Humorist Ogden Nash once wrote, Some debts are fun when you are acquiring them, but none are fun when you set about retiring them. There’s no question that it’s easier to get into debt than to get out of it. Ron Blue joins Rob West to discuss what the Bible has to say about debt.

Ron Blue is an author speaker and the co-founder of Kingdom Advisors.

A HEART ISSUE

Debt is more than just a money problem. Ron Blue says it is symptomatic of deeper issues. Money issues are heart issues. Debt is a money issue telling us that something in our heart is resulting in a problem in our wallet.

We can't fix our financial mess or the heart issue behind it if we don't first stop to diagnose it and then deal with it. It's worth a bit of delay to fix what is really the problemfor our wallets and our hearts.

Sometimes debt indicates a prevailing lack of contentment. Often it reveals a lack of self-discipline or pride. Other times it is motivated by a desire to be accepted. Debt can reveal someone's need to control a certain situation or be a symptom of short-term thinking over long-term planning.

Whatever the root cause of your debt, there is grace in Christ to face it head-on and to overcome it.

DEBT IS NOT A SIN, BUT THE BIBLE WARNS US ABOUT IT

The Bible doesn’t call going into debt a sin. But God always wants the best for us, so in His Word, He’s put a lot of warnings about debt.

Here are a few of them:

First, debt enslaves us. "The rich rule over the poor, and the borrower is a slave to the lender" (Prov. 22:7). Debt obligates usdeeplyto the point of being a "slave" to the one who has loaned us money. When we have debt, we legally owe the lender first before we pay for anything else.

Second, debt must be repaid. The alternative to repaying debt is tangible, material loss. "Don't be one of those who enter agreements, who put up security for loans. If you have no money to pay, even your bed will be taken from under you" (Prov. 22:26-27).

The third warning is that there’s a real cost to borrowing. While debt seems "easy" in the moment, it always costs usmore and later. We pay dearly for today's desires because we pay using tomorrow's income, but with the added burden of interest on top.

Debt is an easy path to a harder tomorrow. Jesus warned against dismissing the real cost of our choices when He said, "For which of you, wanting to build a tower, doesn't first sit down and calculate the cost to see if he has enough to complete it? (Luke 14:28).

The fourth warning is that debt presumes on the future. We can’t know what the future holds. When we choose debt, we place undue confidence in an unknown future.

James 4:13-14 warns against this type of presumption. "Come now, you who say, 'Today or tomorrow we will travel to such and such a city and spend a year there and do business and make a profit.' You don't even know what tomorrow will bringwhat your life will be! For you are like smoke that appears for a little while, then vanishes."

But perhaps the reason the Bible doesn’t call debt a sin is that not all debt is bad.

Debt might make sense if the economic return is greater than the economic cost, such as a loan to start a business or get an education. Or a house that we expect to appreciate.

If there is spiritual peace of mind and the decision does not violate biblical principles, taking out a loan might make sense in those circumstances.

And finally, debt may be okay if it provides a solution for goals and objectives that can't be met in any other obvious way, like a medical emergency or job loss.

But any other kind of debt is not good. Avoid it!

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

● Does it make sense to take money out of an IRA to invest it in gold?

● How does your income throughout your career affect your Social Security payments in retirement?

RESOURCES MENTIONED

● Find a Certified Kingdom Advisor

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Christians live by faith, but when it comes to finances, that faith can be sorely tested. Financial fear can often rob us of the joy in peace the Lord wants us to experience. So today on MoneyWise, we’ll talk about replacing fear with faith.

We live in especially uncertain times, and many are nervous about what the future holds. When fear grips us, we may be tempted to take impulsive, fear-driven action, rather than trusting God.

Jeremiah 17:7-8 reads, Blessed is the man who trusts in the Lord, whose trust is the Lord. He is like a tree planted by water, that sends out its roots by the stream and is not anxious in the year of drought, for it does not cease to bear fruit.

Even Jesus’ disciples had financial fear. He tells them in Matthew 6:25, Do not be anxious about your life, what you will eat or what you will drink, nor about your body, what you will put on. Is not life more than food, and the body more than clothing?

THE DANGERS OF FEAR

Fear can lead to financial bondage. It begins when we think things and do things that indicate a lack of trust in God. He’s promised to meet not only our needs, but to give us the desires of our hearts as long as they match up with His will for us.

Fear may lead to poor communication and conflicting values between spouses, which will damage a marriage. It may lead to hoarding and a lack of generosity. It may cause you to unnecessarily scrimp and sacrifice, to covet money.

But let’s be clear, the Bible tells us that it’s wise to save for the future, for the day when age or illness prevent us from earning a living. The key is finding the right balance. We must do our part and trust God to do his part.

GOD IS WITH YOU

You can be sure that God is with you, even when you may feel overwhelmed by fear. His Word tells us repeatedly that He’s always with us. Joshua 1:9 reads, Be strong and courageous; do not be frightened or dismayed, for the Lord your God is with you wherever you go.

Faith is the opposite of fear. In Hebrews, faith is described as things that we hope for and things that we do not presently have. If we didn’t have needs, we wouldn’t need faith. But it’s God’s plan to teach us and strengthen us in faith, so He allows us to have needs so that we can learn to trust Him. Everything you experience is part of God’s plan for you.

In Hebrews 11:6 we’re told that God is a rewarder of those who seek Him. Every Christian must decide, do I really believe that? Do I really trust God or am I just saying I do? Believers must reject the tendency to put our trust in our bank accounts instead of God.

HOW TO FIGHT FEAR

Now, how do you fight the fear that leads to financial bondage?

First, stay in God’s word, ask Him for help, hope and direction. The goal should always be to know and live according to His plan for your life. Seek God in all things and let Him know you’re willing to trust Him when He makes His will clear. This isn’t a one time thing. It’s a process that requires constant study of His Word.

Next, make a conscious decision to act when God’s will becomes clear. This will be different for each of us. It may mean giving away something you need, or making a job change you hadn’t planned on, or putting off buying a bigger home.

Then, develop a long range perspective. God rarely works on the same timetable as we do, so it’s important that we learn what patience iswaiting on the Lord.

Joseph lying in an Egyptian jail understood God’s long-range plan even though he didn’t understand the timing and circumstances of it all. He had faith. In Matthew 6:34, Jesus tells us, ... do not be anxious for tomorrow; for tomorrow will care for itself. Each day has enough trouble of its own.

Finally, it’s been said that prayer is God’s secret weapon. Exercise the most powerful tool that God’s given us to unlock His blessings and power. It’s the most neglected part of Christian life.

Faith isn’t possible outside of prayer but with prayer all things are possible. 1 Thessalonians 5 teaches, Pray without ceasing; in everything give thanks; for this is God’s will for you in Christ Jesus.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

● How do you determine the best options to find handicap-accessible housing?

● Can you buy a house without a credit history?

● How do you figure out the best refinancing option for your home?

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

If you’re buying a home, should you take out a 15-year mortgage or a 30-year mortgage? Both options have their advantages and disadvantages, but is there another option you haven’t considered? We’ll discuss that today on MoneyWise.

15 or 30?

A recent article on the personal finance site Measure Twice Money gives the pros and cons of 15 vs. 30-year mortgages. It’s a debate that’s been raging for years.

The 15-year mortgage is paid off quicker and saves tons of interest. The 30-year is budget friendly but costs much more in the long run. So if the money’s in the budget, homebuyers often opt for the shorter-term mortgage. Crunch the numbers and you’ll see why.

BENEFITS AND DRAWBACKS OF BOTH

A 30-year loan for $300,000 at 3.5% interest and a monthly payment of $1,350 means you pay $185,000 in total interest over the life of the loan.

Your monthly payment is significantly lower than with a 15-year loan, but you’re paying for that benefit big time over the years.

If you choose the 15-year mortgage, the same loan at 3.5% interest would have a monthly payment of $2,150. That’s $700 more a month than the 30-year loan. But the total interest paid over the term of the mortgage would be only $86,000. That’s a huge reduction of $99,000 in total interest. No wonder people opt for the 15 if they can handle the payments.

Now, I know what you’re thinking the interest rate wouldn’t be 3.5% with a 15-year mortgage. The rate would be lower than the 30-year mortgage. And you’re right.

So let’s do the math again. With a 15-year, $300,000 loan at 3.0% interest, your monthly payment would be $2,070, and the total interest paid over the term of the mortgage would be only $73,000. That’s even more of an argument for the 15-year loan.

So the 15-year loan is great, but it does carry more risk than the 30-year. You’re assuming you won’t have a serious financial setback that prevents you from making those higher monthly payments.

A 30-year note has risk also, but not as much. You also pay a ton of extra interest for that reduction in risk.

But before you decide between them, consider a third option!

THE HYBRID APPROACH

That third option is the hybrid approach. The concept is simple: Get a 30-year mortgage, then pay it off like it’s a 15-year loan.

The 15-year mortgage has a lower interest rate and the 30-year mortgage has a lower monthly payment, but treating the 30 like a 15 gives you tremendous cash flow flexibility.

There’s a cost to this hybrid plan. If you go with the 30-year mortgage but pay it off exactly like a 15-year loan, your monthly payment would be a bit higher because the interest rate on a 30-year loan will likely be higher than a 15-year loan.

However, that cashflow flexibility can be a huge help when the unexpected strikes. The COVID pandemic has revealed in no uncertain terms that we cannot predict the future.

Of course, this hybrid approach isn’t for everybody. You may have already saved up the recommended 3 to 6 months’ living expenses in your emergency fund. You may have greater than normal job security. For you, a straight 15-year mortgage might make more sense. You would save money with a lower interest rate.

But if you’re in doubt, consider playing it safe and going with the 30-year mortgage. You can always make extra payments each month. Just be sure to designate that the extra money goes toward the principal of the loan.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

● How can you freeze your credit to protect against fraud?

● How does employment income impact social security income?

● What are fixed annuities and are they good investments?

● What are the best investment options for a retiree after cashing in a CD?

● Is there a particular age at which you no longer have to pay taxes?

● Are pension and 401k withdrawals always taxable?

RESOURCES MENTIONED

● Find a Certified Kingdom Advisor

● Sound Mind Investing

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Proverbs 18:15 reads, The mind of the prudent acquires knowledge, And the ear of the wise seeks knowledge. Faithful stewards of God’s resources have to know a few things about money. Fortunately, the Bible has more than 2300 verses on the subject. We can’t cover them all, but today on MoneyWise, we’ll give you a crash course.

DON’T IGNORE THE BIG STUFF: Sure, a penny saved is a penny earned, but a thousand dollars saved is a ton more. People are quick to drive to the next gas station to save a few buck on a fill-up. But did you know that most people don’t shop around for their mortgage? The majority take the first offer they’re given. That could cost you tens of thousands of dollars over the term of the loan. So don’t ignore the big stuff. Always try to get 2 or 3 offers when financing a home.

Proverbs 27:23 teaches, Know well the condition of your flocks, and pay attention to your herds.

TOMORROW DOESN’T COUNT: The next item we’ll call, Tomorrow doesn’t count. This one is for procrastinators who think that saving or investing will be easier in the future, so they put it off. But the decision to delay your investing is based on a false assumption that you’ll have more money available in the years ahead.

But often, your lifestyle or other expenses expand to consume any increase in income. So whatever challenges you see preventing you from investing now will probably get bigger in the future. For example, when someone gets a raise, they simply commit that extra money to some other immediate desire, like a new car.

Proverbs 27:1 says, Do not boast about tomorrow, for you do not know what a day may bring.

Another reason why tomorrow doesn’t count is that money invested today has the benefit of time for compound earnings. Don’t let your present rob your future.

PREPARE FOR THE INEVITABLE: The next item in our crash course on being a good steward is to Prepare for the inevitable. That means having an emergency fund of 3 to 6 months living expenses, which a lot of folks think is for unexpected expenses. That’s a myth. Emergencies like a medical condition or a job loss are bound to happen at some point. You can and should expect them.

Proverbs 22:3 tells us, The prudent see danger and take refuge, but the simple keep going and pay the penalty.

DOING TOO MUCH TOO FAST: The next item we’ll call, Doing too much too fast. Sometimes people who’ve gotten a late start on investing, for example, feel they have to play catch up. That could lead to making risky investments. Develop a long term, diversified investing plan and stick to it.

Proverbs 21:5 tells us, Steady plodding brings prosperity; hasty speculation brings poverty.

BUDGET: And speaking of plans, no crash course on stewardship would be complete without our next item the need for a spending plan. Yes, a budget!

Proverbs 24:27 reads, Prepare your work outside; get everything ready for yourself in the field, and after that build your house.

That means doing the basics first. Without preparing a realistic budget and sticking to it, you’ll overspend and go into debt. Without doing up a budget, not much else you try to do with your finances is going to work.

To meet all of your obligations, like housing, food, transportation, taxes and utilities, and then save for the future, you have to live on less than you earn. And you can’t do that unless you know what you’re spending each month.

TRACK YOUR SPENDING: Many people are shocked to discover how quickly little things add up to a very big number. So it’s vital to keep track of your spending. It’s really part of the budget process. Start by tracking all of your spending for 2 or 3 months. With an accurate picture of where your money’s going, you can make wise decisions about where to cut.

1 Corinthians 4:2 teaches, it is required of stewards that they be found trustworthy. And that starts with being honest with yourself about spending.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

● When is it wise to sell your current home to buy a fix-er-upper investment property?

● Is it wise to cash out stock given an uncertain future?

● Should a military veteran combine a TIAA cref and TSP account upon retirement?

● Is crypto currency a good investment?

RESOURCES MENTIONED

● The Sound Mind Investing Handbook

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Whenever you come into new money, perhaps from a raise or an inheritance, you have a decision to make. Do you use it to pay down your mortgage, or invest it? We’ll tackle that question today on MoneyWise.

Most folks probably lean toward investing those funds, thinking it always gives the better return. That seemed especially true over the last dozen years, with bull markets and low mortgage rates.

Still, analysts at MoneyGeek.com decided to put that theory to the test. They compared mortgage rates with SP 500 returns over a 43-year period. The findings showed that during certain times, paying down a mortgage actually gave better returns than investing in the market.

The span of time in the study was 1971 to 2013, and it revealed that paying down a mortgage, at any given year’s average interest rate, gave a better return than the SP 500 in 26 of those 43 years, or about 60-percent of the time. The longer period of time you make extra mortgage payments, the more likely your return will beat the market.

But over shorter periods within that 43-year range the market often wins. Take the last 10 years the SP 500’s average return of 14.3% is the clear winner over the average 30-year fixed mortgage rate of around 4.25%.

However, you would see quite the opposite if you look at the 10 years from 1997 to 2007. They saw the dot.com bubble burst and the lead-up to the Great Recession. In 10 out of 11 of those years, you’d have been better off paying down your mortgage than investing in the market.

Crunching the numbers further showed that in any 10-year span, paying down a mortgage beat the market 63% of the time.

Finally, there’s risk tolerance to consider. Investing in the market is often a rollercoaster ride and not the fun kind. If you can’t emotionally handle steep declines or your investment horizon is less than 5 years (10 is better), you shouldn’t be in the market.

Paying off your mortgage early may not be as thrilling as investing in Bitcoin, but on the plus side, there’s zero risk involved. You’re guaranteed a return equal to your mortgage interest rate and perhaps now a sense of relief that you’re probably not missing out on a bigger return somewhere else.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

● What is the best way to help a college student with expenses to allow them to graduate with minimal debt?

● What do you need to consider before purchasing investment properties?

● How should you go about estate planning when getting remarried?

● What is the wisest way to save or invest for emergency savings, college education and other expenses?

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Did you know that Christians gave a larger percentage of their income to their churches during the Great Depression than they do now? There’s no question that church giving isn’t where it should be. We’ll discuss what’s stopping us from giving more today on MoneyWise.

There’s no question that church giving suffered during the pandemic. While some churches actually experienced an increase in giving more than a third saw their weekly giving drop.

On average, Christians today are giving only about 2.5% of their income to the church, while during the darkest days of the Great Depression they gave 3.3%.

Most every Christian you ask will tell you they’d like to give more but something prevents them from doing it. The reason people cite most often is financial bondage.

FINANCIAL BONDAGE

Some say they’d like to even give sacrificially above the tithe, but they can’t. They have too much debt. Or they have some other financial limitation or obligation.

Financial bondage can show itself in many ways. Debt is the most obvious, but there’s also hoarding and just spending foolishly. The more debt you have, the more you hoard, and the more you spend, the less you’re able to give to God’s Kingdom.

Spiritual bondage is next. Our desires, our will, is not in tune with God’s will. As a result, we make life decisions that prevent us from giving more. In spiritual bondage, we simply want other things more than we want to give.

1 Timothy 6:10 warns us about spiritual bondage. It reads, For the love of money is a root of all sorts of evil, and some by longing for it have wandered away from the faith and pierced themselves with many griefs.

THE SOLUTION

The solution is to pray that the Holy Spirit helps align your will with God’s will. We should do this all the time, but especially when we feel convicted about giving.

The last obstacle is emotional bondage, or we might call it a lack of emotion. You just don’t feel passionate about giving. Our natural state is to not give. if you’re in emotional bondage, you might shy away from learning about giving opportunities because they make you uncomfortable. Instead, we should feel excited or emotional about giving. It’s a very tangible form of worship which we were designed to do.

Any or all of these obstacles, can limit how much you give. But you don’t have to allow it. You can get on your knees and ask God to make your will conform to His, to give you clear direction on how much you should give and where.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

● What is the best way to invest for a relative who is turning 18?

● What does it mean to move to a more conservative investment strategy and how do you do that?

● Does it make sense to refinance one VA loan into another VA loan?

● How can you ensure that a prenuptial agreement and a will don’t contain any conflicting information?

● How do you recover and move forward after many financial mistakes in a broken marriage?

RESOURCES MENTIONED

● Betterment

● Wealthfront

● NerdWallet

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Did you know that Christians gave a larger percentage of their income to their churches during the Great Depression than they do now? There’s no question that church giving isn’t where it should be. We’ll discuss what’s stopping us from giving more today on MoneyWise.

There’s no question that church giving suffered during the pandemic. While some churches actually experienced an increase in giving more than a third saw their weekly giving drop.

On average, Christians today are giving only about 2.5% of their income to the church, while during the darkest days of the Great Depression they gave 3.3%.

Most every Christian you ask will tell you they’d like to give more but something prevents them from doing it. The reason people cite most often is financial bondage.

FINANCIAL BONDAGE

Some say they’d like to even give sacrificially above the tithe, but they can’t. They have too much debt. Or they have some other financial limitation or obligation.

Financial bondage can show itself in many ways. Debt is the most obvious, but there’s also hoarding and just spending foolishly. The more debt you have, the more you hoard, and the more you spend, the less you’re able to give to God’s Kingdom.

Spiritual bondage is next. Our desires, our will, is not in tune with God’s will. As a result, we make life decisions that prevent us from giving more. In spiritual bondage, we simply want other things more than we want to give.

1 Timothy 6:10 warns us about spiritual bondage. It reads, For the love of money is a root of all sorts of evil, and some by longing for it have wandered away from the faith and pierced themselves with many griefs.

THE SOLUTION

The solution is to pray that the Holy Spirit helps align your will with God’s will. We should do this all the time, but especially when we feel convicted about giving.

The last obstacle is emotional bondage, or we might call it a lack of emotion. You just don’t feel passionate about giving. Our natural state is to not give. if you’re in emotional bondage, you might shy away from learning about giving opportunities because they make you uncomfortable. Instead, we should feel excited or emotional about giving. It’s a very tangible form of worship which we were designed to do.

Any or all of these obstacles, can limit how much you give. But you don’t have to allow it. You can get on your knees and ask God to make your will conform to His, to give you clear direction on how much you should give and where.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●What is the best way to invest for a relative who is turning 18?

●What does it mean to move to a more conservative investment strategy and how do you do that?

●Does it make sense to refinance one VA loan into another VA loan?

●How can you ensure that a prenuptial agreement and a will don’t contain any conflicting information?

●How do you recover and move forward after many financial mistakes in a broken marriage?

RESOURCES MENTIONED

●Betterment

●Wealthfront

●NerdWallet

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

If you're 5 or 10-thousand dollars in debt (or more) how do you pay it off? Today on MoneyWise, we’ll offer practical advice to help you get out of debt and stay out of debt for good!

If you find yourself deeply in debt, be encouraged! Matthew 19:26, Jesus says, with God all things are possible. And while paying off debt is no picnic, the rewards are great. And those rewards aren’t just financial. There’s great peace of mind in becoming debt free.

For today, we’ll focus on consumer debt, primarily credit cards. I said the rule for getting rid of it is simple, but by taking certain steps, you can make the process a lot easier.

YOU DO NOT HAVE BECAUSE YOU DO NOT ASK

Step one: Call your credit card issuer and simply ask for a lower rate.

The first step is tackling the one thing that slows down debt repayment the most, and that’s the interest you’re paying, especially on credit cards.

You’ll increase your chances of getting a lower rate if you have an offer for a balance transfer to another card in hand. Tell the customer service rep about the offer, and ask if they’d be willing to match the lower rate to keep you as a customer. It doesn’t always work, but sometimes it does.

If you’re turned down, don’t automatically do the balance transfer. You would only do that with a great deal of caution. Don’t even consider it unless you’re living on a budget and below your means. That means you’ve stopped using the credit card for at least six months.

TRANSFERRING A BALANCE

Let’s say you’ve already done that. You still have to find the right card to transfer to. Look for three things. After the introductory period expires, the new card must have a lower rate than what you’re paying now. It must also have no annual fee and finally, no balance transfer fee. A good place to start looking is atBankrate.com.

You also have to commit to closing the old credit card account immediately after the balance is transferred. If you don’t, opening up a new account will probably just lead to even more debt.

STARTING PAYING MORE THAN THE MINIMUM

The next step is to start paying more than the minimum on your credit card(s). Use the snowball method. You’re already on a budget, you’ve accounted for all of the minimum payments you have to make each month, and you know how much discretionary income you have left over.

You then put half of that discretionary income on top of the minimum payment for the card or debt with the lowest balance. Don’t worry about interest rates. Pay off the smallest balance first to get the psychological boost of making headway on your debt.

When the smallest balance is paid off, take half of your discretionary income each month (which is greater now) and put it on the smallest balance that’s left. When that’s paid off. Just keep repeating that process. Your debt reduction will pick up speed like a snowball rolling downhill.

BUILD YOUR EMERGENCY FUND

Again, only half of your discretionary income against your debt. With the other half, begin building up your emergency fund. Start putting money aside for things like car repairs, medical expenses, or a job loss things that drove you to use a credit card in the past.

Ultimately, you want to have 3 to 6 months living expenses in liquid assets where you can get to it if you need it. Put it in an online bank like Ally, Markus or Capital One 360 to earn a little better interest.

The next step is to reduce the temptation to use credit cards. Hide your credit cards. You can also switch to an all cash system. Get rid of the idea that you can use plastic to buy things.

Studies show that you’ll automatically spend up to 30-percent less using cash just because it’s harder to part with real money than it is to swipe a credit or debit card.

USE IT AND LOSE IT

Now, this last step is a bit drastic, but it’s one you may have to take. We call it Use it and lose it.

If anywhere in this process you use a credit card, you have to get rid of it or you’ll never make any progress.

The first time you buy something with a credit card, close the account. Your credit score will take a bit of a hit if you close an account while still owing a balance on it, but that’s okay. It will steadily go back up as you pay down your debt.

And if you still need help, contact our friends atChristianCreditCounselors.org. They’ll get you on a debt management plan and lower your interest rates so you can pay off the debt up to 80-percent faster than going it alone.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●Is there a rule of thumb to how much you should charge when selling your belongings?

●How do you know when it is financially responsible to start a business?

●How can you learn about student loan forgiveness for veterans?

●What is the best way to donate investment assets to a charity?

●What is the wisest way to get started in investing?

RESOURCES MENTIONED

●StudentAid.gov

●National Christian Foundation

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

If you're 5 or 10-thousand dollars in debt (or more) how do you pay it off? Today on MoneyWise, we’ll offer practical advice to help you get out of debt and stay out of debt for good!

If you find yourself deeply in debt, be encouraged! Matthew 19:26, Jesus says, with God all things are possible. And while paying off debt is no picnic, the rewards are great. And those rewards aren’t just financial. There’s great peace of mind in becoming debt free.

For today, we’ll focus on consumer debt, primarily credit cards. I said the rule for getting rid of it is simple, but by taking certain steps, you can make the process a lot easier.

YOU DO NOT HAVE BECAUSE YOU DO NOT ASK

Step one: Call your credit card issuer and simply ask for a lower rate.

The first step is tackling the one thing that slows down debt repayment the most, and that’s the interest you’re paying, especially on credit cards.

You’ll increase your chances of getting a lower rate if you have an offer for a balance transfer to another card in hand. Tell the customer service rep about the offer, and ask if they’d be willing to match the lower rate to keep you as a customer. It doesn’t always work, but sometimes it does.

If you’re turned down, don’t automatically do the balance transfer. You would only do that with a great deal of caution. Don’t even consider it unless you’re living on a budget and below your means. That means you’ve stopped using the credit card for at least six months.

TRANSFERRING A BALANCE

Let’s say you’ve already done that. You still have to find the right card to transfer to. Look for three things. After the introductory period expires, the new card must have a lower rate than what you’re paying now. It must also have no annual fee and finally, no balance transfer fee. A good place to start looking is at Bankrate.com.

You also have to commit to closing the old credit card account immediately after the balance is transferred. If you don’t, opening up a new account will probably just lead to even more debt.

STARTING PAYING MORE THAN THE MINIMUM

The next step is to start paying more than the minimum on your credit card(s). Use the snowball method. You’re already on a budget, you’ve accounted for all of the minimum payments you have to make each month, and you know how much discretionary income you have left over.

You then put half of that discretionary income on top of the minimum payment for the card or debt with the lowest balance. Don’t worry about interest rates. Pay off the smallest balance first to get the psychological boost of making headway on your debt.

When the smallest balance is paid off, take half of your discretionary income each month (which is greater now) and put it on the smallest balance that’s left. When that’s paid off. Just keep repeating that process. Your debt reduction will pick up speed like a snowball rolling downhill.

BUILD YOUR EMERGENCY FUND

Again, only half of your discretionary income against your debt. With the other half, begin building up your emergency fund. Start putting money aside for things like car repairs, medical expenses, or a job loss things that drove you to use a credit card in the past.

Ultimately, you want to have 3 to 6 months living expenses in liquid assets where you can get to it if you need it. Put it in an online bank like Ally, Markus or Capital One 360 to earn a little better interest.

The next step is to reduce the temptation to use credit cards. Hide your credit cards. You can also switch to an all cash system. Get rid of the idea that you can use plastic to buy things.

Studies show that you’ll automatically spend up to 30-percent less using cash just because it’s harder to part with real money than it is to swipe a credit or debit card.

USE IT AND LOSE IT

Now, this last step is a bit drastic, but it’s one you may have to take. We call it Use it and lose it.

If anywhere in this process you use a credit card, you have to get rid of it or you’ll never make any progress.

The first time you buy something with a credit card, close the account. Your credit score will take a bit of a hit if you close an account while still owing a balance on it, but that’s okay. It will steadily go back up as you pay down your debt.

And if you still need help, contact our friends at ChristianCreditCounselors.org. They’ll get you on a debt management plan and lower your interest rates so you can pay off the debt up to 80-percent faster than going it alone.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

● Is there a rule of thumb to how much you should charge when selling your belongings?

● How do you know when it is financially responsible to start a business?

● How can you learn about student loan forgiveness for veterans?

● What is the best way to donate investment assets to a charity?

● What is the wisest way to get started in investing?

RESOURCES MENTIONED

● StudentAid.gov

● National Christian Foundation

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Owning and operating a vehicle is expensive. It’s often the second highest household expense. So this is one area where cost-cutting can have a big impact. We’ll offer some advice to help you trim those costs today on MoneyWise.

For some reason, the automobile category in the family budget never seems to get the scrutiny it should. We take for granted the need to drive without counting the cost.

As a depreciating asset, you lose money on a car even when you’re not driving it.

Then add the cost of financing, insurance, taxes and fees. Make no mistake, cars are expensive.

Now, we always tell you that buying a late model, dependable, used vehicle is the best way to get value for your dollars. But that’s not an argument for only buying used vehicles.

When financing a used car, once you pay it off, you should continue to make the payments to yourself, saving that money for the next vehicle purchase.

As you do that, you’ll be able to make a bigger down payment on the next car. Keep doing it, and eventually you’ll be able to buy a new car outright with cash.

I say all this because a recentarticle by the Humble Dollaradvocates a buy used and hold approach with a long list of strategies for getting the most out of your driving dollars when purchasing a car. Here are a few tips:

1. THREE YEARS OLD:You want to look for a vehicle that’s about three years old. And, typically, it should have between 20,000 and 50,000 miles on it. You won’t get that new car smell, but you’ll save a lot of money, and you’ll probably get years of trouble-free driving.

2. HANG ONTO IT:you want to keep that car for a very long time, so be diligent about maintenance. Try to hang on to the vehicle for at least 10 years, and the goal is to get around 150,000 miles out of it.

3. BEWARE OF EXTENDED WARRANTIES:You’ll get a lot of warranty expired notices. Ignore them and don’t get an extended warranty. Most people who purchase extended warranties never use them and it’s money down the drain.

Instead, set aside $200 to $250 a month to maintain older cars. Figure that about half of that will go toward routine maintenance, and the other half is available for repairs.

On the other hand, If you purchase a new vehicle, AAA says you should be able to get by with budgeting only $75 to $150 a month.

But there’s another benefit to buying late model, used vehicles. You’ll probably be able to drive higher-end models that you couldn’t afford if buying new. Think Toyota over Chevy. BY buying used, you may be able to get a vehicle for as much as 50% off the original sticker price.

MAKING THE PURCHASE

Now, all of this doesn’t happen by itself. You’ve got to put in the time and energy to find the right used car. There are plenty of online resources to get you started: AutoTrader, Cars.com, ebay and Craigslist to name a few.

You’ll probably save money buying from a private seller, rather than a dealership, but you won’t get a warranty. Always have the car inspected by an independent mechanic and get the vehicle history report from CarFax, Bumper or another service.

If you’re buying a used vehicle from a dealer, you’ll probably pay more, but expect to get new tires, brakes, and an oil change. That could be worth up to $1000. You’ll also get some kind of warranty when buying used from a dealer. This can vary widely with the best being 3-years or 36,000 miles.

WHEN IT’S THE END OF THE ROAD

Now, how do you know when it’s time to get rid of a vehicle? Keep in mind that in the majority of cases,it’s cheaper to repair your current vehicle than to purchase another one.

But eventually, every vehicle must be replaced. The automotive site Edmunds says it’s likely a good idea to replace your car when repair costs are greater than the vehicle's value - or one year's worth of monthly payments on a replacement.

When you know that a vehicle is nearing the end of its serviceable life, start looking for its replacement. Don’t wait for it to die.That way you can take your time and not be rushed into buying something right away.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●What is the best way to save or invest for a child’s college education?

●Is The Timothy Fund a good option for a Christian investor?

●What is the best way to buy a used car?

●Should you use a monthly surplus to invest or to save for home purchase?

RESOURCES MENTIONED

●Eventide Funds

●Praxis Funds

●Inspire Investing

●Timothy Plan

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29