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Session 2: Dealing with Credit Cards, Student Loans, and other Debts

G. Edward Reid

Presenter

G. Edward Reid

Former Stewardship Director, North American Division of Seventh-day Adventists

Sponsor

Conference

Recorded

  • October 10, 2009
    3:00 PM
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heavenly father we thank you that he written so much in your wording is shared with us regarding money-management and we pretty published learned this principle well today's the we can practice in our lives something will be valuable for each of us in Jesus name amen some are talking about debt debt free living lack and tell you that I've been in denim and out of that announced them as a whole lot better so you'll find out how the Bible says the rich rules over the poor in the bar with the servants of the lender this is Proverbs twenty two percent but by the way the book of Proverbs as much about money management and the forty second chapter has lots of stuff in it anybody know whatever struck before this one as is for six of course what does it say train up a child but we shouldn't always open them not depart from it some people learn about money nice when you're young is convinced that your whole life and I think you'll find it enjoyable why debt is growing in the United States really really interesting when the consumptive lifestyle below the last two years most Americans have not saving any money at all the most amazing thing is how well will we won't talk about all those things North America is running at a rate never before seen by previous generations why was a great variety of items for purchase for example in all kinds of stores on the Internet you can find almost anything you want on the Internet or going to be your mall like him to place whatever by nonessential things just for fun or because they were bargains current generations last of loss we don't believe in delay gratification hours we need it now pay for it later pretty interesting as well as some suggested solutions are on the go really quickly from going into the student loan thinks this is really important for yourself another one is the ease of credit he remembered that in the last five or six years you can get a home alone to build a house or divine new home even if you did not have a job this is absolute madness Nina loans no income no asset verification after five hundred thousand dollars many of the people who are having their homes foreclosed on right now for people who had hundred percent financing which is bad news to begin with there's a whole chapter by the way I did mention this to you but we have the new book faith and finance and this is a gold miner stopped if you learn and practice what's missing there your good name really somebody's really good stuff Sunday not already in the leader 's guide also really valuable stuff more people divorce over money management than any other topic is very interesting to know this okay so what about these of credit people can get a loan by the way you want more than eighty percent loan if you even get a loan on a house and I don't want on two raises wanting to want upside down the loan of the values go down and another one is your private mortgage insurance PMI during that time that you have a mortgage under a certain level so it's easy to get credit very interesting private recent economic downturn the average person to acquire credit with little or no difficulty here's another real interesting one at the end of two thousand seven the Americans carried about nineteen billion in credit card debt alone this means ninety billion carried over from month to month its unpaid balances on credit cards it is interesting by the web and tell you the credit card companies are not your friend do you understand that that's what I say nine hundred billion asked the right word nine hundred billion another really interesting part about all of this is in October of last year alone in one month credit card companies charge their customers one four billion just in late fees just to late fees by the way if your credit card payment is a half hour late thirty nine bucks and the only credit card next time even though you try to pay it off very interesting stuff that we could see another one is easy credit and we can talk about adult toys most of you know when you drive by neighborhood you see people with travel trailers in our yard to studios are yellow all kind of stuff that hardly ever use well somebody will then ended to see that all I want to say something you know that in the Lok Sabha chapter the story of the rich fool was there that talks about this guy wanted turned out as want to build bigger barns within the last way back then when we tell you an interesting phenomenon more than eighty percent of Americans cannot park their car in their own garage in Leon County the truth why is it is stuffed with junk and another thing as one of the fastest growing businesses in America is that you store a place near where that is a place where you can rent a place to put your stuff in there so their basements filled attics filled the garage felt many rent something and a lot of stuff we hardly ever use actually know a man who has two hundred units infused on endoscopic and eight at night isn't even a stuff in there he owns them at any rate he said most of the time the people do not have enough value in it to pay for one months rent in Nike as incredible they buy expensive items that can afford among these adult toys or cars of pleasure boats motorcycles jet skis and snowmobiles and so well-written go on here another one eating out when my favorite places but I wanted to write something interesting if you eat out once a day it will double the amount of money you spend in a month on food is not incredible now what say something else I actually canceled a couple one time that ate out all three meals every day and their whole family is amazing really when you see these kind of things we put this one back here recent USDA surveyed nationwide reported a seventy percent teenage males eat out an average day and they are now Wednesday night of food money spent on meals being away from home average forty percent plus of the food well another one is making out special another one unexpected bills unlimited to faster business what people are getting in debt so if you are going on strike and what is put on credit card freespending heirs because many families problems motor vehicles body weight in the book here I just want to talk this over and over again I am not getting upset I edited this book and wrote most of it but we dedicated to the North American division and there's no royalties to me or anyone but I want to tell you there's amazing stuff in here there's a chapter how to make major purchase how to buy a car and get a good deal how to I purchased the house and not get upside down the mortgage your mission is they think really really good stuff so I'm really good highly recommended medical expenses of course to do something hassle especially on the mortgage payment such as taxes insurance and so on another one is a reduction in income a lot of people make their budget based on two people working at one person loses their job or the latest Dragon Nuance stop work for a while they can just ruin the budget it is really really bad so that you can see the ideas there but I want to get into this idea of the wall another one is the lack of a household budget some people don't have anything cut in the budget and despite whatever squeaks loudest at the end of each month but were talking about is have a plan to have a budget and someone what I would do is look at the biblical perspective on debt right now the holy Scriptures contain at least twenty six references to dad and all are negative while the Bible does not say that it's a sin to borrow money it does speak about the consequences of doing so to overlook the seven debacle principles regarding indebtedness form of bondage this is very very interesting the person who you owe money can actually control you do you understand that I'll give you an illustration happened right here in the Southern Union house the one of the churches in the southern union and labor necessary as possible let the young girl who was involved is probably married and has two diggs by now but anyway what happened was they wanted that they came to me after church potluck and they said we know you're an attorney would you represent a sizable amount not on Sabbath as you talk me after sundown was a wintertime zone will finish that can be at the end of it and they said something really weird happened to us we want you sue the government possible listen I'm just poor old me and the government has this big bevy of attorneys that are brewing by the taxpayers expense how you expect to win how much money is involved with it was about eight hundred dollars and I said listen military can take a case lesson ten thousand dollars years learned that lesson what is it so here's what she said she said our daughter was a student at Southern and advise them I remember it the girl absolutely long gone she's mature adults were now anyway she said she went to school her first year and that was used up all the money so when she went home in the summer she got a really good job and at the end of the summer she's good make plans to go back to school and her employer said we really enjoyed your having here this summer in fact we would like to offer you a full-time job for all of this next school year once you talk with your parents and see if you figure it out if you working all year you can save up a bunch of money and then naturally go back to school you have no QB whole lot better off plus you don't get work experience all that book ended up she decide to do that so with her summer work in all falls work and so on when she did her 1040 EZ form this is very very interesting it said that you don't get about eight hundred dollars that what I didn't tell you was in their first year she needed to borrow some money from a student loan note guys you understand there's fine print on everything the fine print says if you owe the government any money and you have a tax return do they will apply it to your dad read student loan in this case so she got busy father 1040 EZ form and to if I got a letter back into this new inside was her check or by suicide by either tax return check and shielded up instead you have correctly figured your taxes with applied the proceeds of the return for your student loan they didn't even ask are they just did it because they were nice to understand the bottom line is the borrower is the slave of the lender that's the story okay to avoid bondage when borrowing always have these three rules bar will only items that appreciate in value of this is interesting also a bar with a short-term loan as possible Barwick the best interest rate is available also another one is a lack of contentment but Paul said this is reasons people get into that I have learned in whatever state I am to be content this is Philippians four eleven here's another one this as I mentioned this to you earlier godliness with contentment is great gain for we brought nothing into the world and it is certain that we can carry nothing out joyfully give you a profound statement here this take to Bible verses this one in Matthew six nineteen where it says do not store up treasures on this earth where moth and rust destroy and thieves break in and steal but do store up treasures in heaven does anybody know how you store up treasures in heaven you know there's two ways help others and get to address the cause of God this is a difficult concept Matthew Mark and Luke all tell the story the rich young ruler and he said if you sell what you have and give to the poor follow me then you will have treasure start up in heaven so when you help others visit to your account in heaven by the way everybody has an account in heaven and if you help others the cause of God listen carefully were told the book 's averages five twenty three when you get there God will give you the money back with interest you know that I mean this is incredible when you think about it it's amazing we have a whole chapter on that the rewards of faithfulness in the new book so I hope that you take imagine that getting in at the end of this book center well here's the story that I'm going tell you about the next verse says that destructors is in heaven you can't take it with you but you can send it on ahead is not interesting to get the concept yet unforgiving with you but you can send it on ahead and I think that's very interesting stuff okay lack of financial contentment the third one is that presumes upon the future in other words when you invest a lot of problems with that if you borrow what does that mean which are to continue working and you're going to continue having the same income you can really make your payments that's the process okay avoid get rich quick schemes a faithful man will abound with blessings O'Neill makes haste to be rich will not go unpunished I would party look to balance on the go onto the next one here get rich quick schemes then another one is refused to be surety for others I cannot emphasize this enough listen carefully you should never cosign a loan for anyone to hear what I said that's what surety yes the Bible says incident for places in Proverbs alone that you should never cosign for anyone I don't know if you know what this is about if you don't praise God I want to tell you somebody will ask you to do this in the future and the Bible says you should never do it so here's the story let's pretend like you guys are all bankers here and I'm coming to you for a loan what even ask me to do first thing fill out a ballot sheet of what my liabilities my assets are and see what my net worth this then you can ask me what is your Social Security number right everybody here has one and I tell them and then I typed in that number into the ethical fax or transgender of more than databases where you are not hungry of your credit report back with facts tell you something believe it or not Embry 's death I have will come up there and if I've cosigned for anybody that's been a be in my credit report also until it's paid clear off the interesting part is what I will tell you next let's just say that I came to you for a loan and I have recently paid off my car on current on my house payment I don't know any credit card debt that worked at the same job for fifteen years would you give me alone under the circumstances probably yes okay let's change it just a little bit and that is let's say that when you study me a little bit and learn my finances that I'm two months behind on my house payments that just repossessed my car now thirty five thousand on credit card debt and I haven't worked for six months would you give me a loan under those circumstances the answer is not just know no way you get the idea but they make their money by loaning and getting interests that continue the money so they'll say if you can get your pastor or one of your friends at church to come cosign for you will give you the money and hold them responsible the Bible says you should never ever do that listen carefully the Bible encourages us to be helpful but says you should not become responsible for other people 's dance that's the difference do you see the difference number tell you to store a stool this impression really a must I've heard hundreds of days of indigenous like twenty five years of envious all the time every time I felt that someone tells me another one I wish you'd been here just a year ago or something else I out of the camp me a couple came in their seventies they understand every argument when gainfully employed anymore but during their working years they had saved about sixty thousand dollars mirror plan to use that money for no ring incidental expenses during their retirement time like replacing a car or taking a cruise or doing something nice well their son who is in his early fifties found this wonderful opportunity to go into business for himself but unfortunately he had poor credit and couldn't get the loan to get the business started so again his parents and he said I need somebody to cosign for me to get a loan forced to start this business everybody in here already knows the end of the story but on his talent to the anyway real quick like here's what happened is that I know you got that money in the bank and I'm not been in touch of money all I would ask you news comes sideways like get this loan well they did of course he started the business in as almost all new businesses do some eighty percent of the Vista start America fail in the first year together undercapitalized and not a good idea the person on our network or whatever at any rate his business fail of course he didn't have anything in it except the borrowed money but he didn't he was like getting a blood on the turn of the understand of the bank came after the cosigners and they took the parent six two thousand and eight is deal with this word is gone for ever them never live long enough to earn it back so go on are their new cars in their vacations and a new cause and all those kinds of things but the lady piped up and said but he said he was sorry missing into the story is not incredible will have time to go in anymore of these I could tell you many more but they are very interesting here's what I can do a surety for a stranger will suffer for it but he who hates surety is secure a man devoid of understanding shakes hands in pledge and becomes surety for his friends Proverbs seventeen and I went nobly one of these shakes hands in pledge one of those who is surety for his debts that's our verse twenty two verse six that also have Proverbs six one five down here now when Tyson you say somebody will come to you Sunday after your out no then your own local church will say you kind down on my luck low back and that we really need alone short loan and what what we need is one of our friends to cosign for us would you be willing to do that is so well I don't know if signature you and the Bible says you should help the poor and I say that but your answer is when it comes to cosigning the Bible says I should never do we understand very very clear so give following God 's will in this and that's important okay will go on here since one get to erode our questions Christian witness Proverbs source usually some thirty seven twenty one the wicked borrow and do not repay how could you ever witnessed someone if you default on a loan to them very interesting when you see it possible to your landlord that Jesus loves them his answer all the problems when you haven't paid your last two months rent another one is in perils once giving you get the really faithful with your giving if you have debts so where to look now when to get a student loan I want to show you now when to get a student loan under what circumstances and the also show you how to pay for your College education without ending up with big debts now let me just tell you what I may be down here is a general getting a college degree will enhance your income capability for the rest of your life really agree with that so it's important to get education do last session I told you that if you have a college degree you will double the income you make in your life which means it determines whether or not you can live and have a vacation who your friends are all kinds of stuff but if you don't have the money for sure education might be proper to get a student loan but only after you've consider the following points so here's the points that I would share with you first wall getting a loan is fairly easy and some of your room grown about that could you probably tried in Israel difficult you fill out all kinds of stuff including your parents ten forty IRS forms the last two years all accounts done and you're not really sure what you're going to get one or not but paying it back with interest is the hard part I want to tell you something a lady came to my office I work at the General conference in LA came to my office she was seventy years old and she still owed forty thousand in student loans she will never live long enough to pay it back the understand our whole life she's in debt and checksums that it was cannot be amortized over thirty years just like your home mortgage this is incredible but when the lady had gone back in midlife and gotten a master degree in social work and she got somehow she was able to get a student loan not only for the education parks but also your living expenses during that time and Namibia it's a massive total mess another one most government student loans government enacted laws cannot be discharged in bankruptcy a lot of young people were getting student loans and saying the baby got the degree sorry I will file bankruptcy not only this money anymore the government why step in if you have a government-backed student loan even if you file for bankruptcy protection you cannot discharge any taxes you're the government any child support or alimony your former spouse or guess what third one is student loans so it's very interesting the way to get out from under the obligation to repay the loan is to pay it off or die pretty serious make sure the education that you're fighting with your student loan will lead to a job a better job than you now have with higher income that's why in the last session I mentioned something that you guys that you just new here right down career direct that is that the program will help you know what your interest and aptitude is for your work experience in your life this is that crown .org on the Internet debate of every background .org look for career directing you find really really good help on how to do Beth better job so in other words youngest and logistics they run different for another year thereby understand that the ideas you have to pay it back with interest apply for all the grants and scholarships you qualify for you not to pay these back maybe worthwhile even investigating to see all the kinds of things and be available to you I made there might be somebody the brown eyes left-hand like me that can get a student loan just because of that may grant or scholarship there's all kinds of them out there and I'm sure there's some kind of grand officer they can help your school or your schools but it important to know now this is one that I wish the parents of all of you were here to here I believe that parents owe their children an education video what I just said I would tell you another story and that is my parents gave me only ten dollars the whole four years I was here in southern saw some of them can help you and some of them don't see they feel like it's your responsibility but I'll tell you one interesting thing look up the word inheritance in the Bible it is always parents giving their adult children farmland not when they were about to die but when the children became of age so they could begin their own farming process and earn a living the surveyors that they were agrarian society now my children have a son or daughter sends an attorney and her daughters associate editor of liberty magazine I would tell you something interesting neither one of them are farmers and neither one want to be a farmer but our job was to give them an education to train them to become independent adults do you understand so instead of giving them farmland parents help their children get an education but if you don't just pay their own way you do like I said in the last session remember when you become a Christian you can trust God recently with the stuff you can do so just like Jesus when he went to heal Lazarus no Sebastian talk about that he said were related well they choose a new domain where he wants me knows where everything has even have to ask them to show it but you want them to get involved when I got there he says roll away the stone window you think is good just evaporated the star has a major limit will share but he said I'm not really what you can do and then when he came out letters cannot listen the letting go so they had moved three different things and that one story the greatest miracle of Jesus and the cooperation of people on earth so we does things we work and we don't study away we work hard and so on so that's a point that I want to make from that that I believe that if you well are going to tell you the rest of us you work and save in the summers and work part-time during the school year by the way but at the work that you do during the school year it can be a lock on the twenty hours a week or whatever that is also education for you that you can put down on your resume when I was here I work at Mickey's bakery for a year I worked at a log cabin shop building kitchen cabinets and other jobs like that all the things that I did really helped me to learn to work with other people and I have some job skills when I finished the think is valuable so will go on to the next one if after doing all the things I told you that is working in school you're working in the summer getting all the scholarships and grants that you needed that you can get after doing all of this you still need to borrow for your degree don't borrow all you qualify for exhibitors and what I mean by that for example if I fill out the idea application for student executives donate office in an attachment about we can say just what come by the office for the good news I go by than say you qualify for ten thousand dollars what should I do what do most students do take the money and run now the interesting part about it is one of only twenty five hundred dollars to finish up at school year how much should I borrow twenty five hundred dollars is you have to pay it back with interest in your back aboard died to get off one obligation this is important I'm telling you about okay so just borrow the very minimum you need to pay your bill should alone captivate off with interests in the less debt you have upon graduation the quicker you can pay it off in on the savings for other things like a car or down payment on a house or something like that very valuable okay so in an ideal world there would be no borrowing in no death that we don't live in an ideal world there may be conflicts necessary bar just make sure that you borrow the very minimum you need and then plan to pay it off as quickly as possible to save on interest charges so that's important that here's what our family did for forgetting our kids to school and not in the proper order but here's a look at the one of the bottom grants and scholarships help of some of you may have small children and grandchildren are your siblings are still in Academy if you do well in the Academy that is academically and get involved in student government or Inquirer the troubling him or anything like that when you come to southern or anyone of our schools they will give you credit for that as part of a scholarship are you guys all tuned into that event in the bucket will not know that but it is true that listen I don't know you guys are we know my own family to let me just tell you about Melissa are dogs our daughter graduate from George comes in Academy she been a good student and she got a two thousand dollar a year scholarship to go to southern two thousand year course that segments of the stack so that's when tuitions like twelve thousand years or so was a great help but the thing that I wanted tell you as she said but daddy I wanted to go to Andrew University like Andrew my brother did and this is the saga and I said Melissa don't worry a bit about it when you accept advantage is telling the southern offer this to you and they'll match it guess what they do they match so she got two thousand dollars a year for each of the four years of college now they don't give you a check in understanding postwar situation but the interesting part about it is you keep your grades up and all of that but that's two thousand dollars a year less than it would be otherwise do you understand that's important stuff that I'm telling about and you don't of course I sent you the best you can down here then the next one a student initiative both of our kids in the summers since we were we actually lived in Calhoun Georgia Athens where village student and didn't live in the dorm they weren't enough jobs on the campus to provide billing students with jobs so our kids worked in fast food R you were to talk about Joseph Pachelbel 's relapse you don't talk about talk about an interesting place I sent actually became expert talk about how he worked in three years and in some receipt of full-time couple times and then he said that if you show up on time at Taco Bell for work three days in a row they want to make you manager and idea if everybody who works there is a cat you looking at making minimum wage by the Wellesley any fast food place you go to into the committee a kid for senior citizen the picture order is a true why do they only pay minimum wage and nobody can I know raise a family or anything I found that kind of money by the White House until he also was a Taco Bell but that only twelve things in the back it didn't matter what you order it's a combination of that in some way he understands is not rocket science the real interesting thing is that this is really true when we tell you they are some current meat strips and I'm not sure what they go to I usually get the seven layer burrito when I go but they were losing the strip things and Andrew our son worked closed which meant this one close at midnight he may close many of the cleanup said he typically would not get home flight one one thirty in the morning season night person even till today but I want to tell you he brought some of the strips on the given to our dog and the dog bearing the serious and really happened are our daughter our daughter worked at that Burger King is interesting and she ended up graduating to be the head cashier at this one Burger King place when she started out she was making french fries not another member of my french fry grease when the moment we put things and stuff splashes out and it can make a hole right in your skin I mean this is hard stuff so she said daddy I don't think him under the stress to my life as I don't think you do either guess what the sacredness education so you work by the way we've raised our kids to be vegetarian and that both morbid turn than ever knowledgeable people having worked at those two places is true what is absolutely true okay so student initiative makes you work in the summer and I wish it were sometimes it was good for all students and thought some of those which were all parents but this is just for parents and this is kind of interesting sometimes parents will tell my kid gets home from school in the summer that is a dad mom we've just been a working day and night and struggling and starting in everything we discount like to hang out with our friends this summer and chill out a little bit and you know what do we really have to work and I set up and I tell a meal my kids worked every summer and we told them that when you work in the summer you save you can buy no music or close it whatever you want to do but you have to save a thousand dollars so every summer that will save each of the same thousand dollars each summer people asked me how did you get your kids to work do you know that the Bible has a person up it says he who does not work does not eat doctors just love food and I said will provide the food and a place to stay and you'll help with your school tuition both have independently thanked us for them teaching them to work and they enjoy work because of that okay here's another one and this is parental assistance we told our students if you get all the grants and scholarships you can do and you work a reasonable amount than the one your bill comes where the pay for the balance and your only student loans of Baltimore kids graduate from college with no student loans but this means family sacrifice prudent living were not buying new cars all this time we understand we arrived in February of the last session there's that middle section of your life first-year learning years been earning years when the returning years down here that middle section that's what you're doing is you're educating your children this is important as you want them to be independent adults well I will show you how to get out of debt now hopefully something that you can plan on some problems the people have not paying bills on time some people say some adults I've even said what you know best my phenomena pay definitely that one bad idea when you mess bills it really hurt your credit rating in the something you don't want happen consistently living on credit if I have any credibility among you what all I will tell you a story that you will not believe at this very interesting a man called me and he had ten credit cards is a Seventh-day Adventist person not living in the state but he worked a good job that made seven thousand dollars a month the interesting thing was he had hundred and eighty two thousand five hundred dollars on credit cards that's an outstanding balance they couldn't pay each month so every month his entire check would be to make the minimum payment on every one of those of this is incredible he was sixty three years old and lived in a mobile home upon him and he was having to pay rent for the spot it was sitting you understand credit can be a serious problem if you don't manage it properly so were talking about consistently living on credit being an inconsistent Gever of all the things that I could tell you the most important thing is to put God first in your life and do that by being faithful with your target offerings God will bless you worrying constantly about the future so recently credit card issuers in the United States stuffed mailboxes with more than seven billion credit card offers people businesses even governments are accepting the offers of credit and sinking deeper and deeper into debt I attended a seminar for continuing education wants Nelson by this method Methodist pastor and he said no when we both had name badges obsolete what's and let me tell you some funny that I did a fabulous credit card offers that you get in the mail he said last year I got sixty eight of them what should you do when you get those shred them exactly right shred them you can get one of these shredders one thirty nine dollars at Staples with Google right through it anyway this guy said to me but what you want you do want to shred them to get rid of your name on that credit applications on any right he said instead of shredding them I applied for every one of them and I got sixty seven credit cards have six hundred thousand dollar line of credit I said what's interesting would you like to try interesting experiment go to a car dealer and try to get a loan on amount will be no buddy will loan you any money because you could bankrupt yourself with your credit card your poor credit risk you understand if you have a credit card you should only have one and it should be a MasterCard or Visa but here that never any storebrand credit cards ever know Macy's no Sears no Chevron no excellent you understand that's the thing because these companies want you to buy from them all the time the storebrand enormous brand loyalty type stuff if you have a credit card that you using you pay it off every month and so on that's good be more valuable to you okay don't be fooled by the flattery that you get in the mail this is word manipulation of the credit card companies that use phrases like you deserve that cash advances need it and do it and do with as you please or it makes life easier this is really really amazing people sink deeper and deeper into debt well that there's more things I could tell you about that understandable and really really quickly I don't know that I want to go spend any time on this because time is running out I will show you how to get out of debt but this is what the credit card companies or the lending institutions will look at if you seek alone first of all your character what is your attitude toward death incapacity your ability to repay you have any net worth your new capital any collateral things you can pledge the increasing his place as they should loan sharks if you have a carpet document entitled down and alone I saw these are really great and the conditions the current economy what you job security is those kinds of things so here is how to get out of debt this is a simple three step plan that will help anyone and lots of people have done it already by the way the very first thing to do there's a basic premise and that would be established the time this is really valuable stuff in Delhi Proverbs three talks about God 's blessing Deuteronomy twenty eight one to fourteen talks about God 's blessing Malachi three were talked to bring the type of the offerings God doesn't just fail open the windows of heaven for such blessing in a room after receiving what else does he say verse eleven I will rebuke the devourer for your sake I love that when God says I'll make you stuff last longer this is incredible nobody can hurt your crops and new jobs can be more secure all this guy thinks God is in control and I think people don't understand that Matthew six we seek the kingdom of God 's righteousness and all these things food clothing shelter you understand that can be added unto you first thing you do this is now one should establish the time you first of all you declare a moratorium on additional debt what is that me no more credit spending no more credit spending another one is you make a cup with God anybody have an idea what a company this is a promissory agreement meanness it was a law school contracts is all about discussing the real interesting thing I will just tell you is that I will just tell you the number of years ago Catherine I knelt down beside my bed my wife Kathy and I and we said God willing to make you a promise and that is any money we get from any source other than a regular income will use the money to pay down our debts we just don't think it's honoring you to be paying always interest when the ask you a question you think God wants you or your family and that you think what would the average person do if they got a windfall or money they were expecting anybody know to spend hours in a church not far from here in Amman races and when I had what would you do with a windfall this guy said we got twenty five hundred dollars were expecting and I said to my wife how did God know when you do riding lawnmower he went on bought himself a new more but if you've made the covenant what would you do with the twenty five hundred put it on your desk that's very very valuable to know in the last one is you list all of your debts from the largest of the smallest and other picture here this kind of bothers people a little bit consists of your triangle has nothing to do with either Williams or the illuminati or anything like that it's just a little illustration that I want to show you some things that you'll need to know about money management if you have a dance there is a plan of debt reduction called snowballing which means must there was made a snowman itself the snow was just right just wet enough and so on you can start rolling snowball what is new picks up more cylinders gets bigger and bigger so when we show you here isn't this if you have all you guys probably most of you don't have home mortgages of what you could go from here on down probably outlive me to show you some of the things that you could do first of all you have to make a minimum payment on every debt every month thereby understand that this is very valuable to know oh I forgot to mention what I'm speaking that my wife Kathy has been the money manager in our house usually the ladies are better money managers than men for some reason having counseled for twenty five years I will tell you that more often than not if a man to bust the budget and not the one it really is true young ladies might go out and buy himself a new person of a new pair shoes of the credit card whenever but when men do things they buy new pickup truck or a bass boat or airplane are something that really really expensive and just bust the budget all the pieces so what I want to tell you as however is the best manager should be the manager and your family but a lady came to me after one of my seminars as you said you know I didn't know the you can pay more than the minimum payment on any of your debts that's incredible she says I'm like your Kathy on the manager in our family but I will tell you that you have to pay at least the minimum amount which is all the interest is due at that point a little bit of the principal the point is once you've made the minimum payment everyone concentrate on the bottom and in this case I put these the donated by Nawab of these their mother have high interest rates is true by the way interest rates are likely seven percent right now in the another credit card counties are in collusion if you have three different credit cards the second Discover MasterCard and Visa listen carefully now if you are late paying one of them next month all three of them will raise your interest rate is incredible and the one will charge a late fee of thirty nine dollars three-step obesity in adults the smallest word interested in their better on August okay what I would tell you to make the minimum payment on every death but then you get any money like to get a windfall you work extra anything to get some money from your parents or do your tax return that you added to the minimum payment on the central beast is completely paid off and since October massacre Reese I would say keep this card but when you get Sears paid off cut that one out they understand the other something you can do it on state more about what you make the minimum payment once that was paid off then you can do the minimum pay me working on it with the minimum payment on this one but with any extra money and most people can get out from under their consumer loans are the consumer debt in about two years the real difficult one is the home mortgage and if we were a different group I would tell you about how to do that one and most of the computer house often seven years or less if you follow good principles yes please you I think that the fact that you have a lot of credit cards let's the reporting agencies know that you have that liability available and I'll just tell you that read recently we replace our kitchen appliances and buses famously all classes and fixed it up and saw it and I said you know if you had out a Sears credit card and will even open one today get ten percent off what you divided off with the plaintiff eighty bucks well the Senate would credit offers payment network and cousin things that you can redo it what we need to remember that until he is not sinful is just a bad idea to have lots of credit cards that talk to lots of people have many credit cards with death on every one of them so if you pay them off every month there's one other problem studies show that people like me who paid her credit card bill every month because you have a credit card you actually spend more money than if you have cash is just a little easier interception is probably safer and I travel every weekend and so I have to have a credit card to rent cars and you know those kinds of things but I will just tell you that minimize the amount of cars and typically you don't want to use storebrand cards I would typically say Visa or MasterCard would be better mainly because they focus you spend more in their store probably the another thing is very interesting Sears is so accordingly when many times recently and I hope we can get better about it but if you will less than five hundred dollars in your Sears card it was in your statement this is not due to mirror got one of us I have none do as I four hundred and eighty five dollars so that what you pay it off they actually will then charge you interest on that unpaid balance of will be over five hundred dollars and a charger that then you make a payment to understand Sears actually it's been proven in court Sears makes more money on the finance charges it charges customers than on the profit margin on sale of merchandise so the idea is you want be a cash person if you can okay where to go on here and offer some additional things that you can do first of all establish a budget ODM question yes it's a United Airlines Visa so all the money that we spend we can not get mileage to get free tickets of my wife Cathy travels with malice every weekend and she's with me this weekend she's actually going to another seminar right now because she's heard this one before I but we actually get very very interesting trips and for example understudied the next three were to be going next weekend the Tulsa Oklahoma Europe to the south Tulsa felt as a scholarship for the weekend I'm speaking of seventy and the Kathy reminds me that routine that you want to go with me on that stickler trip and you don't never going to Camelback Church in Phoenix when we get a trip to Norway South Africa you know we could skip free ticket because we've been able to do this so use your credit cards to your advantage not to credit card copies advantage that's important thing yes place and well yellow I actually have a Marriott card in my briefcase right here and one for Hampton in her Hilton honors my kind of thing that I don't have the credit card I just have the frequent user card which allows you to have certain benefits their yellow special rumor what never I don't think that Marriott frequent stays would be as valuable to most people as being of the travel to some destination but not a bad idea we never use it for your benefit and not for the credit card okay give me a culture is a you and hurt his equity loan and you will and is your lawyer will you and in his is you are well typically attorneys will sue you for every little thing they can find and if that would not be difficult to discover I wouldn't think me if I can find assets in Swiss banks and figure out a man of his young local county attorney labor probably wouldn't find it but the problem is then it looks like a sales can be an asset rather than a liability fill it in a savings account somewhere if you say that promise I even asked about reverse mortgage that's a big thing with all retirement people coming retina typically at idea because it ties them all the equity in your house you want to get a certain portion of huge expenses to get a reverse mortgage symptoms up to ten percent of the value and and and and it's it's a real real seriousness I would say I will be a whole section reverse mortgages in the new book anybody else have a question or comment yes place yes the question for leisure use of credit from your home or at the equity to pay down credit cards is on the answer is yes under certain conditions in the certain conditions would be that you pay them all off and cut the cards up she'll get back and then again on the visit he do that again second you can go bankrupt that's the real service problem and then of course you can use your line of credit of two hundred thousand dollars value you can deduct this text the only interest off your income tax for most people is not a good idea because they will close a credit card accounts to get back into that same situation okay let his Modesto systems establish a budget set goals for your family might say next year without the carpet off destroy credit cards if you're not paying them off every month until I purchased appreciate not with cash begin economy measures like turning lights off around your not using so I have a sale this is not really appropriate for you guys is college students Academy students but people my age have collected junk their whole life and Kathy and I had a yard sale several years ago for stuff that we no longer need and we made an entire one years worth of past payments on our house for one day Johnson comes to tell you it's incredibly authoritative principle to do that you understand so the amazing thing is get rid of stuff resolving it burned up anyway so the whole point is don't keep stuff you don't need that's really really valuable okay were to talk about this well our time is gone I'm really sorry but let me just tell you everything is on the Internet you can download this program is called dealing with debt it is in no stewardship resources administered chip .org is the website and on I want to honor my fellow teachers some of you may want to go to the other one for the next session within a break whenever prayer the guys can go to the next while you can stay here heavenly father thank you for the blessings of your Holy Spirit to each of us we thank you for the guys that you've given us in our lives and the many good verses that we have on Christian money management what is wisdom and power to be obedient in this message that with your blessing and you suspect this media was brought by osteoporosis a website dedicated to spreading God 's word through reading sermon audio and much more you would like to know more about our universe the more so than please visit www. .com universe .org

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