In an ideal world everyone would have enough cash to take care of their monthly expenses without ever having to take on unnecessary debt. However, the way our economy operates, it is quite inconvenient (although not impossible) to conduct your financial life without an adequate credit score. The question then is how to build or re-build healthy credit for those necessary times in life when your character is being judged by a FICO score.

Secured Credit Cards

Secured credit cards are a hybrid between a loadable debit card and an unsecured credit card. Basically secured credit cards allow individuals with poor or non-existent credit scores the opportunity to use a line of credit granted that the person first make a security deposit usually of $300-$500. Charges on the card are not deducted from this amount, but are actual credit charges. Paying off the entire balance each month will quickly begin to affect your credit score in a positive way.

Gas Cards

Applying for a gas card is another very safe way to build credit because you will be limited to purchasing only one necessary item, gas. Gas is already part of your regular monthly budget, so if you simply put these purchases on the card, and then use the cash you have set aside for gas to pay off the balance each month, then you will be building your credit with no extra expense or risk to your financial security.

Pay Student Loans on Time

Many people do not realize that Federal Student Loans will affect your credit score negatively or positively. Student loans are usually a very easy debt to manage because the interest rates are generally very low, late fees are small or non-existent and in most cases re-payment plans are ultra-flexible. Staying on top of this easy debt can re-build a credit score very quickly.

Do Utility Bills Count?

Paying utility bills will usually only affect your score negatively if you allow a bill to become delinquent. However, the opposite is not true. If you consistently pay your utility bills on time it will not necessarily affect your credit score in a positive way. So, yes pay your utility bills on time, but do not except that alone to make much of an improvement to your score.

Is Cash Really King?

Attempting to live a cash only lifestyle is a wonderful, tried, and true method of controlling spending and reinventing your finances. However, you will want to consider that there are a growing number of areas in which a good credit score can assist you in reaching your goals. Operating entirely on cash will result in a non-existent credit score, which can translate into rejection. Individuals looking to rent a house or apartment are often very disappointed to learn that a good credit score is required. Purchasing a home definitely requires good credit, and even some employers are checking into your credit history in order to make a judgment of what kind of employee you will turn out to be.

Pay Down Debt Increase Income

New credit laws and credit practices are turning toward a more common sense approach when it comes to approving an individual for a line of credit. Many lending companies are looking more at a person’s credit to income ratio to help make a decision. You can improve your credit score by paying down current debt and making an effort to increase your yearly income by means of a part time job or generating side work in your current field of experience. Paying down debt is one of the key elements to restoring health to a damaged credit history.

Christian debt settlement can help you evaluate your current debt situation, and map out a Christian debt program that will work for you. Visit the link above, or fill out the short form to the right of this article to contact a representative for a FREE no-obligation quote today.

Funerals are certainly not a favorite topic for most people, but it is a necessary topic that should receive more adequate attention and planning. Funerals are an eminent part of our life, and although funerals are super charged with emotion, there is also a practical side to this difficult subject.

Ignoring is Costly

To avoid the topic of funeral planning can be very costly for families. According to the Federal Trade Commission there are over fifteen different costs involved in an average funeral. Each of these elements carries their own price tag. The emotion associated with the death of a loved one will not make the costs go away. It will still be expensive no matter how upset you and your family are.

Practicality of Planning

Planning ahead for personal and family funeral costs is practical because you can conduct this most important of tasks in a non-emotional environment. You will be better able to focus on what needs to be addressed and you will be in a better state of mind to make choices. Even if it does feel awkward or difficult to discuss such things with your family it will be far easier to discuss it now than it would be hours after a loved one’s death.

Planning is Cost Effective

Often times when families choose to establish their funeral plans a head of time they will get the opportunity to purchase necessary items at the current market value. This means that if you purchase a casket now and it is not needed for another twenty years, you will not pay the inflated price in the future. Today’s prices will be far cheaper than they will be when these items and services will actually be used for yourself or a family member. Planning ahead also gives you the option of installment payments. Having the option to pay for your funeral costs over a long period of time makes this large expense much more easily managed.

Planning is Kind

Your family may feel resistant at first to this topic. Take the time to explain to them that you are actually doing this as a kindness to them, not to make them uncomfortable. Ask each one of them if they would rather make these decsions right now, or the day of your death. When people think of this task in that light it is much easier to see the practicality and kindness of planning ahead.

Considering Children

Planning ahead for the funeral costs of an adult is one thing, but many people feel an extreme taboo surrounding any type of funeral planning for children. If you have small children and cannot emotionally handle making these types of decisions concerning them, you should consider setting up a life insurance policy for your children which can double as a college savings plan. These plans will ensure that there is money set aside for funeral costs in the event of your child’s death and the money can convert to cash value when they reach college age. This will at least offer some financial buffer so you would not have to worry about how to pay for a funeral while also facing the tragedy of losing a child.

While flipping through the channels the other day, I caught a pretty disturbing national news report.

More than one third of American workers have less than $1,000 in savings and investments.

That’s according to the 2014 Retirement Confidence Survey by the Employee Benefits Research Institute, which has been tracking savings data for almost two decades.

This year, the survey found that 36 percent of workers have less than $1,000 in savings. That’s significantly worse than last year’s findings, which showed 28 percent of workers had less than a thousand bucks in the bank.

The problem goes beyond a lack of savings. More than half of the people surveyed—56 percent—haven’t even tried to figure out how much they need to set aside for retirement.

This should tell us that we need to keep talking about the importance of saving for retirement; too many Americans still don’t get it.

But enough with the grim statistics. Let’s talk solutions. If you’re part of the 36 percent, there is hope.

So, What Can You Do?

First, figure out where your money is going.

Track every dollar that comes in and every dollar that goes out. If you’re spending more than you’re earning, do whatever it takes to balance your budget. Aggressively pay off debt, and create an emergency savings account for the inevitable rainy day.

Next, figure out how much money you’ll need for retirement.

You don’t have to be a math whiz to do this. An online search for “free retirement calculator” will instantly pull up scores of websites that will estimate how much money you need to save in total and even break down how much to set aside on a yearly or monthly basis. Ignorance is not bliss. Thanks to the web, there’s no excuse for being part of the 56 percent of Americans with no clue how much they should be saving.

Finally, take action.

Baby steps are better than no steps at all. If your employer offers a retirement plan, read up on it and start participating. Not tomorrow, not next week—today. Don’t be afraid to ask your human resources representative for help if you don’t understand all of the financial language. If your employer offers some kind of matching contribution, take full advantage of it immediately and gradually ratchet up your part of the contributions. If you don’t have an employer-sponsored plan, start looking into an IRA (Individual Retirement Arrangement) or other investment plan and start saving.

However you decide to start, just make sure you do something. It may take a little time, but the peace of mind you’ll experience from taking action will be worth it. Let’s get out of that 36 percent and never look back.

If you’re finding it hard to even begin to save money, or the thought of it stresses you out at all because of your current debts, you may need to reach out to a FaithWorks advisor to discuss the possibility of entering a Christian Debt Relief program. Fill out the blue form to the right of this article to receive your free no-obligation quote today, and begin your journey toward financial freedom.

When you are in the debt battle, it is hard to imagine that one day this will be a memory. When David was facing his Goliath, he was totally focused on bringing him down. Debt may be your Goliath today, but eventually your Goliath will lose his head, and then what? There is life after debt.

Scary Freedom

One ironic reaction that many people have to becoming debt free is a new sense of fear. You might think that once you are debt free you will never have another money worry. The opposite is actually true for most people. Once you have safely navigated your way through your Christian Debt Settlement Program, you may find yourself more apprehensive than ever. You now know how damaging financial mistakes can be on your life, your family and your marriage. This new knowledge and wisdom brings with it a sense of fear over messing up again. The last thing you want to do is go backward and make the same mistakes over. However, 2 Timothy 1:7 tells us that “God hath not given us a spirit of fear.”

Careful and Confident

You have worked hard to revolutionize your finances and bring glory to God by doing so. This spirit of fear must be traded in for a spirit of confidence. Look at what you have accomplished! Many people never do this. Many people file bankruptcy or just surrender to society’s mandated cycle of debt. You have done something remarkable, and God is pleased with that. You acknowledged the problem, sought out Christian financial help, and worked hard to do right. You have earned the right to feel confident about your choices. You have the tools to continue to make good choices. Look at each financial decision as it comes up and ask yourself, “Is this wise? Is this practical? Is this going to bring glory to God?” Tell yourself every day that you have made good financial decsions and you will continue to make good financial decisions.

Be a Blessing

If you have spent years struggling just to pay your own bills, you may not have had much left over for giving. That can all change now. There are few things as fulfilling as giving to others and being able to do it without worry. The Bible speaks of being a “cheerful giver” and that is so much easier when you are out of debt.

Build the Emergency Fund

If during your Christian Debt Program you did not entirely fund your emergency account, continue working on this goal. Establishing a fully funded emergency account takes some time. Three to six months’ worth of regular expenses is quite a bit of cash by any standard. Keep working toward that goal, because once you have accomplished this there will be almost nothing you can’t handle with a spirit of confidence and wisdom.

Think About Investing

If you have not already begun investing, now is the time to consider this exciting option. When you were living pay check to pay check this was not even a possibility for you. Now, you can take control of your money and make it work for you. Keep to low risk investment options at first while you are still learning.

Reward Yourself

Now may be the time to reward yourself in some way. While you were in the trenches of Christian Debt Management, you may have made some pretty big sacrifices. You may have had to entirely reprogram your way of life. You are a better person for it. You have learned moderation, but moderation does not mean you can never enjoy yourself again. If all of your duckies are in a row, and all of your obligations are met, what little thing might you do for yourself?

Why do we establish emergency funds? Why do we buy insurance policies and pay health care and care insurance premiums every month? We are trying to prepare our self for a crisis. Whether it is a health, home, or vehicle crisis we want to be prepared. How much can this type of insurance prepare us, though? We know our health insurance policies do not pay one hundred percent of our medical bills. We know that that there are some kinds of emergencies that our emergency fund just will not cover. The fact is, there is only so much you can prepare for.

What if it’s Not Enough?

It is never wise to put you confidence in money. Money is a powerful thing which can accomplish a lot for us when used wisely. However, money is not the end all answer to all of life’s problems. Even a family that believes they have covered all of the “insurance” bases is still at the mercy of their income. And although no one likes to think about it, there are some emergencies that are bigger than all of our preparations. This does not mean we should not still wisely prepare. You should be prepared. You should also keep in mind that a life altering crisis does not happen every day or even every year. Some individuals get through many decades without such tragedies. However, placing all of your confidence in your financial preparations will set you up for serious shock should a life altering crisis come your way.

The Christian Bonus

As Christians we are instructed to be good stewards of our money, and that includes preparations like those mentioned above. However, all of these are “secondary” insurance for us. Our “primary” policy covers far more than this life could ever throw our way. We have a heavenly Father, who in His infinite providence is watching over every step we take. He has seen the crisis long before we do, and more than that, He has also seen the solution. What peace there is in knowing that our Father knows the solution to any life crisis we could possibly face, and if we will, “Be still and know that He is God,” like David admonished us in Psalms 46:10 he will reveal these solutions to us. We can confidently take on the darkest of circumstances because we are backed up by God the Father.

Miracles Still Happen

The world of finances deals with hard facts. Numbers don’t lie and there is nothing magical about the bottom line. However, as Christians, we acknowledge the importance of these facts, but we can never lose sight of another fact and that is that we serve a God who works miracles. So when all of the “facts” say, “There is no financial solution to this problem,” God may have a solution that no calculator could have figured.

The Best Insurance

Christians should prepare in times of plenty, just like Joseph put aside corn during the fat years in Egypt. Prepare by investing in insurance and establishing emergency funds. Then should a crisis come that surpasses all you have prepared for, say like the Psalmist in Psalms 121: 1-2 “I will lift up mine eyes unto the hills, from whence cometh my help. My help cometh from the Lord, which made heaven and earth.”

We spend a lot of time talking about ways to make and stick to an honest budget. Here are five ways to wreck that budget—and possibly your entire financial life—in record time.

Ignore It

A budget is worthless if you don’t follow it. To ensure financial misery, hide the budget from everyone in your household, including yourself. Make sure no one is clear on exactly how much money should be spent on various categories like groceries, entertainment and birthday gifts for friends or relatives. If you happen to remember the correct budget for a certain area (such as eating out), treat it as a mere guideline and come up with great excuses for spending more than you budgeted.

A person without self-control is like a house with its doors and windows knocked out (Proverbs 25:28, The Message).

Never Say ‘No’

Your college friends want to hold a reunion weekend in Las Vegas. Your church small group is planning to go out for Sunday brunch at an expensive restaurant. Your daughter is begging you for a new iPad. Say “yes” to everything. Be a people-pleaser at all costs. Dip into your savings to take a vacation, and chip away at your debt payment to buy that expensive wedding gift for the out-of-state wedding that’s going to cost you a bundle. Put vacations, clothes, tech toys and other people’s opinions of you first. Worry about the budget later.

Keep your lives free from the love of money and be content with what you have, because God has said, “Never will I leave you; never will I forsake you” (Hebrews 13:5, NIV).

Keep Swiping That Plastic

You don’t get paid until Friday, but it was a long, rough Monday and you deserve a treat. Go ahead and buy it. Even though the money isn’t in your checking account yet and the budget is tight, you’ll figure it out later. A few dollars on the credit card won’t hurt anyone. (For maximum budget-wrecking, repeat this process Tuesday-Friday and fail to immediately pay off the balance).

The prudent see danger and take refuge, but the simple keep going and pay the penalty (Proverbs 27:12, NIV).

Live At or Above Your Means

Buy that sleek-but-gas-guzzling SUV that so many of your neighbors are driving. Spend every penny you earn and make only the minimum payments on your debt. Pick the biggest house you can afford—the one with the monthly payment that’s equivalent to 40 percent of your income. You’ll face near-instantaneous foreclosure if you or your spouse loses a job, but that’ll never happen to you. That only happens to other people.

Is there anyone here who, planning to build a new house, doesn’t first sit down and figure the cost so you’ll know if you can complete it? If you only get the foundation laid and then run out of money, you’re going to look pretty foolish. Everyone passing by will poke fun at you: ‘He started something he couldn’t finish.’ (Luke 14:28-30, The Message).

Refuse to Ask for Help

Buy into the lie that you are alone in your financial struggles and no one would ever understand what you’re going through. Let pride dictate your decisions. Even though bill collectors are blowing up your phone and you’re trying to decide between the mortgage and the electric bill, you can handle this. Believe that the same thinking that got you into debt will somehow get you out of it.

Plans fail for lack of counsel, but with many advisers they succeed (Proverbs 15:22, NIV).

If any of the above scenarios sounds all too familiar, now is the time to take action and change your ways. In particular, if the last paragraph hits home, consider requesting a free consultation from FaithWorks Financial to learn about our Christian debt relief programs. There is always hope, and there really are compassionate people who can help point you in the right direction.

Chocolate. Meat. Sugar. These are some of the most common indulgences given up for Lent, the 40-day season of preparation that leads up to Easter Sunday.

It’s a time when many Christians honor Jesus’ ultimate sacrifice of giving up his life by making a small sacrifice of their own.

Because Lent has long been associated with traditional fasting, it’s no surprise many people turn automatically to food when choosing how they’ll recognize the season, which begins on Ash Wednesday (March 5th this year).

If giving up candy for 40 days works for you, keep it up. However, if your Lent sacrifice has become routine and expected—or if you’ve never tried giving something up for Lent—perhaps you should consider doing something a little different this year, like making a sacrifice that hits your wallet more than your waistline.

Let’s be clear: Lent in its purest form is about growing closer to God. It’s about being thankful for what we have and recognizing that all of our best efforts will never come close to matching the sacrifice Jesus made 2,000 years ago. At its heart, Lent is about our spiritual state.

That being said, a 40-day sacrifice can naturally have a positive effect on our physical, emotional and even financial health as well.

Here are seven Lent-inspired ideas that could help get you back on spiritual and financial track at the same time.

Whether you give up chocolate, red meat or Instagram, remember not to do it in your own strength. When you’re tempted to indulge, pray for help. God promises to provide a way out (see 1 Corinthians 10:13). And if you do stumble, don’t be discouraged. Give your plan a reboot and keep going, and you may find yourself making—or breaking—a habit by Easter.

You’ve heard it said that you have a better chance of being struck by lightning than winning the lottery. That’s certainly true, but perhaps we’ve heard it so many times, we’ve become a bit numb.

A recent article by National Geographic put things a bit more colorfully. Turns out, you’re far more likely to be killed by a shark, hit by an asteroid or comet, or—wait for it—injured by a toilet, than you are to win the lottery.

So, what are the actual odds of, say, winning the Powerball grand prize? According to the Powerball website, they’re 1 in 175,223,510. And the odds of winning second place? 1 in 5,153,632.

Perhaps you’re aiming much lower than that, and you’d be happy to win the smallest prize of just $4. Your odds are still not great: 1 in 55. And if you spend $2 per ticket and it takes you 55 tries to win, are you really winning after all? You just paid $110 to win 4 bucks.

We know all of this in our minds, but it’s another matter entirely to grasp it in our hearts. It seems there’s still something inside many of us that fights against logic and says, “But it could happen to me.”
To help move our lottery knowledge from our heads to our hearts, let’s take a quick look at what the Bible has to say about the matter.
Proverbs 13:11 says, “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it” (ESV).

I’d say winning the lottery is the definition of gaining wealth “hastily,” and there are scores of sad stories detailing the misery of lotto winners who experienced the truth of that proverb.

But that only addresses the problem of winning. What about the desire to win in the first place? And the money spent in pursuit of that win?

“For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs” (1 Timothy 6:10, NIV).

Those who find themselves chasing after a Powerball win in hopes of becoming rich are not only in danger of distancing themselves from God, but hurting themselves through unnecessary heartache.

As for all the money spent trying to win—$520 a year if you buy just one Powerball ticket every weekday—it’s difficult to justify when held up against Proverbs 3:9.

“Honor the Lord with your wealth and with the best part of everything you produce” (NLT).

For those who find themselves giving into the temptation to chase after the latest jackpot, those are words worth considering. Does that ticket purchase honor God? Are you giving Him your first and best gifts through tithes and offerings? Or is your lottery habit preventing you from giving God your best?

That’s a lot to think about, but let’s wrap this up with one last idea, from Jesus Himself, as recorded in Matthew 6:24 (NIV):

“No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money.”

If you are hoping to win the lottery to rid yourself of your credit card woes, contact FaithWorks Financial at 877-232-5109 to learn about our Christian debt relief programs. You’ll have a much higher chance of seeing your debt disappear!

Ever worry that the information on your credit report might be wrong?
This infographic from Quizzle shares the facts.

Throughout the recent recession we have heard the term downsizing quite a bit. Downsizing is the act of moving to a new home or apartment in order to better your financial situation. Many individuals have found bigger more comfortable houses for less money because they tweaked their idea of the acceptable home. Most people are very emotionally attached to their homes, and moving can be an emotional event which is why it is important to carefully consider this drastic financial step.

When It Is a Must

There actually are not many situations in which downsizing is the only option.

If you are facing a possible foreclosure in which you have exhausted all means of reversing the situation, then selling or short selling your home may be your only option. This may seem like a bleak option at first, but it is a far better option than outright foreclosure.

Many people find that once they are out from under a burdensome mortgage they are very relieved and can focus better on work, family, God and rebuilding their finances. Selling your home to avoid a foreclosure is not the end of the world; it could be the beginning of a much better financial life for you.

Wiggle Room

Beyond pending foreclosure, another reason to downsize might be because the payments on the home just take out too big a chunk of the budget. There is no money for savings, giving, investing or other actions that could improve your financial situation.

When the house has become a big money pit, downsizing could be an option that would give you more wiggle room financially. You should only consider this huge step, though, if you are committed to using the extra money to improving your financial health or using it to pay off other debts.

If there is no plan in place for the money you will be no better off than you were to start with.

Owning vs. Renting

Selling a house, getting rid of a mortgage entirely and switching to a rental home is another form of downsizing that many people find financially liberating. There are a lot of hidden costs associated with owning a home. You are responsible for all maintenance, home owner’s insurance and property taxes.

When you choose to rent, all of those costs simply disappear as well as the stress of dealing with repairs. Renting can be a great permanent choice, or it can be a great temporary choice to help you while you are paying off other debts or working through a Christian debt settlement program.

Cheaper but Bigger

Some families have discovered that when they reevaluate their standards of housing, they can actually get a bigger home for less money. The closed minded ideas of having a home only in a certain neighborhood or only of a certain appearance can really hinder your efforts to find affordable housing.

Housing farther out in rural areas is almost always cheaper. Think outside the box and you might really like what you find.

It may be well worth foregoing certain luxuries to be more financially comfortable. This is a temporary dwelling, after all!

Family Concerns

If you have a spouse or family you must consider that they will all be very greatly impacted by a decision to move. Although you may understand all of the financial reasons that would make downsizing a great option, you must understand that the other members of your family may not have that same knowledge.

A move is a huge step that should not be done suddenly if possible. It should be discussed in depth with your entire family. When huge changes are sprung on people suddenly it can sometimes result in resentment. You do not want to sacrifice your family relationships for what looks like a good financial move. Take time to discuss this with your family and make an effort to understand everyone’s emotions on the topic.

Avoiding the Downsize

Want to avoid the stress of the move? Consider the option of renting a room of your home. That mother-in-law suite could be the exact solution to help you navigate debt troubles.

If that isn’t possible or doesn’t quite cut it, our Christian debt settlement program can help you resolve your credit card debts with a much lower payment. Complete the form on the right hand side to find out how what a debt settlement program would look like for you.