Today on MoneyLife

We have a special program today, and I feel like it will be one of the best we’ve done. Our guest is Kandy Hildebrandt.

Kandy and her husband, Russell, were featured on CNN recently for paying off $106,000 in debt in less than 5 years. In fact, their total payback including interest and fees was $123,000.

The Hildebrandts story is about extreme debt. Today, the average household credit card debt is $7,861. The Hildebrandts had 10 times that amount. The total consumer debt was two times their annual income. Most people with that much debt would have given up and filed bankruptcy.

But this is not just a story of extreme debt; it’s also one of extreme hope. When I first saw the story on CNN, I felt God had to be in it. I couldn’t see how anyone could accomplish this apart from the Lord. Well, it turned out that God is at the center of this story. The Lord helped this family and they give Him credit for it.

When we turn to the Lord, His truth and principles don’t fail. God is faithful, He is our Provider. When He’s involved, anything is possible.

Kandy and Russell Hildebrandt are from New Richmond, Wisconsin. They've been in the news recently for paying off $106,000 in consumer and credit card debt, $123,000 total, in 4 years and 4 months.

Their story doesn’t have anything to do with Crown or MoneyLife but it’s a story that brings great glory to the Lord.

We were touched by what God has done in their lives and how He has led them through this journey. We wanted our listeners to hear this testimony.

Kandy's husband, Russ, was in charge of their finances. Kandy knew they were in debt, but didn’t know how much. Russ became increasingly burdened, stressed, and depressed. She wondered what was causing it.

Then they began receiving letters from credit card companies raising their interest rates. Kandy knew they had become a high risk, even though they had stayed current. Kandy investigated and discovered the extent of their debt. She was upset about the bondage they had gotten into and what it had done to her husband. He had carried the burden alone to try and protect her from it.

Russ had always wanted the best for her and the family. Kandy two miscarriages when they started having a family. He allowed her to stop working. He started a side business which slowly failed.

Then the couple had twin girls after she stopped working. They bought everything they needed. They didn’t live lavishly, but Kandy still saw how they had gotten into debt. Russ knew they were in debt. He didn't want Kandy to know how badly and she doesn't think that’s unusual. Their focus wasn’t on blaming someone but on how to get out of the debt.

The Hildebrandt's debt was twice their income. They had 11 credit cards worth $89,000 and a family loan of $18,000. They were overwhelmed with interest payments which had become 40% of their monthly income. Kandy and Russ knew they had a crisis and needed help.

The Hildebrandts went to the Consumer Credit Counseling Service (CCCS) in their area. They were afraid they were going to have to file bankruptcy. They knew as Christians they had violated God’s principle of presuming on the future.

Kandy and Russ prayed that God would be merciful and give them the opportunity to pay back what they owed. They left the CCCS office so encouraged that there was a way to get debt-free in 5 years. They had a friend who was financially independent. The friend told them it couldn’t be done, that they should file bankruptcy and not tithe. They're glad they didn’t listen.

There is always hope when we turn to God and do our part. Russell went on offense to increase income. Kandy went on defense and focused on managing their money and making lifestyle changes.

CCCS looked at their situation and came up with a specific plan to be debt-free in five years. There was no condemnation, just encouragement. They didn’t consolidate or settle any of their debt and none of the debt was forgiven.

They paid back everything they owed, $106,000 plus interest and fees for a total of $123,000. CCCS took on the burden of paying the creditors and negotiating better interest rates, from 23% to 2%. The Hildebrandts saved thousands of dollars in interest. Paying CCCS once a month for everything removed a lot of stress. CCCS offers debt management, not debt settlement.

I was very moved by what Russell did for his family to make more money. When they started the CCCS program, Russell working as chemist during the day. Because they needed more income, he added a job at night as a janitor at a local grocery store. He worked 4-5 nights a week for four years. When gas prices were high, he saved money by staying in the city and sleeping in his car between jobs.
 
Kandy focused on things she could do to save money. Out of necessity, she created meatless meals. One was “Mama’s Cracker Crumb Casserole” – egg noodles, crackers, and soup. They had to learn to go without. The family had no discretionary income for three years; they couldn’t afford to buy things at a thrift store or garage sale. God provided through family members when they had a shortfall.

When they had more income later, they realized they had new discipline when it came to purchases. They had learned to wait on the Lord, and give Him the glory, not the credit card.

Russell and Kandy acknowledged responsibility for the debt they had gotten themselves into and committed to work their way out of it. They didn’t try to make excuses, they didn’t run or hide from it even though it looked like an an impossible situation. They took courage and went to CCCS for help.

This story is so dear to us because Crown exists to see people delivered like this. It makes all the difference when you turn to the Lord, humble yourself, confess your mistakes, and ask for help. Kandy and Russ were also was willing to go to a counselor for practical help and be obedient to the plan. God blessed them and they achieved their goal ahead of schedule. Today they are reaping the blessings of being faithful to the Lord.

No matter how bad your situation, you can get out of debt. Don’t make excuses, don’t ignore the problem, don’t run from it. Resolve to face the situation with the Lord’s help. Acknowledge the difference God makes. He will work through you.

Be humble and ask for help from those around you. Not all the advice will be good. When Kandy got bad advice, she rejected it. She sought Biblical counsel and held to God’s way being best.

We want the same for you. Turn to the Lord, No matter how dark the valley, God will deliver. He is faithful.

Don't miss tomorrow's program as we continue this inspiring conversation with Kandy Hildebrandt!

Dos and Don'ts of Credit Cards

The primary cause of financial problems for most families is the misuse and abuse of credit cards.

• Read More

Credit Card Interest and Fees

By the Fair Credit and Charge Card Disclosure Act of 1988 credit card issuers are required to provide applicants with detailed information.

• Read More

Using a Credit Card

There is nothing wrong with using credit cards if people are able to discipline their use by following some very simple guidelines.

• Read More

Rollover Method for Paying Off Credit Cards

There is a light at the end of the debt tunnel. By applying some simple principles, you can begin to pay off credit cards and become debt free.

• Read More

Other Resources:

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