Seniors in Debt With Brandon Sieben

Show Notes

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.

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.

Remember, 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. 

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