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.
Debt carries a cost beyond dollars. It can steal your sleep, strain relationships, and cloud your view of the future. Hi, I'm Rob West. If debt has taken over your thoughts as well as your budget, today's conversation can help lighten the burden. Neely Simon joins us to discuss the emotional cost of debt and how clarity, wise counsel, and a practical plan can provide a path forward.
And then it's on to your calls at 800-525-7000. That's 800-525-7,000. This is Faith in Finance, biblical wisdom for your financial decisions.
Well, our guest today is Neely Simon, a certified credit counselor and director of strategic partnerships at Christian Credit Counselors and underwriter of this program. Neely, always great to have you here. Great to be back, Rob. Neely, most people think of debt in terms of dollars and interest, but there's an emotional burden as well. What have you learned about the hidden weight debt can carry?
Well, when we talk about debt, most people immediately think about their finances. But I've counseled thousands of individuals and families over the years. And what I've really learned is that debt is rarely just a financial issue, it carries a really heavy emotional burden as well, because debt affects far more than just our bank accounts, it impacts our sleep. Our relationships, our health, and our sense of peace and that everything is going to be okay because sometimes fear just takes over.
Well, that's exactly right. I mean, these families are navigating difficult seasons. It could be a job loss, medical expenses, rising costs. We're all facing that. Would circumstances, Neely, most often lead otherwise careful people into debt?
And why is it important for them to know they're not alone?
So, I just want to share with listeners that if you are struggling with debt, you're not alone. Many people feel ashamed or embarrassed about their financial situation, but the truth is, life happens. I've worked with people who have accumulated debt after losing a job or went through a divorce, facing unexpected medical expenses, maybe had to retire early, help an aging parent, or even support adult children.
Some people too are just trying to keep up with the rising cost of everyday living.
So, sometimes debt isn't just a result of irresponsible spending, it's really a result of doing everything you can just to get by during a difficult time. Yeah, that's exactly right.
Now, before someone reaches out for help, what warning signs suggest that a financial problem has become an emotional burden as well? Yeah, I think one of the things that we see as credit counselors is that the financial stress often shows up long before someone reaches out for help. People have shared with me during our counseling sessions that they're lying awake at night wondering how they're ever going to get out of their debt, or they're avoid looking at their creditor statements because no progress is being made. Or maybe people are even working extra hours just to stay current, and that leaves little time for family or rest.
So these are some of the signs that the financial burden is now becoming an emotional burden and has been compounded. Yeah, that's exactly right.
So for the listener who may be lying awake at night because of debt, what practical next steps and even biblical encouragement would you leave them with today?
Well, here's what I'd like every listener to remember: seeking help isn't a sign of failure. It's really a sign of wisdom. Because the earlier you reach out, the more options you'll have, and the more empowered you are to take action and find a solution. I think one of the greatest gifts a certified credit counselor can provide to people isn't just a strategy for paying off debt, it's clarity. When people really understand exactly where their money is going, what options are available, and a path forward.
It looks like a weight is lifted, and really the peace is able to come in.
So, what happens is that that clarity brings hope because people can see the light at the end of the tunnel. And then, as believers, we're also reminded that God cares deeply about every area of our lives, including our finances. Scripture encourages us not to be consumed by anxiety, but to bring our concerns to the Lord with prayer by seeking wisdom. That doesn't mean ignoring our financial challenges, it means facing them with faith.
Sound counsel and practical steps. Yeah, that is well said. And folks, Christian Credit Counselors can help you find hope in that path forward. Neely, we so appreciate our partnership. Thanks for being here today.
My pleasure. Thanks, Rob. That's Neely Simon with Christian Credit Counselors. Their nonprofit team may be able to help lower your interest rates, create a clear repayment plan, and walk alongside you as you work toward repaying what you owe. Just go to faithfi.com slash CCC to learn more.
That's faithfi.com slash CCC. Your calls are next, 800-525-7000. We'll be right back. We are grateful for support from Guidestone, whose diversified suite of investment solutions align with Christian values to create positive change in the world. More information is available at faithfy.com slash Guidestone.
Investing involves risk, including potential loss of principal. Carefully consider the investment objectives, risks, charges, and expenses of Guidestone funds before investing. They are distributed by Foresight Funds Distributors LLC, which is not an advisor affiliate, a registered investment advisor, nor do they provide investment advice. 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 faithfi.com slash CCC or call 800-557-1985. Uh Yeah.
I'm so glad you're with us today on Faith and Finance. I'm Rob West. We're taking your calls and questions today, that number 800. 525-7,000. That's 800-525-7,000.
We would love to hear from you today and take your questions as we help you apply biblical wisdom to your financial decisions. You know, if you think about it, money is a good gift from a good God. It's to enjoy and provide. And think about this. When we hold it loosely and give it generously or invest it strategically in a way that aligns with our values, we have the opportunity to not only love our neighbor and advance the common good, we have an opportunity to advance the gospel.
You know, I was reading this morning in my own quiet time in Luke chapter 8 about Chuza. And Mary. and Susanna and it said they funded ministry out of their means.
So they took the gift from God, money, and used it to fund ministry. What ministry, you ask?
Well, it was Jesus' ministry. They were funding the disciples. They were funding the work of our Lord through their means. I mean, that is the perfect, the classic example of how money can become a means for gospel advancement. And that same thing exists for you and I today, but it requires that we live within God's provision.
It requires that we have margin or surplus. It requires that we don't consume it all on our lifestyle. It requires that we be intentional and realize we're accountable and be held to faithfulness as our goal, as stewards. But we have an opportunity now on the flip side. We also see in scripture that money can become an idol very quickly, especially in the most prosperous nation in the history of the world.
So, you and I need to be on our guard that it doesn't become the creation we worship over the creator. But when it's in its rightful place, wow, we can do incredible things. That's what we want to do each day on this program. We do have lines open. Our team is ready for you.
So, call right now: 800-525-7000. We'd love to hear from you today. We're going to begin in Virginia today. Savannah, how can I help you? Thank you so much for all you all do.
I appreciate you helping me with a question regarding distribution of a settlement monies from a hit and run. When someone is involved in a hit and run and following the settlement, uh from the injuries and the trauma sustained are finalized How is the settlement? considered when distributed If you're on Social Security, I'm a middle-aged woman. Is it taxable? Does it fall under certain language or category on tax filings?
There's a couple of other questions. Is it considered income? Does it vary from state to state? Those are kind of The realm of what I'm trying to ask, I should say. Yeah.
And you're on regular Social Security, not SSDI, correct? I am on regular Social Security at this time. Yeah. Okay. Yeah.
Very good.
Well, first of all, I'm so sorry to hear about what you've gone through. And the good news is that based on what you've described here, a hit and run accident, physical injuries, and trauma, the general rule is the settlement is not subject to federal income tax if it's compensation for physical injuries. That includes amounts for medical expenses and pain and suffering related to the physical injury. The portion that would be taxable, if there's ever any interest paid on the settlement, any punitive damages, compensation for lost wages in many cases, but if it's just pain and suffering related to the accident, then you would not have anything related to federal taxes. In terms of state taxes, most states follow the federal tax treatment, meaning the same would apply: compensation for physical injuries, physical sickness, general.
Not subject to state tax either. In terms of Social Security, you know, that because that's not taxable at the federal level, receiving the settlement itself does not reduce or affect regular Social Security benefits.
Now, if part of it was taxable, and as I mentioned, often for interest paid on it or punitive damages, now that could increase your taxable income for the year, and that could cause a larger portion of your Social Security benefits to be taxable, or it could affect your IRMA on your Medicare premiums. But again, because What we're describing here is likely not taxable, it should have no bearing.
Okay. And as you said, it does vary from state to state or no, just federal? It does.
So you'd want to check with your CPA. But typically, states follow the federal tax treatment.
So that's what you're going to find in most cases. Mm-hmm.
Okay. Well, I so appreciate your answers today.
Well, I'm delighted to be able to help you. Go ahead. Yes. Thank you for all you all are doing for the kingdom. We appreciate you.
Well, I appreciate you, Savannah. Thanks for calling that out. Stay on the line. I want to send you a copy of the latest issue of our magazine, Faithful Steward, just as our gift to you. I think you'll enjoy it.
Find some articles that are helpful. Certainly, it'll take you back into God's Word. And we appreciate your call today and your kind remarks about the program. Christy's in Michigan. Christy, thanks for your call today.
Go right ahead. Yeah, I need to build up my credit score. I'm like trying to figure out what's the best way to do that. I have probably about $4,000 in credit card debt. And I just had a car accident where my car is not drivable, so I have to buy a car.
So and I do have a job. I'm just trying to say, like, what is the best first thing to do? Yeah. Well, I'm so sorry to hear about your car accident. I think the best first thing, other than getting that car repaired, and hopefully the insurance is going to cover that and get you to and from work, is to tackle that credit card debt.
I wouldn't worry about the credit score. That's going to take care of itself over time as you get this debt paid down. And anyone who has at least $4,000 in credit card debt, Christy, we recommend our friends at Christian Credit Counselors. That's ChristianCreditCounselors.org. And basically, what they're going to do is slide you into a debt management program, which is not debt settlement where you stop paying and try to negotiate it down and trash your credit.
It's not debt consolidation where you take out a new loan to pay it off and you typically end up paying it back over a longer period of time. Debt management is where you leave it right where it is. And Christian Credit Counselors, along with the other not-for-profit credit counseling agencies, are able to access the lower interest rates that are available through credit counseling.
So they'll tell you what the interest rate will be. Typically, that average of 23% comes down to somewhere between 0% and 8%. You make one monthly payment to Christian Credit Counselors. They'll send it on to your creditors. And the combination of a level payment and the lower interest rate will help you pay it off 80% faster.
And I think that'll get you pointed in the right direction because as those balances come down, that's going to help your credit score get boosted. The fact that you'll pay it off quicker means you'll get out from under it. And once you do, then we can take all that money, put it toward getting your emergency savings up to three to six months' expenses. We could even start saving for your next car, maybe putting a little away for retirement, those kinds of things. But the credit card debt has to come first.
Does that make sense? Yes, because I guess I was looking at it as maybe the credit score had to come first, but the credit card that being paid off will make that credit score go up as I make a monthly payment or one big payment on that. That's right. And yeah, there's really nothing you can do to get that score up other than just following the algorithm.
So what determines your score is number one, the primary thing is you being an on-time payer.
Well, going into credit counseling with the debt will help that. A low credit utilization, well, paying down your balances is going to boost or is going to lower your credit utilization.
So that's a good thing. Having a good credit mix and a long history, those are going to help.
So all of the things you're going to do by just focusing on paying off that debt with our friends at Christian Credit Counselors is going to help you boost that score over time. It's going to take time. It's not going to happen overnight. But the most important thing is we get you out of debt and stop paying all that high interest.
So head over to ChristianCreditCounselors.org, Christy, and they can help you out. We appreciate your call today. Back with more after this. Stay with us. Have you ever started a budget only to watch it fall apart a few weeks later?
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If you have money in an investment account, you know sometimes the stock market can seem like a roller coaster. But it's possible to enjoy both profit and peace of mind as a do-it-yourself investor, no matter what's happening in the market. A short video webinar about that is available at soundmindinvesting.org. Financial wisdom for living well, soundmindinvesting.org. Thanks for joining us today on Faith and Finance.
Looking forward to hearing from you today as we take your calls and questions, helping you live and thrive as a faithful steward, understanding that there are some core ideas in God's Word related to how we should, in fact, steward His resources. We should be generous, holding everything we have loosely. We should operate with contentment, not getting pulled into the comparison trap, realizing that God is enough. We are rich before the first dollar, and so we should be content with what we have. Doesn't mean we don't try to improve our income over time or work hard to get a better paying position or save for the future.
There's nothing wrong with that. It's really about a heart posture of contentment, knowing that we have sufficiency in Christ. Third is gratitude. Gratitude really flows from. From contentment.
And when we have a grateful heart and we're thankful for all that we've been entrusted, that's really the right heart posture as a steward. And then finally, it's that idea of stewardship: it's that God owns everything, and we then are charged with being found faithful. But if we're generous and we live content lives with gratitude and understanding our role as stewards, I think that sets us up with the right position, the right heart posture to then be found faithful and managing God's resources.
Well, we want to help you do that each day, but we also realize you have very specific questions, things you're wrestling with in your financial life. And so, if there's something you'd like to chat about today, whether it's your budget or your investments, maybe it's preparing the next steward or paying off some debt, whatever you've got happening today, you can call right now. We'd be delighted to hear from you. Again, that number, 800-525-7000, is the number to call. Let's go out to Oklahoma.
Brian, go ahead. Thanks for taking my call. Absolutely.
So, just wanted to get some advice. Planning on retiring next year in December, 27th of December. I'll be 62 in October. My wife will be 65 in April of next year.
So, my wife's never had a Oh. Of course, I don't like saying she's never had a job because she's took care of our home and done a tremendous job of doing that.
So that's a big job. 36, right? 36 years of our marriage, I've always. Financially took care of the the family. She's not had to go outside the home to work.
And um so we've and I've put up besides my four hundred one K, I've put up money over the years Just listening to my dad when I was a young man.
So, 42 years in the job that I'm in, of course, I've moved up over the years. And anyway, the reason I'm wanting to retire early is because I want to help in the ministry more at our church, with our school that we have there, and all those things.
So I've been preparing for the last year and a half for all of this, looking into the Social Security, looking into the Medicare and all that stuff. My question, most the money that I've got I'll put in Edward Jones. And Edward Jones' advice to me was not to draw my Social Security till 1967. And I struggle with that because I know why in a sense, I know why they're telling me that.
Well then I I met this guy who I was talking to about He's a Medicare professional to help me with the Medicare side of things.
So they're a financial company too, and we kind of got into the financial side of things and He was telling me that the reason they don't want me to do that is because they're going to make more money on my investments if it stays where it's at. I'm not looking to get rich. I'm not looking. I told him, I said, well, listen, my goal is not. To have, I just want to be make sure that me and my wife are secure.
She has a lot of medical issues. My wife has a lot of medical problems. I don't. And I want to make sure that if something happens to me that she's took care of And uh we've always been Big givers to the church, love missionaries. I love our missionaries.
I have a lot of respect. For missionaries is what they do.
So we support them big time, and of course, our tithes and everything. God's been so good to us. And I want to be smart in what I do for our well-being to make sure that I don't do something dumb.
So, my question is. I know Edward Jones has been around a long time. I looked up the history of this company. They're celebrating 100 years. But he made it sound like, hey, you can draw your Social Security at 62.
I can guarantee you, if you put everything in us, you'll have this kind of outcome. And you know, well, Satan, sometimes, and I've been praying and I reached out to my pastor, got them praying for me, but I just wanted some financial advice. Should I stay where I'm at and leave it alone? With Edward Jones, or should I try this deal? Yes.
First of all, Brian, thank you for sharing your story. And I appreciate you giving testimony to God's faithfulness and for your heart for missions. That's powerful. And I couldn't agree more. And clearly, that's on the heart of God.
And you're doing God's work as you fund the advancement of the gospel through those precious people who are giving their lives to take the gospel to the ends of the earth. Listen, we're all missionaries, but they obviously are, in many cases, on the front lines. lines and they need our prayers and they need our financial support. And so that's great. In terms of what you've described here, first of all, let me just say I would agree with you about Edward Jones, a phenomenal organization.
Interestingly, they have more certified kingdom advisors at Edward Jones than any of the major Wall Street firms in the nation.
So that just gives you some sense of their support for advisors who are Christ followers. They're also a very reputable organization. In terms of the advice given, I I would align more with the counsel, and I know just a little bit about your story that you've shared here today, but just given what you've described, I would align more with the counsel of the Edward Jones advisor than I would the other advisor that you've met because for a couple of reasons. Number one, If you're in good health, and you want to provide for your wife. If you were to pass away, and us guys will, on the average, pre-decease our wives by five to seven years or more, one of the best things you can do is to ensure that the survivor's benefit that she receives, meaning your social security benefit, Is as high as it can possibly be.
And if you wait. And allow that benefit to increase, your wife is gonna get more down the road. And by waiting until full retirement age, your benefits grow by about 8% per year guaranteed. Which is also the problem that I have with the other gentleman you spoke about, which is he used the word guarantee with regard to his investments. I think you said he told you: if you take it early and give it to me, I can guarantee you'll do better.
He can't do that. Nobody, and maybe he didn't use that word, but if he did, I would be very concerned because nobody can guarantee anything when it comes to investing.
So, bottom line, I like the idea if you're healthy and you're trying to shore up your provision for your wife in the future, especially if you're gone. I like the idea of you waiting until lease full retirement, age 67, to get that check up as much as you can so that that will last for the rest of your life and hers as a survivor's benefit.
So, I hope that helps you, Brian, and gives you another perspective here. It's at least my perspective on what I've heard today. God bless you, my friend. Hey, stay on the line. I want to send you a copy of my devotional, Our Ultimate Treasure.
I think it'll be an encouragement to you. God bless you.
Well, that's going to do it for us. Big thanks to my team today: Patty, Pat, Devin, Sandy, Taylor, and everybody here at FaithFi that makes this possible. Go out and live for Jesus. Live as a faithful steward. Come back and join us tomorrow.
We'll do it all over again. Until then, may God bless you. Bye-bye. Faith in Finance is provided by FaithFi and listeners like you.
