1 00:00:02,920 --> 00:00:07,119 S1: This faith in finance live is actually prerecorded, so please 2 00:00:07,120 --> 00:00:08,160 S1: don't call in. 3 00:00:08,520 --> 00:00:13,320 S2: Scripture reminds us that wisdom often begins with counting the cost. Hi, 4 00:00:13,320 --> 00:00:16,239 S2: I'm Rob West with the average age of a first 5 00:00:16,239 --> 00:00:20,000 S2: time home buyer now approaching 40. Many are wondering whether 6 00:00:20,000 --> 00:00:23,680 S2: now is the right time to buy or to continue renting. Today, 7 00:00:23,680 --> 00:00:27,800 S2: we'll explore some common misunderstandings around home ownership and how 8 00:00:27,800 --> 00:00:31,680 S2: to approach that transition with wisdom and patience. Then we 9 00:00:31,680 --> 00:00:34,040 S2: have some great calls lined up. But we won't be 10 00:00:34,040 --> 00:00:38,080 S2: taking your calls today because we're pre-recorded. This is faith 11 00:00:38,080 --> 00:00:45,960 S2: and finance. Live. Biblical wisdom for your financial decisions. When 12 00:00:45,960 --> 00:00:50,800 S2: questions about timing and readiness around homeownership arise, they usually 13 00:00:50,800 --> 00:00:55,040 S2: reflect a sincere desire to make a wise, lasting decision 14 00:00:55,040 --> 00:00:58,920 S2: one that supports long term stability rather than undermining it 15 00:00:58,920 --> 00:01:03,230 S2: before comparing monthly payments or picturing life in a new space, 16 00:01:03,230 --> 00:01:05,470 S2: it helps to take a clear eyed look at what 17 00:01:05,470 --> 00:01:09,590 S2: it truly costs to move from renting into homeownership. One 18 00:01:09,590 --> 00:01:13,350 S2: area that often catches first time homebuyers off guard is 19 00:01:13,350 --> 00:01:16,709 S2: the sheer cost of getting into a home. The pre-approval 20 00:01:16,709 --> 00:01:22,350 S2: and closing process involves numerous expenses, including appraisal fees, home inspections, 21 00:01:22,350 --> 00:01:27,070 S2: credit reports, earnest money title searches, loan origination fees, and 22 00:01:27,069 --> 00:01:31,030 S2: closing costs. Taken together, these can add up to thousands 23 00:01:31,030 --> 00:01:34,830 S2: of dollars before move in day ever arrives. For those 24 00:01:34,830 --> 00:01:38,990 S2: transitioning from renting into their first home, these costs usually 25 00:01:38,990 --> 00:01:41,990 S2: need to be paid out of pocket. That's one reason 26 00:01:41,990 --> 00:01:46,710 S2: we often encourage having around 20% of the purchase price available, 27 00:01:46,709 --> 00:01:49,390 S2: not only for a down payment, but to create margin 28 00:01:49,390 --> 00:01:54,510 S2: for the entire process. This isn't meant to delay dreams unnecessarily, 29 00:01:54,510 --> 00:01:58,500 S2: but to help ensure homeownership doesn't begin with financial strain. 30 00:01:58,860 --> 00:02:02,900 S2: Many people also feel a growing weariness with renting. Paying 31 00:02:02,900 --> 00:02:06,740 S2: rent month after month can feel unproductive, especially compared to 32 00:02:06,780 --> 00:02:10,820 S2: the idea of building equity. That desire for something tangible 33 00:02:10,820 --> 00:02:14,940 S2: and lasting is deeply understandable, but it's important to remember 34 00:02:14,940 --> 00:02:19,139 S2: that rent is not wasted money. Rent pays for shelter, safety, 35 00:02:19,180 --> 00:02:23,900 S2: maintenance and predictability. It meets a real ongoing need, and 36 00:02:23,900 --> 00:02:27,420 S2: in that sense, it's paying for a valuable service. It's 37 00:02:27,419 --> 00:02:30,899 S2: also helpful to understand how a mortgage payment actually works. 38 00:02:31,060 --> 00:02:37,100 S2: A typical payment, including principal interest, property taxes, homeowner's insurance, 39 00:02:37,100 --> 00:02:41,660 S2: and often private mortgage insurance if you own less than 20% 40 00:02:41,660 --> 00:02:45,419 S2: of the home's value. In some cases, HOA fees may 41 00:02:45,419 --> 00:02:48,540 S2: also be added, especially in the early years of a 42 00:02:48,540 --> 00:02:52,899 S2: traditional 30 year mortgage. A significant portion of each payment 43 00:02:52,900 --> 00:02:57,100 S2: goes toward interest rather than reducing the loan balance. 30 44 00:02:57,139 --> 00:03:00,740 S2: year mortgages can still be wise because they keep costs 45 00:03:00,740 --> 00:03:04,340 S2: manageable and allow flexibility. Should you want to make extra 46 00:03:04,340 --> 00:03:08,140 S2: payments toward the principal, however, they're designed to be repaid 47 00:03:08,139 --> 00:03:11,700 S2: in 30 years, so they are long term loans. If 48 00:03:11,700 --> 00:03:15,420 S2: early equity growth does occur, it often comes more from 49 00:03:15,419 --> 00:03:20,540 S2: market appreciation than from principal paydown. Another concern many people 50 00:03:20,540 --> 00:03:23,780 S2: carry is the fear of waiting too long. Rising home 51 00:03:23,780 --> 00:03:27,620 S2: prices can create pressure to act quickly, while market trends 52 00:03:27,620 --> 00:03:31,340 S2: are worth paying attention to. They shouldn't be the deciding factor. 53 00:03:31,500 --> 00:03:34,140 S2: A home should fit your current season of life and 54 00:03:34,139 --> 00:03:38,380 S2: support your responsibilities and priorities, not stretch your finances or 55 00:03:38,380 --> 00:03:41,780 S2: limit your ability to live and give faithfully. This is 56 00:03:41,780 --> 00:03:45,020 S2: also where it helps to release the pressure of finding 57 00:03:45,020 --> 00:03:48,540 S2: a forever home. On average, first time home buyers remain 58 00:03:48,540 --> 00:03:52,020 S2: in their homes for 7 to 10 years. Career changes, 59 00:03:52,020 --> 00:03:56,810 S2: growing families and life transitions often make moving a natural 60 00:03:56,810 --> 00:03:59,610 S2: part of the journey. The first home simply needs to 61 00:03:59,650 --> 00:04:04,530 S2: fit your current season. Rising rent is another common frustration. 62 00:04:04,570 --> 00:04:08,410 S2: Lease renewals often bring higher costs. However, owning a home 63 00:04:08,410 --> 00:04:12,490 S2: doesn't eliminate rising expenses. While a fixed rate mortgage keeps 64 00:04:12,490 --> 00:04:17,409 S2: principal and interest steady, property taxes and homeowner's insurance typically 65 00:04:17,410 --> 00:04:20,890 S2: increase over time even after a mortgage is paid off. 66 00:04:21,089 --> 00:04:25,770 S2: These costs remain. Maintenance is another reality worth considering once 67 00:04:25,770 --> 00:04:30,690 S2: someone becomes a homeowner, all repairs fall on their shoulders. Roofs, plumbing, 68 00:04:30,730 --> 00:04:35,690 S2: electrical systems, and heating or cooling issues can bring unexpected costs, 69 00:04:35,690 --> 00:04:40,810 S2: while homeowners insurance can provide protection. Deductibles and coverage limits 70 00:04:40,810 --> 00:04:45,250 S2: often mean high out-of-pocket costs, and filing a claim may 71 00:04:45,250 --> 00:04:49,530 S2: also lead to higher premiums down the road. Renting, by contrast, 72 00:04:49,529 --> 00:04:55,200 S2: offers predictability. Repairs are the landlord's responsibility, which helps provide 73 00:04:55,200 --> 00:04:59,839 S2: stability during seasons of debt reduction or saving. The phrase 74 00:04:59,839 --> 00:05:03,320 S2: house poor exists for a reason. Buying before one is 75 00:05:03,320 --> 00:05:07,800 S2: ready can strain budgets, limit generosity, and leave one with regret. 76 00:05:07,960 --> 00:05:10,520 S2: While owning a home can be a blessing. It's not 77 00:05:10,520 --> 00:05:14,760 S2: a measure of faithfulness, and it isn't right for every situation. 78 00:05:14,960 --> 00:05:18,400 S2: Sometimes it's far better to continue to rent. Just a 79 00:05:18,400 --> 00:05:21,159 S2: quick reminder we're not here today, so don't call in. 80 00:05:21,160 --> 00:05:22,960 S2: But we're going to head to a break and much 81 00:05:22,960 --> 00:05:25,400 S2: more coming just after this. Stay with us. 82 00:05:38,560 --> 00:05:41,760 S1: This is faith in finance. Live with Rob West. Hey, 83 00:05:41,760 --> 00:05:44,640 S1: if you hear a phone number mentioned today, please ignore 84 00:05:44,680 --> 00:05:48,039 S1: that number and don't call us because today's broadcast was 85 00:05:48,040 --> 00:05:51,799 S1: previously recorded. But we think the upcoming information will help 86 00:05:51,800 --> 00:05:54,230 S1: you and make you a wise steward of what God's 87 00:05:54,230 --> 00:05:56,710 S1: given you. So please stay tuned. 88 00:05:58,110 --> 00:06:01,270 S2: Here's our goal to help you live as a faithful steward. 89 00:06:01,270 --> 00:06:04,750 S2: Answer those very practical questions that you have in your 90 00:06:04,750 --> 00:06:08,830 S2: financial life, but with a biblical worldview in view. Uh, 91 00:06:08,830 --> 00:06:11,950 S2: operating from the understanding that God owns everything and that 92 00:06:11,950 --> 00:06:14,070 S2: you and I are stewards and that we need to 93 00:06:14,110 --> 00:06:17,110 S2: pursue contentment, we need to find enough. We need to 94 00:06:17,150 --> 00:06:21,230 S2: hold everything God has entrusted to us loosely and give generously. 95 00:06:21,230 --> 00:06:24,150 S2: We can enjoy what God provides, but the moment we 96 00:06:24,190 --> 00:06:27,190 S2: worship the creation over the creator, we've got a real problem. 97 00:06:27,190 --> 00:06:29,430 S2: And money is one of the chief idols that can 98 00:06:29,430 --> 00:06:32,070 S2: be held up in our lives, especially in the most 99 00:06:32,070 --> 00:06:35,110 S2: prosperous nation in the history of the world. But when 100 00:06:35,110 --> 00:06:37,390 S2: we put money in its proper place as a tool 101 00:06:37,390 --> 00:06:41,789 S2: to accomplish God's purposes, well, everything else begins to fall 102 00:06:41,790 --> 00:06:44,390 S2: in line according to the heart and the will of 103 00:06:44,390 --> 00:06:46,710 S2: God that we see in Scripture. And then we can 104 00:06:46,710 --> 00:06:50,390 S2: approach all of the decisions around spending and preparing the 105 00:06:50,390 --> 00:06:54,190 S2: next steward and investing in a God honoring way and saving. 106 00:06:54,190 --> 00:06:57,029 S2: And you know how we enjoy appropriately what God has 107 00:06:57,029 --> 00:07:00,710 S2: entrusted to us. We can put all of those pieces together. Well, 108 00:07:00,710 --> 00:07:02,589 S2: we want to help you do that. I realize there's 109 00:07:02,589 --> 00:07:05,350 S2: probably some things that you're thinking about right now in 110 00:07:05,350 --> 00:07:09,510 S2: your financial life. Maybe it's saving for retirement or investing. 111 00:07:09,550 --> 00:07:12,110 S2: Perhaps it's just getting that credit score up or paying 112 00:07:12,110 --> 00:07:14,630 S2: off that debt. Whatever it is, call right now we've 113 00:07:14,630 --> 00:07:19,750 S2: got some lines open 800 525 7000. Again, that's 800 114 00:07:19,790 --> 00:07:25,670 S2: 525 7000. In the news today, Americans are increasingly worried 115 00:07:25,670 --> 00:07:29,070 S2: about falling behind on their debt. That's according to new 116 00:07:29,070 --> 00:07:32,790 S2: data from the New York Federal Reserve. In its December 117 00:07:32,790 --> 00:07:38,950 S2: survey of consumer expectations, households reported the highest perceived risk 118 00:07:39,230 --> 00:07:43,550 S2: of missing a minimum payment since April of 2020. Concerns 119 00:07:43,550 --> 00:07:47,950 S2: were greatest among adults over age 60. Interestingly, those without 120 00:07:47,950 --> 00:07:54,500 S2: college degrees And households earning under $50,000. Now, analysts say 121 00:07:54,500 --> 00:07:58,580 S2: a softer labor market is fueling anxiety about job security. 122 00:07:58,620 --> 00:08:01,260 S2: Access to credit and the ability to keep up with 123 00:08:01,260 --> 00:08:06,140 S2: bills even one missed payment, can be costly. LendingTree found 124 00:08:06,140 --> 00:08:09,420 S2: that a single 30 day delinquency can drop a credit 125 00:08:09,420 --> 00:08:13,420 S2: score by around 80 points on average, and more for 126 00:08:13,420 --> 00:08:17,460 S2: borrowers with higher scores. Lower scores can result in smaller 127 00:08:17,460 --> 00:08:22,460 S2: credit limits, of course higher interest rates and fewer borrowing options. 128 00:08:22,780 --> 00:08:28,020 S2: Experts recommend contacting lenders before payments are missed, as some 129 00:08:28,020 --> 00:08:32,100 S2: may offer temporary relief or lower rates to help borrowers 130 00:08:32,100 --> 00:08:34,900 S2: stay current. We would of course, suggest that if you're 131 00:08:34,900 --> 00:08:38,660 S2: looking to pay off credit card debt greater than $4,000, 132 00:08:38,660 --> 00:08:42,739 S2: and that's usually kind of the number where less than 4000, 133 00:08:42,780 --> 00:08:45,100 S2: you can snowball it, kind of do it on your own. 134 00:08:45,140 --> 00:08:48,300 S2: More than 4000. You really do need some assistance. My 135 00:08:48,410 --> 00:08:50,410 S2: preferred way for you to get out from under credit 136 00:08:50,410 --> 00:08:53,290 S2: card debt once and for all is called credit counseling. 137 00:08:53,570 --> 00:08:56,370 S2: We'll get the interest rates dropped. If you work through 138 00:08:56,370 --> 00:09:00,730 S2: a nonprofit credit counseling agency with one level monthly payment 139 00:09:00,730 --> 00:09:03,250 S2: and the reduction in interest, we find you can pay 140 00:09:03,250 --> 00:09:07,370 S2: it off 80% faster on average. Our friends at Christian 141 00:09:07,370 --> 00:09:10,730 S2: Credit Counselors have served thousands of our listeners over the years. 142 00:09:10,809 --> 00:09:14,650 S2: You can learn more at Christian Credit Counselors. All right, 143 00:09:14,650 --> 00:09:17,730 S2: let's dive into your questions today. Again, lines are open. 144 00:09:17,770 --> 00:09:23,050 S2: 800 525 7000. You can call right now. Let's begin 145 00:09:23,050 --> 00:09:24,690 S2: in Texas. Judy. Go ahead. 146 00:09:25,410 --> 00:09:29,689 S3: Um, my husband and I are 79. We're retired. Um, 147 00:09:29,730 --> 00:09:33,329 S3: our home and vehicle are paid for. We have no 148 00:09:33,330 --> 00:09:37,730 S3: life insurance, but, um, I have 5000. I'd like to 149 00:09:37,730 --> 00:09:42,890 S3: put somewhere, uh, trying to gain enough money, you know, 150 00:09:42,929 --> 00:09:46,890 S3: to bury us. Yes, ma'am. And I just wanted some 151 00:09:47,040 --> 00:09:49,599 S3: advice as to how you would do that. 152 00:09:49,640 --> 00:09:54,360 S2: Okay. Yeah. And this 5000, Judy, that you've earmarked as 153 00:09:54,360 --> 00:09:57,959 S2: a starting point is that in addition to any other savings? 154 00:10:00,000 --> 00:10:05,120 S3: Um, a little bit. I have we have 1300 in 155 00:10:05,160 --> 00:10:10,600 S3: a CD and about 3000 in just regular savings accounts. 156 00:10:10,640 --> 00:10:14,439 S2: I see. And what do you all typically spend in 157 00:10:14,480 --> 00:10:15,400 S2: a in a month? 158 00:10:17,760 --> 00:10:20,440 S3: Oh, boy. Maybe about 1500. 159 00:10:20,480 --> 00:10:24,720 S2: Okay. Yeah. Um, I would actually recommend that we not 160 00:10:24,720 --> 00:10:28,400 S2: invest this money, but that you add it to your savings. 161 00:10:28,400 --> 00:10:31,600 S2: So I'm thrilled to hear that you've got the CD. Um, 162 00:10:31,600 --> 00:10:34,400 S2: I'd love for you to have somewhere between three and 163 00:10:34,400 --> 00:10:39,280 S2: preferably as much as six months worth of expenses. Safe 164 00:10:39,520 --> 00:10:42,960 S2: and liquid, meaning you can accept it's accessible. So that'd 165 00:10:42,960 --> 00:10:46,430 S2: be about $9,000 that I'd love to have as a goal. 166 00:10:46,630 --> 00:10:50,030 S2: And I would put that in either a savings account 167 00:10:50,030 --> 00:10:53,270 S2: or a money market account that's earning some interest. And 168 00:10:53,270 --> 00:10:55,630 S2: you can find that you could do it at your 169 00:10:55,630 --> 00:10:59,230 S2: own bank where you've got your checking account. Often, if 170 00:10:59,230 --> 00:11:02,390 S2: you're comfortable with this, uh, you know, I would recommend 171 00:11:02,390 --> 00:11:06,429 S2: what's called an online bank, which offers the same safeguards, 172 00:11:06,429 --> 00:11:09,750 S2: the same FDIC insurance with the full faith and credit 173 00:11:09,750 --> 00:11:13,750 S2: of the United States government backing the deposit. But you 174 00:11:13,750 --> 00:11:17,150 S2: can get much better interest rates. And so let's say 175 00:11:17,150 --> 00:11:19,550 S2: you could get, you know, 4% on that money. And 176 00:11:19,550 --> 00:11:23,470 S2: let's say you had, you know, $5,000 saved, uh, you know, 177 00:11:23,510 --> 00:11:26,030 S2: that would give you an extra $200 a year, keeping 178 00:11:26,030 --> 00:11:29,270 S2: it very safe, but also allowing it to continue to 179 00:11:29,309 --> 00:11:31,990 S2: grow a little bit at a time. Now, once you 180 00:11:32,030 --> 00:11:36,350 S2: got beyond that goal of six months expenses or that 181 00:11:36,350 --> 00:11:40,709 S2: $9,000 I'm talking about that you'd have in emergency reserves, 182 00:11:40,950 --> 00:11:43,790 S2: then I think we could look at taking anything extra 183 00:11:43,830 --> 00:11:47,110 S2: you have per month. Um, you know, and putting it 184 00:11:47,110 --> 00:11:50,630 S2: into some sort of investment to grow at a little, 185 00:11:50,670 --> 00:11:54,030 S2: you know, better rate of return over time. But until 186 00:11:54,030 --> 00:11:57,470 S2: you get to six months reserves or what I call 187 00:11:57,470 --> 00:12:00,950 S2: your emergency fund, I would rather you keep that out 188 00:12:00,950 --> 00:12:04,630 S2: of investments and keep that in an interest bearing account. 189 00:12:04,670 --> 00:12:05,830 S2: Does that make sense, though? 190 00:12:07,270 --> 00:12:09,870 S3: Yes. I was thinking of money market. 191 00:12:10,110 --> 00:12:10,590 S2: Okay. 192 00:12:10,630 --> 00:12:14,990 S3: Yeah, I know Christian community. And isn't there another Christian 193 00:12:14,990 --> 00:12:19,110 S3: organization that does, um, a credit union? 194 00:12:19,590 --> 00:12:22,150 S2: Yeah. Well, Christian Community Credit Union has been a long 195 00:12:22,190 --> 00:12:25,510 S2: time partner of ours. They are our preferred and recommended 196 00:12:25,510 --> 00:12:29,910 S2: Christian banking solution. They're merging with Adelphi, which was the 197 00:12:29,910 --> 00:12:32,910 S2: second largest in the country. So when you put Kcu 198 00:12:32,950 --> 00:12:36,190 S2: together with Adelphi, which is what's happening right now, they're 199 00:12:36,190 --> 00:12:40,270 S2: going to be by far the largest Christian banking solution 200 00:12:40,270 --> 00:12:43,940 S2: in the country. And there's actually some incentives right now 201 00:12:43,940 --> 00:12:46,620 S2: for faith by listeners using the code Faith fi, where 202 00:12:46,620 --> 00:12:49,660 S2: you can get an up to an extra $400 credited 203 00:12:49,660 --> 00:12:52,420 S2: to the account when you open it. Uh, are you 204 00:12:52,460 --> 00:12:54,100 S2: comfortable on the internet? 205 00:12:55,100 --> 00:12:57,939 S3: Somewhat. I'm totally blind. Um. 206 00:12:58,500 --> 00:13:01,580 S2: Okay. Uh, do you have a family member or a 207 00:13:01,580 --> 00:13:03,020 S2: friend that could assist? 208 00:13:03,780 --> 00:13:04,820 S3: Yeah, I do. 209 00:13:04,980 --> 00:13:11,660 S2: Okay. Yeah. So I would head to Faith fi, and, uh, 210 00:13:11,740 --> 00:13:13,819 S2: then you're going to want to go to a slash 211 00:13:13,860 --> 00:13:20,059 S2: banking faith fi.com/banking. And maybe there's a family member that 212 00:13:20,059 --> 00:13:23,900 S2: could come over and assist you, uh, a grandchild or 213 00:13:24,059 --> 00:13:26,940 S2: a friend in the area that's comfortable on the web. 214 00:13:27,140 --> 00:13:31,260 S2: But faith fi com slash banking will take you straight 215 00:13:31,260 --> 00:13:34,940 S2: to the Christian Community Credit Union website. It'll give you 216 00:13:34,940 --> 00:13:38,020 S2: all the details on this bonus that could be added 217 00:13:38,020 --> 00:13:41,490 S2: to the account. And then their money market right now 218 00:13:41,490 --> 00:13:45,130 S2: is paying an exceptional rate of return at 4% for 219 00:13:45,130 --> 00:13:48,610 S2: up to $100,000, and you can open it with as 220 00:13:48,610 --> 00:13:51,250 S2: little as $100. So I think that would be a 221 00:13:51,250 --> 00:13:53,850 S2: great option for you, Judy. And until you get up 222 00:13:53,850 --> 00:13:56,929 S2: to 9000 saved, I would keep it right there in 223 00:13:56,970 --> 00:14:00,890 S2: that either the high yield savings, which you can get 5% on, 224 00:14:00,890 --> 00:14:04,170 S2: or the money market, it's called the Harvest High Yield 225 00:14:04,170 --> 00:14:09,130 S2: Savings Account. And again, that website is faithfully banking. Hey, 226 00:14:09,130 --> 00:14:11,570 S2: we appreciate your call today. If I can assist you 227 00:14:11,570 --> 00:14:14,449 S2: with anything else in the future, don't hesitate to reach out. 228 00:14:14,490 --> 00:14:17,530 S2: Lord bless you. Just a quick reminder we're not here today, 229 00:14:17,530 --> 00:14:19,450 S2: so don't call in. But we're going to head to 230 00:14:19,450 --> 00:14:22,210 S2: a break and much more coming just after this. Stay 231 00:14:22,210 --> 00:14:36,650 S2: with us. I'm so thankful you're joining us today on 232 00:14:36,650 --> 00:14:39,370 S2: Faith and Finance Live. I'm Rob West. Hey, just a 233 00:14:39,370 --> 00:14:42,280 S2: quick reminder. Our team is away from the studio today, 234 00:14:42,280 --> 00:14:44,680 S2: so don't call in. But in just a few moments, 235 00:14:44,680 --> 00:14:47,080 S2: we're going to get to some questions that we lined 236 00:14:47,080 --> 00:14:50,440 S2: up in advance that I know you'll find very interesting, 237 00:14:50,440 --> 00:14:53,040 S2: but let me take a moment just to invite you 238 00:14:53,080 --> 00:14:55,800 S2: first to be a supporter of this ministry here at 239 00:14:55,800 --> 00:14:58,640 S2: Faith fi. You know, we bring you this broadcast every 240 00:14:58,680 --> 00:15:02,720 S2: day as a listener supported ministry only because of your 241 00:15:02,760 --> 00:15:07,200 S2: generous support. So maybe you listen regularly. Perhaps you count 242 00:15:07,200 --> 00:15:09,520 S2: on this program. Maybe you've been able to apply some 243 00:15:09,520 --> 00:15:12,240 S2: of the wisdom from God's Word that you've heard in 244 00:15:12,240 --> 00:15:15,360 S2: your financial life, or it's just helped you to be 245 00:15:15,360 --> 00:15:18,200 S2: that wise and faithful steward, and you'd like to be 246 00:15:18,200 --> 00:15:20,440 S2: a part of our team. Well, one way you can 247 00:15:20,440 --> 00:15:23,000 S2: do that is by investing in this work through a 248 00:15:23,000 --> 00:15:26,640 S2: one time gift, or even by becoming a faith life partner. 249 00:15:26,880 --> 00:15:30,160 S2: I just invite you to join us on this journey. 250 00:15:30,160 --> 00:15:32,880 S2: When you head to Faith com and click give. A 251 00:15:32,880 --> 00:15:35,200 S2: gift of any amount would be a big help. Again 252 00:15:35,200 --> 00:15:38,720 S2: that's faith. Com and just click give and let me 253 00:15:38,760 --> 00:15:41,960 S2: say thank you in advance. Your gift will make a 254 00:15:42,000 --> 00:15:46,080 S2: huge difference. All right, let's head back to the phones. Ohio. Wayne. 255 00:15:46,080 --> 00:15:46,640 S2: Go ahead. 256 00:15:47,000 --> 00:15:54,000 S4: Yes, I have $100,000 life insurance policy. And the premium 257 00:15:54,000 --> 00:15:59,080 S4: in March is going from $385 a month to, like, 258 00:15:59,120 --> 00:16:06,280 S4: $1,300 a month. And I think that it probably is. Uh, 259 00:16:06,680 --> 00:16:09,640 S4: it's a term insurance, and I think it's probably going 260 00:16:09,680 --> 00:16:15,720 S4: to an annual renewable term insurance. And I wondered, uh, 261 00:16:15,720 --> 00:16:18,640 S4: really didn't want to pay another $1,000 a month for 262 00:16:18,640 --> 00:16:21,800 S4: life insurance, what my alternative might be. 263 00:16:22,120 --> 00:16:24,800 S2: Yeah. Well, what did you say your age was? 264 00:16:25,440 --> 00:16:27,240 S4: I will be 80 in July. 265 00:16:27,520 --> 00:16:30,920 S2: Okay. Yeah. So at 80 years old, an annual renewable 266 00:16:30,960 --> 00:16:35,080 S2: term policy that's getting more expensive is usually no longer 267 00:16:35,080 --> 00:16:38,790 S2: the best use of money. So I think it's reasonable here, Wayne, 268 00:16:38,830 --> 00:16:42,270 S2: to assess whether the insurance is still needed and then 269 00:16:42,270 --> 00:16:46,350 S2: what might serve you better moving forward. Um, so let's 270 00:16:46,350 --> 00:16:48,910 S2: talk about the need for the insurance. What is the 271 00:16:48,910 --> 00:16:51,910 S2: the purpose of this death benefit? Is it to cover 272 00:16:51,910 --> 00:16:54,550 S2: final expenses or some other purpose? 273 00:16:55,670 --> 00:16:58,990 S4: Uh, well, we have a credit line on our home 274 00:16:58,990 --> 00:17:06,230 S4: of $170,000 currently. Uh, so it's to cover any debts 275 00:17:06,550 --> 00:17:12,350 S4: and any, uh, final burial expenses that I might have. 276 00:17:12,630 --> 00:17:16,750 S2: Okay. But in terms of, you know. Are you married? 277 00:17:17,830 --> 00:17:18,429 S4: Yes. 278 00:17:18,470 --> 00:17:22,030 S2: Okay. And so if you were to predecease your wife, um, 279 00:17:22,070 --> 00:17:25,669 S2: would she still have, uh, income sources that would cover 280 00:17:25,869 --> 00:17:27,310 S2: her monthly expenses? 281 00:17:28,550 --> 00:17:33,909 S4: Uh, yes. She has a monthly disability from a public 282 00:17:33,910 --> 00:17:40,419 S4: employee retirement system in Ohio. And Social Security. And we have, uh, 283 00:17:41,300 --> 00:17:46,660 S4: two farms. Uh, one of them, we get about $35,000 284 00:17:46,660 --> 00:17:52,619 S4: a year from us. So there is some income coming in. 285 00:17:52,859 --> 00:17:57,020 S2: Yeah. Uh, so she's got some guaranteed income sources and 286 00:17:57,020 --> 00:17:59,580 S2: then some additional income sources beyond that. So what I'm 287 00:17:59,580 --> 00:18:03,500 S2: hearing is, you know, even if you were to pass away, uh, 288 00:18:03,540 --> 00:18:07,620 S2: or vice versa, there would be no problem in whoever 289 00:18:07,859 --> 00:18:11,820 S2: is still living, continuing to service that debt and cover 290 00:18:11,859 --> 00:18:15,140 S2: all of your expenses. Plus. Sounds like there would be 291 00:18:15,140 --> 00:18:19,020 S2: some assets that could even cover those burial expenses. Is 292 00:18:19,020 --> 00:18:19,620 S2: that right? 293 00:18:20,060 --> 00:18:26,980 S4: Yes. Yes. We also have about, uh, $600,000 in, uh, 294 00:18:27,300 --> 00:18:30,260 S4: investment account with with fidelity. 295 00:18:30,500 --> 00:18:34,690 S2: Okay. Yeah. Very good. So this policy has served its purpose. 296 00:18:34,970 --> 00:18:37,650 S2: But what I'm hearing is it's really no longer needed. 297 00:18:37,850 --> 00:18:41,050 S2: And the way I like to view insurance, whether it's 298 00:18:41,330 --> 00:18:44,570 S2: automobile insurance to offset a risk of you having an 299 00:18:44,570 --> 00:18:47,490 S2: accident and needing to repair your car or cover medical 300 00:18:47,490 --> 00:18:52,090 S2: expenses or a homeowner's policy where you'd be able to cover, 301 00:18:52,130 --> 00:18:54,490 S2: you know, the repair to your home in the event 302 00:18:54,490 --> 00:18:58,209 S2: of a major event, or life insurance, where you'd be 303 00:18:58,250 --> 00:19:01,290 S2: able to cover the loss of income that would create 304 00:19:01,330 --> 00:19:06,129 S2: a hardship for a surviving spouse or a lifelong dependent child. 305 00:19:06,410 --> 00:19:10,770 S2: Once those needs no longer exist, you don't need the insurance. 306 00:19:11,050 --> 00:19:14,530 S2: And that's true in this case with this policy, especially 307 00:19:14,530 --> 00:19:17,489 S2: given that it's about to increase dramatically. So what I 308 00:19:17,490 --> 00:19:19,330 S2: would say is, based on what I'm hearing, you've got 309 00:19:19,330 --> 00:19:22,650 S2: plenty of assets to for her to maintain her lifestyle, 310 00:19:22,770 --> 00:19:25,450 S2: cover all of your final expenses. So I would just 311 00:19:25,450 --> 00:19:28,730 S2: cancel the policy, which is very common at your age, 312 00:19:29,010 --> 00:19:33,730 S2: and redirect that premium into boosting your cash reserves or 313 00:19:33,730 --> 00:19:37,410 S2: using for living expenses, or increasing your giving something like that. 314 00:19:38,770 --> 00:19:42,930 S4: Okay, with fidelity, I do have I think it's like 315 00:19:42,930 --> 00:19:50,449 S4: a money market account. It's, uh, not a tax deferred account. Uh, 316 00:19:50,450 --> 00:19:55,690 S4: so maybe the $385 a month that I'm paying on insurance, 317 00:19:55,690 --> 00:19:59,930 S4: I can invest in that. And I think it's gaining 318 00:19:59,930 --> 00:20:03,570 S4: like 3% interest a year or a month now. Something 319 00:20:03,570 --> 00:20:04,170 S4: like that. 320 00:20:04,210 --> 00:20:06,490 S2: Yeah, I think that's a great solution. But I think 321 00:20:06,490 --> 00:20:10,010 S2: regardless of what you do with it, uh, continuing to 322 00:20:10,050 --> 00:20:13,690 S2: send it to the insurance company, whether it's 385 or 1500, 323 00:20:13,930 --> 00:20:17,290 S2: is just unnecessary and unnecessary expense that you could use 324 00:20:17,290 --> 00:20:18,170 S2: in other ways. 325 00:20:19,090 --> 00:20:21,930 S4: Okay. Well, thank you. Thank you very much. 326 00:20:21,970 --> 00:20:23,930 S2: Yes, sir. John, may the Lord bless you and call 327 00:20:23,930 --> 00:20:26,370 S2: any time we're going to head to, uh, Indiana and 328 00:20:26,369 --> 00:20:27,490 S2: talk to John. Go ahead. 329 00:20:28,930 --> 00:20:32,200 S5: Yes, sir. Uh, thanks for taking my call. Appreciate it. 330 00:20:32,240 --> 00:20:33,000 S2: Absolutely. 331 00:20:33,800 --> 00:20:40,879 S5: Yes. My son bought a Jeep, a 2015 Jeep. And, uh, 332 00:20:41,119 --> 00:20:45,120 S5: he's having trouble making payments and buying groceries for his 333 00:20:45,119 --> 00:20:49,320 S5: two sons. And he got a head injury when he 334 00:20:49,320 --> 00:20:54,560 S5: was in Iraq, and it kind of kind of hurts his, uh, 335 00:20:54,560 --> 00:20:56,560 S5: logic sometimes, I believe. 336 00:20:56,840 --> 00:20:57,320 S2: Yes. 337 00:20:57,359 --> 00:21:05,960 S5: And he went through the VA numerous times trying to get, uh, 100% disability. 338 00:21:06,400 --> 00:21:09,040 S5: And if he got that, he would be fine, but 339 00:21:09,760 --> 00:21:11,719 S5: they act like he was going to get it any time. 340 00:21:11,720 --> 00:21:13,320 S5: And that's been a couple of months ago. And he 341 00:21:13,320 --> 00:21:18,919 S5: hasn't received that. He's got 90% disability. Yeah. But, uh, 342 00:21:19,160 --> 00:21:22,280 S5: just taking forever. He just keeps calling them and talking 343 00:21:22,280 --> 00:21:26,639 S5: and trying to work things out. And that's, uh, not 344 00:21:26,640 --> 00:21:27,600 S5: getting anywhere. 345 00:21:27,880 --> 00:21:31,590 S2: Yes, sir. Well, I'm so sorry to hear about that. 346 00:21:31,710 --> 00:21:34,629 S2: Let's do this. I'd love to talk about the path forward. 347 00:21:34,630 --> 00:21:39,189 S2: And although, um, there's probably not a perfect solution here, 348 00:21:39,190 --> 00:21:42,629 S2: there are some that are better than others. When you, uh, 349 00:21:42,670 --> 00:21:45,109 S2: get to a place where you believe you can't maintain 350 00:21:45,109 --> 00:21:48,430 S2: a vehicle, uh, debt service. So we'll talk about that 351 00:21:48,430 --> 00:21:51,310 S2: right after the break. Stay right there, John. Chris Uline 352 00:21:51,310 --> 00:21:53,070 S2: coming your way as well. We'll be right back. 353 00:22:08,030 --> 00:22:10,710 S1: We're faith and finance live. And we talk about our 354 00:22:10,710 --> 00:22:14,629 S1: telephone number often because we usually are live. But today 355 00:22:14,630 --> 00:22:17,550 S1: the program is prerecorded. So if you hear a mention 356 00:22:17,550 --> 00:22:20,110 S1: of the phone number, please don't call us. But you 357 00:22:20,109 --> 00:22:21,790 S1: can find us online at. 358 00:22:26,510 --> 00:22:30,220 S2: Uh, before the break, we were talking to John in Indiana. 359 00:22:30,500 --> 00:22:34,620 S2: John's son is dealing with some head trauma, and he's 360 00:22:34,619 --> 00:22:38,500 S2: wondering if that often plays into some decision making. He 361 00:22:38,619 --> 00:22:42,900 S2: purchased a 2015 Jeep and he really can't afford it. 362 00:22:42,900 --> 00:22:46,540 S2: There's a possibility that he would get some additional disability, 363 00:22:46,540 --> 00:22:50,180 S2: which perhaps could rightsize his budget, but at least based 364 00:22:50,180 --> 00:22:54,260 S2: on his current level of income, he is having trouble 365 00:22:54,300 --> 00:22:57,100 S2: making those payments. And John's just wondering what is the 366 00:22:57,100 --> 00:22:59,700 S2: path forward. And obviously if we think there's a change 367 00:22:59,700 --> 00:23:03,860 S2: that's imminent in his financial situation with regard to income, 368 00:23:04,020 --> 00:23:06,580 S2: you know, maybe we we try to stay the course here. 369 00:23:06,580 --> 00:23:08,619 S2: It's not like he has a brand new car or 370 00:23:08,619 --> 00:23:12,859 S2: something like that. And there's always a cost to even 371 00:23:12,859 --> 00:23:14,939 S2: if he tries to downsize and he may end up 372 00:23:14,940 --> 00:23:17,500 S2: with something, you know, if he went with something cheaper 373 00:23:17,500 --> 00:23:19,860 S2: and older, then, you know, he may get hit with 374 00:23:19,900 --> 00:23:22,860 S2: lots of repairs. But at the same time, you know, 375 00:23:22,900 --> 00:23:26,659 S2: in terms of options to get out from under it, um, 376 00:23:26,660 --> 00:23:29,169 S2: give me a sense of of what you think it's worth. 377 00:23:29,170 --> 00:23:32,010 S2: And then I'm assuming he has still a loan on it. 378 00:23:32,010 --> 00:23:32,730 S2: Is that right? 379 00:23:33,970 --> 00:23:39,850 S5: Yes, sir. Uh, it charged him $23,000 for it. I 380 00:23:39,850 --> 00:23:42,570 S5: thought it was about 6000 higher than it should be 381 00:23:42,570 --> 00:23:45,690 S5: in the first place. Yeah, his credit was good before 382 00:23:45,690 --> 00:23:49,090 S5: he bought this. Mhm. But he was having trouble with 383 00:23:49,090 --> 00:23:52,010 S5: his other vehicle and kept dying on him. He'd be 384 00:23:52,010 --> 00:23:56,170 S5: taking his boy somewhere. He's not married and uh he 385 00:23:56,170 --> 00:23:58,490 S5: just got tired of it. So he traded it in 386 00:23:59,609 --> 00:24:02,690 S5: for this Jeep and uh he's just having a heck 387 00:24:02,690 --> 00:24:04,610 S5: of a time struggling, getting by. 388 00:24:04,810 --> 00:24:08,730 S2: Yeah. Um, and so he's probably upside down. Are you 389 00:24:08,730 --> 00:24:09,730 S2: believing that's true? 390 00:24:11,490 --> 00:24:13,970 S5: Uh, how how do you mean by that? 391 00:24:14,090 --> 00:24:16,649 S2: Meaning that the amount he owes on the loan is 392 00:24:16,650 --> 00:24:18,490 S2: higher than the value of the car? 393 00:24:19,410 --> 00:24:25,690 S5: I believe so. Um, 23,000 for 2015. It had, I think, 394 00:24:25,810 --> 00:24:28,169 S5: 98,000 miles on it. 395 00:24:28,170 --> 00:24:31,889 S2: Yeah. Something's not right there. Um, well, that's the first 396 00:24:31,890 --> 00:24:33,970 S2: step is just to figure out, you know, what is 397 00:24:33,970 --> 00:24:37,570 S2: this car worth on the open market? And he could 398 00:24:37,570 --> 00:24:41,770 S2: go to Edmunds.com or Kbb.com and and get a private 399 00:24:41,770 --> 00:24:45,210 S2: sale value just to determine if he is upside down. 400 00:24:45,210 --> 00:24:47,930 S2: Meaning if you would get less by selling it than 401 00:24:47,930 --> 00:24:50,930 S2: the car is worth. Um, you know, you would have 402 00:24:50,930 --> 00:24:54,570 S2: that deficiency balance and he would either need to get 403 00:24:54,570 --> 00:24:57,090 S2: another loan to cover that in order to get out 404 00:24:57,090 --> 00:24:59,690 S2: from under this payment, uh, or have a way to 405 00:24:59,730 --> 00:25:02,129 S2: come up with that to at least, you know, get 406 00:25:02,130 --> 00:25:04,810 S2: to a place where he has paid it in full. Uh, 407 00:25:04,810 --> 00:25:07,010 S2: but selling the vehicle is, you know, is going to 408 00:25:07,010 --> 00:25:10,169 S2: be the cleanest exit, even if it hurts a bit. Um, 409 00:25:10,490 --> 00:25:13,210 S2: you know, he could get some real offers at Carvana 410 00:25:13,210 --> 00:25:17,210 S2: or CarMax or a dealer. Um, but often that private 411 00:25:17,210 --> 00:25:19,850 S2: sale is going to get him, you know, the highest 412 00:25:19,850 --> 00:25:23,649 S2: amount possible. And then, you know, if the sale price 413 00:25:23,690 --> 00:25:25,280 S2: is less than the loan, he's going to have to 414 00:25:25,280 --> 00:25:27,400 S2: come up with a way to cover that. That's going 415 00:25:27,440 --> 00:25:32,080 S2: to avoid repossession and limit the credit damage. Um, you know, 416 00:25:32,119 --> 00:25:34,720 S2: the other option is to refinance if there's a lower 417 00:25:34,720 --> 00:25:38,000 S2: interest rate available or a longer term just to get 418 00:25:38,000 --> 00:25:41,440 S2: that monthly payment down. Um, you know, that doesn't fix 419 00:25:41,440 --> 00:25:44,520 S2: being upside down, but it can buy some time if 420 00:25:44,520 --> 00:25:47,880 S2: his credit is still decent. The other option is try 421 00:25:47,880 --> 00:25:50,840 S2: to trade it in for a cheaper car. Uh, and 422 00:25:50,840 --> 00:25:53,720 S2: then the negative equity would get rolled into a less 423 00:25:53,720 --> 00:25:58,600 S2: expensive vehicle. That's not ideal, but sometimes it's more manageable. 424 00:25:59,000 --> 00:26:02,240 S2: And you know, that rolling of that negative equity, which 425 00:26:02,240 --> 00:26:05,720 S2: is again, that amount, that would be the difference between 426 00:26:05,720 --> 00:26:08,160 S2: what the value of the car is that would bring, 427 00:26:08,640 --> 00:26:11,399 S2: you know, come from a private sale or from a dealer. 428 00:26:11,760 --> 00:26:15,240 S2: The difference between that and what he currently owes on it, um, 429 00:26:15,480 --> 00:26:17,879 S2: you know, would be rolled into that next vehicle. That's 430 00:26:17,880 --> 00:26:20,520 S2: a last resort. We don't typically want to do that, 431 00:26:20,520 --> 00:26:22,800 S2: but we're, you know, just trying to get to a 432 00:26:22,910 --> 00:26:27,070 S2: situation where he can, you know, be manageable at this point. Um, 433 00:26:27,109 --> 00:26:29,030 S2: the other option would be to ask the lender for 434 00:26:29,030 --> 00:26:33,710 S2: hardship options. It's rarely a long term solution, but sometimes 435 00:26:33,710 --> 00:26:37,230 S2: they'll offer a short term payment deferral. You know, if 436 00:26:37,230 --> 00:26:40,669 S2: if we feel like in a period of time, uh, 437 00:26:40,670 --> 00:26:42,750 S2: you know, there's some reason to believe his income's going 438 00:26:42,750 --> 00:26:44,150 S2: up and all of a sudden he would be able 439 00:26:44,150 --> 00:26:46,790 S2: to afford this. Does that make sense, though? 440 00:26:47,710 --> 00:26:50,350 S5: Yes. I sure appreciate your wisdom that the Lord has 441 00:26:50,350 --> 00:26:54,109 S5: given you. I appreciate it very much. Um, to help 442 00:26:54,109 --> 00:26:57,590 S5: people like me in the situation, helping my son. I've 443 00:26:57,590 --> 00:27:00,390 S5: helped him for 15 years since he's been back home. 444 00:27:00,430 --> 00:27:03,070 S5: He was in the infantry over there 13 months. 445 00:27:03,630 --> 00:27:04,030 S2: Wow. 446 00:27:04,270 --> 00:27:07,310 S5: In Iraq. And it, uh, you know, these boys come 447 00:27:07,310 --> 00:27:09,830 S5: back a lot different. So, uh. 448 00:27:10,109 --> 00:27:13,070 S2: Well, I'm so grateful for his service to our nation. 449 00:27:13,070 --> 00:27:15,710 S2: And I'm grateful for you walking alongside your son. You 450 00:27:15,710 --> 00:27:18,470 S2: sound like an incredible father. And I'm so delighted. I 451 00:27:18,470 --> 00:27:20,670 S2: could be a small part of assisting you in that. 452 00:27:20,670 --> 00:27:23,860 S2: If we can help further along the way, let me know. 453 00:27:23,980 --> 00:27:25,899 S2: I'll tell you one thing I'd be willing to offer, John, 454 00:27:25,900 --> 00:27:28,820 S2: if you think it would be helpful, is, uh, you know, 455 00:27:28,859 --> 00:27:32,260 S2: we would, uh, we have certified Christian financial counselors here. 456 00:27:32,260 --> 00:27:34,820 S2: These are men and women who are trained to help 457 00:27:34,820 --> 00:27:39,300 S2: with debt repayment and spending plans and budgets, and often 458 00:27:39,300 --> 00:27:43,139 S2: they're retired. This is their ministry. Um, but I'd be 459 00:27:43,180 --> 00:27:46,500 S2: happy to provide a certified Christian financial counselor to meet 460 00:27:46,500 --> 00:27:49,260 S2: with your son just to try to get things in 461 00:27:49,260 --> 00:27:52,580 S2: order and get a plan moving forward. And we would 462 00:27:52,580 --> 00:27:54,659 S2: cover the cost of that if he would want to 463 00:27:54,660 --> 00:27:55,700 S2: take advantage of it. 464 00:27:56,180 --> 00:27:59,100 S5: Sure. I sure would appreciate that. I know it would 465 00:27:59,100 --> 00:28:03,060 S5: help him a lot to talk to somebody that can 466 00:28:03,100 --> 00:28:05,500 S5: help him. Yeah, you know, get him on the right 467 00:28:05,540 --> 00:28:06,619 S5: track and, uh. 468 00:28:07,220 --> 00:28:09,220 S2: Very good. Well, let's do that. I'm going to ask 469 00:28:09,220 --> 00:28:11,659 S2: you to hold the line, John. We'll get your information. 470 00:28:11,660 --> 00:28:13,980 S2: We'll get somebody in touch with you, and then you 471 00:28:13,980 --> 00:28:15,820 S2: can make the hand off to your son again. There 472 00:28:15,820 --> 00:28:18,620 S2: wouldn't be any cost to him whatsoever. It's just our 473 00:28:18,619 --> 00:28:21,260 S2: gift to you to try to come alongside him and 474 00:28:21,260 --> 00:28:23,940 S2: be of assistance. So call anytime, sir. Thanks for your 475 00:28:23,940 --> 00:28:26,460 S2: kind remarks about the program. We appreciate it. Uh, let's 476 00:28:26,460 --> 00:28:28,179 S2: go down to Florida. Hi, Chris. Go ahead. 477 00:28:28,980 --> 00:28:31,780 S6: God bless you and your ministry. Thank you. I have 478 00:28:31,780 --> 00:28:37,940 S6: a two part credit related question. Okay. Um, renovated my 479 00:28:37,940 --> 00:28:42,460 S6: bathroom last year, and I used a 12 month, same 480 00:28:42,460 --> 00:28:46,500 S6: as cash, no payments plan that they were offering. And 481 00:28:46,540 --> 00:28:49,060 S6: I know I should have called you earlier on to 482 00:28:49,100 --> 00:28:51,740 S6: ask you about this. I wanted to know the first 483 00:28:51,740 --> 00:28:54,380 S6: part of my question is about that 12 months, same 484 00:28:54,380 --> 00:28:58,020 S6: as cash. I have no concerns about paying it off. 485 00:28:58,020 --> 00:29:00,980 S6: I did it last June, so I've got plenty of 486 00:29:00,980 --> 00:29:03,380 S6: wiggle room here before I have to pay it off. 487 00:29:03,540 --> 00:29:07,980 S6: But my question is, are there any hidden gotchas in this? 488 00:29:07,980 --> 00:29:11,580 S6: Because these these sounds so good, but are there from 489 00:29:11,580 --> 00:29:15,660 S6: your standpoint and your knowledge? Are there any hidden gotchas 490 00:29:15,660 --> 00:29:18,580 S6: with those 12 months? Same as cash plans. 491 00:29:19,170 --> 00:29:24,290 S2: Typically not with this exception. So usually it's, you know, 0% 492 00:29:24,290 --> 00:29:27,570 S2: interest for 12 or 18 months. If the balance is 493 00:29:27,570 --> 00:29:31,650 S2: paid in full prior to the deadline, there is exactly 494 00:29:31,650 --> 00:29:34,730 S2: what they promise, unless there's some fine print that undoes this. 495 00:29:34,730 --> 00:29:37,810 S2: But this is not typical. Um, there would be no 496 00:29:37,810 --> 00:29:41,130 S2: interest at all, but and this would be the gotcha 497 00:29:41,130 --> 00:29:45,090 S2: if there is one, if even $1 remains after that 498 00:29:45,090 --> 00:29:50,570 S2: 12 month, uh, then all the deferred interest is added retroactively, 499 00:29:50,850 --> 00:29:55,570 S2: and those interest rates are often very high, 20% plus. So, 500 00:29:55,730 --> 00:29:57,810 S2: you know, you just have to look at it and 501 00:29:57,810 --> 00:30:03,850 S2: make sure that you understand what that deadline is. And secondly, 502 00:30:03,850 --> 00:30:06,970 S2: you need to know that sometimes the minimum payment that 503 00:30:06,970 --> 00:30:11,010 S2: they're requiring may not pay it off in time to 504 00:30:11,050 --> 00:30:14,410 S2: have it paid in full prior to that, uh, you know, 505 00:30:14,450 --> 00:30:17,800 S2: that 12 months, same as cash expiring. And so the 506 00:30:17,800 --> 00:30:22,120 S2: promotional end date may end earlier than expected. And you 507 00:30:22,120 --> 00:30:26,160 S2: just don't want to miss that. But typically, um, you know, 508 00:30:26,200 --> 00:30:28,440 S2: as long as you pay that balance in full before 509 00:30:28,480 --> 00:30:32,440 S2: that promotional end, then, you know, you get, uh, exactly 510 00:30:32,440 --> 00:30:35,200 S2: what they offered, which is a 0% interest loan. 511 00:30:35,760 --> 00:30:37,360 S6: Okay, that sounds excellent. 512 00:30:37,680 --> 00:30:39,520 S2: Uh, let's do this. I want to get to that 513 00:30:39,520 --> 00:30:41,920 S2: second part of the question, Chris, but I'm up against 514 00:30:41,920 --> 00:30:43,520 S2: a break, so I'm going to ask you to hold 515 00:30:43,520 --> 00:30:46,120 S2: the line. And then when we come back, we'll, uh, 516 00:30:46,120 --> 00:30:48,960 S2: we'll tackle the second part of your question. We appreciate 517 00:30:48,960 --> 00:30:51,200 S2: your call today, sir. Stay right there. We'll be right 518 00:30:51,200 --> 00:30:54,240 S2: back with you. You, Jerry, coming your way after the 519 00:30:54,240 --> 00:30:56,760 S2: break as well. This is faith in finance. We'll be 520 00:30:56,760 --> 00:31:06,640 S2: right back with our final segment. We're so glad you've 521 00:31:06,640 --> 00:31:09,479 S2: joined us for Faith and Finance Live today. Here in 522 00:31:09,480 --> 00:31:11,959 S2: our final segment, let me remind you not to call 523 00:31:11,960 --> 00:31:14,479 S2: in because we're not live today, but we'd love for 524 00:31:14,480 --> 00:31:17,670 S2: you to stick around and enjoy the rest of the program. 525 00:31:18,110 --> 00:31:20,750 S2: Before the break, we were talking to Chris in Florida. 526 00:31:21,030 --> 00:31:24,750 S2: Chris was wondering about a 12 month interest free loan, 527 00:31:24,750 --> 00:31:27,870 S2: same as cash and whether there's any hidden costs. But Chris, 528 00:31:27,870 --> 00:31:29,830 S2: I know you had a second part to your question. 529 00:31:29,830 --> 00:31:30,630 S2: Go ahead with that. 530 00:31:31,030 --> 00:31:36,030 S6: Yes, I listened to you recommend free credit report. Com 531 00:31:36,070 --> 00:31:38,190 S6: the fight the other day. So when I went to 532 00:31:38,230 --> 00:31:41,229 S6: it I opened it up and looked around in there. 533 00:31:41,430 --> 00:31:45,550 S6: But can you please unpack what the report versus the 534 00:31:45,590 --> 00:31:49,670 S6: score because they mentioned you will not receive a credit 535 00:31:49,670 --> 00:31:53,150 S6: score and I'm not familiar with that. Can you tell 536 00:31:53,150 --> 00:31:55,030 S6: me that with that difference is. 537 00:31:55,310 --> 00:31:58,950 S2: Yeah. Um, let me just make one clarification because there 538 00:31:58,950 --> 00:32:02,310 S2: is a free credit report. Com, which is part of Experian, 539 00:32:02,310 --> 00:32:04,790 S2: which is one of the three bureaus. The one that 540 00:32:04,830 --> 00:32:08,310 S2: you probably heard me recommend is slightly different. It's the 541 00:32:08,310 --> 00:32:12,470 S2: government website that allows you to get credit reports from 542 00:32:12,470 --> 00:32:16,910 S2: all three bureaus and it's its annual credit report.com rather 543 00:32:16,910 --> 00:32:22,070 S2: than free credit report. Now they will offer the credit report, 544 00:32:22,070 --> 00:32:26,150 S2: which is the file with each of the three major bureaus, 545 00:32:26,310 --> 00:32:30,590 S2: the credit reporting companies, and you will see all of 546 00:32:30,590 --> 00:32:34,350 S2: the entries in there with regard to, you know, every 547 00:32:34,390 --> 00:32:39,270 S2: active account and the status of those. And that's what 548 00:32:39,310 --> 00:32:43,510 S2: ultimately is pulled to make up your credit score. Now, 549 00:32:43,950 --> 00:32:47,830 S2: your score is not automatically included on the credit report. 550 00:32:47,830 --> 00:32:49,830 S2: The reason you get the credit report is just to 551 00:32:49,830 --> 00:32:54,230 S2: make sure there's not any inaccurate information, and that everything 552 00:32:54,230 --> 00:32:58,030 S2: is current, and if there is inaccurate information, you would 553 00:32:58,030 --> 00:33:00,790 S2: dispute it. And you'll see how to do that in 554 00:33:00,790 --> 00:33:03,510 S2: the report so that it could be corrected. The score 555 00:33:03,510 --> 00:33:09,350 S2: is different. It's an additional step. And often, especially these days, 556 00:33:09,550 --> 00:33:12,030 S2: you can get them in a number of places at 557 00:33:12,030 --> 00:33:16,140 S2: no cost. Um, most credit card companies are now offering 558 00:33:16,580 --> 00:33:21,140 S2: free credit scores. Um, you could go to Creditkarma.com to 559 00:33:21,180 --> 00:33:23,940 S2: get your score. So if you're wanting to, to check 560 00:33:23,940 --> 00:33:27,140 S2: your score, it's it's pretty easy to do these days. 561 00:33:27,340 --> 00:33:31,540 S2: But that credit file, that credit report is, you know, 562 00:33:31,580 --> 00:33:33,580 S2: important for you to check at least a couple of 563 00:33:33,580 --> 00:33:36,980 S2: times a year and annual credit report.com is the place 564 00:33:36,980 --> 00:33:37,580 S2: to do it. 565 00:33:38,100 --> 00:33:40,180 S6: Okay. Thank you so much, Rob. 566 00:33:40,380 --> 00:33:43,180 S2: Absolutely, Chris. Thanks for your call, sir. Uh, let's head 567 00:33:43,180 --> 00:33:44,980 S2: to Texas. Jerry. Go ahead. 568 00:33:45,380 --> 00:33:49,300 S7: Yes. Uh, about, uh, some silver back about ten years 569 00:33:49,300 --> 00:33:54,740 S7: ago at about $16 an ounce, and it's now around 90. 570 00:33:55,300 --> 00:33:59,060 S7: I just wondered if you had any insight into where 571 00:33:59,060 --> 00:34:02,700 S7: the market is going. And also, if I needed to 572 00:34:02,700 --> 00:34:06,340 S7: sell some where I'd go to get the best price. 573 00:34:06,700 --> 00:34:09,900 S2: Well, as you point out, you know, in the last year, 574 00:34:09,900 --> 00:34:15,130 S2: silver prices have surged up. And, you know, we've seen, uh, 575 00:34:15,130 --> 00:34:18,330 S2: you know, really a run up. It's been dramatic. It's 576 00:34:18,370 --> 00:34:21,850 S2: applied to gold as well. Um, I would say, you know, 577 00:34:21,890 --> 00:34:24,690 S2: in terms of what drives the silver market, it's influenced 578 00:34:24,690 --> 00:34:29,810 S2: by both industrial demand and investment demand, and that dual 579 00:34:29,810 --> 00:34:33,489 S2: role makes it different from many other commodities. So in 580 00:34:33,489 --> 00:34:36,210 S2: terms of the industrial use, you know, silver is used 581 00:34:36,210 --> 00:34:40,650 S2: in electronics and solar panels and electric vehicles and medical devices. 582 00:34:40,650 --> 00:34:44,450 S2: So industrial demand is a is a major driver. And 583 00:34:44,450 --> 00:34:47,969 S2: then there's the supply demand dynamics which has to do 584 00:34:47,969 --> 00:34:51,050 S2: with the mining which is limited. And then there's the 585 00:34:51,050 --> 00:34:54,450 S2: the other forces, which is, you know, any macro or 586 00:34:54,450 --> 00:34:58,850 S2: monetary forces like expectations of rate cuts and inflation concerns, 587 00:34:59,130 --> 00:35:03,049 S2: you know, often can push people into precious metals, including silver. 588 00:35:03,050 --> 00:35:06,609 S2: So it's both a blend of a commodity and a 589 00:35:06,610 --> 00:35:11,320 S2: store of value. Now for that precious metals component of 590 00:35:11,320 --> 00:35:15,120 S2: a portfolio. I like to keep it at less than 10% 591 00:35:15,360 --> 00:35:18,640 S2: just because it does not have any income. There's no 592 00:35:18,680 --> 00:35:23,360 S2: yield like a dividend or a bond or rental income. Uh, 593 00:35:23,360 --> 00:35:26,680 S2: you know, metals don't have any kind of yield. Um, 594 00:35:27,000 --> 00:35:30,839 S2: there's more volatility. Uh, so if we look over, you know, 595 00:35:30,880 --> 00:35:33,800 S2: the years. Uh, it is more volatile than a stock 596 00:35:33,800 --> 00:35:37,280 S2: and bond portfolio. And so especially silver can swing up 597 00:35:37,280 --> 00:35:42,120 S2: or down pretty sharply. And there are price corrections that 598 00:35:42,120 --> 00:35:46,160 S2: are possible. So with silver you know near historic highs. 599 00:35:46,520 --> 00:35:49,080 S2: You know I think there are some some real downside 600 00:35:49,080 --> 00:35:51,359 S2: scenarios that you need to be prepared for. And so 601 00:35:51,360 --> 00:35:54,600 S2: I think, you know, to that end, it may be 602 00:35:54,600 --> 00:35:57,279 S2: a time not to increase your position, but lighten up 603 00:35:57,280 --> 00:36:01,640 S2: on your position to get it down to your target allocation, 604 00:36:01,640 --> 00:36:04,200 S2: which again, I would say is is probably no more 605 00:36:04,200 --> 00:36:08,200 S2: than 10% for the entire, uh, category for precious metals 606 00:36:08,200 --> 00:36:11,190 S2: in your portfolio. Um, you know, I would say most 607 00:36:11,350 --> 00:36:14,950 S2: analysts are recommending you not overweight because of short term 608 00:36:14,950 --> 00:36:19,189 S2: rallies and just view silver as something that's volatile and 609 00:36:19,190 --> 00:36:23,830 S2: a little more cyclical, not necessarily a core long term anchor. 610 00:36:24,550 --> 00:36:26,629 S2: If you did want to add to your position, you'd 611 00:36:26,630 --> 00:36:29,510 S2: want to do that on dips or consolidation, not just 612 00:36:29,510 --> 00:36:33,709 S2: chasing the recent highs. But, um, you know, I would 613 00:36:33,710 --> 00:36:39,710 S2: say that most institutions and market analysts are projecting moderate 614 00:36:39,710 --> 00:36:43,630 S2: further gains. Um, you know, given the run up that 615 00:36:43,630 --> 00:36:45,750 S2: we've had as of late. Does that make sense? 616 00:36:46,270 --> 00:36:49,670 S7: Yes it does. If I wanted to sell it, where 617 00:36:49,670 --> 00:36:52,989 S7: would be the best way to go to get the 618 00:36:52,989 --> 00:36:53,830 S7: best price? 619 00:36:54,110 --> 00:36:57,029 S2: It's physical silver. Is that right? That you have in 620 00:36:57,030 --> 00:37:00,510 S2: your possession? Yeah. Um, yeah, that's a little more challenging. 621 00:37:00,510 --> 00:37:02,870 S2: I mean, you could look around in your area for 622 00:37:02,910 --> 00:37:05,430 S2: a dealer. You'd want to read a lot of reviews 623 00:37:05,430 --> 00:37:09,230 S2: you could always look at just to understand, uh, you know, 624 00:37:09,270 --> 00:37:11,910 S2: what kind of deal you're getting on the sale. After 625 00:37:11,910 --> 00:37:14,989 S2: you find somebody who has a good reputation, you can 626 00:37:14,989 --> 00:37:18,150 S2: check what they're giving you against the spot price of silver, 627 00:37:18,190 --> 00:37:21,310 S2: just to figure out, you know, what premium is involved 628 00:37:21,469 --> 00:37:25,950 S2: in this person? Uh, you know, selling this for you, so. 629 00:37:25,989 --> 00:37:28,590 S2: Or buying it from you. Um, so it's, it's pretty 630 00:37:28,590 --> 00:37:30,669 S2: easy to kind of see whether you're getting a quote 631 00:37:30,710 --> 00:37:34,230 S2: good deal or not. Um, if you, uh, you know, 632 00:37:34,270 --> 00:37:37,350 S2: I've got, uh, a few folks that we could send 633 00:37:37,350 --> 00:37:39,910 S2: you to that I know to be believers, that if 634 00:37:39,910 --> 00:37:41,750 S2: you want to hang on the line, I'll be happy 635 00:37:41,750 --> 00:37:44,989 S2: to have my team share the information. But I think 636 00:37:44,989 --> 00:37:46,350 S2: at the end of the day, you just want to 637 00:37:46,350 --> 00:37:49,270 S2: get somebody who has a good reputation, read a lot 638 00:37:49,270 --> 00:37:52,509 S2: of reviews, and then just check that price against the 639 00:37:52,510 --> 00:37:55,109 S2: spot price based on the weight of the metal that 640 00:37:55,110 --> 00:37:58,270 S2: you have and the quality and, um, you'll know exactly 641 00:37:58,270 --> 00:37:59,070 S2: what you're getting. 642 00:37:59,750 --> 00:38:02,950 S7: Okay. I don't need that information right now because I'm 643 00:38:02,950 --> 00:38:04,790 S7: just going to hold on to it. 644 00:38:04,790 --> 00:38:05,270 S2: Okay? 645 00:38:05,310 --> 00:38:07,500 S7: But, uh, But it is good to know that I 646 00:38:07,500 --> 00:38:09,620 S7: can come to you all, and you can give me 647 00:38:09,620 --> 00:38:11,180 S7: some direction on that. 648 00:38:11,380 --> 00:38:13,779 S2: We'd be delighted to, Gerry. All the best to you, sir. 649 00:38:13,820 --> 00:38:16,660 S2: Thanks for calling today. Let's head to Florida. Eugene, thanks 650 00:38:16,660 --> 00:38:17,940 S2: for your patience. Go ahead. 651 00:38:18,580 --> 00:38:24,700 S8: Hi. Um, I want to know how, like, I put 652 00:38:24,700 --> 00:38:27,819 S8: myself in a lot of debt. I let my kids 653 00:38:27,860 --> 00:38:34,020 S8: piggy bank off my credit. Mhm. And they actually overspend. 654 00:38:34,460 --> 00:38:37,580 S8: And so I had to cut their credit card off. 655 00:38:37,620 --> 00:38:41,580 S8: But I owe a lot on the cards right now. 656 00:38:41,580 --> 00:38:45,860 S8: So I was wondering, um, if it's best for me 657 00:38:45,860 --> 00:38:50,500 S8: to take a loan to pay it off or get 658 00:38:50,700 --> 00:38:55,900 S8: debt consolidation. Because it's, it's, it's a lot not. Yeah. Yeah. 659 00:38:56,140 --> 00:38:59,340 S2: Is it one one card Uline or several cards? 660 00:38:59,900 --> 00:39:01,299 S8: Several cards. 661 00:39:01,340 --> 00:39:05,969 S2: Okay. Yeah. Uh, I would not do debt consolidation, which 662 00:39:05,969 --> 00:39:08,170 S2: is where you take out a new loan to pay 663 00:39:08,170 --> 00:39:11,250 S2: off the existing loans. I'd leave them right where they 664 00:39:11,250 --> 00:39:16,010 S2: are and do something called debt management, uh, which is basically, uh, 665 00:39:16,010 --> 00:39:20,609 S2: where you'd use a nonprofit credit counseling agency. Uh, the 666 00:39:20,610 --> 00:39:24,170 S2: cards would be closed whatever cards you put into the program. 667 00:39:24,330 --> 00:39:27,370 S2: But the real benefit is that the interest rates would 668 00:39:27,370 --> 00:39:31,930 S2: be dropped dramatically. The the actual interest rate in credit 669 00:39:31,930 --> 00:39:35,650 S2: counseling is going to vary based on who your creditors are. Um, 670 00:39:35,810 --> 00:39:38,830 S2: but on average, it's going to be somewhere between 0 671 00:39:38,830 --> 00:39:43,529 S2: and 10%, uh, instead of probably 20 plus, uh, where 672 00:39:43,530 --> 00:39:46,930 S2: it is right now. And the combination of, of one 673 00:39:46,930 --> 00:39:51,250 S2: level monthly payment, combined with the, uh, those reduced interest 674 00:39:51,250 --> 00:39:53,969 S2: rates is going to help you have a payment you 675 00:39:53,969 --> 00:39:56,609 S2: can afford in your budget, but where a lot more 676 00:39:56,650 --> 00:40:00,170 S2: is going to principal reduction every month so that you 677 00:40:00,170 --> 00:40:02,570 S2: can actually get these paid off once and for all 678 00:40:02,850 --> 00:40:06,960 S2: and get back into a better financial situation. So if 679 00:40:06,960 --> 00:40:08,879 S2: you're comfortable on the internet, I would just go to 680 00:40:08,920 --> 00:40:16,239 S2: Christian credit counselors. Christian credit counselors.org. And, um, they've worked 681 00:40:16,239 --> 00:40:19,640 S2: with hundreds of our listeners and they would be able 682 00:40:19,640 --> 00:40:20,960 S2: to take good care of you. 683 00:40:22,400 --> 00:40:25,160 S8: Okay. Christian credit counselors. 684 00:40:26,400 --> 00:40:26,879 S2: That's right. 685 00:40:29,000 --> 00:40:31,440 S8: Okay. Thank you. Thank you very much. 686 00:40:31,560 --> 00:40:34,279 S2: Okay. Lord bless you. Thanks for being on the program today. 687 00:40:34,640 --> 00:40:37,160 S2: We appreciate it. Well, it looks like that's going to 688 00:40:37,160 --> 00:40:39,279 S2: do it for us. Well, you know what? I've got 689 00:40:39,280 --> 00:40:42,000 S2: a minute left. Mark, let's take this question real quick 690 00:40:42,000 --> 00:40:45,200 S2: in Texas. Uh, I appreciate you holding. And how can 691 00:40:45,200 --> 00:40:45,800 S2: I help you? 692 00:40:46,520 --> 00:40:50,839 S9: I have a whole life insurance policy that I bought 693 00:40:50,840 --> 00:40:53,680 S9: many years ago that, uh. I'm not really sure I 694 00:40:53,680 --> 00:40:57,920 S9: need it any longer. Um, and I could cash it 695 00:40:57,920 --> 00:41:00,279 S9: in for the cash value, but then I would have 696 00:41:00,280 --> 00:41:03,120 S9: to claim it as income, And that would mess up 697 00:41:03,120 --> 00:41:06,320 S9: with my income ratios. So I'm wondering just some ideas 698 00:41:06,320 --> 00:41:07,120 S9: you might give me. 699 00:41:07,440 --> 00:41:11,440 S2: Yeah, well, it's a good question. And I think, uh, 700 00:41:11,440 --> 00:41:13,799 S2: you know, if, if you have the ability to pull 701 00:41:13,800 --> 00:41:15,839 S2: it out a little bit at a time, that could 702 00:41:15,840 --> 00:41:18,680 S2: be one option, because I understand what you're saying is 703 00:41:18,680 --> 00:41:21,719 S2: you don't want to recognize that income and then that 704 00:41:21,760 --> 00:41:24,759 S2: affect other things, like maybe your Irma or something else 705 00:41:24,760 --> 00:41:28,919 S2: with regard to Medicare. But often if the premiums are 706 00:41:28,960 --> 00:41:33,040 S2: rising or feel burdensome or you just don't need the insurance. Uh, 707 00:41:33,040 --> 00:41:36,160 S2: I think that cash value could be better used for 708 00:41:36,480 --> 00:41:40,399 S2: living expenses or emergency reserves or giving. And then the 709 00:41:40,400 --> 00:41:42,919 S2: key is when you collapse that policy and pull it out, 710 00:41:42,920 --> 00:41:46,120 S2: just understand what implications that's going to have from a 711 00:41:46,120 --> 00:41:49,040 S2: tax standpoint or a Medicare standpoint, and then just set 712 00:41:49,040 --> 00:41:51,759 S2: that portion aside. But the idea that you would just 713 00:41:51,760 --> 00:41:54,240 S2: continue to ride this out and let that cash value 714 00:41:54,280 --> 00:41:57,360 S2: dwindle or continue to pay a premium for a policy 715 00:41:57,360 --> 00:41:59,560 S2: you don't need, I'd rather you not do that. So 716 00:41:59,560 --> 00:42:01,790 S2: I'd look at getting out of it and just plan 717 00:42:01,790 --> 00:42:05,629 S2: for any expenses you'll incur. Mark, thanks for your call. Well, 718 00:42:05,630 --> 00:42:07,750 S2: we're about out of time today. Before we go, let 719 00:42:07,750 --> 00:42:10,230 S2: me remind us why we do what we do here 720 00:42:10,230 --> 00:42:13,430 S2: on this program. Every day we gather for faith and 721 00:42:13,430 --> 00:42:17,630 S2: finance live because we recognize we all have a high calling. 722 00:42:17,630 --> 00:42:21,230 S2: We're money managers for the King of kings, which means 723 00:42:21,350 --> 00:42:26,350 S2: we're to be found faithful as we manage God's resources, faithfulness, 724 00:42:26,350 --> 00:42:30,510 S2: obedience over a long period of time, applying the wisdom 725 00:42:30,510 --> 00:42:33,110 S2: of God's Word to every area of our lives. And 726 00:42:33,150 --> 00:42:35,790 S2: that includes our finances. So thanks for being here today. 727 00:42:35,790 --> 00:42:39,069 S2: Thanks for calling and for writing and for your emails. 728 00:42:39,070 --> 00:42:41,430 S2: We love to do what we do in serving you 729 00:42:41,430 --> 00:42:44,670 S2: to be wise stewards of God's money. Want to say 730 00:42:44,670 --> 00:42:47,589 S2: thanks to my team today Clara, Deb, Amy and Jim 731 00:42:47,590 --> 00:42:50,150 S2: couldn't do it without them. Faith and finance live as 732 00:42:50,150 --> 00:42:53,870 S2: a partnership between Faith Fi and Moody Radio. We'll see 733 00:42:53,870 --> 00:42:55,709 S2: you next time. God bless you. Bye bye.