8 Credit Card Mistakes

As the saying goes to their resume and everyone makes mistakes and summer. Some are small, but you really mess things up. You need a credit card misusing that little piece of plastic is one of the easiest ways to create financial turmoil in your life by going into debt and trashing your credit along the way. Today, kingdom advisors, Pres. Rob West explains just how that happens. Minutes your calls at 800-525-7000 800-525-7000 eight credit card mistakes to avoid next right here on moneywise life will Rob credit card debt is very high in the US but it does tend to go up and down with the economy but not necessarily in the way you'd think so Phyllis in here but that's right, Steve. We talked before about how the level of consumer debt has an inverse proportion to the state of the economy when the economy is healthy and unemployment is low.

Credit card debt goes up, probably because people assume they'll have the money to pay that debt off later. But when the economy falters folks have a tendency to stop charging things and to pay down their consumer dad. It seems counterintuitive, but it really isn't. If you're worried about your job, it's natural to want to reduce your debt.

But our goal here is to encourage listeners to avoid credit card debt in the first place or list to pay it down quickly. If you already have it.

So what about those eight mistakes we should avoid.

The first one.

Steve is letting yourself be pressured into getting a credit card.

If you don't already have one. This often happens in department stores where the sales staff offers you a discount on your purchase. If you sign up for the stores credit card store cards often have horrendous interest rate. So don't be fooled of the first month, you failed to pay off the card in full.

They'll make back that discount you received and then some. So just say no thank you. Okay so you're saying that that maybe I shouldn't have gotten that piercing pagoda credit card is important so many reasons. Steve Morrow yeah it was full of question answers. She was all right. Mistake number two is so obvious we shouldn't have to say it, but we do because so many people have credit card debt. It's spending more than you can afford a credit card is of course not free money. It's a loan, usually at high interest. A pizza could end up costing you hundreds of dollars. If you carry the charge in your account for months or even years. That's right. Well said okay what's next well. Mistake number three is opening several credit accounts in a short period of time that will lower your credit score and make any kind of borrowing more expensive. Why would someone do that well any number of reasons, but a common one is not having an emergency fund. Then when you have a financial calamity like a job loss, you rely on credit cards for living expenses which would probably lead us to mistake number four Stephen that is maxing out your credit cards you see whenever you carry a balance on the card. That's more than 30% of your available credit. Well, it'll lower your score up.

Mistake number five, then, is not paying your bills on time.

Late payments will go on your credit report that lowers your credit score and cost you late fee's.

I'm seeing something of a cascading effect here and it all starts with not having a budget or an emergency fund of one mistake then leads to another and another.

That's exactly right. Which leads us to mistake number six which is applying for another credit card. If you already have a balance on one Larry Burket used to say. As you know, Steve, go ahead and use a credit card but the first month you don't pay off the balance in full, chop it up. Okay still very wise words and then what's next. I think it's number seven yeah. Mistake number seven is ignoring the warning signs of debt. Those signs are as we said, paying only the minimum but then there's getting cash advances on your credit card, perhaps paying late using your credit card for living expenses and you know any number of other scenarios, any one of those Steve will get you into trouble. That's right. And I think we have time for number eight would he have their well our eighth and final credit card. Mistake involves identity theft that is giving out your credit card number. If you haven't initiated the transaction. Scam artists use any number of tricks to get you to do that, they'll say there with the IRS or even the Social Security Administration.

Often times, some of the most common scams involve threatening you with jail time or the loss of benefits for Social Security unless you make a payment over the phone with a credit card. Those agencies will never do that. So don't and as we've said many times in the past. Credit cards are not really the problem little hard to live without them entirely, but it's the management of credit cards.

That's the issue here listening to moneywise live Rob last calls next. 800-525-7000. Would you like your life to be infused with joy. Would you like to interject an internal dimension into even the most ordinary day. Mother, Randy Alcorn says you can when you discover the treasure principle and a concise powerpack style is newly revised and updated book offers a six step plan. Finding the pleasure and eternal rewards of the treasure principle what you discover.

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I take it to the hardware store so they can send it for me in the background finding James he started working with the new spoon all the while I kept explaining why I needed help broken neck and depression and how Jesus rescued me when I finished sharing my story explained he was a man like me diving in the way. James told me that you rescued God save you the way to Johnny opens conversations with people.

People who been involved with pain and hardship about getting a copy and keeping it handy because it's a great way to share your story rescue was store at friends.again that's Johnny and friends daughter for do you feel like your hands are tied with dad preventing you from serving God. If you have credit card debt.

Christian credit counselors can help through our debt management program we can get you out of credit card debt. About 80% faster while doing your get info for more information on how Christian credit counselors can help visit Christian credit counselors.org Christian credit counselors.org or call 800-557-1985, 800-557-1985 right to have you with us today on moneywise. God's wisdom for your finances. If today is the first day, listen, I'm not sure how that would happen. Maybe you were looking for the local country western station, and you found us. Well, perhaps it's a godly appointment so we urge you to hang around stick around, give us a call if we can help you with your money in any way 800-525-7000. Rob is in a cool, we were on probably and at least 48 of 50 states. With this program is not cool to think that on any given day someone is listening to us in Northern California. Maybe Maine Florida and Nebraska. We get calls from Puerto Rico.

I just think it's so cool because I'm an old guy and I when I was a boy, nothing like that was possible yet so true Steve not only the terrestrial radio, but on the Internet and podcast all over the globe. So I wherever your listening today were grateful that you tuned in deed for the last couple of days I we've been involved along with all the wonderful people at Moody radio and the Moody Bible Institute, helping raise money for students and incoming students to the Moody Bible Institute, and we want to thank all of you who are moneywise listeners for your generosity really helped put us right at the very top and may God bless you for your generosity. Let's go to Madisonville, Kentucky hey Kathy what's on your mind like a ASA checking account where you have to keep a large sum of money in it and you get a great government, a debit debit to mental health Kathy you know I'm always interested in having the opportunity to earn more. Whether it's in the form of a high yield savings accounts with the traditional brick-and-mortar banks paying you know a fraction of 1% and the ability to earn through an online savings account. Let's say 1%, the best you'll find right now is 1.05%. I like that because you know they're not having to pay to keep all those brick-and-mortar operations going there able to pass that along the form of no fees and higher interest rates.you will find some similar opportunities on the checking side and the sauce is one of those. This is a financial services company that basically offers white label banking services to small community banks and credit unions, which allows the smaller banks to compete with the online banks by using less paper but also subsidizing higher interest rates through the debit card transaction fees their vanilla high interest checking has a way for small banks even offer cash back on debit purchases, which is rare for any bank.

Normally it's a cash back on credit but not necessarily debit. So with that cashback product you get some percentage of cash back up to some limits. I think the key is just making sure you understand what are the requirements. Is there a monthly fee.

Do you have to pay a transaction fee on those debit card purchases, and if so how much does that amount to verses what you're going to earn in the way of rewards and then what about those minimums.

Are you actually able to keep that average daily minimum balance high enough even throughout the month in order to earn these rewards, but I don't have any problem with this particular banking option offered through these credit unions. In fact, it can create a really compelling offer beyond what you'll see in most other places. In fact, you know, I know they have some introductory rates even as high as 4%, which you won't find anywhere else. So bottom line is I like it. Just make sure you understand the requirements and make sure you can meet them before you move forward Rob what's white level.

A white little white label banking yeah basically were a financial services company will come in and allow the bank to put their name on that particular product, so they can make the product available. The financial product the banking product and the local community bank and make it their own. Their name their logo, but it's actually offered through Casazza Bank. In this case, which is behind all of these other banks okay Kathy does that help you.

Does that answer your question. Thank you my credit card and debit card wanted to know what you got kind of okay yeah yeah as to the safety immediate would have thought all the safety provisions than any other debit card would have what we have talked in the past about the fact that we do like credit cards, assuming you're using it only for budgeted items you demonstrate you can paid in full every month. I like the security features of credit cards better than debit cards. Just because if somebody were to pray, access or compromise your account. They're charging against the credit card as long as you reported in a timely manner. You're not responsible. You have some similar protections of the debit card. The problem is they can clean out your bank account before you figure it out and then you're in a run in overdraft fees and you gotta just clean up the mess that that creates even if your you know if they bring restitution to pay all of that back there's gonna be a period of time where your without the money so that there is a benefit. I think on the credit card size of just understand the difference between the two.

Kathy Gray questions we were glad that you called today.

Thank you, Merrillville, Indiana, Carlita, how can we help you Charlie hi you ship when it cracked that will ship you.

I point and it now.

And so, like I maintain the court on my week. I can't get that cop anything because I will want to do it yeah yeah Carlita, you know, it really, in this case I don't think it really has a lot to do with whether there's a financial crisis are not going on. It really comes down to what are the terms you have on the current interest rate and loan and what could you replace it with and then a few other considerations about how long you plan to stay in the home.

So let's dive into this for second. You mentioned you have an interest rate of of higher than 6%, about 6 1/2. Is that right and how many years did you take the loan out for and how many years are left roughly very well. I think about what I think you 5 to 6 left or you been in at 5 to 6 years not four points you want.

22. Oh well, okay, you only have about five years left her okay directly yeah and what is the balance on that mortgage.

It will get between that okay all right your unique situation here just because you've been in this mortgage so long. You know, typically with a rate around six and half would say absolutely go and refinance your to get a rate assuming you have a credit in a good credit score north of let's say 720 even something higher than 650 you should get somewhere around the 3% rate you hope you would want to go more than a 10 year mortgage and even that I want to make sure you were sending more than the minimum payment so you could pay it off in no more than that. The six years you had remaining on the current mortgage but you'd only want to do it if you could pay it off in that same period of time and pay less overall interest and that's after paying for the cost of the refinance you're gonna pay between one and 2% for the refinance on $70,000 mortgage your to pay somewhere between 700 and $1400 for the refinance itself. The question is how much are you gonna save in interest every month on an interest rate that potentially could be cut in half and over the next six years, could you save more than 1500, you know, could you save me know five or $6000. And so even though their beer. Of time or you're just paying off, so to speak through the saved interest you be paying off the cost of the refinance. Once you did that, then every month you have money back in your pocket in the form of a lower interest rate. The key though is we wouldn't want to string the term out longer because if you go from a six year payback to a 10 or 15 year even though the interest rate has been dramatically reduced. You could end up paying the same or more in interest.

So it really would be in your case something you need to look into just to see what would it will generate. Could you qualify for a 10 year mortgage, taking no cash out, but only getting what you have now and if you made the same payment you're making now, what would it, what with the payback look like in terms of the number of years and the total amount of interest, so I would check that out. Perhaps you go online@bankrate.com look for a few lenders there offering some of the most competitive rates get a disclosure for truth in lending, giving you all of the costs.

Look at the monthly payment. Total interest and compare it to what you have now and just see whether it makes sense. I suspect it will as long as you follow those rules that I just laid out Carlita, we should certainly hope that helps you were glad you called today 800-525-7000 shut it down.

Give us a call and here's a great deal more about our money than most of us imagine. In fact, Jesus is more about our use of money and possessions and about anything else, including both heaven and hell in managing God's money, author Randy Alcorn breaks it all down in a simple, easy to follow format that makes it the perfect reference tool if you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available when you click the store moneywise live.org click separately to a still life here is a quick way useful, did not get apartment we had no God could bring glory.no really harking to take a moment to gather honestly admit that there really are some things we not mentoring part seems like everything everything everything out. Individually, we just think you have been through here and just be real for a moment and say we actually have not been through everything God now so I think there's this program to request 257682//buying a home is the largest most nerve-racking perches.

Most of us ever make. It doesn't help that you're entering a maze of unfamiliar words and confusing options that can leave you intimidated frustrated and afraid. You can take advantage of navigating the mortgage mates by Dale Vermillion help you clear up the confusion on rack your nerves and make the best mortgage decisions possible with confidence navigating the mortgage maze available when you click the start button moneywise live.org. How should we as Christians think about investing. What if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the hundred 55 7000.

If you have questions, concerns, or even a song. What with some little ditty you'd like to share with us. We were all about that 800 fax 25 7000 Nancy from Missouri wants to know Rob she says with everything going on right now her husband and she have had to save and be frugal.

Now their retired mid-seventies that accumulated extra money they have concerns about the safeguard of their money, which is around $100,000 in the bank. Any thoughts in that regard. Well I assume Nancy what you're referring to when you say everything going on right now is just obviously, the uncertainty related to the pandemic and the recession that was brought on very quickly. In fact, the fastest in history. Although we moved out of it about is fast and were no longer in a technical recession just based on the way the economy has bounced back and the market has certainly led in advance of that which you would expect in terms of being concerned about the safety of your funds in the bank as long as you have FDIC insurance. I wouldn't be concerned if it were me, the Federal Deposit Insurance Corporation is basically an independent agency of the US government.

It's gonna protect you against the loss of your insured deposits as long as you're in an FDIC insured bank or savings association. It's backed by the full faith and credit of the United States government and we've seen Congress step in and in times past and the offer unlimited guarantees so I wouldn't have any concern about the failure of a banker being able to get to your funds and really frankly I don't think were in that kind of situation right now where you even though were taking on massive amounts of debt in this country to fund all of the stimulus and the injection into the economy and to increase the money supply. So there's liquidity in the system. We have a very strong economy. We have a very strong consumer and yet we still I think were going to be able to lead our way out of this quite well and you know I wouldn't be concerned about it collapsing dollar or any kind of major unrest like that in the financial system. What we experienced into the 2008 and 2009 really had systemic problems. That's not what we're experiencing here. This is really an event driven field of financial problem that was brought on by the virus simply not anything else that's more systemic and in our in our financial system so I think where you have your money is always it's an FDIC insured account is probably exactly where it should be. I would be looking at one of the online banks to get a little bit more interest on that hundred thousand but I wouldn't have any concerns about its overall safety and nothing wrong with being concerned though Nancy better than sticking your head in the sand and not following how all this plays out and obviously keep the situation in your prayers and were glad that you contacted us today. Let's go to Leesburg, Florida hey Thomas, we appreciate you hanging on what we do for you to bed about 10 o'clock here at any credit card and I opened up church card with $200.

About seven months ago and I just recently was told that my credit line raised $1500 and my credit score started at about 580 went to 741 and when I see the rays of my credit line it said my credit score dropped 20 points and I was doing everything that I thought was right and that's one reason why my clothing line, improved, and my score Will be a model and all the sudden it drops 20 points. Is there anything I can do and how can I get get it to an 800 yeah well Thomas I would be terribly concerned about the number one.

The fact that you were so low. Prior to this is probably because you lack of credit. Having this new secured card brought you up because now you have something being reported every month but the fact that they raised it to 1500 and you only had 200 on deposit tells me they close that account and are offering you a traditional credit card account with a traditional credit limit beyond what's on deposit, which was the secured nature of that process of closing one and opening another took away the active account that you had which results temporarily in a decline but as you keep paying on time, you'll be just fine.

That score a bounce back and just keep following biblical principles in managing God's money wisely and you'll be rewarded, she doing a great job thanks will be right back before moneywise live, how should we as Christians think about investing. What if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the very practice of investing we design investments for performance and better world so you can invest for the future with a sense of wholeness and purpose. We call this investing that makes the world rejoice. More information is available@investeventide.com Christian healthcare ministries enables believers to meet their healthcare costs affordably, biblically and compassionately. It's not insurance but a voluntary cost-sharing ministry based on the biblical example of Christians sharing each other's needs and members are defined under the law for not having health Christian healthcare ministries might be your health cost solution call 800-791-6225 or visit CH ministries.org clear communications here within any Bible Institute person that we found in Isaiah 5410 Fenton mountains made a part call one 800 money and life run on the same track. Unfortunately, sometimes it seems like your money is heading in a different direction from your goals and never enough three keys to financial contentment. Author Ron blue helps you to break down all your financial options to a basic floor and then shows you how to keep it all chugging along in the right direction on the same track never enough three keys to financial contentment available when you click the store button at moneywise live out of work on drums job Robert Miller's version of visuals made the announcement this hour they will recommend Pres. front move forward with executive orders to address the economic fallout from the coronavirus is negotiations on Capitol Hill have apparently broken down Treasury Secretary Stephen Nugent said that he and Mark Meadows will quote recommend to the president. Based upon our lack of activity today to move forward with some executive orders, Pres. front welcoming the latest jobs report the adding of 1.8 million jobs in July was a positive development president tweeted great jobs numbers.

The unemployment rate fell to 10.2% stocks finishing mix today that I'll gain 46 points, but NASDAQ though down 87 the S&P 500 was up two points.

This is SRN news back.

Here's something for you from first Corinthians for Sprint 612 all things are lawful to me but not all things are profitable. Elyria, Ohio hi Elizabeth, what you question for Rob West.

I'm going to my young children and becoming online right now.

It's going to be a little hard working full time. I have about 200 count bathing and I was wondering what it best to wait to invest that money so I can supplement the lost income. Elizabeth tell me a bit more about your situation. You'll have any debt to speak of. Now I have no debt, everything okay very good and how long do you plan to continue working.

I now I not writing. It's only because of going online school go back I will probably go back into full-time luck again okay and do you have a retirement plan through the school system.

I'm not a teacher, I do have a retirement plan to my work okay very good and a Lyceum so we are talking about the schools being online. Obviously you're having to go part time to care for the kids, not because you're working in the school system very good and so your retirement plan that you have.

You feel like you're on track. With that in terms of the amount you're putting aside and what will be there for the future in this 200,000 you're speaking of is separate and outside of that correct okay very good. Well, I got a couple of options here. I mean, you know, if we were to try to generate an income off of this, we would typically use a number of around 4% so you with a $200,000 account. If you were to try to draw you an income without impacting the principal investing in a fairly conservative way that would generate about $8000 a year and that would be fairly reasonable to think that you could cover that 8000 and not ever see the principal decline if you needed more than 8000 a year you would either have to take more risk, which could put you in a situation where you actually had a principal loss because you know there was a market downturn or something like that and you couldn't wait it out or you could potentially just be eating into the balance by investing conservatively but taking more than your returning in the way of interest and dividends and therefore over time that 200,000 would be declining because the investment returns would just simply not be enough to outpace it. So let's start there would would roughly 8000 a year cover what you're looking for or do you need more than that around around 15 okay so you'd be talking about meeting about an 8% return which would be more than we would expect to take when were in an income and capital distribution phase as opposed to capital appreciation. So you got a couple of options there. Number one is you could invested more aggressively just recognizing that in order to try to achieve an 8% return.

You're going to have to take more risk and so if we went through.

Like we did last spring market was down very quickly. You know 30%. Now it came back quickly, but you know if you opened your statement.

One quarter and the 200,000 was also all the sudden the hundred and 40,000 you would you feel compelled to sell those investments to shore up what you have or would you be able to wait that out and let that come back.

It may come back in a couple of months, like it did this year, or it may take a year or two or three. Like previous bowl of bear markets have done so. I think this all comes down to risk and reward how much risk are you willing to take for how much reward and if you don't want to assume that kind of risk because you're living off of it. Then you just have to recognize based on the amount you're looking to pull out of it.

That balance is not going to be able to keep up and therefore it's going to be declining for as long as you need to use it so tell me your thoughts on that as you reflect on what I just said I can't go back to understand you know it. Typically what we would say is that you know in this kind of situation we would not typically want to put a long-term investment plan in place for money that you're living on today and so what I would probably recommend is that you go see an investment professional there in Ohio.

If you don't have one.

I did not go to our website moneywise live.org.

Click on find the CK I'd interviewed two or three and find one.

This can be able to put an investment plan in place that's focused on income creation and capital preservation and just recognize for this season. However long it is and hopefully it's brief, you're going to be pulling out probably more than you're making up your interest and dividends and capital appreciation, but you also wouldn't be taking a lot of risk either and you could reevaluate over time and decide how you want to course correct. As we know more about how long this season is going to continue while the kids are out of school. But the bottom line is you have a significant asset. There's no reason you can earn some interest. I just think you're probably not going to want to try to earn as much as you need to take out because I would just be uncomfortable with that amount of risk. If that makes sense, Elizabeth. We appreciate your phone call today and wish you and your family the very best. Thank you, South Haven, Minnesota. Catherine what's on your mind today all all that I okay I Catherine are you are you or your husband still working for okay and you have an emergency fund. Okay, what would you say roughly if you were to total up all of your expenses in a given month, what would that be roughly important for all. Okay, let's just say it's around 5000 people just ratcheted up just a little bit. So if we were to try to put six months of the way you need about 30,000 right now that means you have about three months living expenses so I could see where Catherine you with this 55,000 could be a great opportunity to take that emergency savings, up from 15 to 30. I put that in a high-yield savings where it's protected not too easily available but it's there if you had a temporary loss of the job. A major financial setback or unexpected expense.

That'll give you a little bit more peace of mind with the balance of it. I think the question is what are your goals you if you're already saving for retirement and you feel like you're on track. I would be asking the question Lord is there an area where you want us to do more giving. Are there some medium-term savings goals that are unfunded.

You mentioned you have kids you know if you have some kids still at home. Are there college related expenses. You need to set aside for do you need to replace a car and would you like to do that with cash, you know, down the road because you don't necessarily have the funds apart from your emergency fund. So those would be the things I would be looking at a not always be evaluating those goals in light of your values just to say Lord what's most important to you and therefore to us and how can we use this money in a way that glorifies you. So, given that, assuming you're on track for retirement.

Are there any other goals right now that are pressing know why I think that could be a great way to go. Let's do this. I want you to stand the wind we've got had a break here and then I'd like to talk about that specifically whether or not to pay down your mortgage soon as we come back from this is moneywise live do you know if you have enough money of house. Do you know how much is enough. If not, one blue can help with this book. Master your money a step-by-step plan for experiencing financial contentment. Learn how to save and invest and give wisely, how to create a long-term financial plan and how to get out of debt. Find it all in master your money by Ron blue available when you click the start button moneywise live.org hi I'm very tired. I'm here to help you understand the urgency and how much fun it is to share your faith in the eyes of the layman. In fact, is the most fun part of being a Christian. There's nothing in the entire human experience that rivals the joy that comes from bleeding so much of their salvation in Jesus Christ and you have to do is no one talking about, but for every person deleted their salvation experience will be moved to the brothers were to be one of many people moving in closer diseases. You can't save anybody but you can move everybody every day close to the records following the Bible says that plaintiff that he that water for one, and every man shall receive his own reward according to his only what could be more for the know you rescue someone from hell and you just earned yourself a reward in heaven.

It's a win-win.

That makes you want to do it more and more join his nightmare when he disobeyed God and sin against him means to cover their shame and nakedness think you're going to be okay with God that will make it into heaven because of our religion. Things are like fingerlings hi.

The Bible says without the shedding of blood there is no forgiveness shedding the blood of Jesus to cover your sin and mine and your only hope is putting all your trust in today's hard life saving truth. You are not covered. Without Jesus you not ready to meet a guy you not ready for eternity. From this day on time to admit that the liens upon your goodness, religion and church, Jesus Christ, his only hope to learn more. The financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst in splitting hairs. Given your money and things to your children without ruining their lives.

Ron blue explains why it's important to make these decisions now, instead of forcing your heirs to do it later. Splitting hairs will foster a real appreciation for the precious resources that God has entrusted to you, and it's available. Click the start button moneywise live.org is moneywise live with Rob last just before the break we speaking with Catherine in Minnesota and Romolo to continue on Sir Katherine's gotten an inheritance of 55,000 there on track with firemen savings got about 15,000 in emergency savings and it sounds like you do have a bit of a mortgage left. I had missed that Catherine, my apologies. What is the balance on that mortgage out okay and you have any other savings goals on the horizon, other than retirement where you tell me are all the kids out of the house okay and what are your thoughts on college savings work for no okay yeah very good okay well you know I like the idea of bumping up your emergency savings a bit doesn't mean you have to go from 15 to 30.

No, not necessarily. You may settle in at four months expenses are five but I would put maybe 5000 minimum toward your emergency savings and then with the balance of there's nothing else that you're looking at like a major expense like college or the replacement of the vehicle down the road where you don't want to have to borrow for it. You want to go take some this money to put toward that where it might be a higher interest rate than you're paying on your mortgage and without the ability to deduct it, then certainly the goal of being completely debt-free including your mortgage is one that I love either where you target retirement to be completely out of debt.

But if you can do it ahead of time. That's great. So if if college or a car replacement or something else was in a higher priority because it was going to result in debt that carried a higher interest rate that I would say absolutely take the balance. Whatever you don't put into your emergency savings and pay against that mortgage get even closer to being completely debt-free including your home, and I think that be a wonderful goal. I thanks Catherine, appreciate your call – thanks so much. I let's go down to Fort Myers to the Fort Myers Florida olive what your situation and how can we help you get back. First of all pain and I want to pay them down at 8883 I should not have these bills but I do think it might have been outside but that meant that they did not need both thousands of dollars and pay them off because out the back 60. I would like to bid for this they evenly passed away I didn't want to have any money again. Since I paid them all off against much of it that size.

Now I have a few but not enough to pay them off and wanted to find out what exactly I hear you talk the talk about document silica could not happen… I want to pay them all at all possible, and extra money I would but I don't have a lot of money.

I have 75,000 of that investment at $4000 in savings which I take out $500 every month to have my checking account to pay on my bed. I know my daughter that happen. If that happened I don't want it.I want them to wondered how should I do this you know should I try to pay off the highest interest start the large amount**you just did also advised that the what would be the best way for me to go for it going to take me a few years to pay everything else but at the same time I wanted me to keep yellow keep going is not to have me to keep that I can take what I have to take care yes ma'am. Thank you for the couple follow questions when you say you have some bills to pay. I'm assuming you mean you have some credit card debt. Is that right on the belief that the middleman children that have to pay for no other things will and what it other than the 500 you're pulling out every month at which I assume is either coming out of savings are coming out of that investment account. One other income sources the Social Security almost $1600 for Social Security 1590 something okay Social Security. My granddaughter is paying about $200 a month. Whenever she is a book to open it caught I bought back about 200 $150 for my basement have to take it out and that's the thought of what I have God yes ma'am, I certainly understand that in the 500 a month you're pulling out is coming out of the roughly 4000 in savings is that right when I so would help. At first, but I had my daughter also would happen when she's able to one of my guys make very good money… But she stays out to buy a house that I can give up the apartment critical about how she try to buy a house but I don't want you to die. Don't want to be involved, not by money fully but then I would have arranged to take a down payment right now.

In November, all right, last question, how much do you owe on the credit cards $22,000. Okay, let's do this, you got a lot of moving pieces. Sounds like your generous woman you've been very helpful to your family.

I would you despite the fact that you want to continue to help but be very careful can continuing to buy cars for grandchildren and things like that. Right now we need to get a handle on where you're at and I do like the idea that perhaps you could drop this monthly apartments rent by living with family because that would obviously reduce your expenses. I think the thing you need right now is a number one you need a budget. We need to know exactly what's coming in and exactly what's going out for all the various sources, including all the minimum payments on the roughly 22,000 in credit card debt and then secondly we need a consistent monthly payment plan to the credit cards that can allow you to pay that off in full do it out of your monthly cash flow because eight months from now that 4000 in savings is gonna be gone and you're not able to pull that 500 any month anymore. So we need to get on a balanced budget, but you need to do it in a way were he actually making progress on the credit cards not just covering the interest so I want you to visit with our friends at Christian credit counselors olive to use the Internet down. Okay I want you to go to Christian credit counselors.org Christian credit counselors.org if you'd rather call them will be a phone number there on the page will be a godly person that'll walk alongside you first to set up your budget second to get a detailed listing of all your credit cards and then third to evaluate how much they can reduce the interest rates by putting it in a debt management program, assuming it all works out and it usually does. You'd have a fixed monthly payment every month that fits into your budget. The you'd send the credit card companies through the credit counseling agency and you'd have much lower interest rates, which would mean those balances would actually be declining.

And that's the key. So what you don't go to Christian credit counselors.org call them up or connect with them online. Let's see what they can do for you and then if you have any questions, give us a call back and we appreciate your call today. Thank you very much I love let's quickly go to Munster, Indiana Zachary that I went a little discouraged right now because I'm in the market to buy my first home in the home that I'm interested in are being sold for much more than what homeowners at four so my question is should I wait it out trend that you know kinda die out in the next. Maybe year to work or should I become Margaret Zach. I certainly appreciate your one of the challenges in being a first-time home buyer is typically you'd benefit from one side of the equation. Depending on how the market is working. So if you're in a hot market like ring now. You'd pay a premium to buy a house but you also sell at a premium when you're selling the home so you get perhaps top dollar for the one you're selling that allows you to kind of buy-in at top dollar, so to speak, and the converse is true as well. If it's a soft market, you might get less. When you sell it, which you hopefully not pay a premium to buy something. The problem is, you're not able to to to sell something in order to make this purchase and so your you're coming in without a property. Just the reality of the situation. Does that mean you shouldn't be an active homebuyer. No, I think the key is just recognize the market is what it is.

It's been very strong for the last 10 years pending on what part of the country ran we been in some of the best real estate markets we've ever seen.

I think given what we face though this year with the pandemic. The significant unemployment even though the numbers are coming back in terms of people returning to the workforce. We still have millions and millions of Americans without a job. I think that's going to result in a bit of a softening in the real estate market.

Perhaps not significant but certainly better than what we've seen the last three or four years. I think the key is whenever you're buying a house. You always need to decide in advance how much can I really afford and you don't want to be forced to go beyond that just because you feel like you're going to miss out. I would be patient. I would have a clear budget in mind and make sure that if you have a mortgage. The mortgage payment isn't more than 25% of your take-home pay. Just so you have plenty left to live within your means on everything else and I try to be ready to move very very quickly be preapproved to have your deposit ready to make this a part-time job if you can and be ready to strike. Whatever you find something, but don't let this market force you to overpay beyond what's reasonable or to stretch beyond your budget and I would say lastly, make it a matter of prayer asked the Lord to intervene and show you exactly where he would have you to go. Thank you Zach where we were glad that you called today and Rob quickly. What is this phenomenon where houses are actually selling for more than the owner is asking us to supply and demand. Steve you know there's just more people looking to purchase houses and in many markets. Then there are, then there is inventory, especially right now in the summer. People are trying to get into homes before the school year starts because they want to get into a particular school district so soon as something comes on the market there buying it up. Plus we had a little bit of a downturn in the housing market during the pandemic and now is people are out there starting to buy again which is further reducing the inventory is just the ebb and flow of the real estate market. Thanks, Fred do appreciate that. Hope you and yours have a great weekend and thank you for tuning in, and listening today moneywise live as a partnership between Moody radio and moneywise media I thanks to our production crew Judy Aaron Amy and of course Jim Henry have a great weekend.

Douglas