclean spirit before Jesus for healing? “I believe; help my unbelief!” (Mark 9:24 ESV)

Invite the Lord to intervene and give you peace in the midst of your trial. Ask Him for wisdom to make the right decisions and the words to talk winsomely with your family.

If your pain is from debt, stop all borrowing. Are you in need of a raise? Improve your skills, meet with your boss, and ask for feedback on how to qualify for an increase. Have you mishandled money in the past? Get on a crisis budget, and ask all family members to help.

Crown has many free online courses available to guide you, like budgeting tools and career assessments. Also, if debt is a problem, Christian Credit Counselors is a trusted source of help.

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Budgeting, Debt, Money Management, Saving

Ask Chuck: Time to Get Out of Debt?

By: Chuck Bentley

Dear Chuck,

I have been steadily paying down debt, and the end is within sight. I’m due a sum of money for the sale of some real estate and wonder if I should pay off the remaining debt or save it. Seems like a good time to be debt-free. What would you do?

Almost Debt-Free

Dear Almost Debt-Free,

I can think of only a few reasons why you would not go ahead and become debt-free if you are able. Of course, I don’t have your full financial picture, so I will try to give you a few things to consider as you come to your own conclusion.

Shifting Sands

There is a lot of uncertainty in the world right now. Covid-19 has created stress in many areas of our lives. A Pew Research Center survey reports that half of the non-retired adults say the economic impact of Covid-19 will make it harder to achieve their long-term goals. There are medical and financial pressures along with rising mental health issues. Add to that inflation, the instability in Afghanistan, forest fires, flooding, the possibility of a stock market, and real estate bubble… Need I go on?

A major benefit to being debt-free is that you will be in a much stronger position to weather the economic storms we may face. If your overall picture is good, then pay off all the debt. But, there is more to consider first.

A Safety Net

It is great to be debt-free, but uncertain times also require that you have savings available for emergencies. You want to avoid ending up in the same position six months from now. Therefore, I suggest you give a portion, fund an emergency account, and then apply the rest to debt.

Have you ever done the limbo? The object is to get under a bar without touching it. Budgeting is very similar. Your income represents the bar. Your spending must fall below the bar every month, or you lose.

In limbo, you must take carefully-measured steps to keep as far away from the bar as you can. The gap between your body and the bar is what I call “financial margin,” which we all need. This is the space that grants peace and financial protection in the unexpected storms of life.

It is possible to increase your monthly margin quickly by adjusting your lifestyle. Consider the benefits of choosing to live on far less than you make. Manage the common budget busters—food, entertainment, and transportation—to further reduce expenses.

Other Tips

Paying down the highest interest-bearing note first will save you money in the long run. Paying down multiple small notes can provide a psychological advantage. Repay any late mortgage or rent, utilities, HOA fees, taxes, and car payments so there is no threat of losing your home or car.

Do you owe family members any money? Do not ignore this responsibility. Be honest, and treat them as you would want to be treated so that relationships are not harmed.

Be Intentional 

Even if you do pay off all your debt, it is important to manage your finances well as you go forward. Just because you become debt-free does not guarantee that you will stay that way unless you manage what you have well. Here are my three tips:

  1. Plan ahead: Commit your work to the Lord, and your plans will be established. (Proverbs 16:3 ESV)
    • Budget wisely. This will keep you from creating more debt and will allow you to build an emergency savings fund. If needed, a crisis budget can get you to a position of financial strength. Here are instructions, an online fillable form, and a spending plan.
  2. Seek counsel: Without counsel, plans fail, but with many advisers, they succeed. (Proverbs 15:22 ESV)
    • Please consider my advice as only one source of those you will turn to for help.
  3. Make wise decisions: If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given him. (James 1:5 ESV)
    • God is the source of all wisdom. When we learn His Word and commit to live by it, everything in our lives will begin to take on new excitement and joy. Using money to fulfill God’s purposes for your life will be the best financial decision you can make.

Thank you for the question. I don’t think you can go wrong if you pay off the debt and commit to following the steps above.

For more guidance, especially if your debt is related to credit cards, please consider contacting Christian Credit Counselors. They are a trusted source of help.

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Budgeting, Credit Cards, Debt, Money Management

Ask Chuck: My Spouse is an Impulsive Spender

By: Chuck Bentley, Crown Financial Ministries

Dear Chuck,

Do you have any advice for someone married to an impulsive spender?

Cautious Budgeter 

Dear Cautious Budgeter, 

Sounds like you may be married to an opposite financial personality; my wife and I can relate! 

Most of us have made an impulsive purchase at some point in time. Others struggle with it more frequently. Or they are married to one who does. I was the impulse spender in our marriage for many years. To be clear, impulse spenders buy what they want without considering the consequences. Their behavior negatively impacts others, and the financial stress can be terrible. 

It can be difficult to determine if someone is impulsive, compulsive, or materialistic. Some definitions will help here: 

Materialistic describes one who is excessively concerned with physical comforts or the acquisition of wealth and material possessions. This is an issue of the heart that drives the behavior. Often, people live ignorant of or in denial of this spiritual deception. 

Impulse buying is often related to anxiety or depression. Those who struggle with their self-image desire acceptance, respect, or attention. They shop whether they can afford to or not, in an attempt to meet those needs or boost their mood. Some call this “retail therapy.”   

Compulsive spending, on the other hand, is an uncontrollable desire to shop. It results in spending large amounts of time and money and tends to escalate over time. Mental Health America gives 4 stages of compulsive spending: anticipation, preparation, shopping, then spending. If impulse buying impacts budgets, compulsive spending can destroy them! 

Symptoms of Compulsive Spending:

  • Spending a significant portion of income on discretionary purchases
  • Accumulating a large amount of consumer debt
  • Spending continually, despite resolutions to stop
  • Hiding purchases from loved ones 
  • Experiencing more excitement in purchasing than owning 
  • Feeling let down or shame after buying something
  • Buying things not needed, not using what’s bought
  • Suffering relationship problems due to spending
  • Feeling ashamed of the spending problem
  • Getting agitated or excited when shopping
  • Feeling that the next big purchase will improve life 
  • Shopping is the primary or only means to cope with stress

A Change of Heart 

To help your spouse identify if he/she is struggling with materialism, consider doing an online Crown study together. Typically, the behavior will not change until the heart is transformed. In my own experience, I had to repent of the control money had over my life. I surrendered my life to the Lord’s control in order to escape my double-mindedness. 

Practical Tips 

Ask your spouse to consider some of the steps that will bring impulsive buying or compulsive spending under control. 

Pick a stress-free time and environment to set goals. Write them down, and post them in a visible place. Then, create a budget. Honor God and one another by staying within the spending limits for each expense category. Learn to give first, and then, pay your bills; use automatic transfers to specific savings accounts. Discover what the Bible says about money, and ask the Lord to work in your situation. 

Track shopping sprees. Discover the triggers, and note what is purchased.

Avoid shopping—period. Find a healthier activity to substitute for the rush. If you must make a purchase, determine your needs, make a list, use cash, then exit immediately. Take a spouse or trustworthy friend with you. 

Stop using credit cards. Put them in a very, very inconvenient location. Unsubscribe from store emails, and avoid online shopping. Professional counseling may be necessary. Just remember, “No temptation has overtaken you that is not common to man. God is faithful, and he will not let you be tempted beyond your ability, but with the temptation, he will also provide the way of escape, that you may be able to endure it.” (1 Corinthians 10: 13 ESV) 

Aim to be humble and transparent, committing to honesty in all transactions. This removes distrust in relationships. Seek accountability with your spouse and the wisdom of an older couple. Learn good communication skills. (Check out the numerous resources available at RightNowMedia.org.) 

Learn to appreciate things money can’t buy—like nature, health, and relationships. Ask God to remove the impulses so that you can fulfill His purposes in your life. He is “able to do immeasurably more than all we ask or imagine, according to his power that is at work within us….” (Ephesians 3:20 ESV) 

Pray for an eternal perspective—that the things of this world would lose their luster. “Do not lay up for yourselves treasures on earth, where moths and rust destroy and where thieves break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. For where your treasure is, there your heart will be also.” (Matthew 6:19-20 ESV)

Christian Credit Counselors may be able to provide more guidance, as they are a trusted source of help to free individuals and families from the burden of credit card debt. 

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Debt, Economy, Money Management, Personal Goals

Ask Chuck: Coping With Economic Anxiety

By: Crown Financial Ministries

Dear Chuck,

I don’t think I have ever felt more uncertain about America’s economic future than I do now. Do you see any light at the end of the tunnel? My anxiety levels are growing! 

Anxious American

Dear Anxious American, 

Your question prompted me to see if there was some measurement of the sense of uncertainty that so many of us are feeling and I found one! The International Monetary Fund published a graphic of the “World Uncertainty Index” in context over the past 25 years. The interesting takeaway for me is that the index peaked with news of the Coronavirus but has decreased by about 60% since the middle of last year. Take a look:

The point is, you are not alone. The world is in a history-making shift right now and most of us are experiencing greater levels of concern and anxiety.

Dealing with Our Unknown Future 

If we focus our minds on all of the uncertainty we are truly in right now, it will no doubt breed anxiety. Financial anxiety begins when we start projecting how our future will be impacted by current events. Not knowing if our needs or expectations will be met creates worry. Dwelling on the unknown can propel us into a vortex of hopelessness. Doubt, disbelief, and negativity will eat away the peace and confidence that God wants us to experience. 

In July of 2020, AnxietyCentre.com released an article with data and facts worth reading to get an idea of how serious this issue is. It states:

According to The Economic Burden of Anxiety Disorders, a study commissioned by the ADAA and based on data gathered by the association and published in the Journal of Clinical Psychiatry, anxiety disorders cost the U.S. more than $42 billion a year, almost 1/3 of the $148 billion total mental health bill for the U.S.

Anxiety can raise its ugly head concerning health, money, education, careers, family, on and on. However, this is not new to humanity. An idiom came into use in North America during the mid-1800s. You’ve probably heard some form of it: “don’t borrow trouble.”  Worrying solves nothing. It wastes time and energy and distracts us from more important things. Most of what we worry about never happens and reveals our lack of trust.

That idiom is nothing new. The Bible addressed the issue centuries ago:

  •  “Anxiety in a man’s heart weighs him down, but a good word makes him glad.” (Proverbs 12:25 ESV)
  •  “When the cares of my heart are many, your consolations cheer my soul.” (Psalm 94:19 ESV)
  • “Therefore do not be anxious about tomorrow, for tomorrow will be anxious for itself. Sufficient for the day is its own trouble.” (Matthew 6:34 ESV)
  • “Humble yourselves, therefore, under the mighty hand of God so that at the proper time he may exalt you, casting all your anxieties on him, because he cares for you.” (1 Peter 5:6-7 ESV)

Because we cannot know the future, we will always be prone to experience financial anxiety if we dwell on all the “what if” scenarios that race through our minds. Here is a simple framework that may help. When financial anxiety is rising, remember S.O.S. Stop. Organize. Start. 

Stop!

If you are overspending, accumulating debt, and living with financial stress to make it to the end of the month, declare that you will stop repeating those mistakes now. This is the first step in gaining financial wisdom that will reduce your anxiety. Stopping is progress! 

Humble yourself and recognize your need to place full confidence in the Lord. Repent of mishandling the money He entrusted to you. Don’t blame others or beat yourself up. Simply agree that you want to discontinue old bad habits with your finances. 

Organize!

Make a plan to repair the problems you have created. They will not disappear by winning the lottery or ignoring them. Get help and seek training to address your issues and establish goals. 

Begin a process to right the wrongs. Ask the Lord to help you persevere through this step with discipline, self-control, and hope. This will reduce your anxiety even more. God promised that we will experience tribulations and storms but He will never leave us or forsake us.

Start!

Once you have stopped and organized, you are 2/3 of the way there. God wants you to start doing what is good and faithful with money. His goal is not that we simply have freedom, but that we use money for His purposes, not our own. 

It can be helpful to find wise mentors and gain knowledge from others who can guide and encourage you. Prioritize your life around the basic principles of giving first, saving second, and living on the rest. Restructure your lifestyle within a defined budget and renew your mind daily. 

Light at the End of the Tunnel

I truly do not know what lies ahead, although I enjoy watching trends and keeping up with events that threaten our financial future. I just released a new book called 7 Gray Swans where I discuss many of these trends. I also know that there is always a reason for hope. Most of what we worry about will never happen. If it does, God will work it together for our good. We can find His Light shining brightly, no matter how dark our circumstances may seem. 

We offer a variety of online courses and other resources to ground you in Biblical financial principles and fortify you for the days ahead. Christian Credit Counselors can help you eliminate credit card debt. Their Christ-centered values and experienced team of professional counselors can help you overhaul your finances. That step alone will reduce your anxiety.  

Pray for our nation. We are in a turbulent time. We need you and all believers to be the salt and light that Jesus created us to be for such a time as this.

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Budgeting, Debt, Money Management, Saving

4 Steps to Spend Your Stimulus Check and Tax Refund Wisely

By: America Saves

Most Americans don’t have an emergency fund. While we’re all experiencing this pandemic very differently — some having only minor inconveniences and others finding themselves without a job or having to close their business — those without a savings cushion are vulnerable to feeling the ramifications of COVID-19 for a very long time.

With stimulus checks and tax refunds on the way, there will be tough financial decisions to make once received. Here are active steps you can take, along with things to consider to help you develop a solid spending plan.

  1. Make a list of all expenses

Write out every single expense that you have, including essentials like food and utilities. Be sure to go through your checking and savings account history to make sure you don’t have any “vampire” expenses, like monthly subscriptions that you may have forgotten about and no longer need.

  1. Talk to all creditors and lenders

The CARES Act puts into effect two mortgage relief provisions: protection from foreclosure, and a right to forbearance (pausing or making partial payments) for those experiencing loss of income due to COVID-19. However, the provisions are not automatic and are only for federal loans, so you MUST talk to your lender.

If a creditor/lender offers you a payment plan or other relief, make sure you get it in writing and take note of the names and dates of the customer service representatives with whom you speak.

Thankfully, some utility companies have announced they won’t cut off services if they aren’t being paid. Be sure you know all of your utility and service providers’ stance on this, so there are no surprises. You don’t want to make any assumptions.

If you cannot afford your DMP payments, contact your creditors directly to request for deferment on your credit cards. This will prevent your account from falling (further) past due and help to maintain your credit score. Creditors are making payment exceptions on a case by case basis. If you are granted a deferment from your creditors, please contact your CCC representative so that they can adjust your DMP payments.

  1. Prioritize expenses

Expenses relating to food, shelter, and medicine should come first. This would include mortgage, rent, utilities, groceries, diapers, and medications. It also includes medical insurance premiums and homeowners/renter’s insurance.

If you need childcare to work, that is another essential expense. Next in line are auto-related expenses, including transportation, gas, insurance premiums, and car payments.

Loans that are secured by collateral (for example, mortgages and auto loans) are generally considered more important than those without collateral, like consumer credit card debt. For example, if you don’t pay your mortgage, a bank can foreclose on your property; if you don’t pay your car loan, the bank can seize your car. While not paying your credit card bills will negatively affect your credit score, credit card companies will not come into your house and take your personal possessions.

Federal student loans are currently not accruing interest until September 30, 2020, and can be put into forbearance so that no payments are due. If you have a private or institutional loan, you will have to contact the lender for other options.

If you struggle to make the minimum payment on your credit card, call CCC at 800-557-1985 option 5 to add the account to the program for a total consolidation of your outstanding debts.

Expenses for “elective” items, like gym memberships, streaming services, and other subscriptions, come last. Before simply canceling a contract, make sure to contact the vendor – canceling may come with a hefty penalty, but you may be able to temporarily “pause” the service.

  1. Pay your debts in the order of priority.

Now that you know all your expenses, have prioritized them, and know your payment options with creditors and lenders, it’s time to make the payments in order of priority.

It’s important to note that many are still or will be receiving their tax refunds, too. If you receive a refund, you can apply the same process to that extra income.

Remember, there is no prepayment penalty on your Debt Management Program! Contact your CCC representative to apply your stimulus check and/or tax refund toward your balances and pay off your debts.

If you are still unsure or are overwhelmed with where to start, use our decision tree for guidance on what to do with your stimulus check and/or tax refund.

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Credit Cards, Credit Counseling, Debt, Debt Consolidation, Debt Settlement, Finance, Loans, Money Management, Mortgage, Student Loans

Protect Yourself Financially from the Impact of COVID-19

By: Consumer Financial Protection Bureau (CFPB)

Steps to take if you have trouble paying your bills or meeting other financial obligations

If you have trouble paying your bills/loans or paying on time, there may be a number of options to help, especially if you reach out early to your lenders or creditors.

Contact your lenders, loan servicers, and other creditors

If you’re not able to pay your bills on time check their websites, to see if they have information that can help you.

The CFPB and other financial regulators have encouraged financial institutions to work with their customers to meet their community needs.

If you can’t make a payment now, need more time, or want to discuss payment options, contact your lenders and servicers to let them know about your situation. Being behind on your payments can have a lasting impact on your credit.

Credit card companies and lenders may be able to offer you a number of options to help you. This could include waiving certain fees like ATM, overdrafts, and late fees, as well as allowing you to delay, adjust, or skip some payments.

When contacting your lenders, be prepared to explain:

  • Your financial and employment situation
  • How much you can afford to pay
  • When you’re likely to be able to restart regular payments
  • Be prepared to discuss your income, expenses, and assets

Work with housing and credit counselors to understand your options

These trained professionals provide advice for little or no cost, and they will work with you to discuss your situation, evaluate options, and even help you negotiate with your lenders and servicers.

Warning: If you’re considering working with a debt settlement company to address your debts, be skeptical of any company that promises to do it for an upfront fee.

Trouble paying your mortgage?

If you can’t pay your mortgage, or can only pay a portion, contact your mortgage servicer.

It may take a while to get a loan servicer on the phone. Loan servicers are experiencing a high call volume and may also be impacted by the pandemic.

Visit our blog on mortgage relief options for in-depth content to help you understand your forbearance options and avoid foreclosure in light of the coronavirus and the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act.

If you are renting from an owner who has a federally backed mortgage, the CARES Act provides for a suspension or moratorium on evictions. Read more in our renter section of the mortgage relief blog.

Trouble paying your student loans?

If you have student loans, you have options.

If your loan is held by the federal government, your loan payments are postponed with no interest until September 30, 2020.

For other kinds of student loans (such as a federal student loan held by a commercial lender or the institution you attend, or a private student loan held by a bank, credit union, school, or other private entity) contact your student loan servicer to find out more about your options.

Read our FAQs to learn more about what you can do.

Trouble paying your credit cards?

If you’re unable to pay your credit cards, talk with your credit card company and let them know that you cannot make a payment. You may get relief.

You may also want to work with a credit counselor. Reputable credit counseling organizations are generally non-profit organizations that can advise you on your money and debts, and help you with a budget. Some may also help you negotiate with creditors. There are specific questions to ask to help you find a credit counseling organization to work with.

Trouble paying your auto loan?

Your lender may have options that will help. Our tips include changing the date of your payment, requesting a payment plan, and asking for a payment extension

How to work with your bank or credit union

With many of us staying home to help flatten the coronavirus curve, online banking allows you to handle your finances from the comfort of home. Here are some tips for people who are new to online or mobile banking.

Generally, all bank deposits up to $250,000 are insured by the Federal Deposit Insurance Corporation. Deposits at all federal credit unions, and the vast majority of state-chartered credit unions, are also insured up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF).

How to work with debt collectors

If you currently have a debt in collections, you can work with collectors to identify a realistic repayment plan.

The Bureau offers a number of resources for contacting and negotiating with debt collection companies, especially as we deal with the impact of the coronavirus.

What to do if you lose your income

State and local governments vary in the programs and offerings to help those financially impacted by the coronavirus.

You can look to your state’s unemployment policies to identify current options for benefits. The recently passed CARES Act allows states to extend benefits to self-employed and gig workers, and to provide an extra $600 per week as well as an additional 13 weeks of benefits. Your state’s public health office may also have information.

Older adults may be impacted by the coronavirus and quarantine procedures in different ways than the general public. There may be government benefits available to older adults who need financial help. Visit benefitscheckup.org for more information and to see if you qualify for any state or local assistance.

Be aware of potential scam attempts

Scammers look for opportunities to take advantage of the vulnerable, especially during times of emergencies or natural disasters. Be cautious of emails, texts, or social media posts that may be selling fake products or information about emerging coronavirus cases.

Click here for more information on scams specific to the coronavirus.

The Federal Trade Commission has tips to protect yourself from possible coronavirus-related scams. The FTC and the Food and Drug Administration have also cautioned consumers to be on the look-out for sellers of unapproved and misbranded products, claiming they can treat or prevent coronavirus.

Learn more about how to prevent, recognize, and report fraud and scams.

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Debt, Money Management, National Debt

Ask Chuck: The Bible, Money, and Love

By Chuck Bentley, Crown Financial Ministries

Dear Chuck,

I’m growing weary of our society’s overuse (and misuse) of the word love. I hear and see it in advertising, on social media, and in conversations. If the first and greatest commandment is to love the Lord our God, it appears we’ve confused our priorities. It appears we love money more than Him or His word.  

Love is in the Air 

Dear Love is in the Air, 

Thank you for the great question. I chose to answer your question so I could talk about love and money on Valentine’s Day. Did you know, Americans will spend an estimated $50 billion dollars on Valentine’s Day gifts and activities to show their love to a special loved one. My wife prefers that I save the money for chocolate or flowers on this day and show love throughout the year. 

Love and Money

You have identified a significant problem. When love becomes misunderstood or misdirected, we all suffer. Staggering debt levels, lack of savings, and rising stress suggest we have a spending problem and a heart problem. Even recently, experts have declared that when consumption turns into consumerism, it becomes a social disease. 

The enemy has convinced people that things will bring happiness. Yet, throughout Scripture, God warns us not to be led astray. He tells us:

  • Love God and others
  • Pursue love
  • Guard ourselves
  • Don’t love the world
  • Don’t love money
  • Life does not consist in the abundance of possessions

Just this week, the Wall Street Journal released information that hints at Americans’ disobedience and confused priorities. Credit card debt rose to record highs during the last quarter of 2019. Spurred by a seemingly strong economy and job market, spending increased dramatically. Unfortunately, the number of delinquent payments rose too. Consider this statistic cited in the article:

“Total credit card balances increased by $46 billion to $930 billion, well above the previous peak seen before the 2008 financial crisis, according to data released by the Federal Reserve Bank of New York on Tuesday.”

Debt brings stress and bondage. People are unable to live as God designed when they are strapped with debt. In today’s world that includes credit card debt, student loan debt, car loans, mortgages, personal and payday loans. It prevents many from saving money to be used as God directs. Bankrate’s recent poll shows that only 41% of Americans could cover a $1,000 emergency with savings. 

The Apostle Paul wrote: “You will be enriched in every way to be generous in every way, which through us will produce thanksgiving to God.” (2 Corinthians 9:11 ESV)

There’s only one reason God supplies a surplus of wealth to a Christian: so that he or she will have enough to provide for the needs of others. True wealth comes with the responsibility of giving. God promises blessings to all who freely give and His curse on those who hoard, steal, covet, or idolize.

Giving is the foundation of a life lived in selfless devotion to others. It fulfills the second greatest commandment, to love our neighbor as ourselves. Preoccupation with things of this world gets us sidetracked. We lose sight of our final destination and the purpose for which God has us here. 

Billions of dollars dedicated to credit card spending confirm that we have confused our wants and needs. We have forgotten our neighbor and the Lord’s statement: “It is more blessed to give than to receive” (Acts 20:35 ESV)

When asked about the greatest commandment, Jesus answered: “..you shall love the Lord your God with all your heart and with all your soul and with all your mind and with all your strength.” (Mark 12: 30 ESV)

Divided hearts have divided priorities and those are evident in the way we handle money. That is why He teaches us in Hebrews 13:5 “Keep your lives free from the love of money and be content with what you have because God has said, ‘Never will I leave you; never will I forsake you.’” (NIV) Here is a simple test to know if you love God or money. How do you react when you lose money? Are you in a panic, upset or even angry? Remember, our hope is in God, not the money that he provides. Money will leave us; He will not.

Save Your Way Out of Debt

One way to reduce stress is through automatic saving. The Eli app is a tool that can improve your financial health so you can experience greater levels of freedom in your life. Check out the new Eli app to begin an automatic savings program to reduce your stress and increase your freedom to love God and others as you faithfully pay off your debt. 

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Credit Score, Debt, Finance, Money Management

How Credit Score Can Affect Relationships

By NACCC

Personal finances are rarely discussed but often the biggest strain on a couple. Even in early courtships, a newly dating couple may fret over who will pay for dinner, or have different tastes in entertainment based on affordability. Topics such as careers, hobbies, and interests can easily spill into money talk. Money is just as important as other relationship issues such as family and personal interests.

Whether you’re spending your Valentine’s Day with a long-term partner or having a first date, a conversation about credit scores can provide valuable insight to be considered for relationship planning. Credit scores are always assigned to an individual, never a couple. But joint accounts can have an effect on those individual credit scores.

Credit Score Disparities Can Predict Future Relationship Problems

According to a report by the Federal Reserve, couples with similar credit scores are more likely to stay together, while those with a larger disparity are more likely to separate. Differing spending habits, opposing views on debt and other financial problems can cause stress on the relationship that those with similar credit scores are less likely to experience.

Examples of difficulties these couples may face could include:

  • Lingering debt from the past
  • Poor spending habits
  • Disparities in household financial contributions
  • Difficulty obtaining a mortgage or other important loan together
  • Hiding or avoiding spending, debt or other financial issues
  • Bills and expenses
  • General financial stress

Of course, we aren’t suggesting to dump your partner at the slightest score difference. But it’s important to communicate with each other about personal finance and plan appropriately. If a partner has a low credit score (or no credit), what steps can be taken to improve the score for the long-term? Relationships are about working together, and a partner with a higher score may be able to provide advice and suggestions to a partner with a lower score.

It Takes Trust, but a Low Score isn’t the End

If there is a large disparity in credit scores, both partners should evaluate whether they are prepared and willing to provide the support, communication, and shared responsibility required to fix the credit problem.

Committed couples can move forward with confidence by working together to build both of their credit scores. Two quick strategies for building credit include:

  • Having the partner with the higher credit score add the partner with the lower credit score as an authorized user on a credit card (this method requires a lot of trust!)
    • Remember, married couples do not share a credit score, but behavior in joint accounts can affect both partners’ scores.
  • Using a secured credit card to build credit

If one or both partners have debt, they should work together to develop a spending plan that leaves additional income to pay off the debt. For those in debt, paying off the debt is the best way to improve a credit score.

If one or both partners are struggling in their career, they can come up with a plan to support each other while working towards more prosperous career goals. Couples can turn a weak credit score into a strength by using it to incorporate accountability, good habits, and stronger trust in their relationship.

Conversation is Key

Overall, couples need to communicate about money to maintain a successful relationship. Just like with personal finance issues, avoiding the matter doesn’t solve problems or build wealth. Couples should discuss:

  • Existing debt
  • Joint accounts
  • Credit accounts
  • Spending habits (both good and bad)
  • Major purchases
  • Bills and household expenses

This leads couples towards better financial planning and spending habits as they move forward.

Couples can start with small discussions in the early stages, and then move on to larger discussions later. For example, a couple in the beginning stages of a relationship could discuss the cost of dinner, or compare the costs of phone, cable or utility bills. They may talk about debt or salary, but not go into the specifics or the numbers. Couples in more committed stages can begin more difficult conversations about existing debt, bank accounts, and long-term planning.

If a partner is unwilling to discuss finances or is quiet on the subject, the other partner can start small by mentioning their own personal finances and ask for thoughts and opinions.

At times, there will be misunderstandings and frustrations. Remember that no two people share the same financial education. Financial knowledge that may seem simple and obvious to one partner may be an entirely new concept to the other. Use money talk as a learning opportunity and a habit to build on stronger communication skills.

Everyone has different financial paths. When two paths join, they decide where to go next, together.

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Debt

How to tell the difference between a legitimate debt collector and scammers

By: CFPB

Dealing with debt collection issues can be challenging—especially when you’re not sure if the person you’re being contacted by is legitimate or trying to scam you.

When an account like a credit card, auto loan, or cell phone bill becomes past due, the original creditor may attempt to collect the amount owed. The creditor may also hire a debt collector or sell the debt to someone who may try to collect the debt. While there are many legitimate debt collectors in the financial marketplace, there are also scammers who may try to get you to pay on debts that you don’t owe or on debts that don’t even exist.

Warning signs of debt collection scams

1. Withholds information from you

A debt collector must tell you information such as the name of the creditor, the amount owed, and that if you dispute the debt, the debt collector will have to obtain verification of the debt. If the debt collector does not provide this information during the initial contact with you, they are required to send you a written notice within five days of that initial contact.

2. Pressures you to pay by money transfer or prepaid card

Scammers like these payment methods because they may be untraceable, and it can be hard for you to get your money back.

3. Falsely threatens you with jail time or poses as a government official

But beware, if the debt comes from the criminal justice system, it is possible that failure to pay may result in your arrest.

4. Says they will tell your family, friends, and employer 

Some scammers may try to get you to pay by threatening to reveal your debts to family, friends, coworkers, or employers. A debt collector is generally not allowed to tell other people about your debt without your permission. They can only ask others about your whereabouts to try and contact you.

5. You don’t recognize the debt that the person claims you owe money for

Ask questions to make sure the debt is one that you owe.

6. Asks you for sensitive personal financial information

Such as your bank account, routing numbers, or Social Security numbers. You should never provide anyone with your personal financial information unless you are sure they’re legitimate. Scammers can use your information to commit identity theft.

7. Calls you at inconvenient times

Debt collectors cannot call you at an unusual time or place or at a time or place they know is inconvenient to you. You might be dealing with a scammer if you are called before 8 a.m. or after 9 p.m.

Learn how to protect yourself

1. Ask for a callback number

If you’re uncomfortable providing any information, you can request the caller’s name, company name, street address, and a callback number. You can use this information to verify that they are not a scammer before providing any personal information. Also, if you call back and the business doesn’t answer as the name they provided to you or it’s a nonfunctioning number, it could be a scam.

2. Make sure you have been given information about the debt before you pay

Make sure you have been given information or have received the written notice with information about the debt before you pay anything.

3. Contact your original creditor

If you suspect you are dealing with a scammer, contact the creditor the debt collector claims to be working for and find out who has been assigned to collect the debt.

4. Check your credit report for the account in question

You are entitled to a free credit report every 12 months from each of the three major consumer reporting companies. To get your free credit report authorized by law, go to AnnualCreditReport.com or call (877) 322-8228. Keep in mind that not all debt collectors and creditors provide information to the credit reporting companies. If the debt is not on your credit report, that does not necessarily mean the debt is not valid.

5. Understand your rights

The Fair Debt Collection Practices Act prohibits debt collectors from engaging in a variety of practices, such as misrepresenting the debt, falsely claiming to be a lawyer, or using obscene or profane language when trying to collect a debt.

6. Submit a complaint

If you have received a suspicious call or think you’ve been the victim of a debt collection scam, you can submit a complaint with the Federal Trade Commission or you can contact your state Attorney General’s office.

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