Do We Dare Test God? THE GIVING CHALLENGE

Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this," says the LORD Almighty, "and see if I will not throw open the floodgates of heaven and pour out so much blessing that you will not have room enough for it. Malachi 3:10 (NIV)



A few days ago I was listening to one of my favorite podcast/bible study lessons. I don't remember exactly what the message was about but there was one thing that stood out to me at the very end. The pastor of the church put out one of the most amazing and bold challenges I have ever heard of. He asked his congrigation to put God to the test!!! Yes as we know there is no place in Gods word where he tells us to test him OTHER than in giving as you have read the above scripture.



The pastor said that only 15% of his church (which happens to be mega) was tithing. I found that interesting since my pastor announced the same thing going on at our church. Anywhoot so the pastor goes on to say that if you will tithes your 10% of your income for the next 3 months and you don't receive any blessings I will give you a 100% refund on your money. WOW really??

This is why I love listening to Mark Gungor preach because he dares to do things unheard of. I felt inspired by this message and decided I was going to take part in this challenge myself. Now I don't actually belong to this church so I won't be getting any money back lol, but I am going to do it anyways. I started tithing faithfully a few months ago and I have been blessed very much but I want to do more and do better because I know I can.

So today I challenge each and every person to test God. Test him and see if he doesn't do what he said he would do when you give!! I personally am excited about these next three months because I have a couple things I would love God to bless me with. What better way to go into the new year giving all you got in the midst of becoming debt free right????

If you would like to take part in this challenge please feel free to contact me and let me know how well you are doing. Im not refunding any money lol BUT I truly believe in this message so much so that I know if you start giving God will bless you !!

Ready set Go!!!

Maxed Out documentary

Maxed Out takes viewers on a journey deep inside the American style of debt where things seem fine as long as the minimum monthly payment arrives on time. Shocking and incisive Maxed Out paints a picture of a national nightmare which is all too real for most of us.

Check it out here!!



Watch Maxed Out in Educational | View More Free Videos Online at Veoh.com

Peanut Butter No Jam??

If there is one thing I love on Fridays its the Dave Ramsey show, Debt Free Fridays. People call in every Friday to share their stories about how they got out of debt and at the end they get to scream I'M DEBT FREEEEEEE while millions of people listen In. I think the show serves as great inspiration to others going through the process. One thing I noticed In the last few years that I have listened is the number of "single" people calling In to scream, there just aren't that many.

Now don't get me wrong, Im not advocating single people run out and find someone to marry but I am saying Its got to be a different experience. I know you always here people say "its easy being single because you don't have 2 people to account for" But what about when you have NO one to hold you accountable at all?? I honestly believe "some" of my random purchases have had to do with the shear fact that no one was going to tell me "Noooooooo". I would even venture off to say I would probably be debt free already..... BUT I WON'T LOL.

My point is being a single person trying to get out of debt can be a little rough at times, so this Holiday season I am going to share a few of MY survival tips to those who are going it alone. Lets face it We need support too and the more the better!!

Tip #1 Do NOT ask people who aren't getting out of debt about debt - I know this may sound a bit harsh but really, when it comes down to it those people are always going to be on the spending money team. You need a good accountability partner who has or is experiencing paying off debt with you. They don't mean any harm but its just not a good idea to ask them to keep you on your toes.

Tip #2 Keep a blow money account no matter what - I must say this has been a downfall in my journey towards debt freedom. There are months where I am super intense and I am throwing every extra dime on debt, then there are other months where I spend more than I put on debt the month before. When you keep a blow/entertainment account you feel much less guilty about spending because its already accounted for. Don't cheat yourself in this area (I tried it). Even if there ends up being a few hundred dollars in the account, its better than dipping in to some other envelope when you get those "Im lonely so lets shop urges".

Tip #3 Use cash leave the Debit card home - This really is a universal tip and can be used single or married. I have had a major habit of spending outside my budget with my debt card in hand. I have found that when I take cash out of the atm I am more goal oriented and "focused" on what I need to purchase. I know that I better have a list because when the cash is gone, debt card at home there is nothing more you can do. I have found myself using my debt card a LOT more when I don't have a plan. It catches those cookies, cakes, and ice cream I mysteriously forgot to put on my list lol.

Tip #4 Spend more time with family and friends - The holidays can be a trying time when you are single. I have found the very best recipe for success is being around people you love. Round up some of your friends and have game night, or make a meal for them. There is a true sense of peace I find around my family and I don't often worry about "having that special someone" Because Im around lots of special someones 24-7 and most of the time thats free!!!

So these are my very best tips for singles. One thing I urge people to do is REMEMBER THIS IS ABOUT PERSONAL FINANCE meaning if you don't like it, don't try it. Not everyone will agree with my strategies and that is perfectly ok. If you have additional tips and Ideas we welcome them here at Divine and Debt Free because we want to reach as many people as possible with our message.

Happy Holidays!!

Before You File Bankrupt

For the first nine months of the year, individual bankruptcy filings totaled 1.07 million, according to U.S. Bankruptcy Court statistics compiled by Automated Access to Court Electronic Records. Between July and September, more than 5,900 bankruptcy petitions were filed each day in courts across the nation, AACER statistics show. They peaked at more than 6,000 per day in May, and have edged down only slightly since that time.

I remember back in 2007 when I was contemplating filing for bankruptcy. I was way in over my head at the time. I had a new car, a new house, student loans and other random debts like store cards and credit cards. Thankfully, since attending Financial Peace university I have not only learned how to avoid filing bankruptcy I have actually paid most of my creditors back and I am down to 2 YES 2 Final bills. There are many situations in which bankruptcy is not the best solution available, you need to study your situation closely. Here are five cases in which bankruptcy is not the best option:

1. You can pay off your debts within a few years while maintaining a reasonable standard of living

Sometimes having some discipline and setting a budget is all you need to do in order to pay off your debts within a reasonable time. You don't need to starve yourself, but if you can stick to a simple plan and eliminate your debt within the next few years, then bankruptcy may not be necessary after all.

2. Your most worrisome debts will not be eliminated in bankruptcy

You should be aware that some kinds of financial obligations do not usually go away when you file bankruptcy. If you are most concerned about student loans, child support obligations, or criminal fines, then bankruptcy is not the solution. In most cases, these financial obligations will remain.

What about federal income taxes? That depends, but be aware that in many cases they will not be discharged.

3. You don't want to lose your assets.

When you file Chapter 7, you will need to liquidate any nonexempt assets in order to help pay for your debts. You may not want to give away these assets, such as a second house or an expensive car. Finding a way to pay off your debt without bankruptcy can help you keep these assets safe from creditors.

4. Most of your debts are secured by collateral.

If your unsecured debts are only a small portion of your total obligations, then bankruptcy doesn't make sense. Chapter 7 will not eliminate your responsibilities such as paying off your mortgage or car loans. If you want to keep the house, you'll have to keep making the mortgage payments. Otherwise, you can just lose the house without having to declare bankruptcy and spent $1,000 to do it!

I realize things can get frustrating after thing such as an illness, job loss or divorce causing people to just give up. I completely understand it because I fell into a rut myself a while ago. If you are contemplating filing bankruptcy I urge you to think about it long and hard before doing so. Deciding NOT to file was one of the best things I did for myself now I am on the road to recovering WITHOUT a judge looming over my head and it feels great!!

How To Fight Back Against Creditors

Have you ever had a bill collector call and threaten to take your paycheck or your children? I have a few times and I can't tell you how upsetting it is to have someone harass you day in and day out.

Interestingly enough I have been on BOTH yes BOTH sides of the fence. I have been the debtor and the creditor calling doing the harassing. A few years ago (5 exactly) I worked for a large collection agency. We collected mostly tax money (the worst) and traffic violation payments. Though the government is held to a semi moral standard we still had the ability to brow beat people into paying us. Back then I didn't really understand who I was hurting I just wanted to make my bonus bigger.

Now being on the other side of things its really frustrating to hear stories of people (including my own) dealing with creditors. They can be so nasty and cause stress beyond belief. Some creditors have even talked people into paying bills they don't owe or paying them before they fed their own family. Can you imagine having a $400 credit limit and a foreclosure sign on your door just because of a threatening phone call?? Its the pits and way to many people have dealt with this more than we know.

Today at Divine & Debt Free we are going to share ways of how to FIGHT BACK! Thats right we are going to get those nasty bill collectors off your back once and for all. If your skeptical about these tactics trust me they work because I have used them more than once even!! So lets go.....

1. Hang up on Them - Oh yes this sounds like the most obvious thing to do outside of pretending to speak another language, but it actually works. There should never be a time where they can get you so worked up that you are about ready to hand over every dime in your pocket, EVER!!! If they can't be nice, you can't either.

2. Send a cease and desist letter - according to the FAIR DEBT Collection Practices Act (FDCPA), They must stop contacting you immediately!! However do NOT send this letter via regular mail. It may cost you a few extra bucks to send a letter certified return receipt requested but it is well worth it. They are really good at getting people worked up especially at work and in these difficult economic times that is the last thing we need. Here is a sample letter.....

Date

Your Name
Address
City, State Zip


Debt Collector’s Name
Address
City, State Zip

Re: Account Number

Dear Debt Collector:

Pursuant to my rights under federal debt collection laws, I am requesting that you cease and desist communication with me, as well as my family and friends, in relation to this and all other alleged debts you claim I owe.

You are hereby notified that if you do not comply with this request, I will immediately file a complaint with the Federal Trade Commission and the [your state here] Attorney General’s office. Civil and criminal claims will be pursued.

Sincerely,

Your Name

3. Don't answer the phone - I am sure with all the technology today we ALL (99.999%) have caller ID. So why not just block the number or don't answer. Nothing is actually going to happen, other than them calling you back. I wouldn't advise this at work but it works fantastic at home.

4. Sound a bull horn in their ear - I just think this would be absolutely funny to do......

Bill collectors can threaten as much as they would like, most of them don't get around to actually suing on a bad debt until months sometimes years after the delinquency has taken place. If you are struggling with debt I urge you to first take care of what we call the 4 walls FIRST

1. FOOD
2. SHELTER
3. LIGHTS
4. TRANSPORTATION

Yes this means your house payment has to come before you pay ANY CREDIT CARDS!! I know this may not be what some people are used to but this is honestly the best way and it works every time. If you don't have any money to pay creditors after these 4 things are done then oh well we will try again next month after the emergency fund is fully funded (which you don't use to pay them either).

If you are unsure if your wages are going to be garnished or you are having threats of being sued, call your local court house they can check if you have pending law suits against you. Usually a sheriff delivers summons papers for you to sign if you are actually going to be sued.

So now you have the tools to fight back, if you have additional questions or need a little pep talk just let me know!

My Favorite Things (Blogger Edition)

I have always wanted to be at one of Oprah's "My favorite things tapping" Unfortunately since her show is going off the air I may not make it, but thats neither here nor Chicago. Today I am hosting my very own MY FAVORITE THINGS blogger style!! Here at Divine & Debt Free we focus on all things great and inspirational. I have a few sites that I just absolutely love and you won't even need to pay tax once you click on the site, how is that for a bargain!!

So lets get started

My favorite blog #1 - ENEMYOFDEBT.COM by Brad Chaffee. He is the best motivational money coach in blog land next to Dave himself! I heart Brads blog and I can't even begin to say how much his money tips and budget tools have helped me. His writings have been featured in CNN articles and who knows what else! He has such a passion for debt freedom its not even funny!!!

My favorite blog #2 - SLICKDEALS.NET Ok so im NOT advocating going to this site until you have at least paid off half of your debt (I mean it!). I haven't actually made any purchases from here but It is fun to look at all the ridiculous deals and things I don't need and make fun of the people who buy all this crap. If your not down for the entertainment value then just click on the freebies link and have fun signing up for any and everything free.

My favorite blog/podcast #3 - MARK GUNGOR RADIO. If you just want to laugh your butt off all day this site is totally for you. He is a pastor and a marriage/relationship speaker. I love listening to him during the day and I have learned a lot about what NOT to do in a marriage. Check it out and if you don't like it....... check your closet for your sense of humor!!

My favorite blog/podcast #4 - DEBBIE CHAVEZ SHOW. Ok so its another pod cast but I just love it too. If you want to get motivation, inspiration on a Godly talk show you have GOT to listen to Debbies show. She features different authors of books, pastors and the like on her show. You can also request a book from one of her guest if you like FOR FREE, how ya like those apples.

My favorite blog #5 - DAVERAMSEY.COM This is by far the best site you will ever click on if your smart. Dave has pod cast, money tools, books, money calculators and forums for those who need a bit more motivation to get going. He also has what they call E.L.P's a.k.a endorsed local providers to help you find insurance, sell a house, council, or help with taxes. Its all free unless you choose to buy something(including the e.l.p service) even if you do its probably a really good deal!

These are all my favorite things and hope these sites can be of much use to everyone. I know my days go much smoother when I have downloaded a podcast or read something inspirational from one of these sites. If you have any sites you would like to add just let me know!!

Baby Steps

Now that I have gotten the reasons why out of the way, let me talk to you about how I'm doing it!! I joined financial peace university January 17,2008 during the tax season. The class was $100 bucks and honestly I didn't even have the money at the time. However the church hosting the event had been blessed enough to buy books and allow everyone to make payments on the materials (go figure right lol). I honestly believed this was some big rip off plan. The only real reason I chose to go was because I knew filing bankrupt would cost way more than $100, so I figured if this don't work nothing would right.....

Little did I know it was the best $100 bucks I would ever spend my whole life, Yep I said my WHOLE LIFE! Not only did I get to meet the most amazing families, I was able to let go of the thoughts of suicide Yep I SAID THAT TOO. I will say as I write this blog that no amount of debt or problems are worth taking your life over, but people must also realize that these statistics do exist among college age adults. It is not to be taken lightly, I was able to survive but some people don't.

I learned a lot in the class and so I am going to share the basics of each step in case anyone reading wants to get started on this plan. Matter of fact you don't even need to buy anything, you just have to want to change your life for the better and say no to debt. Ok so maybe your not convinced just yet, so again let me tell you what I learned.

Baby Step 1 - $1,000 Emergency Fund

An emergency fund is for those unexpected events in life that you can’t plan for: the loss of a job, an unexpected pregnancy, a faulty car transmission, and the list goes on and on. It’s not a matter of if these events will happen; it’s simply a matter of when they will happen. This beginning emergency fund will keep life’s little Murphies (anything that can happen will) from turning into new debt while you work off the old debt. If a real emergency happens, you can handle it with your emergency fund. No more borrowing. It’s time to break the cycle of debt! (I used my income tax refund for this)

Baby Step 2 - Pay off all debt using the Debt Snowball

List your debts, excluding the house, in order. The smallest balance should be your number one priority. Don’t worry about interest rates unless two debts have similar payoffs. If that’s the case, then list the higher interest rate debt first.
The point of the debt snowball is simply this: You need some quick wins in order to stay pumped up about getting out of debt! Paying off debt is not always about math. It’s about motivation. Personal finance is 20% head knowledge and 80% behavior. When you start knocking off the easier debts, you will see results and you will stay motivated to dump your debt. (I worked 2 jobs for over a year, and took in as much over time as possible at my 1st job)

Baby Step 3 - 3 to 6 months of expenses in savings

Once you complete the first two baby steps, you will have built serious momentum. But don’t start throwing all your “extra” money into investments quite yet. It’s time to build your full emergency fund. Ask yourself, “What would it take for me to live for three to six months if I lost my income?” Your answer to that question is how much you should save. Use this money for emergencies only: incidents that would have a major impact on you and your family. Keep these savings in a money market account. Remember, this stash of money is not an investment; it is insurance you’re paying to yourself, a buffer between you and life.

Baby Step 4 - Invest 15% of household income into Roth IRAs and pre-tax retirement

When you reach this step, you’ll have no payments—except the house—and a fully funded emergency fund. Now it’s time to get serious about building wealth. Dave suggests investing 15% of your household income into Roth IRAs and pre-tax retirement plans. Don’t invest more than that because the extra money will help you complete the next two steps: college savings and paying off your home early.

Baby Step 5 - College funding for children

By this point, you should have already started Baby Step 4—investing 15% of your income—before saving for college. Whether you are saving for you or your child to go to college, you need to start now. In order to have enough money saved for college, you need to have a goal. Determine how much per month you should be saving at 12% interest in order to have enough for college. If you save at 12% and inflation is at 4%, then you are moving ahead of inflation at a net of 8% per year! (if you don't have children yet skip this step until ya do!)

Baby Step 6 - Pay off your house early (SAY WHAT!!)

Now it’s time to begin chucking all of your extra money toward the mortgage. You are getting closer to realizing the dream of a life with no house payments. As you attack this last debt, you will gain momentum much like you did back in the second step of the debt snowball. Remember, having absolutely no payments is totally within your reach.

Baby Step 7 - Build wealth and give! (MY PERSONAL FAVORITE TOO)

It’s time to build wealth and give like never before. Leave an inheritance for future generations, and bless others now with your excess. It's really the only way to live!

Golda Meir says, “You can’t shake hands with a clenched fist.” Vow to never hold your money so tightly that you never give any away. Hoarding money is not the way to wealth. Save for yourself, save for your family’s future, and be gracious enough to bless others. You can do all three at the same time


So those are the steps all laid out for you to follow. If you need help feel free to contact me and I will answer any questions you may have in order to help you get started or you can visit DAVE RAMSEY.COM Ready, Get Set, Go!!!!