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A History of Debtors’ Prison

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
July 24, 2020 8:03 am

A History of Debtors’ Prison

MoneyWise / Rob West and Steve Moore

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July 24, 2020 8:03 am

In the past, a person could go to prison for not paying their debt.  Thankfully today, we’re not imprisoned for non-payment.  But we can certainly feel shackled by the consequences of delinquency. On the next Moneywise Live, hosts Rob West and Steve Moore, explain how there’s still plenty of punishment for not paying your debts. Learn about the history of debtor’s prison on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.

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British author LP Hartley once wrote, the past is a foreign country. They do things differently there is then applied to unpaid debt. After all, you're not in prison for today. Much of history jail for not paying your bills were blessed that no longer happens. But today financial planner and Futurama West tells us there's still plenty of for not paying that your calls on anything financial at 800-525-7000 800-525-7000 three prison right here moneywise so Rob, the idea of throwing someone at the prison for unpaid that does seem a little silly because it's so counterproductive.

I mean exactly how are you supposed to pay off your creditors. If you're stuck in jail.

It's a good question, but there was a sort of method to the madness of first debtors prison was a huge deterrent.

These were not pleasant places to be. Conditions were terrible, and in many cases you had to pay your jailers for food and lodging so you could actually increase your debt by going to jail. It wasn't unusual for people to die there. In fact, okay, I'm pretty counterproductive yes, but the idea was that the in incentivized you to pay your debts before going to jail.

Another way the debtors prisons were successful if you could call it, was that they put pressure on your family and friends to step in and pay your debts that creditors didn't care who paid as long as the debt was settled and obviously that doesn't seem fair. But I wasn't and that also prove counterproductive in some cases because it left families destitute of wives and children sometimes had to follow the husband or father to prison because they lost their homes, so debtors prison was largely for the poor classes actually know you might say was an equal opportunity form of punishment, sometimes wealthy people ended up in prison over disputed debt and famous people weren't spared either some very well-known individuals ended up on the wrong side of the iron bars. Robert Morris was a signer of the Declaration of Independence and help secure a desperately needed funding for the Revolutionary war. Unfortunately he wasn't that successful with his own finances and ended up in debtors prison Charles Goodyear the end, inventor of the vulcanized rubber Daniel Defoe, author of Robinson Crusoe was also imprisoned for unpaid debt. As was the father of author Charles Dickens. Interestingly, well that's kinda hard to believe. Well I guess at some point, authorities came to their senses. When did that happen in the idea yet. Debtors prisons were actually abolished in America in 1833 and in Britain in 1869, but that didn't and still doesn't mean that people who don't pay their debts.

Get off Scott free.

It just means that unpaid debt is moved from being a criminal to a civil offense. Obviously, people are still holding the court every day for unpaid debt. So not paying what you owe. Still has some dire consequences.

Yes, absolutely. And there's no better place to look for that lesson then God's word. Proverbs 22 seven warns the borrower is slave to the lender that will never change of life is still unpleasant for those who run up dead and worse. If you don't pay it instead of debtors prisons we have credit reports to track your payments for guess you could say nonpayment of every account you open and in minute detail as well. And from those credit reports. Your credit score is determined 100 that creditors used to determine whether you're a good risk right yes will you pay as agreed is the operative question and in a very real sense a low credit scores like being put in financial shackles. In many cases you can't get a mortgage or other types of loans or if you do you have to pay higher interest rate than someone with a good credit rating. In recent years.

Steve having a low credit score can affect you more than your ability just to get alone. For instance, you may find yourself paying more for car insurance and getting even affect whether or not you get a job because employers increasingly look at credit scores as a part of the hiring process, so you're no longer thrown in jail for not paying your debts, but your freedom to make important decisions that affect your life is limited, so it's definitely a form of financial bondage. Now the Bible never calls that a sin, but it's clearly full of warnings and reminders that God wants his people free to serve him more fully. Let's go to the book of Galatians chapter 5 verse one it reads for freedom in Christ to set us free. Stand firm therefore and do not submit again to the yoke of slavery. And that's obviously what debt can be a can be a real yield that follows you around for a long time from serving Christ, and will keep you from using your spiritual gifts in the local church and keep you awake at night to know we don't want any of that in your calls next time any financial topic 800-525-7000 moneywise. My you like your life to be infused with joy.

Would you like to interject an internal dimension into even the most ordinary day on the radio and 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. Life will never look the same treasure principle is available when you click the store, but moneywise live.org if you need investing guidance, you probably want help that's grounded in God's were taken by sound mind investing since 1990 minus help tens of thousands of Christians acquire wisdom and confidence in their investing experience how much you have doing that you can learn will still carry out investing more information about SMI and financial wisdom for living well is available online. Sound mind investing.isn't it terrible thing to be lost.

I'm not sure if I'd rather be lost.

Walking in the dark or in unfamiliar territory my car. Both are very frustrating, but there are still many people who refuse to stop and ask for directions whether they are afraid of embarrassing themselves are worried that the answer will be right there. Many people just continue being lost, rather than seeking help, no matter how on track. You may think your life is eventually we all realize lost. Jesus told us that was the way the truth and the light. He knows why he made us and he knows what will make life meaningful to us if you would like to speak to someone right now about finding your way in life. Your relationship with Jesus Christ. Just call us at 888 meet him or check with Chad about Jesus.com that is running you will, freedom and peace of mind. Christian credit counselors can help where nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt percent faster while honoring that that info to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors.org or call 800-557-1985 wise and started talking debtors prison, which is not a place that you want to attend an sort of regular basis, but the Bible also addresses things like well insurance and giving housing and credit saving. Believe it or not, how money applies to where faith and trust in eternity. If you'd like to talk about any of those things or a suggestion of your own. We have open lines would love to hear from you today. 800-525-7000.

Rob want to jump in. Should we begin, let's dive and Steve looking for.this good Austin Texas and say hi to Chris. Or maybe it's Chris Texas we should say hi to Austin. I'm confused hi Chris you out there. How can we help you my friend. Question about our will gain older property network share and how to Gain the upcoming year. Yeah well I think the first thing recognizes you only pay taxes on the game so that would be minus any cost of improvements that you made to the property not routine maintenance, but actual improvements that stayed with the property. Of course, less your initial purchase price as well and in any transaction cost to buy or sell, but with any true gain.

You are going to have capital gains long-term capital gains rates currently 15 or 20% depending on your income 0% for some lower income taxpayers the way to deferred the tax which is often discussed and referenced is through something called the 1031 exchange were basically you would take an investment property not your primary residence where you have the exemptions but where you have a income-producing property or an investment property and within 180 days of the sale. You can push the tax forward. If you will, by reinvesting that money back into another what's called like kind property. Now that's fairly that the rules on like kind are fairly liberal and you can go from an apartment billing to raw land or from a ranch to a strip mall. What they're trying to prevent. In this like kind is going from an investment property to a business property but as long as its investment property to investment investment property and its within the hundred and 80 days of the sale. That's where that IRS code 1031 comes in and allows you to set in a sense push that game forward by rolling the money into another property.

Apart from that, no I don't have anything specific you can do to alleviate that capital gain. You just either owe it or you don't and I certainly would talk to a CPA in either of these cases just to make sure you understand exactly what is owed when you need to pay it and if you want to take care of the or you want to take advantage of the 1031 exchange that you begin that process sooner rather than later as a help Chris. Yes, very good. Thank you sir, thank you for your call.

S Sioux Falls, Iowa hello Rick, welcome to moneywise live. What's on your mind. My goal and I want to make her will.

We got up and divided equally among my can I leave everything for a day and everything goes on my left got a one not real. I don't think a lot of money like I could do for audit logotype anyone thinking of leaving it for my wife live give a lot of money to somebody yes well you know I think you're asking the right question and especially with the second marriage really is pretty important that you deal with this. I would visit with a godly estate planning attorney who can help you navigate these things and often times you know the accounts are not updated. You need to update beneficiary information you need to make sure that you know everything has been properly reflected in, including your will, and it may make sense to actually put the trust in place, you know, the trust can be really helpful, especially for a second marriage and you essentially name the trust as the beneficiary for life insurance policies and tax-deferred plans and other assets as well. This allows you to keep control over how and to whom the proceeds are distributed, you can provide to provide for your spouse with lifetime income and yet keep control of the rest of the proceeds according to your wishes. And so that's going to mean that you have some really lengthy and prayerful conversations as husband and wife to say how do we want to handle assets that we brought into the marriage.

How do we want to provide for our kids. What is going on with our kids today. You know in. That's where a trust can really be helpful to make sure that the proceeds are handled as you wish and they don't fall into the hands of somebody where it actually may be a detriment to them not only financially but also spiritually and so that's really where estate planning comes in. You need to also include planning for disability and long-term care you need to certainly discuss your goals together and then the documents become a reflection of that. But to your point, I think trust could be a very effective way to do this and make sure that your assets are distributed according to your wishes. So Rick, I would encourage you there and I want to connect with a certified kingdom advisor. Ask for a referral to godly estate planning attorney, where you could sit down perhaps talk through the issues, do some thinking and praying and talking before you get there and then make sure that not only is everything that's currently in force updated but that you forgot a plan to put any new instruments or documents in place to make sure your wishes are carried out at that time to settle make sense though to you. Yeah, like about your yeah you you can absolutely build flexibility into it. It's really about making sure you understand what you're trying to accomplish and and then have the trust reflecting that and so that can absolutely be taking care of you. You don't want to inadvertently you know create a difficult situation. I know Ron blue has told the story before about how the in a similar situation. One spouse passed away and the other spouse actually had to go to a child of that deceased spouse for approval. Anytime you know that spouse wanted access to the funds for living expenses and obviously that was not the intended consequence and that's unfortunately what happened. So that's where thinking through this making sure those provisions are right in making sure you have competent counsel to navigate. This is really critical so you avoid any unexpected outcomes Rick, we hope that helps you great question.

And thank you very much for calling in today your listening to moneywise live with Rob West will become back Rachel's on the line.

She wants to know about voicemail.

She's been getting about student loans also Agatha in Cleveland, Ohio were coming in your direction, so please stay with us. Don't hang up and don't stop listening (to come moneywise live. Here's a great deal more about our money than most of us imagine 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 Elmore and 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 store moneywise live.org click answer everything to which the light here is a quick way as we know we know because we believe this is what he sat.thank you list any given time to look back on it hundred percent across-the-board not been through one single thing that he has not worked out for my nonprofit in one way or another long to get to know precious little branding my friend and her mother is my friend and her grandmother is not brand. It's not just his knife ran down little girl are free not just trance mama now all we know you've been listening to 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 to been taken advantage of navigating the mortgage made 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 from visit us online. You might want to do that in spare time. You'll find us on all the social media sites and our own website is moneywise live.org where you'll find lots of helpful information.

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If you have a chance. It's moneywise live.org you can also make a gift if you'd like.

Just click the donate tab at the top of the page and thank you in advance. Cleveland, Ohio hi Rachel, what's going on in your life. Thank you for taking my call. Sure I long for relative and call and the boy hated that lack eligible for the relief and forgiveness and relief program and there's an application that you have to fill out and stated that it applied all that are in default in garnishment that one could see that something legit and I look into that.

I'm to say Rachel, the odds are that this is a scam.

You know number one the loan forgiveness options that are out there really no one can provide immediate and total loan forgiveness or cancellation of these loan relief companies may claim to get rid of your loans quickly, but the government forgiveness programs require many years of qualifying payments and/or qualifying employment in certain fields before loans can be forgiven. Department of Education will make makes you do this over a long period of time and it's only for specific people working in specific situations. So the fact that you got a phone call which I would always if it's a legitimate source is generally a come by mail, not by phone number to their telling you that there's a kind of a quick solution here related to your situation. I wouldn't follow up on that. I would also just mentioned that many of these are nothing. Yours qualifies here, but the Department of Education he said whatever you're asked to pay an upfront fee or monthly fee or you have to provide any kind of ID like your FSA ID you would automatically just hang up the phone and you really any inbound phone call offering something especially quick debt relief. I would just automatically discounted. If you do have questions about legitimate forgiveness options forbearance hardship type situations, and these are federal loans.

There are options for you, but I would contact the Department of Education directly@studentaid.gov that's federal student aid at the office of the US Department of Education and they have a phone number you can call you could look through their website and you can get all the information you need, but you're always can be better off pursuing that rather than having somebody come to you, especially over the phone, Rachel. We appreciate your phone call today.

We wish you the best with that and certainly doing your due diligence in checking these things out in the day in advance is really key. Thanks again for calling in today 800-525-7000 is our phone number. Let's go to West Palm Beach thank you very much for holding as well. Can we help you achieve your situation all my all I leave in about a year. We don't have any that align vehicle. One of our vehicle we applied and was a pool for EILD loan earlier year when it went down because of all the economic injury injury to that alone. We are a pool for 20,000 right now it we don't need any extra money we've been able to offer low and working and got busy season right now quite and we were and whether or not we hold onto alone or not take it at all because look, I know you don't really like vehicle.

I'm still undecided. My APA could get it.

We hold onto a hello and it may be difficult to get money.

And if you just think we need a copy and what you're saying goes.

I understand that you actually don't need the money.

Is that right we don't need to dial on without letting it right now we we we have money I emergency fund money about the house and put the business we know money toward that goal.

Okay right now, earlier we were okay about will praise the Lord for the delight of the weather the storm. You know, here's what I would say if you don't need the money.

I probably wouldn't take the SBA the small business administration provided these E idea loans which, as you said economic injury disaster loans is federal assistance for private sector disaster losses and so is long as you qualified for it because you have a small business that sustain an economic injury and you're in one of these distant disaster declared counties or contiguous county to that you have access to these loans is gonna be at that. I think 3 3/4% for businesses and I believe up to 10,000 of it could be forgivable. You know based on how you use it as long as you spend the money properly.

But if you don't need it is no reason to pay interest on it and you know I would look very carefully just to see whether or not you qualify for the intended purpose of it and whether it could be forgiven. Now the portion that could be forgiven if the government is making available to you and use it for the purposes in which it was intended. I think that's really up to you. It's a conviction matter. I don't think there's anything wrong with that.

I think you just need to pray through that just to hold onto the money and pay interest on it.

If you don't need it, I probably wouldn't go that direction very much for calling were happy to hear that your old-fashioned and that the Bible's old-fashioned way as well.

This is moneywise live call open lines 800-5257. 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.

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CHN was an eligible option under the affordable care act and a Better Business Bureau accredited charity interested. Learn more by calling 800-791-6225 or online at CH ministries.more hi this is John Hemmer from Moody radio radio verse is found in Genesis 5 verses one into God created mankind them in the likeness of God created them male and female, and blessed, and he named them mankind. Genesis 5 verses one radio verse 11 radio.

This may be the only opportunity. Somebody might have changed lives and so that's why we need change lives change lives that will follow Christ. 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 moneywise live to work with an answering news newscast by Bob Agnew in Washington, bold dramatic historic that's our present describes his executive action to reduce the cost of prescription medications present said today. He's been forced to take drastic action with Congress unable to address skyrocketing prices affecting many US leaders, the Washington Post, to settle a lawsuit brought by the parents of a teenager who alleged that news coverage of the teams encounter with a Native American activist on the steps of the Lincoln Memorial last year was defamatory.

The poem submitted no wrongdoing in settling with family. Nicholas Sandman the Covington Kentucky high school student who was involved in the episode during a school trip to Washington DC in January 2019 sales of new homes rose a sharp 13.8% in June. The second straight increase on Wall Street. The Dow was down 182.2 NASDAQ out by body. This is answering news today said listening to us and we hope you have a little bit of air conditioning wherever you are. 800-525-7000 Lincoln, Nebraska hi Tammy, is it hot out there in Lincoln today, you get wind Nebraska. I'm surprised you across the plains. What you questioned, I really didn't realize that I never really explained it correctly like power and quite a few years now. I like to point to retired you like to do my job to get a little bit of income coming in and he went tall anniversary date that it will jump from $312, and we wondered if it's really worth keeping you reject yeah yeah well do you have a need for the death benefit on this route, and whatever like wired for our arm that pretty much taken care of, not okay yeah I would be in the camp of not continuing to pay these fees that continue to escalate. There's different varieties of universal life insurance but essentially it's whole life insurance and you can have index universal life guaranteed universal life variable universal life and that all speaks to how the savings portion of the life insurance policy is handled and obviously as you age the mortality expenses going up which is causing you to have to put more in to cover that at that your age and so if you don't have a real need for it.

I really prefer the idea of you saving outside of a life insurance contract unless there's some specific purpose for it, so I might encourage you to do there in Lincoln to me is to go visit with a certified kingdom advisor somebody is not selling any product somebody get this really give you an honest evaluation of what your situation is what your unique needs are in this season of life. What asset you have today what risks you have, including insurance policies to offset those in the really help you come up with a plan that says okay based on perhaps canceling this policy pulling the cash value out. What would you do with it moving forward and what you can use to fund your lifestyle now and in the future and I think that would really give you some peace of mind and it would be more of a comprehensive approach to what's going on in your financial life as opposed to just looking at this one particular issue of do I cancel this or not. I think that's probably good to be the best way to go but I would hate to say that definitively without somebody looking at the whole situation got some wonderful certified kingdom advisors there in Lincoln. If you just go to moneywise live.org. Click on find ACK and then put in your ZIP Code you find a certified kingdom advisor their schedule an appointment will cost you anything for an initial appointment and just get a feel for what somebody could do to help you make this decision but I think the end of the day.

I would agree with you and your husband.

I'm just a little leery to say Yep go cancel it without somebody taken a look little deeper Tammy, thank you very much for your phone call today about the way you're listening to a great radio station out there. Got bless you and God bless them Chicago next hi Gladys, what you situation. I happy to show direction of having a home repair done on my home only. Oh 6000 on my total mortgage on the mortgage amount and I wanted to know should should I take out an equity line or in equity. Yeah well I like the equity loan better and by the way congratulations for being almost completely debt-free. The reason I like the loan Gladys is that you take a specific amount of money and you have a fixed interest rate and especially in this very low interest rate environment that's gonna serve you well. The downside of the equity line is, you're likely to have a variable interest rate, now with the line the money is available to you and you just take it as you need it and you pay the interest.

While the line is open which means it's the drawdown. At some point it will close you can no longer draw down and then they'll amortize whatever balances owed at that time over some specific term.

The problem is you got that variable interest rate in there, and so as rates continue to head higher from here. Over time, I don't think that's can happen anytime soon, but you'll be paying more and more interest. So with the loan because you don't have the money available. You have to take it at closing, whatever that specified amount is required to do a little bit more work on the front end to say exactly how much I going to need seed want to get your contractors out there and get a real specific plan for what renovations or improvements you're going to do and what is the cost and then you borrow specific amount of money to take it all at closing, but you have that fixed interest rate with that very specific payback term and I would encourage you to try to pay it off just as quick as you can so I like that idea rather than refinancing the small first mortgage, but II would go at least in my view, with the loan versus the equity line okay class yeah YouTube thanks so much appreciate that 800-525-7000 still enough time to get your phone call in your question or comment into Rob West today 800-525-7000 Cleveland, Ohio. Agatha I know you've been holding. We certainly do appreciate that. Let's try to get this as quickly as we can hopefully help. Thank you. I will post a topic that was in 2013 app element back. I was guided black helmet bag. I didn't want to go to hack it because the file dog in the beer point out though my APWU health plan pay to have Blue Cross Blue Shield paid but you know they only pay what they want to pay me. I Taken it to manager $717 last year. I gave it to a new manager.

It is always changing up people cut that you know right now that mandate is to close it down.

But anyway, I'm trying to be time for you though and I had a credit when I went to pay for an online 71 points because you you win in the air and chart 811 and put whatever they do so I want to know who to ask who Trans Union the post office on the when you get into it on your job, especially the post office. They were supposed to pay that that was cool. Delete they knew it happened in the MI trip about Pat because I am great and I don't I'm on vacation now. I wanted to go back and retire. But when you call and you can't get anything done. You can't get anywhere doing anything anyway that's what I'm in the predicament I'm sure. Well, I guess he did a great job summarizing that I'm so sorry to hear about this fall that you had obviously getting work on the job is something that's it's frustrating and difficult. And yes there should be no some help for you to offset these expenses that you have no reason to go back to Trans Union. There simply doing what they do which is reflect the accurate status of the account and they count as unpaid and past-due. So it really is going to be an issue.

You need to take up with the post office to make sure they know exactly what happened. Don't stop until it's painting on the line will talk more often. Do you know if you have enough money house.

Do you know how much is enough.

If not, one blue can help this book. Master your money a step-by-step plan for experiencing financial contentment and how to save and invest wisely create a long-term financial plan and how to get out of debt. Find all master your money by Ron blue available when you click the start button moneywise live to work where I'm a car guy here to help you understand the urgency and how fun it is to share your faith at every opportunity. So how's your faith is shaken just a bit. Here's how to make it, starting right now this very moment.

Focus on share your faith with everyone around you struggling with fear jump at every opportunity. God will give you the words to say when you do that you be living for God's purpose to seek and save the lost. With God's promise in Romans 828 to make everything in your life, even in times of global peril work for good. That's the end of war in the beginning of the fun days of your entire life the past doesn't matter. The only thing that matters where your heart is now you have no idea what God has in store for you.

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Let's find peace with God.net Graham the financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst in splitting hairs, giving your money and things to your children without ruining their lives.

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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 hundred thousand right now. We'd love to chat with you. Lines 800 557 Mark is driving my tells me and Mercury in Shreve Ohio. Where's that yes okay will you getting the signal and what you question for Rob West. Okay like all lot $21,000 will generally mark life insurance proceeds you receive as a beneficiary beneficiary due to the death of the insured persons are not included in gross income and you don't have to report them. So unless it's an unusual situation where the policyholder elected to have the benefit paid out over time, like it was stayed in there and then you know there is some taxes due on the interest generated during the period because it's held by the insurance company for a given period of time or was ultimately paid out to state. There may be some estate taxes but generally speaking, you probably don't have any tax would be due on this so you can take those proceeds and use them for improvements or whatever you had in mind. Okay all will owe cash value inside the policy okay yeah so if you withdraw moment more than your basis, meaning the money that it's gained.

That would be taxable in his ordinary income. So what you need to do is call the insurance company before you cash it in and find out exactly what the situation is there going it's going to be treated as taxable to the extent it exceeds your basis in the policy.

If it's underneath your basis then you could pull it out without absolutely tax free, but you need to understand the implications of what you're doing before you take it out and make sure that you still are going to maintain the death benefit when you pull the cash value out Bill Bill to give you that number as to what's available and whether or not it's taxable. But again, it all has to do with that basis in the policy so I give them a call asking that question and in you may in fact have quite a bit of money there that you could pull out and not have any tax due. Mark, great question. We appreciate you holding out today and hope that helps you think so much of this code onto DVD, Florida hi Tammy, you have a question about mortgage insurance Tammy with us we doing great. How can we help 325 one Karen normally when we hear mortgage insurance. We are here were talking about private mortgage insurance that protects the lender in the event that you don't pay incident does you no benefit, but that's generally what were talking about a property that has less than 20% down and the mortgage insurance is required, either because the lender is requiring it or because it's a known FHA mortgage were mortgage insurance is required and you even can't get rid of it or USDA mortgage with the zero down payment loan. The same would be true also be a mortgage same way, what you're probably talking I given the equity that you have a somebody wants to sell you a policy to basically provide a death benefit, so that if something were to happen to you. The insurance kicks in and you can pay off the loan, but I don't think you need that I would just make sure you have the right amount of coverage in the form of a term life insurance policy that covers not only income replacement for those who depend upon you and and will for a period of time until you know you have assets built up to provide for your loved ones. Let save your married you have a lifelong dependent child something like that. You could also factor in debt. You could also factor into that life insurance calculation. You know a's the child who needs an education like going to college or something like that and that's why generally, we would say is a rule of thumb, you want 10 to 12 times your income in the form of a death benefit as a term policy for as long as you can get it you're not using it as a savings vehicle you're just paying the pure cost of the insurance and you would only have it as long as you need to build up your other assets as you save for retirement. In other ways, so I wouldn't take out a policy specific for your mortgage. I just make sure you have the right life insurance you need for you in that may involve some planning from a an insurance professional and and if so, I would seek that out Tammy were glad that you called today and glad you got through. Thank you very much. Let's stay in Florida, Tampa, Christine, what your situation, how can we help gone through.

Unfortunately that relationship medical issues. I'm now recovering from all that my finance are basically our sample I 55 years old. I really don't have any retirement take out to help my kids and I have a lot of old as well as student loan. That is, of course, collection now here I am finally able to repay a lot of that. I feel like it's my obligation.

It's a godly matter and I just don't know where to start. I don't know I should try to negotiate with these company should I go through consumer credit counseling service.

Should I consider bankrupt you know where Dwight start. I know I'm 55, staring at retirement. I have nothing but all that you now I get it will first of all Christine, I'm sorry to hear about the situation that you're in, but I'm delighted to hear that you want to honor the Lord with this. You want to take responsibility for what you have, regardless of the circumstances that led to the point that you're in now get this cleaned up and move forward as a steward of God's money and you make the best decisions you can moving forward. I'm confident he'll honor that. Yeah, I think the starting point for you. Christine is really to sit down, adjustment, and you may have Artie done this but make a list of everyone you owe money to, and how much, and it may be that you don't have all that information and so you need to pull a copy of your credit report.

In fact, I pull all three trades union echo facts and experience you can get them free annual credit report.com now once you do that you get that accurate listing then were going to want to look at. Okay, how much do you have available in the form of both reserves that could be used to pay off debt or settled because if these are delinquent in some cases.

Maybe they been charged-off or sold to a collection agency there going to be ready to work with you especially if you can make a payment in full to you know reduce this dramatically and it will be zeroed out.

You want to get that in writing both on the front end and confirmation of that. On the backend, and then that'll be updated on your credit report as well. You need to figure out what oh I have that I could realistically put toward debt settlement and what oh I have monthly that I could no carveout over and above my expenses to be able to use to pay off debt and once you know that you have one of two options.

I would either contact one of our body moneywise coaches to help you set up your budget and help you work through the plan.

Once you have the listing of everything you owe or contact your friends@christiancreditcounselors.org provide them that listing and see if they can come and help you get on a monthly payment plan to pay back it could be that that it's beyond the ability to put it into debt management and at that point it's really just something you need to do yourself.

As you contact each of these creditors to restructure the loan or settle it but let me just say again because this is really key you want to get everything in writing. To get the name of the agent you spoke to you to take detailed notes and you before you pay anything and then you want confirmation that it has been received and zeroed out at that point.

So if you have questions after you go through those steps give us a call back and we certainly appreciate your call. Thank you Christine. Let's take Lawanda next line that we have one minute can you let us know the question is not a short amount of time I think I have a prerecorded show. I write off line. I got a lot of good information and I have my debt paid off in like six months instead of a year and 1/2 between churches, but something had happened in our church so I had been paying them so I'm not sure if I can should continue the pain that ties onto the current church.

The church that may be moving to use it to play on the day yeah you know Lawanda, this is between you and the Lord you cannot give God I love the fact you're applying the principle of the ties firstfruits to the storehouse. I think that's a great starting point for our giving, we should be systematic. The local church is God's plan a we should give proportionately and I certainly feel the tithe is a wonderful principal to apply in terms of how you do that taking attendance and giving it I would pray through that and asked the Lord to give us some wisdom there.

I might consider if you've made a move as you visit around with churches you could take know one fourth of your tithe and send it to each one you visit. You could leave it where it was until you.

The Lord you know and you decide where you're going to land and then you start redirecting your tithe there. I don't think you know there's a hard and fast decision here one that's right or wrong. I think it's really between you and the Lord's conviction matter. I think he'll honor your heart's desire here, which is to be found faithful in your giving and so I think where you come down he'll be pleased Lawanda.

We appreciate your phone call today. Thank you very very much and thank you for listening Rob.

We are out of time.

Hope you and yours have a great weekend. Thanks thanks very much and thanks to our technical crew doing great job today, Clara, Dan and Jim, don't forget church this Sunday. Anyway can anywhere you can around W. Times More Dr. safely join us again


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