Stewardship is a way of living in which we recognize that everything we have belongs to God. All resources must be used for His glory.
Use of Tithes
Tithing when Husband or Wife Objects
Tithing While in Debt
Smart Ways to Give
How to Control Spending
Spending Strategies for Living Within your Budget
Getting Out of Debt
Ten Ways to Save Money
Clean Up Your Credit Yourself
Ten Most Asked Questions About Debt
Suggested Reading
Stewardship Websites
by Crown Financial Ministries
Part of being a good steward (manager) of what God has provided is to give a portion back to Him. We pay the tithe, or 10 percent, of whatever we receive from Him. That tithe should be paid on our gross salary. It''s not that God needs our money; rather, giving serves as an external, material testimony that God owns both the material and spiritual things of our lives.
The tithe is an indicator of obedience to all of God's laws. He is looking for the right attitude in our giving.
In the Old Testament book of Malachi we're told that God wants us to direct our entire tithe into the storehouse. A storehouse in the Old Testament had four functions. It was used to feed (1) the tribe of Levi and the priests of Aaron, (2) the prophets, (3) the Hebrew widows and orphans living within the city, and (4) the widows and orphans of the Gentiles who were living in and around the Hebrew city.
However, the equivalent of the Old Testament storehouse in the New Testament, as well as in our present day society, is the local church. God's Word tells us to bring our tithes into the storehouse (Malachi 3:10). When we obey Him and pay our tithes to the church, God holds the leaders of the church responsible for the distribution of the tithes (Nehemiah 12:44-45, 13:5,13). If we associate the functions of the Old Testament storehouse with the New Testament and current local church, its fourfold function would be to provide for the needs of (1) the pastor and staff, (2) missionaries and evangelists, (3) widows, orphans, single parents, and invalids in the local church, and (4) the unsaved who surround the local church.
Should we give our tithes to pay for Christian education?
The tithe belongs to God. It's our material testimony that God owns everything in our lives. When we take a portion of our tithe and divert it to keep our children in Christian schools, it's really a gift in self-interest. Educational costs are your normal responsibility. Therefore, if God wants your children to attend private school, He will provide the funds without your having to divert His tithe for that purpose.
Should we give our tithes to secular humanitarian organizations?
Because our tithes are given as a testimony in His name, the ministries that serve in God's name should be the recipients of our tithes. Therefore, the tithe should not be used to support secular organizations. However, that doesn't mean that there are not worthy organizations to which you can give. It simply means that the tithe—the first 10 percent of your gross income—should not be used to support secular organizations.
Tithing when husband or wife objects
by Crown Financial Ministries
Tithing in the Bible
God''s Word describes the tithe as a testimony to God's ownership. It was through the tithe that Abraham acknowledged God's ownership. Thus, God was able to direct and prosper him (Genesis 14:20).
God's freedom cannot be experienced in the area of finances unless:
God's ownership is acknowledged over everything and our role of stewards who have been placed over His possessions is accepted.
The first part is surrendered back to God.
There is an understanding that God supplies a surplus above basic needs in order to help those in need.
In the Old Testament the Hebrew people brought approximately 23 percent of their increase to the Lord's storehouse—a physical storehouse. The keepers of the storehouse, the Levites, in turn used what was given to care for the widows, needy foreigners in the area, orphans, and themselves. In the New Testament, the people no longer brought their tithes and offerings to a physical storehouse; instead, they gave of their increase in tithes, offerings, and alms to the church body. The church then used the tithe for spreading the Gospel. The offerings were used for the general and administrative support of the church, and alms were used to care for the poor, widows, orphans, and needy.
Conflict over tithing
Because tithing involves money, it is a prime candidate for controversy between a husband and wife. However, if both spouses are Christians, they should have a desire to please the Lord.
It's important for both spouses to be trained in God's principles of finance. That way, they'll understand that tithing is God-ordained, not just a personal desire that one spouse is trying to impose on the other. Giving should come from the heart. As such, tithing is not a law but, rather, an indicator of obedience to all of God's laws. Because the tithe's purpose is to be an individual or family testimony of God's ownership, it was never intended that everyone should give the same amount or in the same way but that each should give bountifully and cheerfully (see 2 Corinthians 9:6-7).
If one spouse is an unbeliever
The problem becomes more complicated when one spouse is an unbeliever. Since it is the responsibility of the husband to be the leader in his home, if the wife is an unbeliever, husbands must obey the Lord's direction. Husbands need to realize, however, that the Lord is more concerned about the wife's soul than about money. If tithing becomes an obstacle to the wife, husbands should consider not tithing temporarily in order to win their wives to the Lord. Husbands need to counsel their wives, pray with them, and seek their opinion and direction but according to God's Word the decision is ultimately the husband's. Because most wives in America today are looking for the strong leadership that seems to be lacking in many marriages, husbands need to take the lead regarding tithing.
If the unbelieving spouse is the husband, the believing wife should submit to his wishes and trust that her submissive attitude will win him to the Lord (see 1 Peter 3:1-6). Remember it is not the money but the attitude of the heart about which the Lord is most concerned. If wives have made commitments to give and their husbands object to giving, God sees the desire of the wives' hearts to tithe and He will honor that commitment, even though wives honor their husbands' wishes. God will bless because of the wife's attitude, not because of giving.
However, a wife might still ask her husband to let her give an amount smaller than the tithe for at least a year. If, at the end of the year, the family is worse off financially as a result of giving, she will agree to stop giving. If the family is better off, the husband may agree to give more. In Malachi 3:10, the Lord says to test Him in this thing (tithing). Often this is just the opportunity for God to prove Himself real to a doubting spouse.
Conclusion
Giving the tithe is the outward expression of inner commitment—or lack of it. It is material and financial surrender prompted by spiritual surrender. However, if couples do not tithe because one spouse objects to tithing, the subject should be placed “on the back burner,” until they are able to discuss and study the principles of tithing together.
by Crown Financial Ministries
A farmer always keeps a portion of each harvest as seed stock to be planted the next season. If he didn''t, he would not be able to grow another crop. As Christians, our tithe is our seed stock (2 Corinthians 9:10).
Proverbs 3:9-10 says that we need to honor God by giving Him the first fruits of our produce (income or compensation). Therefore the first portion of our income belongs to God.
It doesn't belong to anyone else—not even creditors.
A vow
God's Word makes it clear, however, that a vow (promise) of any kind is not to be taken lightly. Once someone has given his or her word, it becomes a binding contract.
So, before agreeing to any terms, it is assumed that an individual has carefully considered the consequences.
For the current generation, it appears that this concept is infrequently taught and seldom applied. A vow in today's world is often deemed to be something made under one set of circumstances and broken under another.
For example, a vow to pay a creditor is ignored when the purchased product loses its usefulness.
However, Psalm 37:21 says, “The wicked borrows and does not pay back, but the righteous is gracious and gives.”
Therefore, Christians must commit to pay back whatever they've borrowed, regardless of circumstances or how long it takes.
It really makes no difference whether it's a personal note or a business note. Solomon said, “It is better that you should not vow than that you should vow and not pay” (Ecclesiastes 5:5).
If you make a vow to pay—you must pay. If debts are made—debts must be paid.
So, if Christians feel that they can either pay their tithe or pay their debts—not both—what does God expect them to do?
A matter of the heart
The principle of tithing is just that—a principle. God is looking for the right attitude in a person's giving.
If there is not a true heart-felt willingness to give back to the Lord a portion of what He has entrusted to us, giving tithes upon tithes would be without purpose.
An option
For people who feel that they cannot afford to give the full tithe because they have too much debt, yet they are willing and want to tithe, perhaps there is an option that can satisfy both situations.
Because God expects us to remain true to biblical principles, if we have made prior vows (in the form of taking on a debt) to man before making a vow to tithe to God, God directs that the vow be maintained in order to present a good witness (see Proverbs 22:1).
In such cases, the tithe should come from the money not already pledged to creditors, but available to disperse.
However, a commitment to give to God would certainly take precedence over any payment to creditors for debts contracted after a pledge was made to tithe.
Conclusion
It is a matter of the heart in giving to God.
Christians should be looking for reasons to give rather than looking for ways not to give.
Even though they may feel that they cannot afford to pay the full tithe, they need to commit to give something to the Lord. Under no circumstances should they refuse to give anything to the Lord.
Perhaps those in debt could start with a smaller amount than 10 percent and remain faithful to that commitment, increasing it as God provides.
Or, until they have relieved themselves of some of their encumbering debt, they could provide some sort of volunteer service to the church or to people in need within the body of Christ.
by Vincent M. Conte
When it comes to your assets, you may be able to hold onto them longer by giving them away.
Of all the techniques available for maximizing wealth, giving it away can be the most effective. If that sounds like an oxymoron, consider that once you've set aside an ample amount for a comfortable retirement, built your dream house, and helped your kids get started with their lives, the assets that remian in your estate in excess of $675,000 ($1.35 million combined with your spouse) in your will that you want, but they will share your generosity only after federal estate taxes (that can range from 37% to 80% on certain retirement assets) are paid. No wonder many Americans choose to initiate a giving strategy during their lifetime. There are many smart ways to give - and you don't have to be a Rockefeller or a Kennedy to make them work for you.
Giving Guidelines
Generally speaking, you can give as much as you want to a public charity or private foundation and receive a tax deduction for some or all of it. Giving to individuals, however, requires more restraint. You can give away up to $675,000 during your lifetime - the maximum the IRS lets you pass on tax-free. Plus, you can give away $10,000 a year ($20,000 combined with your spouse) to any individual free of gift tax. You can give the money outright, or you can put it in a custodial account, which is easier and less costly to administer than a trust. There's no limit to how much you can give away if you write a check directly to an education or medical institution. However, a successful giving strategy typically involves more than the simple act of passing out checks.
If you seek to reduce the size of your estate, are currently saddled with appreciated assets that would trigger a substantial capital gains tax if you sold them, or if your goal is to transfer interest in a business or real estate to your heirs and ensure that they have sufficient funds to pay the estate tax, a giving strategy can help you achieve your goals. Here are some of the things you can do.
Make a charitable gift of appreciated assets and create a lifetime stream of income. If you have a modest gift in mind - the minimum is usually around $5,000 and something less than $50,000 - you can make a gift to a pooled income fund (sponsored by a charity or an investment company that allows you to designate the charitable beneficiary) that will sell the donated shares with no tax liability, then pay you a fixed income for life, based on the value of your donation. Because there are no capital gains tax due on the sale of our assets, the charity receives a larger donation and you have the opportunity to create more income than if you sold the securities yourself.
If you have a larger gift in mind, you can establish a charitable remainder trust. The benefits are the same as with a pooled income fund. However, there are trust and legal fees that must be paid each year. There are variations on the charitable remainder trust, but the concept is the same: you can remove assets from your estate and preserve some interest in them for our own benefit or the benefit of your heirs.
If giving to your children and grandchildren is your goal, you can create an irrevocable trust or trusts to receive a variety of assets (stock options, real estate, the family business) and use a combination of your annual gift exclusion limit and your lifetime federal estate and gift tax exemptions to make your gifts. No matter how much your gifts grow over your lifetime, the trust assets will pass on estate tax free to your heirs.
Planning is the Key
No matter whether your giving is charitable or personal in nature, planning is the key. In fact, it can be the difference between preserving your wealth for the benefit of future generations or forcing it onto Uncle Sam. The rule of thumb, of course, is that the larger your estate the more you'll require expert advice. However, even a modest estate can benefit when you understand the smart ways to give.
Vincent Conte is a Certified Financial Planner practicing in Winter Park, Florida. He offers all financial services as a Registered Representative of Commonwealth Financial Network - a member firm of the NASD/SIPC.
by Crown Financial Ministries
Spending is a habit
Does money burn a hole in your pocket? Does buyer''s remorse set in after you have spent your money?
If this sounds familiar, how can you manage your spending so you can buy the things you need now and also save for the things you need in the future?
In order to change spending habits, people must first understand how habits are shaped and the ways spending behavior can be changed.
In essence, they must identify spending leaks that give immediate satisfaction but do not help reach financial goals and, instead, substitute desirable spending behavior that may not be immediately gratifying but will allow financial goals to be reached.
How to change the habit
Luke 16:11 says, “Therefore if you have not been faithful in the use of unrighteous wealth, who will entrust the true riches to you?”
People need to learn to handle the smallest thing God has put under their authority—their money. Therefore, if the following guidelines are followed it should help them control spending.
Establish self-discipline. Put all spending under God's control. In so doing, individuals become managers of God's finances and all spending should then be from the vantage point of whether He would be pleased with the purchase. With God's guidance, any bad habit can be broken.
People need to learn to recognize the drive that places them in a difficult spending situation. When they shop, they can avoid the spending pitfalls produced by that drive by having a purpose for the shopping, a time limit, and a written plan.
Hence, they need to make a list before they go shopping and then stick to it.
In addition, they should limit the number of trips to the store or mall and never shop when hungry or depressed.
How far money goes usually depends on how badly people want something. As such, they need to be in control of the money, under God's direction, instead of having the money control them by limiting what they do.
Once spending has been brought under control, there should be a determination of how much needs to be spent each month in every area of an implemented budget; and, since the basic idea behind budgeting is to save money up front for both known and unknown expenses, there must be a commitment to stick to the budget.
If people are having difficulty with income equaling outgo, they need to cut some of their outgo. As such, they should look at their budgets realistically and see where they can start trimming.
A budget is a money plan. With it, people can organize and control their financial resources, set and realize goals, and decide in advance how money will work for the good of the family.
Therefore, because every purchase should be considered in light of the established budget, buying any non-budgeted items on impulse should be avoided, especially if those non-budgeted items will need to be purchased with a credit card.
People need to be accountable to other persons for a specified period of time for everything they spend. Ecclesiastes 4:9,10 says, “Two are better than one because they have a good return for their labor. For if either of them falls, the one will lift up his companion. But woe to the one who falls when there is not another to lift him up.”
If there is accountability, people will be more inclined to be cautious in their spending habits—a look now, buy later attitude.
So, shop around before buying and learn to say no. Keep a record of spending and purchases and share these with the accountability partner.
Establish a want-to-buy list. Whenever people feel they need to buy something that is not budgeted, they should put it on the list. They should wait seven days and find two additional prices for the same item, to be sure they are getting a good buy.
If they still want the item after a week has passed, they will have thought about it and probably will be getting the best buy on the item. However, they still should not charge it.
Finally, people can have only one item on the list at a time, so if they find new “wants” during the week, they will have to decide between the two.
Conclusion
A good way to reduce debt is to develop discipline in spending habits. That may include taking away any security that might be used in case of emergencies: credit cards or other avenues of borrowing.
By committing not to go further in debt, people begin to reverse the process that produced the debt. Then, they can develop a balanced budget that will control spending and will allow them to stay within the parameters of their financial means.
Spending Strategies for Living Within Your Budget
by By Scott Houser for Sound Mind Investing
Many people are considered "cheap" if they pursue bargains or seek out the most economical sources in town for products or services. Yet, when people need advice on where to shop because of an unexpected major purchase or financial emergency, they run to the "cheapskates." Why? Because they see the wisdom of saving every possible dollar in order to use it for more productive ways.
The following list of money saving tips is not meant to be exhaustive, but it does represent ideas our family has used in order to allocate our resources efficiently and accomplish our financial priorities.
· Buy used, especially for major purchases. Contrary to popular belief, buying used is not risky and does not take a lot of expertise. It does take planning and a little bit of elbow grease. A few years ago, we needed to buy a refrigerator. New refrigerators at that time cost about $750, way more than we had in cash after purchasing our first home. We decided that buying "used" was our best option. First, I studied refrigerators in
Consumer Reports. Second, I began scanning the classified ads and made a lot of telephone calls. After you become adept at classified shopping, you soon learn how to screen people who are overselling or "hyping" their merchandise and those who sincerely have a genuine reason for wanting to sell. The result: I bought an almost new frost-free refrigerator for $250. There was nothing wrong with the refrigerator except that it was the wrong color for the seller's new home!
One of the main points in buying used is that, if at all possible, you should anticipate your need. If you know you are going to need a new appliance or a car, begin shopping three to four months before replacement becomes necessary. The following are items we have bought used: automobiles, television, stereo equipment, refrigerator, furniture (all types), children's clothing, and tools. One of the most obvious items to buy used is an automobile. Studies indicate that new cars depreciate as much as 20-40% in the first year of ownership. Let someone else pay for that depreciation!
· Rent. Some things you just don't need to own: timesharing arrangements, boats, major tools, the list goes on. It amazes me how easy and cheap it is to rent state-of-the-art equipment, return it when you want to, and not have to worry about maintenance, depreciation, obsolescence, property taxes, etc.
Comparison shop. If you need to make a major purchase or have major repairs done on your car, get more than one estimate. Often the prices will vary by several hundred dollars. The same holds true for your annual auto insurance and homeowner's insurance.
Pay cash. This offers two advantages. First, you may be able to buy an item for less by offering cash instead of charging. Second, it forces you to "count the cost" of each purchase more carefully. You won't make as many impulse purchases.
Generic food brands. Major grocery stores offer generic or house brands. Don't be afraid of them! They are often made by the same manufacturer who makes the name brand but puts a different label on it. It doesn't hurt to try the product once; then if you don't like it, you can go back to the name brand.
Anticipate needs. We have five children, so we often buy in quantity when going to the grocery store or membership warehouse to take advantage of quantity discounts. If a store in our particular area is having a year-end clearance on items such as tennis shoes, shirts, or pants, we will buy half a dozen or a dozen of each. They may not fit our children now, but sooner or later one child will grow into them.
Baby sitting co-op. Get together with other couples you know in your area to develop a baby sitting co-op or club, trading time on a child-per-child basis. This will provide quality care without the expense. I estimate that in one year we saved over $300 by using our baby sitting co-op, and we've developed stronger friendships as well.
Dental schools. If your county or state has a dental college or hygienist school, you may be able to get your teeth or your children's cleaned at a considerable savings. These hygienists in training are supervised by a dentist, and treat your children's teeth methodically. In the eleven years we have visited our community college clinic, we have never had a bad experience. For an average cost of $8 per child, they get their teeth cleaned, plus fluoride treatment, sealant, and X-rays if necessary. On top of that they also get a new toothbrush!
Medicine/generic drugs. With a family of seven, we have many miscellaneous medical needs. Whether it is the local drugstore's house brand or buying our antihistamines via mail order, we rarely pay top dollar for a brand name drug. For the one antihistamine/decongestant we use for the kids' colds, we pay less than 10% of the price of a popular brand name, and the formula is exactly the same.
© Sound Mind Investing
Published since 1990,
Sound Mind Investing is America's best-selling financial newsletter written from a biblical perspective.
by Crown Financial Ministries
With home mortgages, school loans, and car loans, young couples today may owe more than $140,000 within the first couple of years of marriage. This may seem normal to many, but God''s Word says debt isn't normal, especially long-term debt (see Deuteronomy 15:6; Psalm 37:21; Romans 13:8).
Become debt free
If you're already in debt, you can break the debt cycle with desire, discipline, and time. Using these five basic steps you can become debt free and stay that way.
1. Transfer ownership
God forces His will on no one; you must willingly surrender your will and possessions to God. Prayerfully transfer ownership of every possession to God – money, job, time, material possessions, family, education, and future earning potential (see Psalm 8:6).
2. Give the Lord His part
Once you've transferred ownership to God, give Him the first part, the tithe of gross income. If you withhold from God, it indicates that ownership hasn't been transferred. Give Him freedom to work unobstructed on behalf of your finances – give Him the tithe – and He can give us His best.
3. Allow no more debt
Don't use any more credit or credit cards until all existing debt has been paid. Pay with cash, check, or debit card at the time of purchase. Don't borrow any more money from institutions, family, or friends until all indebtedness (home mortgage excepted) has been satisfied.
4. Develop a realistic budget
You'll need a written budget that allocates percentages of Net Spendable Income into living expense categories – including repayment of creditors. Write to each creditor with a repayment proposal, but promise only what can be paid every month. Include a financial statement and budget that shows how much will be paid to each creditor.
If you need to generate extra funds by working overtime or on an extra job, all money generated by the extra work must go to eliminate the debt for this to be effective.
5. Retire the debt
Pay extra on the debts with the highest interest rates. If all interest rates are comparable, begin paying extra on the smallest balance. After that debt has been paid, apply the regular payment as well as the extra money that was going to it toward the next highest balance. After the second is paid off, then the third highest and so forth.
Conclusion
No one who is financially bound can be spiritually free. Generally speaking, if these steps are faithfully followed, the average family can usually be debt free in about five years.
Accomplishing debt freedom can produce a radical change in lifestyle and a reevaluation of family values that can help prevent similar debt situations from recurring
by Crown Financial Ministries
Most families are looking for ways to save money, and financial consultants by the hundreds feel that they have the money-saving methods for which these families are looking. These include everything from refinancing home mortgages, taking home equity loans, and getting low-interest charge cards to no-down payment investment property, and borrowing against retirement funds.
In evaluating the multiplicity of suggestions and money-saving options, 10 suggestions seem to be advised more than any others: (1)
give to God; (2)
start small; (3)
put money into a company retirement account; (4)
monitor ATM withdrawals; (5)
pay off charges and loans; (6)
pay extra on home mortgage; (7)
pay off car loan; (8)
open an IRA; (9)
evaluate life insurance; and (10)
be accountable for your money.
Give to God
When we recognize that God owns everything and all blessings come from Him, our role as managers, or stewards, becomes evident. Part of being a good steward is giving back to God a portion of what He has entrusted to us. It is not that God needs our money. Rather, giving serves as an external, material testimony that God owns both the material and spiritual things of our lives and that He is the source of all our supply.
Malachi 3:10 is the first place that really directs the tithe:
“Bring the whole tithe into the storehouse, so that there may be food in My house.” In the Old Testament, the storehouse was a physical place where the Jews would deliver their offerings of grain and animals. Ideally, the church should serve as the storehouse in God''s economy today.
Although the tithe is an indicator of our obedience to God's laws, He is looking for the right
attitude in our giving. If there were not a willingness to give back to the Lord a portion of what He has entrusted to us, then even giving above the tithe would be of little use. So, since the tithe's purpose is to be a testimony of God's ownership, each believer should give bountifully and cheerfully.
Start small
Most financial experts feel that we need to save at least 5 percent, and preferably 10 percent, of our income and place it into an interest-bearing, liquid savings account. However, don't give up if you're not able to put aside 5 or 10 percent. Establishing a saving habit and saving consistently will eventually add up; even as little as $5 per pay period will accumulate. Once saving becomes a habit, set as your savings goal a maintained savings account of at least three to six months' income. This will prevent borrowing when unexpected expenses arise or in case of a period of illness or unemployment.
Put money into a retirement account
If it is available, sign up with your workplace's 401(k), 403(b), or similar retirement plan in which your company will contribute matching funds to the plan in your name. The most common match is 50 cents on the dollar. If this is the case for you, you will get an immediate 50 percent return on your contributions.
Monitor ATM withdrawals
Decide how much money you will take out each week or each month and make it last; discipline yourself to stick to your decision. Try to decrease the amount withdrawn every month. If you discover that you have money left over, deposit it into your savings account.
Pay off charges and loans
With the desire, discipline, and time, anyone can pay off his or her charges and loans and stay out of debt. There are four basic steps to eliminate charge and loan debt: (1) Transfer ownership of every possession to God; (2) Allow no more debt (no bank or family loans and cut up the credit cards); (3) Develop a realistic balanced budget that will allow every creditor to receive as much as possible; and (4) Start retiring the debt. Begin by first paying extra on the debts with the highest interest rates. If interest rates are comparable on all of the debts, first pay extra on the one with the smallest balance. After this first one has been paid, apply the regular payment as well as the extra money that was going to it toward the next highest balance. After the second is paid off, apply what was being paid on the first and second to the third highest, and so forth.
Pay extra on home mortgage
You will add equity to your home, reduce the amount of interest paid over the term of the loan, and reduce the length of the loan if you pay extra monthly on your home mortgage. If you consistently pay $100 extra each month on a $150,000 loan at 6 percent, you will save almost $73,000 in interest and shave more than 7 years off the original loan. If you can't commit to an additional $100 each month, just round your payment up to the nearest hundred.
Pay off car loan
Interest on your car loan is not tax deductible and the rate is generally higher than on your home mortgage. Pay it off as soon as possible by rounding up your monthly payment to the nearest hundred and then add $50 (or as much as you can afford) to that amount.
Open an IRA
If your funds are limited, open an IRA only after you have maxed out with your company's retirement plan. If you do not have a company retirement plan, open an IRA immediately.
Evaluate life insurance
If you've had the same term life insurance policy for five years or more, you can possibly cut your premiums by changing policies. If you apply for a new policy and get a new medical exam, chances are the insurer may feel that you are a better risk than fixed insurance health assumptions indicate, which means that you will qualify for a lower premium rate.
Be accountable for your money
Know where your money is going by establishing a budget and sticking to it. If the expense is not budgeted, the money should not be spent. Keep a small notebook with you to record miscellaneous budgeted expenses.
Conclusion
Debt-free living is still God's plan for His people today. The blessings of becoming debt free go far beyond the financial area. They extend to the spiritual and marital realms as well. No one who is financially bound can be spiritually free. The effects of financial bondage on a marriage relationship are measurable in the statistics of failed marriages. Therefore, God's people need to make saving money and debt freedom top priorities in their families
Clean up your credit report yourself
by Crown Financial Ministries
What is a credit report?
A credit report is a detailed description of how you have managed your credit in the past. Companies examine this report before deciding whether to give you credit. When a company denies your request for credit because of your credit report, it must tell you so and identify the credit bureau that supplied the report. If you have been denied credit based on your credit report, you can request a free copy of the report within 60 days of receiving the notice of the action. The credit bureaus are required by law to share with you any information they have on file about you. If you have not been denied credit but desire to have a copy of your credit report, you can request a copy for a fee. The charges vary from state to state but generally a credit reporting agency will charge a fee of $5 to $20 for a copy of a credit report.
You are entitled to one free report per year if you can prove that you are unemployed and plan to look for a job within 60 days, if you are on welfare, or if your report is inaccurate because of fraud. You can get a copy of your report from the following credit reporting agencies.
1. Experian--(888) 397-3742--www.experian.com
2. Trans Union--(800) 888-4213--www.transunion.com
3. Equifax--(800) 685-1111--www.equifax.com
What if there are errors?
If you have errors on your report, make a photocopy of the report, highlight the errors, and send it back to the bureau that issued the report, along with a letter of explanation. If you do not receive a response from the bureau within 30 days, the errors should be dropped from your record (Section 611d of the Fair Credit Reporting Act of 1970). If you discover duplicate information on your report, photocopy the report and highlight any duplication. Send the highlighted copy with a letter stating that you want the inquiry and the account information merged. Again you should receive a response within 30 days.
Creditor inquiries stay on your report for a minimum of six months; employer inquiries remain on your report for two years. If you have unsolicited inquiries on your report, you should photocopy and highlight the report and send it with a letter requesting that the inquiries be deleted. Remember, though, that the law states that your report can be pulled by anyone with “legitimate business needs.” The bureau should report back to you within 30 days.
Delinquencies, garnishments, repossessions, court orders, eviction for nonpayment, and missed child support stay on your report for seven years. Bankruptcies remain on your report for 10 years from the date of filing. If an item remains on your report longer than this, send a highlighted copy and a letter requesting the bureau to update your report, and await your response within 30 days.
If you do not have a follow-up in writing from the credit bureau within 30 days, you should contact the bureau and request to speak with a customer-service-level manager directly. Once you have a manager, be sure you know his or her name and full title. Clearly spell out what service you need and the timeline in which you would like your concerns addressed. Follow up your conversation with a registered letter, outlining the conversation with the manager and any agreements or arrangements made with the manager.
You also have the right to add, free of charge, a 100-word statement to your credit file, explaining why your report has suffered or explaining your side of any dispute. Anyone who looks at your report will also see your explanation.
Credit repair
Negative information contained in your credit history can be removed only by the creditor who reported it. Therefore, be very wary of anyone who claims he or she can remove or clean ratings from your record. If you agree to pay off a portion of your debt in exchange for a better rating, be sure you get the arrangements made in writing from the original creditor, not from a collection agency. Send a copy of the agreement to the credit bureau.
There is a brisk business among credit repair companies that charge from $50 to more than $1,000 to repair your credit report. These companies seldom can do what they promise. There are no quick and easy cures for a bad credit history, so if approached by one of these companies offering to “clean up your report” remember the following.
1. Your credit history is maintained by private credit bureaus that collect information reported to them.
2. The credit bureaus can legally report negative credit information for seven years and bankruptcy information for ten years.
3. Accurate items reported during the reporting period cannot be erased by anyone other than the original creditor.
4. Time is the only thing that will heal a bad credit history.
5. The only information that can be changed are items that are actually wrong or are beyond the reporting period.
6. If there are mistakes or outdated items on your report, you can correct the report yourself. In essence, you can do anything a credit repair company can do—free.
Conclusion
“A good name is to be more desired than great wealth, favor is better than silver and gold. ” (Proverbs 22:1). It takes a long time to build up a good reputation but very little time to destroy it. If you have repaid all your past debts, you can contact each of your creditors personally and ask them to review the credit rating they gave to the credit bureau. However, there is no quick fix to bad credit. The best way to salvage your name is through disciplined use of whatever remaining credit you have over a long period of time. It may take some time to prove your discipline, but don''t give up
Ten most asked questions about debt
by Crown Financial Ministries
Nothing in the area of finances has so dominated or influenced the direction of our society during the past five decades as much as debt has. It''s amazing when you consider that only a generation ago credit cards were unknown, car loans were a rarity, and home mortgages were primarily for servicemen who were purchasing starter homes.
Today it is not unusual for couples to be encumbered with debt many times more than their annual incomes. In fact many young couples find themselves with uncontrollable debt within their first couple of years of marriage. Some of this debt can be avoided by being patient, being disciplined, and refusing to borrow if at all possible.
Ten questions concerning debt
The following are ten most often asked questions concerning debt.
1. What is debt? Simply put, debt is something that is owed. However, in today's society a more correct definition would be that debt is a condition that exists when a loan commitment is not met or when inadequate collateral is pledged to satisfy unconditionally a loan agreement. The Bible does not prohibit borrowing, but it does warn against surety—taking on a debt without an absolutely sure way of repayment.
2. Does the Bible prohibit the use of credit cards? “The prudent sees the evil and hides himself, but the naïve go on, and are punished for it” (Proverbs 22:3). Credit cards are not the problem; it's the misuse of credit that creates the problems. There are four simple rules that must be honored regarding the use of credit cards. (1) Never use credit cards for anything except budgeted purchases. (2) Pay credit cards off monthly. (3) The very first month you have a credit card bill that you cannot pay, destroy that credit card and never use it again. (4) Keep in mind that just because you can afford something you don't necessarily need to buy it.
3. Should parents give out-of-town students a credit card for emergency use? “Train up a child in the way he should go, even when he is old he will not depart from it” (Proverbs 22:6). Putting a credit card into the hands of a young person who has not been properly trained in money management and who has not displayed the ability to handle its use over an extended period of time is not a good idea. On the other hand, children who have been taught early the basic principles of money management and who have proved their ability to use credit wisely could be trusted to handle credit cards with no problem.
4. How should children be taught about debt and credit? Teenagers can begin to be taught about debt and credit by giving them real-life opportunities to handle credit. Allow them to have credit cards under very strict supervision. Parents must teach their children how to handle credit, not how to avoid it or misuse it.
5. How do I get out of debt if I'm in over my head? There are two basic economic principles that all families must strive to obey: (1) If you don't borrow, you can't get into debt, and (2) If you don't borrow any more, you can't get further into debt. The first thing that must be done is to determine that you are not going further into debt. Destroy the credit cards and refuse to borrow any more money. Next, establish a manageable budget and stick to it.
6. Should I pay off low-interest debt? God wants His people to be debt free. Debt is not normal, according to God's Word, and long-term debt, regardless of the rate of interest, is abnormal. It's only in our era that long-term debt has been made to appear normal. All debt should be paid off as soon as possible.
7. Isn't it normal for high-income families to carry a certain amount of debt? The amount of money a family makes is irrelevant; it's the amount of money they spend. Debt, according to God's Word, is not God's best for His people, regardless of their annual income. All families should strive to be debt free.
8. How can I regain a good credit rating? It takes a long time to build a good credit reputation but very little to destroy it. If you have already repaid your debt and have contacted your creditors personally and asked them to review the credit rating they gave to the credit bureau, there is little else you can do. There is no quick fix to bad credit. The best way to salvage your name is through disciplined use of whatever remaining credit you have over a long period of time.
9. Does the Bible prohibit filing for bankruptcy? God's Word clearly says that a person needs to be responsible for his or her promises and repay what he or she owes. Does that mean that in the interim a person should not take the legal remedy of court protection until he or she is able to repay what is owed? Since the Bible does not say specifically, this is an individual decision. But what is perfectly clear in God's Word is that we must pay what is owed. Even if the debt is discharged through bankruptcy, the Bible says that the debt is still owed and it must be paid, unless the creditor chooses to write off the debt, thus relieving you of your vow to repay.
10. How do I get out of debt? One of the best methods of debt elimination is actually very simple. (1) Transfer ownership of every possession to God. (2) Give the Lord His part first, the tithe from your gross salary. (3) Allow no more debt (no bank or family loans and cut up all credit cards). (4) Develop a realistic balanced budget that will allow every creditor to receive as much as possible. (5) Start retiring the debt, beginning with the highest interest debt first. If all of them are high interest, pay the one with the smallest balance first. Once the smallest is paid off, put all the money on the next, and so on. Generally speaking, if these steps are followed, the average family will be debt free in less than five years.
Conclusion
There are numerous reasons why families accumulate debt, ranging from circumstances beyond their control to acute misuse of credit. But, regardless of how the debt was accumulated, everyone can become debt free and stay debt free if they have the<
