Brandon Sieben is President and CEO of Compass—Finances God’s Way. According to the Federal Reserve Bank, over the past 20 years, debt levels for those in their 60s have risen by over 400%. And for those in their 70s, that debt grew by over 500%. It's a big problem. The top forms of debt among these age groups are credit cards, car loans, and home equity loans. WHAT’S THE CAUSE? The cause is not any single thing. Rather, it’s a combination of factors. First, many times there's a spending problem, meaning retirees are spending like they were before retirement, but now without the income to cover that spending. So they borrow the difference. Second, a lot of folks just aren't aware of the cost of debt and how the math works. For example, these days a credit card could be charging 20% interest, or a home equity loan could be as high as 10 to 12%. And people just really aren't aware of the cost there. And third, a lot of people are conditioned to think that's okay to borrow — no big deal. Many retirees would tell you they've always had a car payment. They’re just been conditioned to turn to lenders whenever there’s a want or need beyond their current capacity to pay for it. And the next thing you know, they're on the ropes. ADVICE FOR THOSE NEARING OR IN RETIREMENTRemember, God's pretty clear in His Word that we should avoid debt. You can see that in Romans 13 and Proverbs 22. Even Jesus tells us in Matthew six, we can't serve God and money and we’ve got to choose. But if you find yourself buried under a mountain of debt, the first step is to get on your knees and ask God for help. There’s no changing the past, but you can start managing money Biblically today!And when you become debt free, it glorifies God. Practically speaking, we find there's usually $500 to $700 a month that a retiree spends that can be cut pretty quickly. It’s not always easy. The cutbacks may include scaling back travel, going out to eat less or not at all, canceling some or all of the home tech like cable, or even cutting out some of those day-to-day creature comforts, like getting manicures, pedicures are the trips to Starbucks. If you’re overwhelmed and feel you need help digging out of debt, talk to our friends at <a href="http://christiancreditcounselors.org/">Christian Credit Counselors</a>. And then lastly, we encourage you to work to better understand money and how God would have you handle it. You’ll find all kinds of free resources at <a href="https://www.faithfi.com/">FaithFi.com</a>. Learn more about Compass— Finances God’s Way at <a href="https://compass1.org/">Compass1.org</a>.  On today’s program, Rob also answers listener questions: <ul><li>Are there any benefits to a reverse mortgage?</li><li>How can you make sure you’re not overpaying your taxes?</li><li>How do you determine the best way to invest or use a lump sum of cash?</li><li>What is the best way for a college student to invest for the future?</li><li>What can you do to dig out from under credit card debt when it seems like you’re just spinning your wheels trying to pay it off?</li></ul> RESOURCES MENTIONED:<ul><li><a href="https://www.schwab.com/intelligent-portfolios?gclid=Cj0KCQiA64GRBhCZARIsAHOLriJfLLh_oQ8g4d2jt_IHA10Jq9qXpmgrZs7egrKIDBp0VKUIC2_Qf80aApwKEALw_wcB&amp;src=SEM&amp;ef_id=Cj0KCQiA64GRBhCZARIsAHOLriJfLLh_oQ8g4d2jt_IHA10Jq9qXpmgrZs7egrKIDBp0VKUIC2_Qf80aApwKEALw_wcB:G:s&amp;s_kwcid=AL!5158!3!547096471357!e!!g!!schwab%20robo%20advisor!657672170!33393814556&amp;keywordid=kwd-88755627620">Schwab Intelligent Portfolios</a></li><li><a href="http://christiancreditcounselors.org/">Christian Credit Counselors</a></li></ul> Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the <a href="https://www.moodyradio.org/programs/faith-and-finance/" target="_blank">Moody Radio Network</a> as well as <a href="https://afr.net/podcasts/faith-finance/" target="_blank">American Family Radio</a>. Visit our website at <a href="https://www.faithfi.com/" target="_blank">FaithFi.com</a> where you can join the FaithFi Community, <a href="https://faithfi.netviewshop.com/donate2" target="_blank">and give </a> as we expand our outreach.

FaithFi

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

Faith & Finance with Rob West

Being in debt isn’t good at any age, but it’s especially difficult for folks in or nearing retirement. It’s a disturbing trend: growing indebtedness among our nation’s senior citizens. What are the causes and is there a solution? We’ll talk about that with Brandon Sieben today on Faith and Finance.

Seniors in Debt With Brandon Sieben

FaithFi: Faith & Finance | Jul 13, 2023

Show Notes

Where Faith Meets Finance

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