 I'm going to answer your email questions today. If you've got a question, just send it to me at ChuckBentley@Crown.org.
Dear Chuck,
I’m a married pastor who is deeply in consumer debt. Over a year ago, I accepted a call to pastor my present church. We’ve been trying to do a short sale on the house near my former church because it’s worth less than half what is owed on it, but we haven’t succeeded. My church has been providing a dual housing subsidy, but it expires this month. We cannot make the payment without that subsidy. Do you have any suggestions for us?
– Robert in California
Robert, I know California is a very difficult real estate market right now, but there are lots of reasons to hang on to the house you’re trying to sell verses abandoning it. Most important is your personal integrity; God calls us to fulfill our obligations. Look for every alternative:
- Rent the house
- Take on a part-time job
- Ask your wife to help you increase the family’s income
- If necessary, consider leaving full-time ministry for a time to take a higher-paying job until you improve your financial condition. You could still be involved in ministry part-time or as a volunteer.
God doesn’t want you to walk away from any financial obligation you’ve made. Do what’s right and the Lord will honor you. Your circumstances could change or the market in California could improve. Trust the Lord and be patient.
Dear Chuck,
My husband was recently offered a position as a partner in a roofing business. The monetary increase would greatly help our family, but we’re wondering if the Bible has anything to say about partnerships. Can you help us?
– Kristen in Enola, Arkansas
Kristen, The Bible warns us not to become unequally yoked. Be careful with whom you enter into a partnership. Partnerships can be great but you have to make sure your values and goals are the same. If you’re not in alignment, a partnership could become a form of bondage. Take time to discover each person’s goals. Make sure there is a clean way to dissolve the partnership, such as a a buy-sell agreement going into it.
Dear Chuck,
We’re 52 and 54, have seven children ages 3-1/2 to 16, and have some questions about term life insurance. Being a one income family, do we get insurance for each of us or just the primary wage earner? If our income is $30,000 a year, how much coverage do we need and how much should we be spending on the insurance? And, what’s the best way to find an insurance company that is financially sound? Thank you for any help you can offer.
– Sharon in Rochester, New York
Sharon, The insurance industry's actuarial tables tell us that the husband is six times more likely to die before the wife. You need more coverage on your husband since he is the primary wage earner. You also need to be covered, because if you were to die, your husband would need some help caring for your children. Multiply your annual income by 10 to determine the amount of coverage you need. So a $30,000 income would need a $300,000 policy. You might also consider adding another $100,000-$150,000. If you can’t afford that amount of coverage, purchase a policy that would pay off your mortgage and any other debts. See Crown's Life Insurance Worksheet.
Dear Chuck,
Would a young, graduate level educated male who is questioning his career path benefit from your Career Direct® assessment tool?
- Judith in Murfreesboro, Tennessee
Judith, yes! We often go through stages in life where our interests change. We need to know how God created us, how He made each one of unique.
When we understand how we’re designed, it helps us focus our career search. You want to match a career to your skills, interests, and talents. It's very motivating to use your unique gifts.
Make sure your son wants to take the Career Direct® assessment.
Have him take it, but don’t stop there. He should give the results to three or four of his friends and ask them for feedback. It helps when others validate the results.
This could be a great Christmas gift.
Buy a card and let your loved ones know you want to give them the assessment.
Dear Chuck,
We are partially supporting a son with his college expenses. He has taken out the subsidized loans offered by the school, but he’s finding those loans plus our support and his own funds aren’t enough for his upcoming semester's expenses. One option is to take out an additional loan, but I believe it would require a co-signer. I understand the surety principal, but is there any exception to this for school loans with your own children?
– Loren in Scandia, Minnesota
Loren, there's no exception to God’s statement against co-signing.
See Proverbs 17:18. Co-signing leads to problems between the parties even among family members. There are always ways to work around co-signing.
Live your life by God’s financial principles and teach them to your children.
Teach them why you make the decisions you do.
In this case, your son could cut back on his class load and reduce his tuition expense.
Encourage him to search for more grants and scholarships.
He may also have to consider going to a less expensive school. It's a bad idea to pile up a lot of school debt in this economy.
Check on the Web and in the library for help. See also:
Dear Chuck,
I’m trying to pay off my debts by 2015. I’m paying $437 a month on a timeshare, and I still owe $25,000 on it. I have it up for sale, but can I just let it go back? I’m not behind on the payments, but I don’t have the $945 maintenance fee due this month. I could finish paying off my credit card with this payment in less than a year.
– Ann in Timmonsville, South Carolina
Ann, don’t consider walking away.
You made a financial commitment and need to honor it even though it’s hard right now. The
Lord is testing your heart, character, and integrity when you face hard decisions. The answer is never the easy way.
When we’re faithful to the Lord and live in His economy, He can do amazing things, things we can’t accomplish on our own.
Keep trying to sell it.
Consider using Ebay.
Pray and ask God to intervene and help you.
Do whatever it takes.
Keep working toward your goal of being debt-free in 2015. See these links:
Dear Chuck,
My husband and I are 26 years old. We just recently had to buy a car to replace one that had worn out. Now we are trying to rebuild our savings. I will be leaving my job in a few months so that I can finish school. I am not sure what to do with my 401K when I leave. Should I cash it out despite the penalties and put it in our saving or is there another option that would be better?
Don’t cash out your 401(k). It's better to open an IRA and rollover your 401(k) funds to it. You can open an IRA at a bank. You can place the funds in a CD, money market, or a mutual fund within the IRA.
Keep the money in the IRA until you are 59 1/2 years old.
Dear Chuck,
Is there any real government financial assistance to help us restructure our mortgage to bring down the monthly payments? We tried one program, but we were told we had to have at least $70,000 in savings to qualify! If we had that kind of money, we wouldn’t need financial help! What do we do? Time is running out for us.
– Yates in Kings Mountain, North Carolina
Yates,
There is help.
Call the Foreclosure Prevention Hotline at 1-888-995-HOPE.
Talk to a housing counselor. See also MakingHomesAffordable.gov.
Dear Chuck,
How can I know if my business has too much debt? Are there some guidelines?
– Alva in Virginia Beach, Virginia
Alva, the Bible doesn’t give a specific amount. You should not have any debt that’s not secured by an asset, preferably one that is appreciating.
Use debt to purchase assets. This will allow you to be more liquid if you lose a customer, or suffer economic downturn. You'll be able to pay it back.
Be conservative, consult the Lord, and receive wise counsel.
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