This episode of the Faith and Finance podcast is brought to you in part by Christian Credit Counselors. If credit card debt is weighing on your heart and you're unsure where to begin, our trusted partner, Christian Credit Counselors, is here to help. Their debt management program can help you pay off your credit card debt up to 80% faster while ensuring you honor your financial commitments in full. Take the first step toward financial freedom today. Visit faithfy.com/slash CCC or call 800-557-1985.
The simple believe everything, but the prudent give thought to their steps. Proverbs 14, 15. Hi, I'm Rob West. In a world where scams are increasingly clever, Scripture reminds us that precaution is a form of stewardship. Today we're talking about something that isn't just practical, it's spiritual, protecting the resources God has entrusted to us.
And then it's on to your calls at 800-525-7000. This is Faith in Finance, biblical wisdom for your financial decisions. These days, scams show up just about everywhere by phone, email, text, social media, and even by impersonating people you trust. But as followers of Christ, we're not called to live in fear, we're called to walk in wisdom.
So, how do we do that when it comes to guarding our finances?
Well, first, pause before you respond. Scammers thrive on urgency. If someone pressures you to act immediately, whether it's a phone call claiming to be your bank or a text message saying your account's been compromised, slow down, verify the source, hang up and call the official number on your card, check the sender's email address, and remember, pressure is a red flag. Second, never send money via wire transfer, gift cards, or payment apps like Zelle or Venmo to someone you don't know personally. No legitimate organization requests payment this way.
If someone insists, just walk away. When shopping online, use a credit card rather than a debit card. Credit cards typically offer stronger fraud protection and limit your liability if something goes wrong.
Next, enable two-factor authentication on all financial accounts. It's like adding a Deadbolt to your digital front door. Even if a thief steals your password, they can't get in without the second key. Ideally, use an authenticator app to generate this code, which is much safer than receiving a text message. Speaking of passwords, don't reuse them.
Use a password manager like Bitwarden or NordPass to generate and store strong, unique passwords. Both offer free, secure options to help you stay protected. Also, monitor your accounts regularly. Most banks let you set up alerts for large transactions, logins, or unusual activity. These alerts act like a financial alarm system, helping you catch suspicious activity early before real damage is done.
Another crucial step, freeze your credit. It's one of the most effective defenses against identity theft. It's free to do with all three major credit bureaus and can be temporarily lifted when needed. Think of it as putting a padlock on your credit file. Be especially cautious with public Wi-Fi at coffee shops or airports.
If you must bank on public Wi-Fi, always use a VPN app to scramble your data so thieves can't read it. Otherwise, wait until you're on a private home network. The same goes for borrowed devices. Only check accounts from your own phone or computer. And don't forget about social media.
Oversharing personal details like birthdays, family members, or recent purchases can give scammers clues to your passwords or security questions. Set your profiles to friends only and think twice before posting personal information. Here's a classic but still essential tip. Shred sensitive documents, bank statements, medical records, tax forms, anything with your personal financial information should be shredded before going in the trash. Identity thieves will dig through garbage if they think there's something valuable in there.
Also, never click on suspicious links. Even if they appear to come from someone you know, hackers can take over accounts and send phishing messages that look perfectly normal. If something seems off, reach out to the person directly before clicking it. And finally, educate those around you. Scammers often target the most vulnerable, particularly older adults and teenagers.
Make this a family conversation. Talk with your kids, your parents, your friends. Share what you've learned, and keep each other informed about the latest scams. If a company offers you identity theft protection after a data breach, take advantage of it, but verify first. Don't trust links or numbers in the letter or email.
Instead, contact the company directly through their official website or customer service number to confirm the offer is legitimate. There's no question that in today's world, financial faithfulness includes digital awareness. Guarding your data, protecting your family, and staying alert to fraud are essential parts of stewardship. But don't let that lead to fear or discouragement. With a few intentional steps, you can safeguard what he's entrusted to you and live with peace, not panic.
By the way, another great way to manage your money wisely and grow in financial stewardship is to download and use the FaithFi app. You'll find it at faith5.com and click app. That's faithfi.com and click app. All right, your calls are next: 800-525-7000. I was in ministry full time, and I was always looking for a way to integrate my faith with this new industry around money and finances.
This is Mark. He is a Certified Kingdom Advisor. As a CKA, one of the best things I offer my clients is trust in knowing that they're working with a professional that understands their values. And I think, in all of the different challenges that clients go through, if we can go back to trusting in God, then He'll make the path straight. You can find an advisor like Mark at findacka.com.
Uh Faith in Finance is grateful for support from Sound Mind Investing. For more than 30 years, they've offered financial wisdom for living well. SMI provides step-by-step guidance for do-it-yourself investors, from those just getting started to those getting ready for retirement. More information, including a short video webinar on profit and peace of mind no matter what's happening in the market, is available at soundmindinvesting.org. Thanks for joining us today on Faith and Finance.
All right, let's dive into your questions today. We've got some lines open.
Now's a great time to call. If you have a question on anything financial, whether you're thinking about investing or paying down debt, maybe you're considering how you give wisely or get that credit score going in the right direction, whatever you're thinking about today, now's the time to call. 800-525-7000. Let's start in Kansas today. Jose, go right ahead.
Thank you for having me on. I appreciate it a lot. Of course. Absolutely. All right, so the thing is, I've got a friend who lives in a neighboring state, and he's been having a tough time for a bit of a while.
hasn't had a job. I've been helping him out since about late September, early October. He's been looking for work tenaciously, I'm hoping, praying, you know. And I've been able to help him out as much as I can, only it's starting to take its toll at this point. And I've been asking him, Hey, man, get some financial literacy, get some credit going.
I asked him, Hey, I asked him if he could take out a loan or anything. He said he ain't even got credit to work with. And I'm like, whoa. And what I wanted to ask is what would be a way or a strategy that he might be able to use to help himself out or set himself up for some success. Yeah.
end up putting my own self in in a problem, you know? Yeah, I think that's wise because we've got to strike a balance between your desire to help, and that's admirable, and putting your own finances at risk. And even beyond that, continuing to allow him to perpetuate the same financial habits that are not going to allow him to kind of get into a stronger financial footing.
So, your assistance, without his own effort and gratitude toward what you're doing, but also a willingness to work hard and make tough decisions, is not really going to get him to a place where he's better off. And so, you could inadvertently be encouraging this kind of behavior to continue.
So, I think you can help a lot without putting your own finances at risk. And that's going to be requiring two things: first, boundaries and structure. And then second, Connecting him with the right resources.
So, in terms of setting a sustainable help plan, I think the first question is: do you have the ability to help? And you've really got to look long and hard at what you have available and make sure whatever assistance you're offering, if any, is a part of your plan.
So, take a look at your budget and just see: do I have the capacity to provide assistance? You may come to the conclusion that based on what you've already done, you're kind of tapped out. And so, you need to come alongside him, encourage him, pray for him, connect him, or point him to other resources. But your time to continue to provide financially may have come to an end. And if that's the case, I think you just need to be clear about that reality.
I think beyond that, you know, maybe if you do have the ability to help, you're providing direct help over cash.
So you're offering a gift card for gas or groceries or help with a job search or, you know, paying a bill directly. You're not just handing over cash. You know, I think also encouraging him to look for local options.
So he could call or text 211 to find out that there's local resources for rent or housing help or utilities or food. There's, you know, obviously the SNAP programs, there's unemployment benefits. I mean, there's a whole host of options there that he should explore. The last thing I will say is, you know, we would be happy to be part of the solution if he's in a place where he's ready to get serious about what needs to change and making the hard choices. And we could do that by providing a certified Christian financial counselor that we would cover the cost for, but it would be somebody that is not you, and that's probably.
A good thing that could come alongside him to provide objective insight, accountability, help him set up a budget, prioritize his spending, those kinds of things.
Now, I'll ask you to use your discernment as to whether or not he's in a place where that would be productive. If so, we'd be happy to provide it. If you think, no, I think maybe he needs to experience some tough love and maybe some of the consequences of his actions without you stepping in and rescuing him for a season.
Well, we'll trust your judgment in that. Does that make sense? Yes, sir, it does. I appreciate the help. All right.
So, listen, I'm going to have you stay on the line. If you do want the information, you know, our team will get your contact info and get a certified Christian financial counselor in touch with you. If you feel like the time is not right, then you could decline that and call us back when you think it's right. But listen, I appreciate what you're trying to do here. And I think your support relationally and practically in pointing him toward community-based aid or national ministries is probably the right move.
And this is probably a time for you to create some boundaries for your own participation in financial help. Jose, thanks for calling. Hang on the line, and our team will chat with you a bit further. And if we can help further along the way, don't hesitate to reach out. Let's go to North Carolina.
Hi, Reba. Go ahead. Yes, I was wondering how to make a A wheel. I had one years ago, but it needs to be updated. But I have the only thing I really have is To leave my children as my home.
I was told to better put that in a trust. Instead of In your wheel.
So how do I go about that without having to go to an attorney? Yeah, yeah, it's a good question.
So first question is, you know, do you need a trust with a with a fairly simple situation and a home that you're wanting to pass to your kids? You may not need a trust. It really depends on your goals. A trust is most helpful when you want to avoid probate. And when you want to control how and when the property is passed on, or just make things simpler for your heirs.
But there's an easier option. Let's see, you are in North Carolina. There's something called a TOD deed. And let me just see real quick if it's available in North Carolina, because that would make things a lot simpler. No, it doesn't have.
a TOD deed. Uh however, it does look Like, maybe there is something that would allow you.
Well, you'd want to check with an estate planning attorney, but bottom line is: you know, a trust is great, but not always necessary. The the reason people typically want to avoid probate is They don't want the time and the expense of the court probate process.
So an executor works with the probate court and there is some cost involved and it can take you know several months. If your situation is fairly simple, it probably wouldn't take longer than that. But a simple will, which you either do yourself through a reputable online tool and make sure you use your state-specific form, that could handle it and make sure that the kids get the home. It's just that a trust is going to make it a little more efficient. Because it bypasses the estate, the probate process, so thereby alleviating the cost and the time, and it could transfer immediately.
Um you know to your kids. Um, but it there is more cost involved. And I would say, you know, whereas I prefer you using an attorney for either a will or a trust, I would feel a lot more comfortable with you doing a will online on your own. Using an online tool with a state-specific form, more so than I would a revocable trust, because it has to be drafted correctly and funded correctly, or it won't accomplish what you need it to. And that's where I think a lot of the do-it-yourself attempts fall short.
So, I would say if you're going to do a will, you could do some online searches and find a reputable, highly reviewed, and rated tool. If you're going to do a trust to avoid probate, I'd get with a godly estate attorney. Either call your church or contact a certified kingdom advisor in your area to find one. Back after this. Stay with us.
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Feeling burdened by credit card debt? As faithful stewards, we are called to manage our finances wisely. Christian Credit Counselors can help with a debt management program that allows you to pay off debt up to 80% faster while honoring your commitments with integrity. Don't let debt hold you back from the life God has planned for you. Take the first step toward peace and financial freedom today.
Visit ChristianCreditCounselors.org. That's ChristianCreditCounselors.org. Thanks for joining us today on Faith and Finance. We do have some lines open.
So, if you have a financial question today here on Faith and Finance, give us a call, 800-525-7000. We've got lines open, 800-525-7000. Atlanta, Georgia, Amber, go ahead. Hi, um, I am trying to Uh, build my or improve my credit score without accumulating. Credit card debt.
A few years ago, I had really good credit score. My husband had a had to have a surgery that was Couldn't plan for, and I had to let go of some credit cards. I'm paying on them. Like through a hardship. But because of that it My credit score went down.
And, you know, if you go shopping for car insurance or They look at your credit score.
So I didn't know what other options instead of trying to go you know, back into debt. which I don't want to do. What I would say is, Amber, it is possible to build your credit score and even get one up into the 700s without a credit card, but that credit growth is going to be slower, and you don't need an 800-plus score to live well and qualify even for the best rates and terms. I mean, the easiest and quickest way to do it would be to get either a secured or unsecured credit card. Secured, meaning you put a certain amount on deposit and then you borrow against it, but there's no risk there for the bank or you to overspend because the only what you can borrow is limited by what's on deposit.
And if you ever didn't pay it back, they would just grab the money out of the account and it'd be paid in full. The key is you could use it each month for a budgeted item. Let's say you had a subscription or just a small recurring charge that was something you were planning for. It hits that account, it gets reported to the credit bureau, you pay it off in full, you don't pay a dime of interest, whether it's secured or unsecured. And now you're having this monthly recurring activity of a revolving account.
That's really helpful. But if you just. From a conviction standpoint, want to stay away from credit cards altogether, then the other options would be: if you have a mortgage, obviously that's being reported. If you're renting, you could look at one of the services that reports rental activity to your credit bureau.
So that would be something like Xperian Boost, which is a new program from Xperian, one of the three major credit bureaus, would probably be the easiest. It's free. And through bank account verification, they would automatically report your rent. You could look at something called a credit builder loan, which is offered typically by credit unions. But essentially, you take out a loan of $500 to $1,000.
The payments are reported monthly, and then after the Uh you know, you get the money after the loan is paid off. but it's essentially a very effective strategy solely for the purpose of building payment history and building your credit file without the temptation to overspend. But give me your thoughts on those ideas. Yeah. Well, our our home is paid off.
Okay. Would it be a bad idea to actually borrow a little bit, like maybe ten thousand? Or I don't even want to go that high, like five thousand against it. I wouldn't do that. No, just because that would involve a cost to you.
I mean, there would be the cost of the loan itself, first of all. Second of all, when it comes to home equity, nobody wants to lend $5,000. They want to lend $50,000 or $100,000. And then you are paying real interest. Whereas with a credit builder loan, It's for the purpose of building your credit.
It's not collateralized by your house, but you get all the money back in the end, essentially.
So I would prefer that as a first option. Second option would be maybe a secured credit card, where again, you're taking out a credit card, you're using it for a recurring budgeted item every month, you're paying it in full, therefore you're not paying any interest, and there's no risk of you all going into debt. Because, again, even in the worst-case scenario where you didn't have the money to pay the small recurring charge, the money's already on deposit. But what you're looking for is current and active On-time payments being reported to your credit file. That's going to improve your score the quickest.
It's the lack of credit that's going to hurt you at this point because you don't have a mortgage. That's good, but it just doesn't help your credit. And the fact that you don't have any other accounts open, your lack of credit is really what's going to work against you.
Okay, all right, so the credit builder loan, is that through a credit union or To get that. Yeah, typically, I mean, you could do just a search for credit builder loan, and what you're going to find is a lot of credit unions are offering these loans. And you could read about them. You could even do some research on bankrate or nerd wallet, find out which is the best one for you. But yes, generally they're offered by credit unions.
And then the second option would be you could go to NerdWallet or BankRate and just compare all of the what are called secured credit cards, which again is a form of a credit card, but it's not unsecured where they give you a line of credit. It's secured by a certain amount you put on deposit with a bank. Bank of America offers them, Capital One offers them, US Bank offers them, all the big bureaus offer them, but there's no risk to you or them because whatever limit is available on the card is backed by an amount on deposit.
So again, you can use it every month, pay it off. There's no risk to you, and now you're building your credit because it's being reported to your credit file.
Okay, all right. I think that way sounds good. I really appreciate it. Absolutely. Thanks for your call today.
Lord bless you. Let's finish up today in Louisiana. Lance, you'll be our final caller. Go ahead, sir. Yes, sir.
I was calling in. I had this question. I was told that with my current mortgage, it's about one hundred twenty five thousand remaining. And I was told that if I move it and do it under um Home equity line of credit. that I can pay it off in like seven years.
And what they told me is that you take and you basically have your paychecks go into the line of credit deposit to the line of credit every month. But then use a line of credit to pay your bills and in doing that you'll be able to pay your mortgage off uh anywhere from three to seven years faster. I just wanna know if that is that even true. I just don't like that approach. I mean, yeah, it it works on paper.
The problem is it typically involves you spending a a good bit of money on a fancy software package and It's complicated and you've got to have a lot of cash flow to make it work and it can go sideways on you. What I would recommend is a more vanilla flavored approach to paying off your mortgage. And that is just try to send an extra payment a year if you can. And if you can do more, great. But don't try to get fancy with home equity lines of credit and getting your paycheck to go and then borrowing it for your expenses and then paying it back.
And yeah, I can run all kinds of fancy calculations that would show you why that makes sense. But at the end of the day, I think it's risky, it's complicated, and it usually involves a lot of fees that you would have to pay to the people selling the software.
So I would pass Lance with all due respect. Thanks for your call today, sir.
Well, folks, that's going to do it for us. If you want to support our work, you found this ministry helpful to you, just go to faithby.com and click give. We'd certainly be grateful. Big thanks to my team today. Dan, Amy, Jim, Taylor, and everybody here at Faith By.
We'll see you next time. Faith in Finance is provided by FaithFi and listeners like you.
