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Have You Cosigned a Loan?

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
August 31, 2021 5:26 pm

Have You Cosigned a Loan?

MoneyWise / Rob West and Steve Moore

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August 31, 2021 5:26 pm

It’s difficult to say what the most regrettable financial decision might be— buying a timeshare definitely comes to mind.  But high on the list must be co-signing a loan for someone else. On the next MoneyWise Live, host Rob West will share some options for those who have already cosigned. Then he’ll answer your calls and financial questions. That’s MoneyWise Live, where biblical wisdom meets today’s finances—weekdays at 4pm Eastern/3pm Central on Moody Radio.

See omnystudio.com/listener for privacy information.

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Bathhouse Find. I sound like a broken record. I been doing this for 18 years. I've never seen a market like this in my life values have generally been skyrocketing. The last couple of years with interest rates being so low. I actually seen refinances were people able to cash out the newly found equity in their homes to home improvements, whatever it may be and still save money per month compared to what their prior mortgage payment was so it's worth a shot to give us a phone call and one thing I can promise at United faith mortgage is we will not be pushy. It's one of my biggest pet peeves I can promise you we will not be that way. I like to see it is my job is to present you with a few different options. I step back. I let you decide and I'll let you call me when you want to move forward. We like. It's difficult to say with the most regrettable financial decision might be buying a timeshare comes to mind. The list signing the loan for someone else. Rob was getting stuck paying off the loan is better the worse.

It's often for close relative talk about the first today with some options for folks who have cosigned your calls at 800-525-7000 800-525-7000 is moneywise. Why it's always said when someone else to say.

I've cosigned on a car loan for my nephew and he's not making the payments.

What can I do for variations on that theme that you get a pencil and paper because you do have options though none of them were specially good. Obviously the best advice about cosigning is never do it. One of Ben Franklin's famous quotes is an ounce of prevention is worth a pound of cure. He wasn't referring to cosigning at the time, but the general principle applies. By the way, he may have borrowed that ounce of prevention idea from Proverbs 2230. The prudent see danger and take refuge, but the simple keep going and pay the penalty. The Bible also gets quite specific about cosigning and for good reason.

Christians are often confused by God's word tells us to care for our family and neighbors to help those who can't help themselves should not include cosigning the Bible says no and leaves no room for misinterpretation.

It warns us again and again not to do it. Proverbs 1115 says not to pledge surety for another.

That's another way of saying don't cosigned the loan for another who doesn't qualify on his or her own and Proverbs 1718, one who lacks sense gives a pledge and puts up security in the presence of his neighbor, and again in Proverbs 2226 and 27 be not one of those who gives pledges who puts up security for debts. If you have nothing with which to pay.

Why should your bed be taken from under you. The danger of cosigning is the same today as it was 2500 years ago. One study showed that 4/10 people who cosign end up paying off the loan.

Nearly 1/3 suffer damage to their credit, and 1/4 say the experience damage their relationship with the primary signer. Again, usually a relative or friend. No wonder Proverbs is included in the wisdom books okay but what if the horses already left the barn. You've already cosigned for someone. What can you do about it. As I said none of these suggestions are perfect, they all have varying degrees of pain but the thing you have to remember is that as a cosigner. You're just as responsible for the loan is the primary signer. If that person can't or won't make the payments. There's no way you can walk away from it without severely damaging your credit. The loan must be satisfied, but here are some ways you may be able to do that without having to pay off the entirety of the loan. First, try refinancing your legal responsibility to repay the loan goes away if the other person refinances without you if you were the other person is been making payments for some time. The outstanding balance should now be lower than the original amount that could make it easier for the primary signer to qualify without you. Of course, if the loan is for, say, a new automobile that depreciation could delay the primary signer qualifying without you, but it's worth checking into. If refinancing isn't an option. Though you can try speeding up the loan payments by offering an incentive to the primary signer offered to match any payments he or she makes you might still end up paying half the loan, but that's better than getting stuck with the whole loan. This would keep the account in good standing. Get it paid off quicker and most important for you preserve your credit rating. Now let's say the primary signer can't or won't keep up the payments refinancing is an option, and the incentive idea isn't working either.

I mention car loans earlier.

Half of all cosigned loans are for automobiles if that's what you cosigned for you can ask the other person to sign the title over to you so you can take possession then you'll at least have use of the vehicle while you're paying it off you could then also sell it at some point and recoup part of your loss.

Finally, there's one more possibility and this is something you can do anytime. It's a very long-term solution, though, try doing a credit makeover on the primary side of help that person understand the importance of proving their own credit score paying their bills on time and paying off debts. Usually that takes time, but it's worth doing because it treats the cause, not the symptom and eventually might enable the other person to refinance or cosigner first place.

So the options if you already cosigned alone because her next. 800-5257. Thanks for joining us today. I moneywise live hose delighted to have you along with us where we apply God's word to your financial decisions.

Whatever's on your mind.

Just a moment will begin with our phone calls today, but let me let you know there's room for you at the moment we got to about four lines open. Here's the number 800-525-7000.

That's 800-525-7000. By the way, if you haven't checked out our brand-new website would love to have you visit moneywise.org. It's a great place to check out all of our content from the leading voices in Christian finance podcasts, videos, articles, you can post a question in the moneywise community and get answers from others stewards on the journey as well as our moneywise coaches you can find a certified kingdom advisor listen to broadcast archives. You can even find out how to download the moneywise app. It's all there. Moneywise,.org and we'd love for you to visit it today. Sorry. Let's head to the phones today were to begin today in Pittsburgh Pennsylvania Edie were so delighted you called. How can I help you all I would like to explain what Medicare shutoff yeah you know that's not the term that familiar with, but I suspect what you're referring to is the open enrollment period for Medicare.

This is an annual event in the fall. Do you think that could be what you're referring to.

Now all long-term care. I'm not familiar. I could have my team look into it.

But you know typically when you hear somebody talk about shutoff or a deadline for Medicare there specifically referring to that open enrollment this year it's October 15 to December 7 and that's the only time or you can change your provider make changes to your current Medicare plan coverage than those go into effect January 1. So in the weeks before the open season begins.

That's when the health insurance companies release their information about their plan benefits for the following year and that would of course include premiums or changes in prescription drug coverage that type of thing, but I'm not familiar with the specifically the word shut off as it relates to Medicare and I'm not aware of anything that would relate to long-term care soap that will look into it and if we find something else that perhaps I'm not aware of. We can mention it on a future broadcast, but I suspect it's not really something you need to worry about unless you're looking to make a change during this open enrollment period that again ends on December 7 so we appreciate you checking in with the city. I'm sorry I don't have more specific specific information on what you're referring to, but if we find something we will certainly let you know. Let's head south of West Palm Beach, Florida Maria, thank you for going today. How can I help, and find that he'll like you know I yell family radio and the church because I wasn't going to church but anyone that might make me climactic carriage that my money in the area. I'm wondering if that's not something I should be doing and giving them a 10% offering to send it like it okay morning radio doing Philmont around and I'm giving it to doing work around the world united money and bring it to where I'm going, but it's a great question Maria and I appreciate your hard and that is that you want to be faithful in honoring the Lord in your giving and clearly we should be givers and always see the references to the tithe in the Old Testament. Actually, preceding the law of Moses with his back and Abraham and then there was essentially three different times that totaled about 23% for the Jews under the Mosaic law. Of course that was replaced when Christ died on the cross and we now have the law of Christ and we are under grace. So many of those laws no longer apply, but in just about every case, Jesus raises the bar and I think that applies to our giving as well that we should give sacrificially for those who have seen what he's done for us on the cross, we should be givers taking a portion of what he's entrusted to us remembering that it's all his and returning it to him for his work, and I would say when we think about his work that starts with the local church that was God's plan day for how he would meet the needs of the body and take the gospel to the ends of the earth that we are disciples, but we should be connected in the fellowship of believers for instruction and training community but also to reach out to the lost and to meet the needs of those in our surrounding community. So I think applying the principle of the tithe Maria here we are under the law of Christ. We should do that in a way that allows us to be generous with the glad hearts and do so cheerfully you in terms of how you do that. What is the percentage that you give systematically and where that goes.

I think that's ultimately between you and the Lord, but I would say that the tithe is a great beginning point. So to say I want to do my first giving to the local church and get out of my increase on a systematic basis. I think that's a great idea and a great starting place for believers and then beyond that, to those who are doing incredible work literally around the globe like Moody radio, and so many other ministries doing great work in the name of Christ.

I think you know finding a place to give beyond your giving to the local church to those which we would clearly say is the place for that type of giving here at Moody radio after you give to your local church. That's great as well and as you experience the joy of participating in what your local church is doing and then beyond that to other ministries. I believe over time will try to find ways to reorder our finances so we can do even more, and perhaps you say I'm to give systematically to my church and then as God provides. I'm going to begin to increase that and at some point you may even give sacrificially as the Lord leads, but I think ultimately I guess in conclusion, I would say start on your knees asked the Lord to give you wisdom. I would affirm the idea that you should start with your local church given that that was God's plan for us as believers and then as you are able give beyond that, to the work that God is really impressing upon your hearts that aligns with your passions and where he is doing a great things for the cause of Christ. So I like this idea, but I would say it does come after the giving to your local church. Does that make sense okay will thank you for calling Maria. I appreciate your generous heart and I hope that was helpful to you today but said to Albany, New York. Barbara, thank you for going out and help me so I want to purchase a home phone and I was wondering if I should you save should take a loan. Some that have been saving comedy years to one's retiming.

I don't like I should invest it into the home are I should get a loan from the bank but I ain't very good. Well, I like the idea of buying a home, but only when you're ready and when we talk about being ready for a purchase like that which for most people is the largest purchase.

They'll ever make. We want to make sure that there's a few pieces in place first. That shore up your financial foundation that would begin with having an emergency fund, I'd love for you to have beyond the money you put toward this down payment on a home.

I'd love for you to have at least three months worth of expenses in a liquid savings account. In addition to that, I'd love for you to have pretty much all of your consumer debt paid off at the very least, make sure you don't have any credit card debt. If you have a car payment to other types of installment loans that are built into the budget that would be okay but I certainly wouldn't want you to have any ongoing high-interest debt like credit cards and then beyond that, I'd love for you to have at least 20% going into that home purchase. Again, separate from the emergency fund, which tells me you have the ability to go in. In such a way that you have immediate equity would never find yourself in a situation where you were upside down. If housing prices took a decline because you'd start off with a 20% down payment and it would ensure that as long as you can buy too much house that the payment is something you could build into your budget, which would be the last piece I'd love for that resulting mortgage payment after the 20% down to be no more than 25% of your take-home pay so that you have room for all the other priorities of life the needs that you have but also the savings goals that you have so talk to me in terms of your readiness. If you were to line up these priorities I just mentioned with where you find yourself today so you know it, it cannot streamline appliance and oaken.

If you're unaware, I think I could do that.

I know I could do it at on I was thinking about if I could take $20,000 from what I have already drifted towards his house and how much of how much would you be looking to spend on the home purchase hundred and 10,000. Okay, so you've been out.

You've seen some properties that would allow you to buy something that fits what you're looking for. For around 110,000 okay and 20, 20,000 sounds like a good town payment though.

But what would you have left over in your savings after the 20,000 down payment of 40 okay alright well that sounds good to me. So I think the next step is to make sure that you understand what with that mortgage payment be and how would that fit into your budget as long as you've done the budget account of the cost. You understand what taxes and insurance will be utilities that I think you're on the right track here if you want further confirmation of connected one of our money was coaches moneywise.org but I like this plan. Barbara called today stay with the spokesman moneywise Moody radio Rob last calls and questions today on anything financial bind.

The truth of God's word to what's going on in your financial life got slides open.

Here's number 800-525-7000 800-525-7000 is the month of August comes to a close.

I love to invite you to become a financial partner of ours here at moneywise. We rely on your listener support in order to do what we do here on the radio every day on the web moneywise after their coaches. It's all as a result of your generous support. Would you consider being a one-time or monthly partner would certainly be grateful it's quick and easy to give just head over to our website moneywise.org and click the donate button and would be grateful. Let's head back to the phone Chicago Illinois W MBI Bob, thank you for calling today sir, how can help hi, thank you. Yes I have a relative and recently come into money and you would like to is in his 80s.

You like to invested such that it would be safe but also generate a little bit of income. Yes, I would you mind me asking. Roughly how much he received about $100,000 okay very good. And do you feel like he's wanting to delegate this to a professional and investment advisor to make these decisions.

Of course with his goals and objectives in mind, or you think he's wanting to be a little more directly involved. Yeah, I think it opened about options I'd see paying a professional investment advisor. If it's relatively simple thing to do if it's more complicated than on advisors to find work well obviously it's a significant sum of money and I think having an investment professional who could bring. Of course, professional expertise to the table and constructing the portfolio.

Given his age and what you're describing as his objectives. I could see a fairly conservative portfolio, with perhaps an objective of 4% per year would be a mix of largely fixed income type investments, but with some stock exposure to provide a growth component.

Over time, such that it out. It would hopefully lift the overall performance, especially while interest rates are lower and at the same time. If we were to get into a recession. We were to see a significant decline over a period of time in the equity portion of the portfolio. Those could be left alone and the update would continue to earn income in the bond and fixed income side of the investments while you know the stocks were recovering. Even if that took a couple years and that type of portfolio can be constructed and it's something that the professional advisors do every day and one of the benefits of that Bob, in addition to the expertise is just the fact that it's arm's-length than others, not emotional decisions. You know, often times of your managing your own portfolio and we were to go hit a speed bump here in the market were to decline over a period of time and we would enter a full-blown recession. It's easy to react emotionally and begin selling equity positions at a loss and then as the market recovers. You miss it and you jump into late and it's just doesn't work out very well and so having that trusted advisor.

That's got to get a track record in really an understanding of how to invest for somebody in his situation I think is really worthwhile to explore that option. I would connect with the couple of certified kingdom advisors there in Chicago you could go to our website moneywise live.org click find a CK in search city, state or ZIP Code in an interview with him if he'd like a couple of advisors two or three and find the one that's the best fit. Apart from that, if you wanted to be a little more directly involved. Another option would be to check out our friends, of sound mind investing.org other mutual fund strategies through their sound mind investing newsletter is a wonderful option where he could build a portfolio again based on his goals and objectives thing as conservative as he wants to, but with no-load mutual funds, giving diversification with a mix of bonds and stocks and that can all be done again.

Sound fine dusting.org so I prefer him to both options and let them pray through to make the portico function moneywise live just around the corner 525-7000. This is biblical wisdom.

Thanks for joining us today at moneywise live Western host taking calls and questions.

Here's a number 800-525-7000.

A little later in the broadcast of her final segment today.

Her friend Bob Dall is going to Joe join us from across more global investments. Bob's chief investment officer varies widely known on Wall Street as an analyst and market advisor, but Bob shares his insights with us each. Normally Monday this week joining us on Tuesday to really help us understand what's happening in our economy and our markets today that's coming up in just a bit, but said back to the phones. Downers Grove, Illinois hi Steve, how can help. Thank you very much. So my question is why is separated from his wife divorced and in the meantime they are co-owners a credit card that she is actually ringing up a large debt going on in the great dictation without even telling him the credit card and I'm afraid that when you get the court to be saddled with debt that he had nothing to do well obviously he's going to want to try to close the account as quickly as possible. Both of them will be equally liable for the balance to be paid, but I realize the primary concern that you're expressing is new debt that will be added, given where this is headed and I'm certainly sorry to hear that the others, so your couple of approaches here. The first step would be to see if the credit card issuer will allow him to close the account, so no further charges can be made as a joint holder.

The others depending on the card. It may require consent from both parties to actually close the account. Depending on who the card is with I would at least attempt or have him attempt to close the account as one of the joint holders and if they come back and say it's going to need consent from both parties, then obviously complicates things a bit further and he would have to engage her in that conversation, he would certainly want to give her notice that that's what's happening as a you as a courtesy because she doesn't want to find out as she's going to pay for her dinner that she no longer has access to this account if they're going to allow him to do it but that would be the simplest way to go. I clearly as if this were to proceed into divorce and as the judge makes decisions about who is responsible for what give some of these activities could be taken into account the fact that she perhaps is running up large amounts of debt as their nearing divorce. Of course, that would ultimately be up to the judge as to how this is going to transpire, but I think right now he at the very least needs to try to get that account close. Whether that's going to be able to be done, himself or with her and then let her go qualify for her own credit card account to moving forward so has he attempted to close the account or address this in any way city will not agree to close the account like recording some sort of evidence or documentation. So when the divorce is that is is Capt. account when lawyers are bantering back and forth trying to you know cut up the ultimately that's a legal question Stephen so I would have him talk to his attorney about that but I think you can never go wrong with documenting the communication.

I think if he's able to close the account that makes it simple. If the requiring consent from both parties, then he's going to need her consent, which she may not be willing to give in.

So at that point at least documenting that he's requesting these accounts be closed is requesting that no additional charges be made on this joint account, since they're both liable for it.

And he is no longer part of the decision-making.

I think clearly would be taken into consideration. But ultimately, how that would affect the outcome of the legal proceedings would be something for a lawyer to weigh in on so I would at least again.

Have him take these steps to do everything he can document to all of those communications along the way in writing and a let's just pray that first, the Lord would restore the marriage, but if it heads in the direction you're describing.

At least hopefully we will allow him to get out from under this without incurring each segment incurring significant debt. Moving forward, and I know that your heart's desire so we appreciate your call today. Thank you for your kind words about the program and will certainly pray that the Lord would be in the midst of this, as he navigates a difficult situation.

Helen said to Pompano Beach, Florida, Bonita.

Thank you for calling.

Thank you for your show. I did find out if you're going to find out regards to the timeshare that we have McCleskey wondering will initially it a contract with them.

It was for a 10 years it seemed like it lived as something that would be okay because at the end of the year, you know, we Still pay taxes on it, but my husband at the end of the year colonists and it it's enough to cover it and I'm so we thought that you know he will begin avoiding an elk by a pandemic in the we have it defaulted or anything but work that we still have about seven years ago and I'm just wondering if is there a legal leg to exit out of it when traveling as much anymore. It's like Randel it's it's it's definitely at one of our favorite hotspot, but it's more of a hardship right now. Yes, no, I can completely understand and unfortunately Bonita.

There's many many folks out there. I'm sure that there even listening today that are thinking the same thing you know and that's why I'm not a big fan of timeshares because something that sounds good at the time. Unfortunately, as life progresses. It's more complicated as you go change your traveling habits or the family dynamics changes to have more kids and grandkids. You might find yourself the note pursuing vacations that don't align with the timeshare. Not to mention just the financial requirements ongoing that many folks are left with that said they don't want to incur. And so as a result of that Bonita others just far more people looking to unload these. Then there are people looking to acquire them, which creates a challenge for you to get out from under them. There are several organizations out there that will say they can help you illegally unwind these. I've never found one that I was particularly thrilled with in terms of their success rate in just the reviews that they get online so I'm not able to recommend any of them. I think your best option would be to start with the timeshare company to see if they have any ways that you could resell this, they're probably going to say no because their primary objective is selling new timeshare engagements and not helping you to create a secondary market for existing ones. The second option would be to try to market it locally, you could loot use a newspaper there in the area. You can also use social media try to market the timeshare users group is a forum for folks looking to buy and sell timeshares. You could check out that it is well, find that online and hug to.com G and the number two.com that stands timeshare users group that would be a way as classified ad to try to unload this. I know it's not easy and I'm sorry that I didn't have better news about how you can unwind this, but I would at least pursue those options. Stay with us a lot more to come still and moneywise not on my list is back to moneywise before we go back to the phone. Take a moment to check in with her good friend Bob. Bob is chief investment officer cross market investments where investments and values intersect. You can find out more about Bob and his work in complete lineup of funds at cross market.

Global.com Mr. Dall good afternoon. Good to have you here. Hey Bob what's going on this week. Tell us what you're watching and seeing in the markets will start with that.

We just ended, another month is the seventh month in a row where the S&P 500 has closed higher seven in a row. That's pretty amazing doesn't happen that often. It says despite all the things we worry about. There's always a wall of worry path of least resistance is still to be upset. It's interesting and given everything that's going on around us Bobby and we talked at length about what the feds doing and feel what's happening there.

With that said, to begin tapering. We talked about global supply chains as result of the pandemic interest rates on the rise, not to mention inflation.

Are you surprised by the market action at this point the market is going up. Robin roughly 20% here like the S&P cross 20% is just hard to fathom. After the unbelievable return off the bottom. Last year, and of course with power that it is an incredible economic growth rate here in the US and even more impressive earnings growth and that's what most stocks we have and how long I'm here to be said earnings Mustafa may do an earnings been fantastic and that's why the stock market done so talk about the international investment opportunities at this point. I know you believe they are fairly attractive at this point right now we do the condition necessary is for economic growth globally to broaden the US is lead the way as we often do, but as things improve overseas because of the aggressive policy and of course we need to blow covert away a little bit more in those non-US parts. We expect non-US markets to do a bit better their lot cheaper than US and some of that's warranted because we have higher growth short-term and long-term, but I wouldn't ignore non-US markets. If you've done that for the last decade. God bless you, because you have to return to the US is underway, but that won't last forever.

It's like I'm only going to invest in stocks and start with the first capital letters of the alphabet and more. The other half.

Why would you do that, but that's what you're doing globally. If you ignore the rest of the world.

Very good. It's about as we wrap up here today curious your thoughts on the US dollar, and what's happening there is the reserve currency and just where you see it headed from here. The dollar has done amazingly well here it is not a lot, but many of us thought that it would continue to decline.

We witness part of last year when countries like the US run current account and trade deficit. The size of ours. Generally, the currency is under pressure, so I think intermediate term meaning the next one to three years. The path of least assistance of the dollar will be to the downside belief that this rally the same reason we set a minute ago economies and earnings in the US have done so well that money has come from overseas to the US which helps push the dollar up. I'm not sure that left will see huge decline but a steady erosion very good reason. Yet another to pay attention to international yes yes very good. Well, I know your remaining remaining what you call mildly positive in terms of investment positioning. We've got peak growth levels of the stocks and obviously the virus isn't going away quite yet, despite our prayers so will just continue to watch and look forward to hearing from you next week. Keep playing hard Bob bless you cross more global.com is where you find more about Bob dollar good friend who checks in with us each week. Let's head back to the phones, McHenry, Illinois. Wally thank you for your patience, or how can help the end of this year, and between my social security and everything pension. I will be able to save about $1500 a month.

By the time I retire I will be inheriting out getting money because I like $50-$60,000. I already have about 10,000 in savings for emergency fund and I was just wondering what to do with the 50,000 invested very good Wally well excited for you as you head into this next season of your life. I'm glad to hear you have some liquid savings are you debt free at this point I will be debt free except for car payment, which is about two more years. Very good with congratulations on that. Wally, do you believe based on your retirement budget what it will take to fund your lifestyle, your expenses on a monthly basis that you'll have enough income without tapping the 60,000 I think so because like I said I can save $1500 out of the money. I will be getting and save it after all of my bills are paid each month including money for property taxes and things of that nature.

Okay so you say that 1500 a month. Even after you retire yes okay great yeah that's a good sign because it gives you plenty of margin to continue to build up your savings have a little bit more flexibility. If you have some needs down the road.

In particular, medical or something else that might come out of left field, which also put you in a great spot Wally to actually deploy this money as you said, put it to work because if you have good health in the Lord. Terry said this money, you know, could need the last 20 years or more, and so we want to make sure there's a growth component to it, but that you're not overly aggressive. I think given the amount of money were talking about our friends@soundmindinvesting.org could be a great resource for you. This online investing newsletter could really help you build an investment portfolio using no loader, no commission, mutual funds, the benefit of mutual funds. Wally would be you have broad diversification and you can be as conservative or aggressive as you want to be.

You can open an account with any of the brokerage firms that you like Vanguard or Schwab or TD Ameritrade, and then begin to pick the mutual funds that they suggest based on the strategy that aligns with your goals and objectives and then you would change a few of those out over time.

It's very simple to do and you're probably just under an amount if if it were talking about 60,000 investable assets. You probably just under what you would need to hire an investment advisor to handle this for you. But again, this approach I think would give you everything you need, make it very simple and allow you to know the portfolio that's consistent with what you're trying to accomplish, so I had over sound mind and.org and I check that out if you have any questions along the way let us know and you hold the line and I'll get a copy of the sound mind and handbook out to you, which is can give you real thorough understanding of investing from a biblical perspective that I think will be a blessing to use us down the line, my producer, Amy will get your information will get that book right out to you and we appreciate your call today. Wichita, Kansas.

Mary, thank you for your patience and help. I am aware of a young couple who unfortunately is heading for divorce. I believe that they are in the middle of trying to refinance their house which would also help them get rid of a significant amount of debt. I'm just asking if that's right, wrong, wise or prudent.well I do yeah you know if that's the direction you're headed.

Clearly we would pray that the Lord would intervene there and restore that marriage. But if that's where they end up going you refinancing is not going to be the way to go first and foremost because it's expensive you are looking at probably 2 to 3% in costs based on the value that mortgage of $200,000 mortgage were talking about potentially $6000 of expense to refinance pay this debt off and the question is Yahoo's home is a going to be are they going to is one of them going to keep the home visit. Can they afford it doesn't fit into their budget, so making a major decision like this when money is in motion and there's a lot of potential transition coming is usually not a wise move unless a lot of that has been clarified, but at this point clearly because they are not divorce. They don't even know who's going to be responsible for what.

So I would say push the pause button.

Let's focus on the marriage and if it does head in this direction. Decisions like that can be made by whoever ultimately is going to have the home.

If they decide to stay there but making that decision now incurring the expense that goes along with it when there could be a lot of changes on the horizon just typically is not a wise move. Does that make sense though I was wondering okay so very good you're very welcome Mary and I'm delighted to hear you're walking with them to give them some counsel along the way, we're going to quickly go with just a few seconds left to Chicago Antoinette. I don't have a whole lot of time. But how can I help moderation. I will be paid everything off and still have that I can eat $400,000 and I'm planning to retire in three years, and also we have 94,000 and month die pension security so I ended after the three years before I retire or should I sell all the savings well it's a great question for you Stanley I will talk a bit more off the air because it sounds like a complicated situation. I think the key is you need to do what's right. Given the tax consequences and the upkeep and responsibility want to have moving into this next season of life will explore that a bit more fiercely you hold the line folks. Thanks for joining us today.

Moneywise, lives a partnership between Moody radio moneywise media thinking and naming Robert today as well as Eric Tidwell here.

Come back tomorrow. Will you be here for another edition of moneywise is


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