With today being the first day of the New Year, there is chatter of resolutions abound. On the radio, television, every media outlet available we are hearing about how many people are resolving to lose weight or pay off debt. It is well known though that the majority of resolutions are not kept.

While we absolutely suggest that you resolve to reduce your debts this coming year, we suggest even more that you stick to that resolution.  Here’s how!

Learn to Say No

We are all inundated with colorful catalogs and endless television commercials promising happiness if we buy the latest device. Don’t let the temptation of new and shiny baubles distract you from your goal of reducing your spending. Everlasting happiness doesn’t come from material goods. “Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal.” (Matthew 6:19-20)

Enjoy Activities Instead of Objects

Do you think your children will better remember a day spent with the family in the park or the beach or hours spent on a video game? Pack some sandwiches and bring your loved ones to a free public park. Bring some stale bread to feed the ducks. Pack a Frisbee, a football or a kickball. Take pictures if you like, but don’t forget to put down the camera and live in the moment.

Embrace Board Games

Rather than letting them take up space and collect dust in your closet, open up those board games! Dedicate a table in your home to a jigsaw puzzle that is always out. Games and puzzles are inexpensive and they provide a natural opportunity for relaxed conversation. If you want to know what’s on your teenager’s mind, sit with them over a game. You’ll be surprised how much they’ll open up when they aren’t the center of your focus.

Take Advantage of Free Services

Most communities have libraries that not only have free books to offer, but free DVD and audiobook rentals. You can cut back on your movie rental expense by utilizing the library as your own personal media center.

Take Care of your Belongings

Honor the workmanship that went into the manufacturing of your vehicle, furniture, clothes and other belongings. Change your oil regularly in your car to prevent costly breakdowns. Treat stains immediately rather than letting them become permanent, leading to buying new clothing unnecessarily.

Challenge yourself

Where are your weaknesses where spending is concerned? Is it the makeup counter? Challenge yourself to find natural beauty solutions, many are even right in your kitchen. Can’t resist the home improvement store? Find the most cost effective way to tackle that project by reusing items around the house. All of these will not only save a fair amount of money, but also be better for our environment as well.

Get Professional Help

If your burden seems to heavy to bear on your own, seeking Christian debt management help is a good beginning to changing your spending style. Fill out the short form on the right hand side to request a free consultation with one of our Christian Debt Advisors so that you can follow through on your resolution to become debt free in 2014.

We hope you enjoyed phase one of dealing with a Christmas hangover, now it’s time to move on to past two!

If you went a bit beyond what your budget had allowed for (or bypassed the budget altogether) here is a 3 step way to get back on track. Don’t let a holiday slip-up keep you down, you can still reach your Christian debt management goals.

Step One- Assess the Damage

First things first, gain a full understanding of your financial situation. Hop online to review your online statements, or review your statements once they come in the mail. If you took to your credit cards for your gift giving, review all of them and tally up the balances. If you reached into your savings account or even your emergency fund, you’ll want to know how far you went beyond what you can really afford.

Step Two- Make a Commitment

Now that you know just how much needs to be paid off or replenished, you can make a commitment to make it happen. A good commitment is achievable, clearly defined and has a time limit. You may need to pay/save $400 in two months. No matter how far you went off track, don’t make a goal that is unrealistic. Create it, say it and mean it.

Try to keep your goal at two months or less to take advantage of the bonus below.

Step Three- Re-budget

You’ve got your commitment in place, now you need to find a way to make it happen. The end of the year is always a good time to revisit your budget and your financial goals. If you do not already have a written one in place, now is definitely the time to create an honest budget.

If you were really honest in creating your budget, you will probably find that you have a few things that you can give up in order to reach your goal. Specialty coffees, impulse purchases and eating out are a few of the top budget breakers.

Here’s Our Free Christmas Tip For You

Giving feels great. Sacrificing to recoup afterward, not so much. However, you can absolutely turn this Christmas debt hangover into a tremendous opportunity for financial growth.

It is scattered throughout the internet that it takes 21 days to turn something into a habit. The new spending habits you develop in step three don’t need to stop after the Christmas debt is gone. Let’s say you had to pay/save $400 in two months as mentioned above. By this time 2014, you’ll have paid off the 2013 Christmas debt and saved $2,000 on top!

While it would sure be nice if we all skated through Christmas with a carefully executed budget and stuck to our plan to “not do it again this year”, we know that is not necessarily the case. It is very easy to get caught up in the traditional hustle and bustle of Christmas shopping, gift giving and overspending. If that was the case for you, you might be starting to feel the onset of a Christmas hangover.

You may suspect that we are going to be mean and bombard you with a step by step way to get your finances in order, written budget and all. Instead, we suggest that you take it easy…. for now. We’ll save the bombardment for phase two.

For now, just enjoy this video.

When you’re trying to get out of debt any extra little bit of cash helps the cause.

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For most people, investing is simply done for the sake of acquiring more wealth. For Christian’s, this is setting the bar very low. We should view investing as an opportunity to support businesses and endeavors that promote the betterment of our world.

“Everyone to whom much was given, of him much will be required, and from him to whom they entrusted much, they will demand the more”. Luke 12:48.

Those of us that have money to invest are entrusted by God to do what is right by investing well and choosing businesses that truly improve our world, promote social awareness or provide for the common good.

A Higher Purpose

True wealth goes much beyond than the money in your bank account. It is the relationships we nurture, the ideas we create and share, and the values that we support. Seeking money as a way to have security is one thing, but rising high above those around you financially is unnecessary.

Christian investors that want to be socially responsible should look beyond the potential payout of an investment opportunity. We should seek companies that provide a service or product that adds to our world and does not take away more than it gives back to the world. We should support companies that do good.

Investing With Integrity

Many companies now give out grants to various charitable organizations, promote contests for financial prizes for start up ideas that build stronger communities and overall work hard to provide a supportive work environment for their employees. FaithWorks Financial, for example, donates 10% of fees earned through our debt settlement program to the church of our clients choice. Even companies that do not publicize themselves as Christian organizations do a tremendous amount of good in our world.

On the opposite end of the spectrum, some companies will do whatever they can to make a profit. They will cut costs, cut staff pay, understaff, even at the cost of worker safety.

It’s important to know what type of company you are dealing with before you decide to purchase shares or invest in that company in any way. When you invest in a company, you are supporting the company.

A Bigger Return

Tithing is an issue that may at first seem at odds with investing. After all, tithing is giving a percentage of your income to the church where you choose to worship. Traditionally the tithing percentage is 10% but this is difficult for many individuals and families today.

Tithing is investing. It is investing in the prosperity of the church and keeping the future of your chosen parish alive. Tithing is an investment in God, in worship and in the community that exists in your church.

Investing in small business through micro lending is another way that Christians choose to invest their money responsibly. In micro lending, a person requests funds to start up a business. Generally this person is working hard to get out of a life of poverty. The requests are modest. Each investor can invest any amount towards the total investment the person has requested.

Through a micro loan, an impoverished small business person is given the opportunity to get a business started that they would not have been able to do otherwise.

Once the micro loan is paid back by the business person, the money goes back to the investor with the opportunity to invest the money into the next request. Although this does not create financial gain for the investor, it promotes the Christian value of taking care of each other.

If you are blessed with a financial situation that allows you to consider investments, you have the privilege of helping to form a better world. Investing in a company based on more than dollars and cents will add greater fulfillment and meaning to your investments.

Modern society makes it easy to retain debt, but the Bible is clear on the subject. Romans 13:8 says we should “Let no debt remain outstanding…” Although it sounds simple, we all know that tackling the debts that build up in the form of a mortgage, car payments, student loans and credit cards can be incredibly challenging. Fortunately, the Bible provides guidance on the topic of Christian debt management.

Borrow Wisely

When it is sometimes necessary to borrow money, it should not be done carelessly or on a whim, and we should be sure to use the funds wisely.

In 2 Kings 4:1-6, the Bible tells the story of a widow who was facing the loss of her children to slavery. She needed money, but the only solution available was borrowing jars from her neighbors.

Although the woman borrowed jars from others, the result was enough income to repay her debts to the creditors and protect her children. The Bible tells us to avoid debt whenever it is possible, but recognizes that sometimes it is not possible to avoid debt.

The key lesson is that it is important to apply wisdom to each transaction. Borrow only with the purpose of investing in the future, such as taking a student loan to pay for the education that will provide the opportunity to avoid debt in the future, or an investment in a home that will provide shelter for your family.

Repay the Debts Promptly

“The borrower is slave to the lender” Proverbs 22:7

Whenever it is not possible to avoid debt, it is important to repay the funds promptly. Just because you opted for a 30 year mortgage does not mean you must take 30 years to pay it off. Not only will you have the burden of debt lifted sooner, you can also save quite a bit of money as well.

Keep Trying

“sluggards do not plow in season; so at harvest time they look but find nothing.” Proverbs 20:4

When it comes to Christian debt management, a key tip that the Bible provides is that it is important to keep trying and working hard. Even if you have fallen behind on your debts, it is important that you make every effort to get back on track by working directly with your creditors and lenders.

If this doesn’t work, speak with a one of our advisors for a free consultation to see if you might qualify for any programs to help you regain control of your finances.

If you take a look at the financial state of society at large, you may be tempted to believe that living without any debt is impossible in modern times. However, Christian finance need not mimic that of the secular world. As Christians, we are called to a higher standard in the way we manage our finances, especially when it comes to spending. If we adhere to God’s word in our spending habits, it is very possible to live a debt free life.

A Needed Conviction

Living without any debt requires a great deal of conviction and commitment to Christian finance principles as laid out in the Bible. Romans 13:8 says “Let no debt remain outstanding, except the continuing debt to love one another…” This principle goes contrary to modern financial standards where living on credit is the expected norm. In fact, not having a credit record can actually work against you in today’s financial world as we discuss in another article. As a consumer, you may find it difficult to make major purchases on credit such as a vehicle, house or commercial property without having pre-established credit.

The Real Problem

Owning credit cards and establishing a credit record is not the problem per se. Just because you have a credit card does not mean that you are in debt. It is a lack of control over credit card spending that will lead to debt and financial difficulties. Credit cards increase your buying power, making it easier to acquire the things you need. Unfortunately, credit cards also facilitate buying the things you want, which often goes above and beyond what you need.

The real problem is not the credit card, it is the inappropriate use of them. Carrying balances, paying one account with another, impulse purchases and the like are what truly turn a simple credit card purchase into an overwhelming burden. This is why it is important to identify your wants from your needs.

The pull of materialism is very strong in society today, making it difficult to control one’s desires. Marketers spend billions of dollars to teach society that they need to continue buying the newest and coolest item on the market. If you’re not constantly on guard against this pull, it can be very easy to let your credit card spending get out of control.

Wise spending entails being selective in the items you buy. As a Christian, our financial spending should go deeper than mere material gain, remembering that “we brought nothing into the world, and we can take nothing out of it.” (I Timothy 6:7) By keeping your financial priorities in line with Christian principals, you will be able to enjoy the financial blessings you have while living a debt-free life.

Credit Card Free vs Debt Free

Although it certainly is possible, you may not be able to live a completely credit card free life in modern times. However, you can live a debt free life. If you exercise greater control over your spending habits it is possible to become and stay debt free. Using your credit cards wisely and paying your bills on time will keep you from going into debt. You should also budget your spending to help you live within your financial income.

Many people who have fallen into this vicious cycle are finding relief through the Christian debt relief programs offered by FaithWorks Financial for assistance in overcoming bad spending habits and becoming debt free. If you are in need of bettering your financial situation, help is available.

“Blessed are those who find wisdom, those who gain understanding.” Proverbs 3:13

While we are huge proponents of avoiding the use of credit cards in any fashion, we realize that is not what many of our readers choose to do so we’ll take a look today at the responsible use of credit cards.

A huge push by the marketing campaigns of credit issuers focuses on the points you can earn by using the advertised card. Those offers often seem way too good to pass up. After all, if you plan on spending the money anyway, why not earn points you can use towards other things?

In order to be wise in your decision making, there are a few questions you should ask yourself about any credit card that offers you points.

1. Do you tend to carry a balance on your credit card?

If so, the interest you will be paying will quickly outweigh the benefits of the credit card points.

2. Are you paying more for the annual fee on the card than you are receiving in point benefits?

For example, if you racking up $50 worth of points but your card has an annual fee of $60, you’re better off without the card.

3. Are the points good toward anything you need?

Some credit cards offer points that can be redeemed in the form of a discount in particular stores or in trade for things in their catalogue. If you don’t need any of the things you’re being offered, the points are not worth their while.

4. Do the points expire?

It can take a long time of point accumulation to get anything of value in return. By the time you have racked up enough points it is possible that they have expired.

5. Does your debit card already offer incentives?

Many people use their credit card on a regular basis in order to earn points. However, they may be passing up the opportunity to use a debit card that gives them an instant discount — like the Target debit card. you may have better incentives already available, without the annual fees and interest rates of credit cards.

6. Does your card have spending requirements before they begin awarding points?

If so, you may find yourself using that plastic card even when you don’t need to, or justifying an unnecessary purchase since you have to hit their minimum spend limit.

We realize that credit card incentives are very appealing, and sometimes they really do make sense. If you are a disciplined person and can find a card that offers points toward something you regularly use, pay that credit card off in full every month, and take advantage of the points you earned before they expired, great! However, that tends to be more the exception than the norm. It is just like the casino and gaming industry, some will absolutely win, but the entire system is designed in the favor of the credit issuer.

If you must use a credit card, be wise as you choose a card and don’t let incentives that appeal to your emotions overrule a sound decision.

"A gray head is a crown of glory; It is found in the way of righteousness." — Proverbs 16:31

When you work for a large company, saving for retirement is often as easy as enrolling in your company’s 401k program or working for the company long enough to qualify for a pension. Some companies even match the contributions you make to your retirement account. When you’re self-employed, planning and saving for a Christian retirement requires a little more effort.

Types of savings plans plan for the self-employed

There are several types of saving plans available to those who own their own businesses or work as freelance writers, designers, artists or consultants. Below are just a few to consider:

1. SEP IRA — A Simplified Employee Pension (SEP) IRA is an easy way for any self-employed person to save, no matter what their income. This type of account can be opened at most any bank or financial institution and there are few, if any, fees associated with these account. You are allowed to contribute up to 25% of your earnings, up to a cap that increases annually. (The 2013 limit is $51,000.) Your contributions are tax-sheltered until you withdraw the money at retirement.

2. Solo 401k. A solo (or traditional) 401k allows you to contribute both as an employee and as a boss. The maximums are currently $5,500 as an employee ($6,500 if you are over age 50) and 25 percent of your income as a boss. Both amounts are discretionary, so you can contribute a lot in a good year to help reduce your tax liability and scale down your contribution in a lean year. As with the SEP IRA, your contributions are not subject to income tax until you withdraw the money.

3. Simple IRA. A Savings Incentive Match Plan for Employees (SIMPLE) IRA is a good choice for a self-employed person who plans on hiring employees at some time in the future. With a Simple IRA, you can continue to contribute to the same plan even after your company grows. The current maximum contribution to a Simple IRA is $11,500 ($14,000 if you are over 50), but you’re required to match 3% of your employees’ contributions. Like the SEP IRA, your contributions are tax-sheltered until retirement. However, this plan has a hefty penalty (25% compared to the SEP’s 10%) if you have to withdraw your funds before retirement.

If you’re self-employed and having trouble finding extra money each month to set aside towards planning for a Christian retirement, perhaps we can help. Faithworks Financial is a Christian debt relief company. If credit card bills and other installment payments are keeping you from creating a secure future for you and your family, a debt management plan can help you pay off those debts so you can start paying yourself and saving for your retirement. Call us at 877-232-5109 to discuss your options with one of our caring Christian debt counselors.

As Christians, we fully understand the “reason for the season.” It is our time of the year to consider God’s great sacrifice through his son Jesus Christ, our opportunity to reflect upon the sheer magnitude of God’s grace toward us.

Unfortunately, consumerism has taken over our society. It is estimated that the average person sees thousands of advertisements a day. Whether it’s on a billboard, the side of a bus, in a store or on television, we are surrounded by the message that in order to feel good we should spend. This is especially true now that the Christmas season is well underway. We tell ourselves that we must buy things for the people we care about, even if it means putting it on a credit card.

One great thing about attempting to manage finances according to Christian principals is that we understand the importance of the holiday. We know that spending money is not what Christmas is all about. It is important for anyone trying to get out from under debt to celebrate Christmas on a budget.

Fortunately, plenty of people are managing to have a joyous Christmas on a budget and have come up with easy ideas for making it possible to enjoy Christmas without breaking the bank.

Here are a few tips to help you stay on track this Christmas! 

1. Avoid credit cards from Thanksgiving day through January 1.
2. Budget in the cost of groceries for your Christmas meal. If you will have people over, it’s okay to ask them to bring a dish to share. In fact, most people are glad to know they’ll get to enjoy their favorite holiday dish.
3. Divide the cash you have by the number of people you have to buy for and make a list that includes the person’s name and how much you’re going to spend on them.
4. The mailman, hairdresser and next door neighbor will be perfectly satisfied with a thoughtfully chosen card.
5. Don’t buy more edible items than you need. Peanut brittle, little chocolate Santas, egg nog and the other holiday favorites can really add up quick. One great pie with Christmas dinner will easily take the place of those costly little snacks.
6. If you have children, think about what they actually need. If they will be needing a new pair of shoes in the next few months, now would be a great time to make the purchase so that it can be appreciated as a Christmas gift.

Stick to your Christmas budget and come January you’ll be very grateful that your New Year’s resolution does not involve paying off 2013’s Christmas debt!