Today on MoneyLife

At the close of a rough week for the economy, MoneyLife host Chuck Bentley tells listeners he wants to encourage them answering some of their financial questions. If you have a question for next time, please email ChuckBentley@Crown.org.

So many people are down this week because their hope has been in the stock market. They think this is the end of the world and don’t know where to turn. Chuck says he doesn’t think this is the end of the world, this country, capitalism, or democracy.

There is power in encouragement. Encouragement isn’t just having a positive attitude, it’s transferring courage to someone else. God wants us to continually be encouraging others. So as believers we shouldn’t be gloomy. God wants us to call upon Him in our times of trouble.

There’s nothing to fear. The Lord is capable of managing these problems, watch him deliver, and give Him praise. Chuck cites Psalm 50:9-15.

After the break, Chuck answers listeners' email questions.

Q. Mr. Bentley, I agree with your article about the economic earthquake of 2008.  All I hear from interviews from our financial experts and our congressmen with reference to this bailout is that our country cannot function without credit. Now my question is this:  Do you think that’s true?   And do you think that either one of our presidential candidates understands this basic principle or even believes it if they understood it?

Chuck: It's Fascinating to watch what’s happening in our country right now. Every sector of society is trying to offer a solution.

Our sector is a ministry that believes what the Bible says is true. Our solution is found in Scripture in the financial principles God gave us that our country has been violating.

God is the solution to this economic problem. He owns everything, so how could we not look to Him? Our culture is so far removed from the Lord that those who seem to have the loudest voices aren’t talking about God at all.

Our country can’t operate without credit. Our financial system is built on credit, so it needs credit to function. Credit is not a sin. But we can’t function with the excessive debt we have.

God warns us in His Word that if we depend on foreigners for capital that we’ll be the caboose and not the engine of the economic train. God says disobedience eventually leads to destruction. Lord gave America prosperity like no other nation, but now it is the largest debtor nation in the world. It’s a serious problem that must be corrected.

That correction is underway and America is vulnerable. The bailout bill was discouraging because it didn’t solve the problem. I hope it loosens the credit market, but if it does, we can’t go back to believing borrowing is the way to prosperity. If you live beyond your means, at some point the money will run out and the day of reckoning will come.

I'm very discouraged the bailout bill raised the statutory limit on the national debt. Both presidential candidates voted for the bailout bill. It would have been a great time for one of them to oppose raising the national debt limit.

The bailout bill gives all of us a reprieve and an opportunity to personally respond to the Lord’s command to stay out of debt. So regardless of what happens in Washington, we can take action to get out of debt if we believe the Bible.

However, Christians have overwhelmingly said no up to this point. I'm not against borrowing or credit, but if you act foolishly, you’ll be taken captive. I encourage you to take this opportunity to get your house in order.

Q. My husband and I are part of the many that bought a home three years ago that at that time we thought would fit into our budget.  We got a fixed interest-only loan.  Are you shuddering now?  We’ve managed every month except for two to pay extra on it, so that the principal is slowly going down.  But here we are three years later with a house payment that won’t go away, two kids are in braces, two are in college, we have the tail end of a car payment and credit card debt.  I wake up every morning wondering how we will pay our bills much less put more gas in the car or food on the table.  Between my husband and I, we have three jobs, and we wonder if we’re going to have to get a fourth.  But as you reminded me at the end of your article, we’re not alone and Crown has wonderful services as well as support that give us faith, wisdom, and true hope in God’s loving care.  So, thank you for this encouragement that we so desperately need right now.

Chuck: The problem is, you have no financial margin. You really weren’t able to buy the home because to get it you had to use an interest-only loan.

That’s the delusion of our culture – that we can only pay interest on something and think that it fits into our budget. Interest payments are the single largest item in the U.S. budget. We’ve got to change our thinking.

Often people get in these overwhelming situations and they freeze because they don’t what to do. But you have a wonderful attitude.

Consider getting your college students to go to work to help pay for their expenses. If you can’t sell your house, consider renting a room in your house.

Instead of getting a job where you’re paid for your time, start a part-time business out of your home. Ask your mortgage lender to restructure your loan to something more manageable.

Most important, turn to the Lord and see Him open up doors you haven’t seen before. Also, se Deuteronomy 28:44-47 and Proverbs 22:7.

Q. I’m a 38-year-old married man with four children five years old and under.  The only debt we have remaining is on our home.  And although I only make about $50,000 a year, we’re able to live within our means, we give away more than 10%, and my wife is able to stay home with our children.  And this is due in large part to Crown’s influence on our lives.  Thank you very much.  I went to your Web site today to read about what Crown had to say about this $700 billion bailout legislation that passed Congress because I wanted to see what Crown’s proposal was for the solution, and didn’t find anything.  Am I missing something? Crown, I believe, is the best organization in the world to speak to our problems. 

Chuck: I couldn’t agree with you more. Early on in this crisis before the bailout was passed, I came out with a 7-Step Plan to truly address the root issues.

The plan calls for a season of prayer and fasting beginning next week. We're also trying to deal with the root issues of this problem; greed is one of those issues.

Moving away from our core values is another issue. God gave us a glorious plan in His Word that if followed would keep us from experiencing these problems as individuals and a nation. People need to have an urgency to get their houses in order and return to following God’s plan.

If we continue violating God’s plan, there’s no way we can avoid the future coming meltdown. In 1991, Larry Burkett predicted a coming economic earthquake. What’s going now isn’t the earthquake, it’s the beginning of the earthquake. The one he predicted will happen when the debt levels of our federal government completely collapse our economy.

Our leaders in Washington continue increasing the federal debt and someone has to say enough. We’re spiraling out of control and before that bubble bursts we need to get our personal finances in order and not wait on someone else to do it for us.

Q. Our credit cards have for the most part been sent to the collection agencies.  We were behind due to our adjustable rate mortgage going up.  But now that we’ve refinanced our mortgage balance, we have a fixed rate and we’re in a position to start paying our credit cards off.  But since most of them are in a collection agency, they either want us to pay a lump sum or extremely large payments that are more than is really affordable.  Do you know what our options may be or who we should call?  Is a second mortgage the best option?  We’re just trying to get where we need to be financially and we want to get out of debt.

Chuck: No more borrowing. Don’t consider a second mortgage. Contact a Money Map coach immediately and get on a budget. They can refer you to someone who can help you get your credit card debt restructured so you can afford payments on it. Consider radical changes to get out of debt completely as soon as possible

Q. My wife and I need to know if paying off our house would be the thing to do right now.  We owe around $11,000 on our house.  We currently have $45,000 in the bank.  The only other debt we have is around $3,000 that we owe on a car loan.  We love your ministry, and we’re anxiously waiting for your advice.

Chuck: Take some of the money out of the bank and pay off the car loan now. Take the money that you were paying monthly on the car loan and redirect it to the principal of the mortgage. The house will be paid for in 2-3 years and you’ll still have cash in the bank. Being debt free is the position you want to be in. This should be encouraging to other people.

Got a question for Chuck? Email ChuckBentley@Crown.org.

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If we are to live our lives pleasing to God, we must treat our lives and all that He has given as trusts from the Lord.

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Seeking God's Kingdom

The admonition to “seek first His kingdom” is given by Jesus as a contrast of worrying about material things.

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Other Resources:

• ABCs of Money Package
• Career Direct
• God's Principles for Operating a Business
• Business By the Book
• Crown Mvelopes