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Are You Ready to Finally Tackle Debt & Build Your Savings? · Becoming Financially Confident

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Ralph: Are you tired of feeling crushed by debt?
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Does the thought of your credit score fill you with dread?
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This week we're cutting through the confusion and join me as we
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recap six powerful strategies for attacking debt and mastering credit,
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answering your toughest questions with actionable, fuel-filled steps.
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Don't miss this crucial episode of Financially Confident Christian.
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Your path to financial freedom starts right now.
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Hey there.
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Welcome back to your special Sunday edition of Financially
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Confident Christian.
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I'm Ralph and it's great to be with you for another exciting recap episode.
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This show helps you answer that question, how can I become a
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financially confident Christian?
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And over the past six days, we've continued our conversation into
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confronting debt and navigating that often confusing world of credit.
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These are often areas that bring significant stress to people, but also
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they're huge opportunities for freedom when we can approach them wisely.
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And today we're gonna go quickly recap each of those six episodes, and then
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for each one, I've got some great listener questions that have come in
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that really bring these concepts to life.
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So grab a warm drink, get comfortable, and let's get into our recap today.
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This past week has been packed with strategies for attacking debt and
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gaining clarity on your credit decisions.
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We started the week with this simple question.
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How do I stay motivated when paying off debt feels hopeless?
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And in that show, we really focused on keeping your goals visible and celebrating
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milestones and really drawing strength from faith and from your community.
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I think that was a really good show, and if you missed any of them, I'm gonna
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encourage you to go back and listen.
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The second thing we got to second in the week, we asked this question,
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should I use a balanced transfer or consolidation for high interest debt?
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we discussed prayerfully researching these tools to accelerate payoff while
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understanding your risk associated with those things by midweek, we
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had reached this question, how can I avoid getting back into debt?
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We covered developing conscious habits and those boundaries like that wait or
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what I call the pause rule and really working to strengthen your emergency fund.
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Then we got to Thursday's episode and we asked this very pointed question,
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and that was, can I use credit wisely without falling into debt?
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That was a question that was really on the mind of a lot of people and
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I really emphasized that strict self-discipline and committing to pay
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that full statement balance each month.
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In fact, that was the commitment that we made.
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Are you sticking with your commitment?
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I sure hope you are by Friday.
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We got to.
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What does my credit score actually mean for me?
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A lot of people get all hung up on those credit scores.
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So we demystified the credit reports we talked about credit
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scores and we discussed accessing your free report for awareness.
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Again, that was annual credit report.com.
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And then on Saturday we got to this big takeaway question, how can I fix
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mistakes and improve my credit score?
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We talked about disputing errors and focusing on those key habits like.
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On time payments and low credit utilization.
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It has really been a week of strategic debt attack and
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empowering credit knowledge.
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And these topics, they bring out significant questions and they,
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they talk about real strategies.
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And I've got some excellent questions from listeners just like you who
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asked questions after the show.
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So let's get to our first question related to how do I stay motivated
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when debt feels hopeless.
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This question came to us from Michael, and Michael wrote this.
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He said, Ralph, I've been using the debt snowball and finding
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extra money like you said.
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I paid off my first small debt and that felt great for a minute, but looking
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at the next one, it's much bigger and I'm already feeling discouraged again.
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How do I keep celebrating those wins and stay motivated when the
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next mountain looks so much higher?
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Wow.
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Michael, you're absolutely right, and thank you for your
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honesty in asking that question.
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Because that feeling that you're having right now is incredibly common.
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I remember going through this myself when I was going through that debt spiral,
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that debt cycle, and I got the first one paid off and I felt, you know, fantastic.
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I got this debt paid off and then I looked on my sheet and I was like, oh,
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here, this next one, this is a doozy.
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So Michael, this feels incredibly common.
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A lot of people are dealing with that, and you have to think about it in this
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term, like I said, during that show, and I'm gonna repeat it right now.
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This is not a sprint, it's a marathon paying off your debts.
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You didn't make 'em overnight.
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So it is a marathon to get them paid off.
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And I just want you to remember this truth.
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And this one came to us from the book of Hebrews chapter 12, verses
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one and two, and it says this.
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Therefore, since we are surrounded by such a great cloud of witnesses, let
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us throw off everything that hinders and the sin that so easily, entangles.
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Let us run with perseverance.
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The race marked out for us, fixing our eyes on Jesus, the pioneer and
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the perfecter of faith for the joy set before him, he endured the cross
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scorning it's shame and sat down at the right hand of the throne of God.
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And I just thought that was such a powerful verse to talk about today because
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what it's really key in on Michael and everyone else listening is it's your why.
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It's that why for debt freedom.
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Because if you don't understand your why, it is really hard to keep moving.
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And that's why I talked about that.
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You know, How do I stay motivated when paying off debt feels hopeless?
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That was the whole point.
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And we talked about the exercise that I'm gonna mention here
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in a second during that show.
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And that is to really visualize that fully debt-free future.
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What does that look like for you?
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Not worrying about that debt hanging over your head and that
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big mountain in front of you.
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I really focused on, developing the why for you because you gotta keep
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that why visible in front of you so that you know what you're working for.
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The second thing we talked about, it's breaking down that journey into
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smaller milestones beyond just that first debt because Michael, it's
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great you got past that first one.
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That's the whole point of using that method, and maybe you hit that
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total amount paid goal that you were looking for with that first one.
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But maybe it's time to sort of refocus.
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Maybe you wanna set a certain dollar amount goal, maybe, I don't know
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how much debt you have, but let's just say you have $10,000 in debt.
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Well, maybe you set a goal for, I'm gonna pay the first 2,500 off, or maybe half
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or whatever that next specific debt is.
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I'm gonna really encourage you to plan small, non-financial celebrations
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for these many milestones.
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You wanna try to keep that that, that, that, that consistency going.
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You wanna keep that momentum building and you got to celebrate that
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consistency in what you're doing here.
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And when you find extra money.
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That's a way to win.
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I'm also gonna encourage you, again to share your progress with
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an accountability partner, right?
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I mentioned this in a show when we talked about who should I share my financial
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goals with and help them to celebrate with you and draw strength from their faith.
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And then don't forget about praying.
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I think it's a great time to just sit there and pray for
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renewed motivation each day.
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It's tough when you've got this big mountain of dead in front of you.
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And you look at it and you're like, man, this is Ralph.
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This is just about insurmountable.
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How am I gonna ever do this?
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And Michael, like I said, you're not alone feeling this way.
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But there are tools and there are people that will support you.
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So start with a prayer.
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Surround yourself with people who can help you and just look at it as a one
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day and the next day and the next day.
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But keep celebrating that progress, not just completion.
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So Michael, I just wanna thank you so much for your question because it
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really brought all the things we talked about to light in your question today.
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Let's look at our second listener question, and this was
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related to that whole topic.
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I talked about balanced transfers and consolidations, and this
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question comes to us from Emily.
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This is what Emily wrote.
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She said, You talked about balance transfers and consolidation and
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should I use a balance transfer or consolidation for high interest debt?
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It sounds tempting to lower interest, But I'm afraid I'll just end up with one
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more debt, especially if I transfer a balance, but don't pay it off before that
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0% ends.
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And then she hit me with the big zinger of questions, and she said this, she
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said, How do I know if it's a truly wise step and not a potential trap?
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Well, Emily, that fear is absolutely valid, and it's something that a
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lot of people have expressed to me, and that's why I approached that
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episode with a great deal of caution.
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Because as I said in the show, these tools can be very powerful.
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But you need to remember, these are not magic fixes.
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They're not gonna, you're not gonna sell you a whamo and everything has gone away.
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They require significant discipline.
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And remember, we tied this into the Book of Proverbs.
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I wanna re revisit that right now about discernment and wise counsel.
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And that was from Proverbs chapter 11, verse 14.
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It says this, where there is no guidance, a people falls.
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But in an abundance of counselors, there is safety.
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Think about that for a second.
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What is it saying there?
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Where there is no guidance of people falls, but in an abundance
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of counselors, there is safety.
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And we also talked about Proverbs, chapter 24, verse six said this, for
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by wise guidance you can wage your war.
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And in abundance of counselors there is victory.
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See the struggle here is seeing that the temptation of those lower
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interest rates and that that's great.
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You saw a lower interest rate.
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Oh look, I can save a lot of money, Ralph by doing that.
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That is the first step, but that's not the part you gotta focus on.
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You've got to focus then on that, the discipline required and the potential
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pitfalls that you might run into.
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And that's why I shared in that particular episode, my action step,
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and this was the key thing here.
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You gotta prayerfully consider your specific situation and your habits.
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See, this is where you have to be brutally honest with yourself.
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If you're gonna just go and get a consolidation loan or something like
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that, and you're just gonna charge things back up again, all you've
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done is make the problem bigger.
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So ask yourself these type of questions.
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You know, Have you consistently stuck to your budget?
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Do you have a budget?
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Are you sticking to it?
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Are you consistently not accumulating new debt?
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If you're accumulating new debt?
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This is not the answer for you.
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And another thing I really want you to consider is do you have a realistic plan?
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And don't forget the other side of this and the discipline to pay off the
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entire transfer or consolidated amount before any promotional rate expires
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like you talked about in your question.
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Are you going to get it paid off before that 0% expires?
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Unfortunately, I've seen it happen way too many times where people say,
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oh, Ralph, I'm gonna go get this consolidation loan and and next thing
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you know, it was just an excuse to just push the, the, the meatball as
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they say down the road a little bit.
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if any of your answers to those questions I just asked you are shaky or maybe.
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I gotta be very honest with you, these tools are likely not the right
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step for you to take right now.
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So if you don't do that, what I'm going to in instead focus on if you're worried
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about that 0% or you don't have the discipline, you don't have that budget,
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focus on building stronger habits.
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That's the one thing you can do right now.
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You can build stronger habits, you can build stronger budgeting habits,
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you can build stronger tracking habits, and you can avoid debt.
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I in the first place.
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But if you are disciplined and you have a solid payoff plan for the consolidated
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amount, then you can save money.
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You can save interest, and that is huge.
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That is in fact wise stewardship.
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But don't forget about the other side of that.
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There's a temptation to rack up debt on the old card or not pay off the new loan.
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That temptation is very real, and that's why I encourage you to seek
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counsel from trusted financial friends.
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You know, Like I talked about in that episode, who should I
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share my financial goals with?
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Maybe this is a time to go meet with one of those nonprofit
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credit counseling services.
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So overall, big takeaway here, Emily, is approach these tools with caution.
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Understand your habits.
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Understand where you are in this process because listen, I don't expect
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you to be an expert in this overnight.
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This takes time.
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But approach it with caution.
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Approach it with prayer.
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Again, go to God and say, God, here's what I'm thinking about doing.
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What do you think I should do?
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And then the end of this, the big piece of this, and I mentioned this
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in the show that I did that day, you gotta have deep self-awareness.
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Are you going to follow through?
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Do you have the discipline to do what you are needing to do?
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Or are you just gonna just push that down a far a road a little
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farther, incur some more debt?
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Now you've got, you've got capacity to go charge up more things.
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So again, Emily, I just wanna thank you for your question.
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It really hit home what I was trying to convey in that episode.
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Well, let's move to our third question, and this one was
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related to avoiding new debt.
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Kind of follows along with what Emily was asking, and this question comes to us from
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James, and this is what James wrote to me.
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He said, Ralph, I'm really trying to avoid new debt after listening to your,
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'How can I avoid getting back into debt' show, but unexpected things happen.
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My car needed a repair I didn't save enough for.
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How strict do I need to be about not using credit cards when my
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emergency fund isn't huge yet?
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Now, James, the thing I love about it, first off, thank you for your question and
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this is a very common, real life struggle, but what I love about your question.
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It tells me that you are getting to the point of discipline because you say this,
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you say, when my emergency fund isn't huge, and then you, you end it with this.
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Yet that's beautiful because you're recognizing the importance
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of that emergency fund.
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Now, I know that's not exactly what you asked here, but when you wrote that, man,
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I was like, that is a home run there.
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Because like I said, James, this is a very common real life struggle
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because as I said on the show I play church league softball, for example.
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It's, It's slow pitchy.
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You have to arc the ball and all that sort of thing.
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But I love to hit, I'm not pretty good hitter if I don't say so
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myself or 52-year-old, old man.
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And I love to hit a curve ball because here's the thing, life throws curve balls
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and softball pitchers throw curve balls.
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If you are patient and you just wait to swing at the last minute, man,
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you can, you can whack a curve ball a long way, but we have to accept
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that life throws us curve balls.
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And as you alluded to James, it's tough when your e fund isn't fully built yet.
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I love the fact that you're working on that, but in your particular situation,
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it's clear it's not built yet.
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So you're trying to balance this struggle of no new debt versus
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unexpected financial challenges.
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And that's not easy.
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But remember the wisdom that we talked about in that show
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about avoiding new debt.
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It, It does require intentionality, it requires discipline, and what
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I mentioned there that that single solution was to develop conscious
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habits and clear boundaries.
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But James, you answered your own question.
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Because the ultimate defense against needing new debt for emergencies is
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that fully funded emergency fund.
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So in your particular case, I think the answer is yes, you're
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going to have to use credit if you don't have the emergency fund.
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One of the things I don't wanna see you do is just completely
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wipe out your emergency fund.
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So if your emergency fund isn't huge, it highlights the high,
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the critical importance of building that emergency fund.
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I've talked about that on this show many times.
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So as you, as you pay down that debt that you might have to
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incur for this unexpected repair, also prioritize strengthening
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your emergency fund like crazy.
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Maybe you look for every extra dollar you can find to throw in TA Emergency Fund to
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help build that shield against new debt.
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And see in a true, unavoidable emergency when savings fall short, then you've
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got a different decision to make.
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So James, here's the second part of my answer to your question.
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I think in your case, using a low interest credit card, if you've got
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a, and here's the other side of that.
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I mean, you gotta get your car fixed, right?
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Because I guess you could walk, but if you gotta get your car fixed.
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Use a low interest credit card, but have a plan to pay it off as quickly
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and as temporarily as possible.
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Yes.
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It's what I'll call a necessary evil.
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It's gotta be your last resort.
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Not the first, but do it with extreme discipline.
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You know, and we'll talk about that a little bit later when we talk about,
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can I use credit wisely without falling into debt and pay it full always.
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You know, that's one of the things we're gonna talk about because remember,
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the goal isn't just to avoid debt.
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That's part of it, but to build that financial resistance to
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build that emergency fund.
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'cause if you have that, guess what?
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It makes new debt unnecessary.
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So James, I just wanna thank you so much for your question.
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It exactly illustrated the importance the very critical importance
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of having that emergency fund.
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Because like you said, life throws curve balls.
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Let's move on to our fourth question, and this one's related to using credit wisely,
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and this question comes to us from Bonnie.
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I actually think this is the first time I've ever got a question
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from somebody named Bonnie.
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But Bonnie, this is what Bonnie wrote.
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She said, Ralph, I'm confused.
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Can a Christian actually used a credit card without getting into trouble.
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Should I just ditch them all to avoid debt altogether?
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Like some people say.
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now here's the thing, Bonnie, I know exactly where you're going from.
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There are people out there who talk about, financial, you know,
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counseling and all that stuff, and say, don't ever use credit cards.
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I'm not gonna, I'm not gonna name who these people are because
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people know who these people are.
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And I think that, Bonnie, you've got a great question here.
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It's a fantastic question.
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It does create a lot of confusion because there's a lot of people
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that say, oh, credit cards are evil.
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Credit cards are terrible.
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Ralph, you should never use credit cards.
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It's not that simple.
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See, the struggle you're really talking about Bonnie, is discernment,
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you know, wise financial practice and maybe having these absolute rules.
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See I'm a believer that there are no absolutes.
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Now, that probably isn't the right thing to say in terms of, I, I
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believe there is absolute right and wrong, but when it comes to this.
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The thing I wanna really reinforce, and I tried to really reinforce that
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in the episode, and Bonnie, I want you to hear this loud and clear.
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Credit is simply a tool.
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It's just a tool.
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Like any tool I mentioned in the show, you could use a hammer, a carpenter uses
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a hammer and builds beautiful things, but you can also use a hammer to break stuff.
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So like any tool, it can be used for good or it can be used for Ill.
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what we're really talking about here is bad debt.
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Bad debt is using that tool to spend money you don't have and paying interest on it.
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That's the part we wanna avoid, Bonnie, but if you can use
19:23
responsibly, if you can do what I call responsible credit usage, that's
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using that tool for your convenience.
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The thing that's great about credit cards is they're a great convenience.
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They can offer you purchase protection, you can get credit card rewards,
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they can build a credit history.
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I. Which can be really important if you need to go borrow money
19:42
for a mortgage or get a car loan.
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But as I mentioned in that show, and I'm gonna reiterate it right
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now, spending only money you already have and have budgeted for.
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So, Bonnie, if you're asking me the question in a different
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way, he didn't say this in your question, but I'm gonna go there.
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If you're saying to me, Ralph, listen, I don't have the money to pay for stuff.
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I wanna go buy something, but I can't afford to pay for it, then by
20:05
all means don't use a credit card.
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But if you've got the money to pay for that and you're like, Hey, I just wanna
20:10
use this credit card because I get points, I get this, I get that, and you're gonna
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pay that full statement balance every single month before the interest accrues,
20:19
then I say, yes, go ahead and use it.
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And like I said, approach credit usage with a strict
20:25
faith fueled self-discipline.
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If you can commit to paying that full statement balance every single
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month, I mentioned in that show, to pay it automatically and then only
20:34
use that card when it's budgeted.
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Then yes, by all means, you can use credit wisely.
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But if you're one of those people that knows you struggle with overspending, and
20:45
let's be honest here, I've been there.
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Maybe you're sitting there listening right now.
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You're like, right, yeah, I'm right there with you, dude.
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I, I'm not very good at this.
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If I've got that credit card and I'm at the mall, Shazam, it goes down.
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Maybe for you it's time to ditch those credit cards or lock 'em up.
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We, We talked about in the show, put 'em in a block of ice and freezing it in a
21:04
freezer or burying them in the backyard.
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I, I really believe it's good to have a credit card as a fallback.
21:10
Now, again, I wanna start with that emergency fund, but you may use a
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credit card as a fallback, but ask yourself that really difficult question.
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Be honest with yourself.
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If you're going to struggle, don't put yourself in jeopardy.
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Don't put yourself in that position.
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So prioritize avoiding debt first.
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And if you, if you've got the money, if you're strict, if you follow discipline,
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you pay that bounce off and every month with no interest charges, then hey,
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by all means, use that credit card.
21:39
So Bonnie, I just wanna thank you again for your question.
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It's one I hear all the time because so many people get hung
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up on some of these knuckleheads.
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They hear, oh, you should never have a credit card.
21:48
Okay, that's great.
21:48
But then when you go to rent a car, how do you pay for that?
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Or when you need to go put a deposit on something or you
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wanna buy something online.
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So I think they got their heads buried where the sun doesn't shine.
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I just think that's a dumb thing to tell people.
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But again, I don't disagree with the approach if you can't manage it.
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So again, Bonnie, thank you for your question.
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Well, let's move on to our fifth question.
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This is related to credit scores.
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This question came from David.
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A lot of people get tied up in credit scores, and I remember when
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I worked at the credit union, a lot of people didn't understand that,
22:18
but this is what David wrote me.
22:18
He said, Ralph, I checked my credit report for the first time after listening
22:23
to your show, 'What does my credit score actually mean for me?' And my
22:26
score was much lower than I thought.
22:29
Yeah, David, I hear you.
22:30
Dude.
22:31
There's a lot of people say that.
22:33
Honestly, he goes on to say it feels a bit defeating.
22:37
And then he asked me his question.
22:38
He says, How much does this really affect my life and is it worth worrying about?
22:43
That is a brilliant and great and brave question, David, because you took the
22:49
bravery to go look at that credit report.
22:51
A lot of people don't even bother.
22:53
Ah, you know, my credit's bad.
22:54
I don't even wanna look at it.
22:55
Because if they look at it, then they're gonna have to think about,
22:57
well, am I gonna do something about it?
22:59
Listen, I get it.
23:00
That initial feeling of a disappointment or feeling like you've been defeated,
23:04
that's a real struggle and it's a common one because it's a score.
23:08
It's like when you were in school, and I don't remember, I don't know about
23:10
you, but when I got my, my report card, I wanted to look at my report card.
23:14
I wanted all straight a's well.
23:16
If I got C's, D's, or if I got an F, I was in bigger trouble at home.
23:19
But let's just say I got some C's and low B's and C's.
23:24
Well, the credit report, the credit score is no different than that.
23:27
It's a struggle.
23:28
It's that feeling.
23:30
But here's the thing you need to understand, David.
23:32
I hope I made this point and I'm gonna make it again right now.
23:36
This not a fixed reality.
23:39
So yes, your credit score is important in today's financial system.
23:42
It does impact, it impacts your ability to get loans for a car, your
23:46
ability to get loans for a home.
23:47
I mentioned in the show when I did that show the other day.
23:51
I was trying to get a car loan.
23:52
At one point.
23:53
I got pulled into the finance guy's office and it was the most
23:55
embarrassing time of my life.
23:56
He said, Ralph, your credit's not so great.
23:59
I don't think we're gonna be able to help you.
24:01
So, yes, it impacts your ability to get loans.
24:04
It impacts the interest rate you're gonna pay.
24:07
So if your credit's not so good, you may still get the loan, but
24:09
you're gonna pay a lot more for it.
24:11
I've been there and done that as well.
24:13
I've had other situations where, again, the, these are all my decisions.
24:17
I wasn't ironing my credit.
24:18
I went into the finance guy's office and he says, well,
24:21
good news and bad news, Ralph.
24:22
I got your your car loan approved, but man, the interest rate is sky high.
24:28
So you gotta realize lenders are using that because they're
24:31
judging your character.
24:33
A credit score is a character score.
24:36
Again, we're not talking about your Christian character, we're not talking
24:38
about your value as it relates to you as a human being, but from a creditor's
24:42
perspective, that's what they look at.
24:44
You also have to be aware some things like insurance premiums or getting
24:48
a rental apartment, all these things can tie into that credit score.
24:52
So yes, David, it's important, but remember what I, read to you that day
24:56
from the book of Proverbs, chapter 22, verse one, and I think we really need
24:59
to focus in on this for just a moment.
25:02
It said this, in the Bible it says, A good name is more desirable
25:06
than great riches To be esteemed is better than silver or gold.
25:13
David, the truth of the matter is, and I don't know how else to, I can't
25:15
sugarcoat this and say it any differently.
25:18
Your credit score is part of your financial name.
25:20
It's part of your financial reputation.
25:24
So yes, it's absolutely worth understanding and it's
25:26
absolutely worth managing.
25:28
Now I talked about what do you do?
25:30
Well, like I said in the show, first thing you wanna do is go
25:33
get that free credit report.
25:34
Again, annual credit report.com is the only one, as I understand it, that
25:38
the government actually sanctions that you can get a copy of it once a year.
25:44
Start there.
25:45
That's the first part of that.
25:47
Get the credit report, read it, look at it.
25:49
What does it say?
25:51
Listen, it's a judgment of the past.
25:53
Know that when you go into it, when you're looking at this credit score, you go,
25:55
oh, that credit, that's not good, dude.
25:57
This is not good at all.
25:59
But just recognize that is what was done prior to you pulling that report.
26:04
You're not gonna be judged the rest of your days by what's on that
26:07
credit report right at that moment.
26:08
Now that being said, this gives you an opportunity to build healthier habits.
26:12
Now, if you just wanna say, you know what, Ralph?
26:14
My credit's terrible.
26:15
I'm never gonna have credit.
26:16
I give up.
26:17
That's not the right answer either.
26:20
So there are things that you can do.
26:21
I gave you some concrete steps to improve it, so don't let
26:24
that initial number defeat you.
26:26
Let it be a motivator.
26:28
Let it be a motivator for change.
26:30
And David, I just wanna thank you so much for your question, and I hear
26:33
you, it's tough when you pull that credit and you're like, yeah, man,
26:36
that score is not what I expected.
26:39
Things my grandfather used to say, and I'm gonna say this right now.
26:42
Hey, can only get better from here if you take the time you invest.
26:45
Get those debts paid off, get those your credit utilization rates down.
26:50
You can do this, David.
26:51
I have confidence in you.
26:53
Well, let's move to our sixth question, our last question for today, and
26:56
that's related to fixing your credit.
26:57
What a great uh, transition.
26:59
What do you think, David?
27:01
And our final question for this show came from Jackie.
27:04
Jackie said this.
27:05
She said, Ralph, I checked my credit report like you recommended in, 'What
27:09
does my credit score actually mean for me?' And I found an old collection
27:12
account I didn't even know about.
27:15
My score is really low because of it.
27:18
How do I even start fixing that And can it really help my credit
27:21
score, like you said, or will it just be a waste of my time?
27:26
Yeah, Jackie, it is frustrating because again, you're going back to something
27:31
that happened before you made a mistake.
27:33
You made a a bad decision.
27:35
This is probably something you weren't expecting.
27:37
But here's the thing I'm gonna say to you, and you're gonna
27:39
be surprised when I say this.
27:40
Thank God you found it, because now that you see it, you can do something about it.
27:45
Now, I'm assuming this is something you are aware of, something that you
27:49
did, you maybe had forgotten about it, so then you have an opportunity to pay
27:52
it or fix it or whatever it is, but.
27:54
Maybe it's not correct, and that's why I talked in that show
27:57
about taking intentional steps to dispute the inaccuracies and focus
28:02
on the key habits to improve it.
28:04
So, Jackie, first thing you wanna do, as I mentioned in the show,
28:07
Dispute the accuracy of that.
28:08
'cause like I mentioned in the show, if you dispute it and the lender
28:13
doesn't get back, and if you're talking about an old collection, to
28:15
be very candid with you, a lot of times either the lender doesn't exist
28:19
anymore, they just, eh, that's so old.
28:21
I'm not gonna worry about it.
28:22
So if you dispute it, I'm not, and listen, I'm not, this is not Ralph
28:25
saying to you, don't pay your bills.
28:26
That's not what I'm saying.
28:28
But from a practical standpoint, if you dispute this debt and
28:32
the lender doesn't respond.
28:34
They're gonna take that off your credit report.
28:36
Now you may have to follow up on all three credit bureaus, but to do that will
28:40
absolutely you, you asked the question, I wanna get to your answer, Jackie.
28:42
It absolutely will help Your credit score.
28:45
Your credit score is based on all of these things.
28:48
So like I said in the show that day, the first thing, the most crucial first step,
28:53
if it's an error dispute that error.
28:56
Are you gonna gather your information?
28:57
It might just be, it might be, lemme go, where do I find this?
29:02
Maybe you say, oh, you know, I thought I paid that.
29:05
Go do your homework 'cause maybe you didn't pay it, but then I said go
29:08
to the credit bureau's websites and remember the three credit bureaus.
29:11
The big ones are Experian, Equifax, and TransUnion.
29:14
And again, I wanna mention it again, I'll put it in the show notes today too.
29:17
Annual credit report.com and follow their dispute process.
29:21
Be diligent and be persistent, but follow their instructions and listen.
29:26
These disputes are not gonna be resolved overnight.
29:28
If you think it's gonna be, oh, I made a dispute today and tomorrow my
29:30
credit score is gonna be perfect again.
29:32
No, but there are time limits, so don't, it's not gonna take years.
29:35
It's not gonna take months.
29:36
It might take a month or two.
29:38
While that dispute is happening, focused intensely on what other things
29:43
you can do to build that credit score.
29:44
Now, I'm gonna take a minute here and just talk about those things.
29:47
The biggest thing you can do to improve your credit score is to
29:51
be consistent and make all in time payments for all of your bills.
29:56
One of the best ways that you can do that is set up automatic payments.
30:00
Now, I'm not saying to set up an automatic payment, just pay the minimum.
30:03
We'll talk about that again in another time.
30:05
Set up to make sure your payments are always made on time.
30:08
If that means setting up automatic payments for everything, I
30:11
think that's a great idea.
30:13
The second thing, the biggest second thing you can do is keep those
30:17
credit card balances low because I talked about this in the show and a
30:21
lot of people don't get this, that credit utilization ratio is enormous.
30:28
Basically they're looking for your credit utilization to be less than 30%.
30:32
You might be saying, Ralph, again, I have no idea what you're talking about.
30:34
Real simple example.
30:35
Let's say you've got a thousand dollars credit card.
30:38
That's your credit limit.
30:40
If you've got anything more than $300 owed on that credit card, that is
30:45
going to affect your credit negatively.
30:47
They don't want that to ever be more than 30%.
30:49
Now, there's a couple of easy ways to prevent that.
30:52
My son, my oldest son does this.
30:54
He uses his credit card like a champ.
30:57
He pays that credit card every single payday.
31:00
He's never gonna pay any interest.
31:01
He's never gonna pay it late.
31:03
And guess what?
31:04
His percentage is never going to be very high.
31:08
That's one of the big things you can do, is keep that utilization under 30%.
31:12
So make sure all your payments are made on time and keep that utilization low.
31:16
Now, a lot of people are gonna, I'm gonna say something now, which a lot
31:19
of financial experts are gonna say, Ralph, I can't believe you don't.
31:21
Here's one of the things you might wanna consider.
31:24
Call them and see if they will increase your credit limit.
31:27
Now again, think about what I'm saying to you.
31:30
It's not an opportunity.
31:31
It's not a, it's not a get outta jail free card.
31:33
It's not a time, Hey, Mike, they doubled my credit limit.
31:36
Let me go spend, spend, spend.
31:37
That's not what I'm saying at all.
31:39
But one of the quickest ways to improve your credit score if you've
31:42
got that constant utilization ratio.
31:44
I remember a client told me about this.
31:46
He said, Ralph, I put everything on my credit, my credit card, I get paid once
31:49
a month, so at the end of the month I pay off my credit card balance in full, but it
31:54
looks like I've got really high balances.
31:57
'cause with the timing of it when they report, I said, okay,
31:59
here's what I want you to do.
32:01
Call your credit card company.
32:02
They're gonna love you because they're gonna look at your payment history.
32:05
They're gonna look at the fact that you pay it in full every month and ask
32:08
them to increase your credit limit.
32:10
I remember he called me back and he says, Ralph, you're never gonna believe this.
32:12
They tripled my credit limit.
32:14
I said, that's fantastic, but remember, discipline.
32:20
Don't go charge it up, because now you've got more to spend.
32:22
That's the wrong answer.
32:23
That's gonna get you in worse trouble, but you can expand your credit limit.
32:28
Like I said, best case scenario, pay your bills on time.
32:32
Keep that ratio under under 30% and look at these things in the long term.
32:37
It's all about long-term financial health, and it's all about reducing that stress.
32:41
I'm gonna encourage you, Jackie, and everyone else listening, don't give up.
32:46
You can overcome these obstacles.
32:49
We started with a question about paying off that first debt and
32:51
seeing that mountain before us.
32:54
You can do this.
32:55
Well, how about we pray together?
32:57
Father God, thank you for the wisdom you provide in your word.
33:00
We just, we so focused on that today.
33:03
And Lord, we just, we want you to help us navigate these complex financial topics.
33:08
And we confess Lord, that tackling debt strategies and understanding credit
33:12
can bring us struggles, it can bring us confusion and sometimes, Lord, it
33:16
can bring us a little bit of overwhelm and fear and depression sometimes.
33:21
So, Lord, we just thank you for the clarity that you offer us through
33:24
our prayers and through our study.
33:26
And I just ask you right now to bless Michael and bless
33:29
Emily and James and Bonnie.
33:31
And David and Jackie, and everyone else who sent in questions or
33:35
who are listening right now.
33:38
Help them apply these principles we talked about, Lord, and grant us all discernment
33:42
in using financial tools wisely, with discipline, and avoiding new debt.
33:47
Lord, as it says in your word, we don't wanna become a slave to the lender.
33:51
And Lord, we just ask for your perseverance in building a
33:54
strong financial reputation.
33:56
Lord, because you said it to us, our name, our character is important.
34:00
Help us to trust you completely, Lord, with our finances and with our future.
34:04
And we ask this in confidence.
34:06
In Jesus' name, Amen.
34:09
Wow, what a powerful week of getting into debt strategies and credit from
34:13
maintaining motivation and exploring tools for high interest debt to building
34:17
that defense against new debt and taking control of your credit reputation.
34:22
These steps are all vital for gaining control, and remember overall we're
34:27
trying to reduce that financial stress.
34:30
So I just wanna thank you again for all the questions that you sent in.
34:32
I wasn't able to use all of them, but those were amazing
34:35
questions and they really helped us illustrate these important topics.
34:38
And I'm just gonna encourage you right now, keep applying these
34:42
principles this week, and you can always send in your questions.
34:45
For future recap episodes, go to our website@financiallyconfidentchristian.com.
34:51
And don't forget, I've got a special gift for you on that journey today.
34:54
For the first 100 listeners who go to my website, financially confident
34:58
christian.com slash master, I'm gonna give you a free copy of my book.
35:03
It's called Mastering Your Finances.
35:05
As I've mentioned, it's quick.
35:06
It's a powerful read, designed as a starting point to help you
35:09
break that cycle of financial shame and step into confidence.
35:13
Again, you'll get that by going to financially confident christian.com/master
35:18
and get your free copy today.
35:20
Now, tomorrow we're gonna shift our focus to the income side of the equation.
35:24
We've talked a lot about debt and strategies, but tomorrow we're
35:27
gonna talk about the income side.
35:29
We're gonna be asking if your income.
35:31
It's actually the real source of your stress or are there new opportunities
35:35
to explore so you don't wanna miss it.
35:36
So make sure you join me then and let's all go out there
35:39
and be financially confident.
35:42
Christians, you can do this.
35:45
I have confidence in you.
35:47
Have confidence in yourself.
35:48
Stay financially savvy.
35:49
God bless you, and you have a great day today.