Budgeting, Economy, Finance, Money Management, National Debt, Saving

Ask Chuck: Practical Advice During the COVID-19 Crisis

By: Crown Financial Ministries

Dear Chuck,

Many of the young people in my Bible Study are frightened of the Coronavirus and the threat to their families. I understand their fear. But, as an older American, I’m also concerned about their economic well-being in the aftermath of this crisis. What kind of financial advice can I offer them?

Sheltered in The Storm

Dear Sheltered in the Storm, 

We have two crises happening now and you have properly identified the third one. First, the virus has created a very real health crisis. Second, the shutdown of the economy has created a very present economic crisis and third, the government bailout will put us at risk of a future debt crisis and threat to the global economy. 

As Thomas Sowell said about our current challenges, “We do not have good choices, we simply have trade-offs.” 

Living on the Edge

The Coronavirus has revealed the financial unpreparedness of millions of citizens. Aaron Zitner, at the Wall Street Journal, reports: “Some 15% of Americans have used, or plan to use, either short-term loans or credit cards that they don’t know they can repay in order to buy emergency goods to deal with the outbreak, a survey by NORC at the University of Chicago found.” He says others rely on savings or plan to divert money set aside for other things.

It is my hope that many Americans have been better prepared for this event after making financial adjustments following the Great Recession, which started in 2008, by paying off debt, increasing savings, and living within their means. Either way, here are some practical and spiritual insights for the young people in your Bible study. 

Establish Essentials as Priority

Everyone’s situation is different. Let’s help the young people understand how to deal with the current economic crisis, and we will deal with the long-term consequences of the bailout later. Here’s how I would attempt to help those in your Bible study when meeting one-on-one. 

Regardless of what’s happening in the world, everyone needs food and shelter. Pay the bills that provide food, home, and necessary utilities. This is a time to sacrifice wants to provide for needs.

Most middle-income families will receive some sort of government assistance money. Establish or grow your emergency savings account. Always keep it resupplied as you are able. 

With job cuts right now, childcare and transportation costs may drop significantly. If possible, save that money in an emergency fund for future needs. Even a small amount in a savings account will reduce financial stress and grant margin in your life. Exercising self-control (a fruit of the Spirit) will boost your confidence and grant hope.

Face your bills with courage and hope. Pray over them and ask God to work in miraculous ways knowing He is able to do far more than you can imagine. Avoid fear and anxiety with this verse:

“Rejoice in hope, be patient in tribulation, be constant in prayer.” (Romans 12:12 ESV)

Practical Steps 

  • Limit social media to avoid online shopping. Don’t give in to your (or your children’s) wants right now. Lead by example in love.
  • Student loans: this may be the time to refinance.
  • Debt: negotiate with lenders to reduce your interest rate or balance. Seek to eliminate penalties. Demonstrate your intent to pay. Avoid maxing out credit cards. Consider balance transfers but read all the fine print. Set a goal to eliminate the debt and the method to get there (I recommend the snowball or avalanche methods). Contact Christian Credit Counselors if you are falling behind. 
  • Insurance: assess coverage and negotiate the cost. Some coverages may not be a necessity or deductibles may need to be raised to lower premium costs. 
  • Make a will. Don’t procrastinate.
  • Save: deposit something weekly, or every other week, to develop the habit. Get a fireproof, waterproof safe to keep some cash at home at all times. I recommend one month of living expenses. 
  • Wisely use your government check if you have an emergency savings account: give a portion, pay current bills, and pay down debt.
  • Income tax filing has been postponed until July 15th. If you owe money, set that money aside in a separate account.
  • Ask for help. Trade skills: haircuts for food, tutoring for computer help, etc.
  • Sell what you don’t need. Facebook Marketplace and Craigslist make it easy. Do it safely by meeting buyers in a grocery or government parking lot during daylight hours.
  • Look for opportunities. This may be the best time to start a business or take on greater responsibility at your current place of employment. Learn new skills. Take advantage of online classes. Educate yourself by reading, listening to books, watching Ted Talks, and documentaries.
  • Be generous. There are many suffering at this time. Be exceptionally generous while also being wise and discerning.

Hope for Troubling Times 

Those who are frightened, worried, angry, or frustrated must remember they are not alone. God has not left us on our own. In fact, idols are being revealed and priorities analyzed. It’s time to reorient our lives.

We all know we should live one day at a time. That requires taking one step at a time. But, what if fear overwhelms you and you don’t know what steps to take?

Imagine a sailboat drifting in the center of a large lake with no apparent destination in sight. It rocks back and forth, back and forth, unable to move forward. Suddenly, the wind begins to blow. The sails of the boat filled with air. The sailor takes action and strategically directs the boat to the desired destination. The boat glides effortlessly while the sailor works with the wind to safely arrive to shore.

The Holy Spirit is the wind. He fills our sails enabling us to know when and how to move forward. Filled with hope, we develop perspective and work toward our destination.

“May the God of hope fill you with all joy and peace in believing, so that by the power of the Holy Spirit you may abound in hope.” (Romans 15:13 ESV) 

Not Our First Rodeo

Like you, I have lived long enough to have experienced a number of crises in my life. As my friend said, “this is not my first rodeo, but this is the first time I have ever ridden this horse!” We are living through something the world has never experienced. It’s an opportunity to trust God with all our heart. May He fill you and me with all hope so we can proclaim His goodness. 

 “…we rejoice in our sufferings, knowing that suffering produces endurance, and endurance produces character, and character produces hope, and hope does not put us to shame, because God’s love has been poured into our hearts through the Holy Spirit who has been given to us.” (Romans 5:3-5 ESV)

For anyone struggling with credit card debt, get in touch with our partners at Christian Credit Counselors. They can advocate for you, helping lower payments, and organize your debt. Start your free debt analysis today.

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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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Activities, Budgeting, Christian Credit Counselors, College Debt, Community, Consumer, Credit, Credit Cards, Credit Counseling, Credit Score, Debit & Your Credit Score, Debt, Debt Consolidation, Debt Settlement, Economy, Finance, Goals, Holiday Tips, Money Management, National Debt, Personal Goals, Saving, Student Loans, Taxes

Managing Your Student Loans Wisely: A Great and Unique Gift for Mother’s Day

By: Brittany Frost

What greater gift is there than the joy of seeing your child become financially responsible and independent throughout and after their college years? If you are looking for a unique and great gift to give your mother on May 8th for Mother’s Day this year, consider the gift of managing your student loans wisely. Instead of spending money on the gift, you’ll be saving it. Managing your student loans during and after college can help you avoid extra costs and interest as well as reduce your overall debt. Saving money and achieving your financial goals is not only a great gift to the mothers who are able to contribute to their child’s education, but also for the mothers who so desperately want to help but don’t have the means to do so. Here are a few tips to manage your student loans wisely this Mother’s Day:

 

• Before you even take out a student loan, apply for as many scholarships and grants as possible. This alone can save you (and your mom) a lot of money. Visit your school’s website or www.studentaid.ed.gov to view federal grants and scholarships.

• If you still need a loan, research loan types and repayment plans to make an informed decision. In general, federal student loans can have more repayment options and lower interest rates than private student loans. For more information on federal student loans and repayment plans as well as budgeting resources and calculators, visit www.studentaid.ed.gov.

• Budget and plan ahead. For more help budgeting for your student loans, contact Christian Credit Counselors at www.christiancreditcounselors.org.

• Use other free resources. According to the recent article Baylor University Partners with iGrad to Implement Online Financial Literacy Education Initiative by Jo-Carolyn Goode, Baylor will team up with iGrad, a financial literacy leader, to offer interactive workshops about budgets, scholarships, student loans, applying for jobs to help students pay for school, and a seminar for seniors to discuss loan payment options after graduation through iGrad’s financial literacy platform. For more information, visit www.igrad.com.

• When repaying your loan, consider an automatic payment deduction to save money on your payment. Also, put as much money as you can toward your payments. Each extra dollar paid toward your student loan payment each month can help overall.

• Since it is tax season, remember that student loan interest is tax-deductible and there are credits and deductions for parents and students. According to the College Board in Danielle Douglas-Gabriel’s article in the Washington Post entitled Paying for college? Have student loans? Here’s what you need to know before filing your taxes, the average family saved about $1,460 in education credits and deductions in 2013. To research various options of increasing your savings through tax credits and deductions such as the American Opportunity Tax Credit and the Student Loan Interest Deduction, refer to www.irs.gov. See how much you can save!

By using these tips and managing your student loans responsibly, you will not only save money but you will provide valuable peace of mind for you and your mother. That’s something that you won’t be able to buy at the Hallmark store!

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Credit Counseling
Credit Cards, Credit Counseling, Debt, National Debt

Credit Counseling and Rising Debt

Debt and Credit Counseling

Household debt is reaching unsustainable levels, according to a report by NerdWallet. Another article in The New York Post states the average household debt in the U.S. is about $16,000. By arranging credit counseling or yourself and your family, it is possible to deal with staggering credit card debt. Most Americans pay a lot of money to cover interest charges over the years.

Though, those statistics only take into account families carrying debt. Experts point out many Americans defaulted on their credit card debt in 2008 during the Great Recession. Instead of declaring bankruptcy, a positive solution is debt consolidation. A trained and certified credit counselor helps you avoid debt settlement scams and bankruptcy.

Credit Card Debt and Your Roth IRA

According to some reports, many Americans pay as much as 20 percent every month in interest. The best way to deal with staggering debt is to consolidate your payments through a debt settlement plan. Your creditors typically agree to lower the interest rate while you pay back the money you owe. The plan is simple because you only make one payment every month to satisfy all your credit card creditors. With an automated payment plan, the process becomes simple and stress-free.

According to the report, American households pay more than $6,000 a year in interest. With an extra $6,000 each year, you can easily max out a Roth IRA or other retirement account as well as save for the future.

Revolving Credit Card Debt

According to an article in Mainstreet, paying down credit card debt is a top priority for Americans. But it could take up to 40 years for some families to pay down their credit cards, if they only pay their minimum payments every month. With the New Year on the horizon, make paying off debt a resolution.

With credit counseling, you learn how to stop the revolving credit card debt trap. A debt consolidation plan stops the bad cycle because you stop using credit cards as you pay off a debt management plan.

 

Do you want to know more about debt and how you can make smart financial decisions now that will help you secure a more prosperous financial future? Sign up for our newsletter for monthly money tips.

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