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Negotiating with Credit Card Companies

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
September 18, 2020 8:03 am

Negotiating with Credit Card Companies

MoneyWise / Rob West and Steve Moore

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September 18, 2020 8:03 am

If you like to haggle or negotiate, then you may want to try doing it with your credit card companies. With a little knowledge about how to approach them, you may be able to get lower interest rates and fees, simply by asking. On the next MoneyWise Live, hosts Rob West and Steve Moore have some tips for you. How to negotiate with credit card companies on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.

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Rob West and Steve Moore
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Rob West and Steve Moore
Rob West and Steve Moore
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Hey you like to haggle successful negotiating has been described as the art of letting someone else heading your way is one area of life where a little knowledge goes a long way.

Sometimes you can have a your way simply by asking advisors Pres. Rob West has tips for you.

Take your calls and questions on any financial topic at 800-525-7000 jot it down 800-525-7000 times more negotiating with current companies right here moneywise. Okay Rob. The question do you like to haggle which is just another word or negotiate but you know we often hear that Americans typically for whatever reason don't like to do this right that's true yeah it's not a part of our culture like it is in many other countries. We tend to accept what's offered without asking for a better deal. Now when it comes to credit cards. It would be a good idea to get over that reluctance. The Federal Reserve says that Americans owe more than ready for this 1 trillion in credit card debt with an average household balance of over $8000. Obviously the best solution is to pay down credit card debt or off completely shovel while you're doing that.

There are ways to make it easier. Okay, so the $8000 in average household that mean that's the balance, so the bartering we are negotiating. Can we just say how about I send you 100 bucks, that would that work for and typically not know but if you were to do that and they were to accept that that would be what's called the settlement and while folks sometimes find themselves in a financial predicament where they have to negotiate a settlement that we always want to avoid that and pay our debts in full me just remind us all of Proverbs 3721.

It reads the wicked borrows but does not pay back could be more plain than that I think you are right. So just what should we be able to negotiate as Christians with credit card company. Well, first we should point out that there's really not a lot of negotiating required for the most part were really talking about just asking for something and waiting for a yes or no, it's a pretty simple process. I will look at interest rates and fees of the plastic in your wallet is a great convenience. At times, but it's not cheap. Even if you pay your balance in full every month. The typical credit card may come with as many as four different fees and the biggest moneymaker for the issuers is the late fee which could run as high as $35 every time you're late making a payment of the vast majority of people simply pay it, not realizing there may be a better way to handle it. And that would be well simply making a phone call to your credit card issuer. The numbers right on the back of the card and we have some pretty good data on this list of this credit at 1600 cardholders about their experience when calling the issuer and simply asking for a better deal. They focused on three areas.

One was reversing that late fee. We were just talking about then waiving or reducing an annual fee and a really important request lowering the interest rate and what what did we learn from the survey a lot but the most surprising thing was that 85% of cardholders who made at least one request got. They asked for but we also learned that an awful lot of people don't know this, because only 3/5 cardholders have actually made such a request. Obviously, not realizing how successful it can be okay.

Do we have success rates for each of those other requests, late fees, annual fees and lower interest rates. Yes, in each case, the results were largely positive. Steve those asking to have a late fee waived were successful, about 85% of the time that more than half were able to get their interest rate lowered again just by asking, but maybe more surprising, almost 3 force of those asking to have their annual fee waived were successful. It's true that only about 30% of credit cards have an annual fee, but for those that do their pretty high averaging well over $100 all and you may be able to have that eliminated with a simple phone, well, according to the survey. Not many are able to do that. It showed that only 18% of those polled have ever asked to have their annual fee reduced or eliminated even to set more disturbing Steve. They were much more likely to ask for a credit limit increase, so you've got to initiate that contact to make this work for you and great okay the numbers couldn't clearly show that your chances of success are more than 50-50 which seems like a lot more credit card company so willing to give Welling talk about this more after the break, but just short quick answer to words balance transfer. They know that card holders can take their business elsewhere. By transferring their balance to another issuers, back and check some more. 800-525-7000. Anything financial concerning you 800-5257 many people are experiencing financial challenges such as credit card debt downsizing that in jobs savings. In fact, more than half of all divorces are the result of financial pressures at home, but there's hope in your money counts biblical financial expert Howard shows that the Bible is a veritable managing your finances will discover the profound and has a relationship with God, your money counts is available when you click the start button moneywise live when it comes to investing guidance you want advice, grounded in God's word. That's the approach offered by sound mind investing. SMI has helped tens of thousands of Christians acquire investing wisdom and confidence. Regardless of your investing experience or how much you have to invest can learn to be a wise and faithful steward in the area of investing a short video webinar on profit and peace of mind is available now sound mind and begin to your liking wonderful, powerful reminder maybe the next you. God gives you the opportunity to bring believers across your friends before God to take every opportunity to tell people found only when we get to find out how God used. And if that is robbing you of freedom and peace of mind. Christian credit counselors can help where a 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 data and phone to learn how Christian credit counselors can help you visit Christian credit Christian credit counselors.or call 800-557-1985 moneywise live with us today talking about credit card credit card companies, which is something you really ought to consider doing many people don't. Most people don't. But what we found Rob is that a meeting, companies are amenable to this most of the time well over 50% of the time they say yes will will will drop that fee or reduce this over here or what the question is will again why are credit card companies so willing to do something like yeah and it's just simply Steve. Couple things number one is they want to save your business and so they realize you're getting all kinds of offers in the mail every month encouraging you at 0% interest for 18 months to come on over to their side and to move your business elsewhere. They want to hang onto it. Keep in mind there are multiple ways there making money, not to mention the interest on your balance that's accruing. But as we've said other fees they're getting the merchant rebate every time you charge the unit they will waive one or two or even three of these fees. There are other ways that they're still bringing in the box so if they can be lenient show you some favor keep your business then there willing to do that in most cases, so make sure you ask and let's focus on paying off those credit cards.

That's the best option. Yeah so again I were discussing late fees, annual fees, perhaps lowering your interest rate were not suggesting that you don't pay your bills were not suggesting that you say one thing and then tried to wiggle out of that we are suggesting that maybe you barter a little bit or negotiate a little bit if they appreciate your business and want your business. Often times there willing to make some adjustments on their and so again all you have to do is ask and be polite about it and see what God allows you to do right now. Here's something else you might want to try. It's giving us a phone call 800-525-7000. If you have a question today about anything financial we love to chat.

It's a calling program. If you don't make the call.

We can't have much of a program so call right now we have open lines and 800-525-7000 diabetic click my computer mouse, and I see that Allen in Youngstown Ohio is up first today and Ellen how can we help you Motley fuller and very certain note lead to more and more in different categories know which one. Can you tell their way to tell which ones are worthwhile or is it worth it, Ellen.

I appreciate this question and there are so many options out there. Many are free through the never-ending research you can do on the web. There are others that are paid subscriptions that you can take advantage of. I think the first thing you need to do is kind of back up and really think about what is and I'm trying to do and anytime were investing.

It should be for the long-term time horizon. I would like for it to be at least 10 years because they were not trying to time the bottom of the top were not trying to jump in and jump out of the market were not even necessarily trying to pick individual companies, winners and losers. For most investors were trying to capture the broad moves of the market and were trying to do it in a way that systematic vis--vis typically a retirement plan contribution company-sponsored salary deferral plan were on buying and systematically every month on dollar cost averaging meaning when the markets down and buy more shares with the same money when the markets up on buying less shares but I'm capturing those broad moves and so that's why we often to follow Ecclesiastes and get proper diversification.

We used baskets of investments like mutual funds or ETF's that there are a couple ways to go about that particular if you don't have enough in the way of investable assets to hire a professional money manager who's going to take what's called discretion over the account meeting here. She will make the buying and selling decisions on your behalf if you don't have an excess of typically run 100,000 in some cases, 250,000 or more then you have fewer options and that's where these services can come in now. There are many more than there have ever been, including the Robo advisors like the Schwab intelligent portfolios in betterment. If you want to use ETF Caesar index funds through a question-and-answer processor to build a low-cost, very, highly diversified investment strategy for you based on your age and risk tolerance.

But you're not to be buying individual companies there to be moving you into broad sectors of the market. Large-cap domestic and international in small-cap and across the various sectors and with some bonds thrown in. And so, as the market moves higher over the long term, you will win and so that's a great way to go. We often talk about sound mind investing.

They do a similar thing with mutual funds again were your very properly diversified, capturing the movement of wonderful mutual funds run by some very successful and talented money managers where I would be hesitant, though Ellen for the novice kind of typical investor is subscribing to a service where there making recommendations on individual companies by this stock sell that stock because it requires a lot of hands-on work and if you don't have enough, you may not be to you may not be diversified enough, you may be too highly concentrated in one particular stock, so I would shy away from that.

For the typical investor I throwing a lot at you tell me what questions you haven't and whether that makes sense and great excellent.

Thanks for your call. God bless you.

Thanks so much Ellen again 800-525-7000 St. Petersburg, Florida Linda, I understand you have some questions about well in some investing questions including one about gold night) I want to go five and based on market right now gold you know Linda were hearing a lot about gold and we do in these periods like were in right now where there's a lot of unrest you know it could be any number of circumstances. This one happens to be a global pandemic and so we understand why kind of the gold conversation is coming up, particularly because the underlying price of gold is been up given just some of the uncertainties in uncertainties in the economy and in the markets. What I would say is that just historically speaking. As we look at the long-term results of gold are typically over the long haul does not perform as well as a properly diversified stock and bond mutual fund are not mutual fund but portfolio and it tends to be more volatile, meaning the precious metals tend to go up and down in a much more volatile fashion and so because of that we say yeah there's a place for gold in your portfolio. I think for the average investor. It's not in taking physical possession it's buying either a tracking ETF that tracks them. The price of gold or maybe a gold mutual fund, not a mining company, but I find it really follows of the price of gold and do that in an allocation of probably no more than 5% of your portfolio for the typical investor. What I wouldn't do was try to jump in and out of the gold market in a period like this where we see it going up quickly and were trying to jump in and capture some of that move to the upside, because it can come down as quickly as it goes up, so I don't think this is a time to overweight gold I'd take that typical allocation.

I'd systematically move into it and It at around 5%. Certainly no more than 10 and I would do it in a way that doesn't require you to take physical possession which involves premiums, storage, security all the other things that go along with it.

Well, I think it is always you do it systematically. I wouldn't try to time it because nobody knows me some.

He tells you they know where the price of gold is going to be three months or six months I would just have to say I would beg to differ because it's anybody's guess. Right. So let's say you decided you're going to allocate him to take $100,000 a portfolio and and were going to take in and soak it were to put $5000 of 5% in gold.

I might move that into gold thousand dollars a month over the next five months and systematically move into an ETF like GLD or something like that. The just tracks the move of gold so you're buying in overtime you're taking reasonable allocation and then you're letting not be a part of your portfolio, which is a hedge against inflation and a falling US dollar and were that lendable to let you go but I hope that information helps you. Thanks very very much your listening to moneywise live. If you have any investing questions for Robinson be a great time to call if you have questions about saving, giving, generosity putting your child through college debt free. That one may be a little tough but we certainly are willing to discuss, lot 800-525-7000. He's Rob Moore. This is moneywise live many people adopt an attitude toward marriage and finances that it will all work out somehow. But sadly, it often doesn't financial woes can devastate a marriage but there is a better way.

God's way, money, and marriage counseling by Howard Tate will help you discover God's approach to growing your finances and strengthening your relationship with your mate and cultivating godly joy, money, and marriage God's way is available and moneywise 99 remind you that the portion Romans nine talks.any desires to have mercy.

He wants to harden me call reprobate words I want to sell you something. In context of Romans nine through 11. I want to show you. Romans 1125 I do not want you to be mystery writers. You may not make experienced hardening and part number Gentiles will experience the release. This is many people adopt an attitude toward marriage and finances that it will all work out somehow.

But sadly, it often doesn't financial woes can devastate a marriage but there is a better way. God's way, money and marriage God's way by Howard Tate will help you discover God's approach to growing your finances strengthening your relationship with your mate and cultivating godly joy, money, and marriage God's way is available and moneywise with us today as this is a place where collecting money so rather receive money as a tool to meet the goals the gods already planned for us in advance.

Let's continue on Chicago Illinois and you hurry thank you so much for holding what's on your mind and 80 years old and I just a few years ago that was on one of my long greeted the Bible and I came across that first and I don't remember where the borrower is linked to the lender, O Lord, my God, and I put my Bible down and within five minutes I had run my credit card through the shredder and used my debit card and if they're not in the debit card that will I want to buy and I forget about it until I get myself Jill, sorry, I love what you're talking about here. Two things stood out to be number 1.86 and you're still counting and half years. I love that you're 86 1/2 or keep that up.

Secondly, you come in right to God's word, you know.

Proverbs 22 seven as the verse your you're talking about their the rich rule over the poor in the borrower is slave to the lender and you know you what we will hear, especially in our culture.

So often is that that is a tool, it's a tool to be used to our advantage and we just have to recognize that God's word really doesn't have anything good to say about that. In fact, there are a bunch of clear warnings about changing the relationship and how it really can be to our detriment. Does that mean borrowing is assent.

No, I don't think so, but we need to heed the counsel of Scripture and be on our garden. One way to do that is exactly the way you have approached Najarian that is to say if I don't have it. I'm not going to spend it and that is obviously served you very very well solicit Lord bless you, thank you for calling today and we appreciate you listening to the program. Yes, thanks very much right all right to hurry. God bless thank you so very much and if you're 86 or older and you want to call in will make room for you to pick 86 to 86 rep. Lord willing, my elbow. I don't like it's a 66 or I may have Artie made at the Austin, Texas hello Thomas, how can we help you super thank you very much, so, so my wife and I inherited a house and my wife being landlord. I personally like I did investment what you want to sell the house. I was wondering if you might know what the market in San Antonio.

Maybe doing what make me help me make my house. Well, sure, there's a couple of factors. Here are the number one would just be your overall financial picture and is this the time for you to take on an investment property, i.e. a rental. I'm assuming that's what you you'd be doing here Thomas you take this out of house and try to rent it out turned it into an income stream.

Is that right yet.

I have rent rent now and want to buy it out like cash appraiser, but a look at it and they will buy it outright cash so my wife got a look at it like you want to get out from under it, but I'm looking at it like it's a long-term investment reinvest that rent money build the house up and eventually sell it yeah yeah and I think that's really the key here mean trying to time the market and you certainly that's one piece of this and there's no question that the market you're talking about there and in San Antonio has been very hard.

It would be considered a sellers market, meaning there are more buyers than then there are active homes for sale in Austin Texas is been another just screaming hot real estate market as well in their certain pockets of the country that have been like that so it's a great time to be a seller. I think the key is how does this fit into your overall strategy you have some experience being a landlord albeit maybe just a little and so I think you need understand what you're getting into, but if there's a better way for you to use this asset meeting either you don't have the time to be a landlord oversee it to make sure it stays rented the upkeep, the maintenance marketing it when somebody moves on and/or you have other goals that the Lord is giving you you want to become debt free and so you want to take this blessing of an inheritance and use it to pay off your primary residence or you want to take it and put it into a more passive investment maybe you want to do some giving. I think you need to go back to that conversation, you and your wife perhaps spend a weekend where you maybe get away or maybe you stay home and just make that up a couple of the concentrated times of focus were you spent some time in prayer, saying the Lord what you have for us and how can we take this asset and use it for your glory and you may decide together that keeping this property and letting it continue to appreciate in using it as a an income tool and ultimately an investment down the road when it sold is the very best thing or you may say no. We have other goals and objectives.

The Lord is given us, and by selling it, we could reposition this asset in a way it really reflects our value so that's where I started praying through and see if the two of you can come together around this decision in a way that reflects where God is taking you and if you have questions once you talk and pray through that for a period of time. Give us a call back Thomas. We appreciate that phone call today. Thank you very much.*Cindy and Margaret.

We are heading your way soon as don't think I hang up on us listening to moneywise live with Rob last time Steve Moore will be back with more right after this.

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Monthly online newsletter uplift is changed in order to bring more listener stories more program updates and more listening resources be among the first to know about radios ongoing out check out the old new newsletter uplift subscribe right now my movie find movie radio money and life run on the same track. Unfortunately, sometimes it seems like your money is heading in a different direction from your goal, 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 with this news live all Agnew in Washington administration has about going to be setting new way to Puerto Rico to help the island rebuild its electrical grid and repair schools from devastation. Hurricane Maria three years ago, but a Ricoh governor Wanda Vasquez thanking the present and the government for the grant. Among the largest ever awarded by the federal emergency management agency speaker Nancy Pelosi says she's hopeful.

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First Corinthians 13 three Chicago Esther what's on your mind today very nice house sure when we refinanced with structure and to be able to keep her there. We found out that there credit taking care of her and so happy for printing and charging and pressure to negotiate the house getting an attorney sure yeah simply understand here you have recently refinanced. Is that right here 10 years ago.

Okay. And so when it was done to keep you in the property they did two new mortgages of first and second you were under the impression at that time that the HELOC was rolled into that but it was and it was left out there, and so now you have three mortgages is that an accurate and have you been paying the interest on the HELOC.

Wow. And so I'm I'm surprised they haven't been coming after you asking for you to pay something. It's just been accruing and so the balance is been building, but you've not hearing from them.

No interesting okay well I'm so sorry, that must been really difficult to hear that that was still out there. What is the total of the three mortgages Esther CO 365,000 what you think. The home is worth okay so you're upside down in the house. Do you have the ability if you were to sell it. You have any assets you could use to try to get out from under this part. Well, I realize it's a difficult situation. I think the key right now is obviously to stay current on this and see if you can work out some sort of loan modification where you can get payments going at the Lee at the very minimum to the home equity line of credit, perhaps even get the bankruptcy attorney to weigh in on this who handled the bankruptcy in the first place, just to see if you have any recourse. Given that this is been accruing you didn't know about it. Obviously the balance is been building now you're upside down and I would imagine you even if they allowed you to start making payments you wouldn't have enough cash flow on a monthly basis to keep all three paid even at a minimum, is that right no yeah okay let's do this.

I know this is a difficult situation. I really want you to contact her friends.

A good Christian credit and let's just get a proper accounting of everything that's out there. They'll help you develop a statement of assets and liabilities look at each of the debts that the three mortgages the medical bills, your budget and then walk with you and I'll reach out to them directly and tell them that they're going to be hearing from you. Be happy to weigh in as well and just see if we can help you develop a plan forward.

You may need to go back to the bankruptcy attorney and get some counsel there but I think the key is once we know exactly what's out there. What income you have coming in, what your budget looks like how you can free up some margin on a monthly basis and what debts are actually out there. Then you have something to talk to the creditors about your desire is obviously to be found faithful in paying each of these debts. You're just constrained by the balances that you owe, which are out there for the reasons that they are in the income that you have and let's see if they'll work with you during this environment. Good news is that this is a year where lenders because of what's going on in our economy because of the pandemic.

They're willing to work with people they may need to put some on the backend. They may need to modify the balance and forgive part of it, especially since it's been accruing without your knowledge. I think the key is to get you into a payment plan and a flow that works with your budget so you can actually be making some progress as opposed to these balances just continuing to build over time. So reach out to Christian credit I'll tell them you're calling all getting involved in it as well and see if I can help. And before we let you go today. Let me pray for you is all right.

Okay. Father, we just lift Esther and her husband up to you, Lord, you know, her heart's desire and that is to be found faithful with what you've entrusted to them or they walk through a difficult season and so we just come before you and lay everything at the foot of your throne and just ask you to intervene in a miraculous way in a way that only you can or that you would bring wisdom to the situation or that you would bring provision we tell you today. We recognize you are there provider. Nobody else not her employer is not the government you are there provider and sustainer and so we just asked that miraculously you would work out a way for them to actually make some progress here and to move toward what you have for them in the days ahead. Made of these financial circumstances not in any way hinder them from what you're trying to do in their lives. May they see Lord, your activity in your work. We tell you today. We trust you are most thankful for your son Jesus and his death and resurrection so that we might have life, we ask all this in Jesus name, amen and amen. God bless you Esther and we will hold hands with you and walk through with this and see what we can do what God will do work that you called to say thank you very very much and I just asked her if you hold on the line. Our team will get your information so we can pass it along to Christian credit counselors and make sure we follow this through just before the break here have an email. This one comes to us from Nancy.

She says I'm 51 years old divorced with two children.

I'm planning to retire in about 15 years.

Should I purchase a home soon I would be a first-time homebuyer now well well you know Nancy, she certainly could. Here's what I would try to do I would try to sink that mortgage with your retirement date.

So if you do want to buy a home, make sure you count the cost. Make sure you're not getting into a home that's more than 25% in terms of the payment.

More than 25% of your take-home pay, including principal and interest, taxes and insurance and let's see if you can do that with a 15 year mortgage not a 30 year mortgage at the most a 20 year where you pay a little extra maybe one extra payment a year and that way you and I can go into retirement. With this burden of a mortgage. Thank you Nancy. We appreciate an email if you have an email for Bob.

Keep it brief questions at 21 questions at moneywise.large. Do you know if you have enough money 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. Master your money by Ron blue available when you click the start button moneywise hi, I'm here to help you understand how urgent it is to share your faith every opportunity to the eyes of a layman, one of the most common excuse for not share your faith is not qualified with the great commission doesn't say go to the world all you are qualified or gifted or trade. There are no qualifiers, no room for those trying to wiggle out brawl called overall going to be held responsible. How relived our lives according to that call hundred years from now the only thing no matter how many of you are in heaven because of your rewards in heaven. Accordingly, your treasures in heaven with every person you move closer to that becomes your life's passion. Great will be. You have been doing that you're running out of time were here to help.

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Is it possible to have a Clayton's person person is not really a person biting his mother's womb is that a chitinous person. Or maybe the street people. We walk around on the footpath that almost always smelly like like this people. Maybe there's work is in the factories across Asia who make the toys and kids play with the clients we we offer a few cents now I chitinous people. Jesus said I've come to bring good news to the poor and to set the captives free.

I wonder when he looks around with. He sees any chitinous people on this earth I want the financial wealth you leave behind could be the best thing that ever happened to your love, what's or the worst in it splitting hairs, giving 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 Thanks for staying with us today moneywise continue going to win Ohio, the home of the soap box Derby and hand thanks for your patience.

What you question hi your program. I learned a lot from it now. And you know what I want to know how we make home improvement and I'm ready to retire before too long, like a proper partial lump sum payment of your kinky payoff to be debt-free. You know, and is much as I love being debt-free. I really don't like using money from retirement accounts to do that. Now let me ask, though, are you already in retirement or is that something that's coming down the road coming down the road before too long. Okay. And so as you enter retirement you wanting to be completely debt-free. So tell me about what you would be taking out in the way of a lump sum and what types of debts would you be paying okay we have a home equity loan home improvement for 20,000 and maybe work. We really need another car I can get a car so I will have a car payment.

Okay. And so, let's see. You spent much 15,000 20,000 on the car okay 20 alright so it's a 35 to 40,000, and what you have available in this pension plan.

We got the plot I would get about a month plot to bring it down to about 2200 a month okay and so that the obviously the lump sum distribution that you're talking about.

That would bring it down to 2200 a month is factoring and how much with the withdrawal 40,049 49,000 okay.

Have you done your retirement budget and to see what you would need to sustain your lifestyle once you get to that point. So probably maybe I probably have 5 to 6 every month left over all our bills okay and that's it. 2200 a month okay alright I think I given that you have that much. I'm a little hesitant to give up that additional 600 a month you know that $7200 a year that you would be giving up.

Let's say you will live 20 years of me that's $150,000 that you know that your giving up.

At that point all in. And if you have that kind of margin on a monthly basis. I'd love for you, perhaps, to try to preserve that higher income stream that you can keep your expenses at a minimum, and just try to accelerate the payoff of the home equity loan, or perhaps saving to buy the car with cash out of your current lifestyle between now and retirement maybe for the few years into retirement. Just so you can keep that higher payout coming for the rest of your life. Now if you just have a conviction that you want to be debt-free. Starting with a home equity loan, and it's worth it to you to give up at 600 a month. I wouldn't argue with that but I would just take a step back and think about the extra that you have right now and how quickly you could do that on your own without giving up this extra 600 a month. I think that's really the question here at the end of the day you follow that. I pray in retirement. Have your car paid for everything you have an extra okay well you keep in mind that's a payout for the rest of your life through that pension and you know that would easily be able to cover a modest car payment and the home equity loan, and given that you are living well within your means and you're still continuing to work for some period of time, you should be able to really go after that home equity loan and save for the car which just further reduces what you perhaps need to borrow for the car. If you do borrow anything and just the length of time before that home equity loan is paid off, so hopefully that's helpful to you. Pray through it. I could go I could get on board with either strategy. I just want you to consider it fully and God bless you. Thanks so much, and encase listeners are wondering plop stands for partial lump option payment.

We don't often hear about it, but there you go.

If you're plop or you know Cleveland, Ohio hello Margaret, you're on with Rob West. Years ago, probably not the best thing I ever made and how it's coming coming to a close and get another car. I went to back this car that's a good idea and also how to manage purchasing a I'm pretty much on Social Security.

I do have my 380,000 investments, but I'm trying to learn because I want to take care of myself and my children have to be financially responsible for me. If I stay here from little bit longer in this world and I'm thinking that perhaps getting an equity line of credit to purchase the car I could take the money out of the bank, which scarcely am not good at taking money out to look at things from not only financial but also spiritual perspective looking for advice. Thank you. Very good.

Have you looked into what the value of the car is the blue book value versus the payoff that they would be asking for for you to own this outright okay yeah that's really the starting point we want to determine, where they had in terms of what your buyout would be versus what this car is actually worth the many upside of this is obviously you know the condition of the car you been driving yourself and so you have that history and and that's a good thing. You also potentially if you have excess mileage penalties or fees for excess wear and tear. That's good because that you would avoid it if if you're not buying it out early. You're not worrying about termination fees or anything like that but because you have a history with fixed this car that can be okay. I think the question is, is it the right price. Meaning versus what it's worth, and is this the right car for you, meaning is it too much car so you should just come turn it in, walk away and buy something that you know is a little less expensive, or perhaps more reliable. Depending on what the make and model of this is so, I would use that as your primary determination and really the starting point there is to figure out what is it that they're looking for you to pay to buy it outright and what is the blue book value which you could any number of those sites would give you the vehicle value. Steve anything were not considering here know if you don't let me ask you, Margaret. What kind of a car is it what what year what model okay let that's been a pretty good car and if you're happy with it if it's not too big a car for you.

More than likely after you after you do the things Rob mentioned checking the current price of them and value. If you like the car. Nothing wrong with the car go ahead and drive and feel comfortable and safe doing so if if all the other numbers work out okay and I don't know what is in keeping with my nature to make the car payment have to take it out of the bank that I want to get into a new car. The foolish move that I took two years ago. Well, it's his dad tells me Margaret, the perhaps it's that you know you may be better off taking finding cards a little less expensive maybe even a year or two older something, maybe a little bit smaller because I know I'd like for you to be able to borrow as little as possible when you get into this so I don't automatically just default of this car just because it's been the one you had you like it you're familiar with that.

I go back to the budget.

See what makes them see what you can actually afford and then make the decision from there. That's keep Margaret thank you very much going to try to squeeze in Cindy Cindy I know you been out there holding.

Thank you very much what you question for Rob today. Thank you. Yet I can't credit card that I all 50,000 home breakpoint. Also, all that happened three years car loan for only 20,000 market and I plan on working for another four or five years. I'm just paying minimum payments.

I'm trying to get back down and I do biweekly payment 15 year mortgage so it should be paid up soon so I'm just I'm on the right track by doing what I'm doing. I think the key is just to really keep your lifestyle as low as possible, meaning look for any available ways to cut your expenses. 1 Great Way to do that.

Cindy is to connect with one of our budget coaches moneywise just click the button says connect with the coaches no cost.

They can help you take another look at your spending plan to make sure there's not other ways.

Perhaps you can be saving so you can free up more margin to really go after that that the other thing I would look at with the credit cards is that credit counseling Christian credit can help you come up with one fixed monthly payment and lower those interest rates to get that paid off even quicker. I would look at taking out a new loan to pay for any of this. I would just keep your lifestyle at a minimum, connect with Christian credit counselors and then try to attack this debt just as quickly as you can all yeah if you stay on the line. Our team will give that number to you and we appreciate your call today. We do indeed God bless you, Cindy, and we hope it stays breezy up there in breezy point and were that were going to have to put a bow on it for this day and for this week. For those of you who are wondering about a mortgage because rates are pretty good right now I would like to recommend Dale Vermillion's book navigating the mortgage maze. In fact, Dale joins us on the program later next week you'll find all sorts of great information chapters on applying for mortgage various types of mortgage financing tax concerns eliminating debt top 10 mortgage traps to avoid a much more again. It's titled navigating the mortgage maze. You'll find it on our website which is moneywise that's also where you can make a generous donation. Should you care to.

Just click the donate tab at the top of the page moneywise live is a partnership between Moody radio and moneywise have a great weekend. Do something nice for someone to join us again on Monday

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