Carmoncents’ Hiatus

Hey Everyone,

Thanks everyone for taking the time to read my blogs, however at this season of my life with all my current demands I am not able to effectively manage this blog. If I put out material I want it to be thought-provoking, effective and helpful. So with that being said I will be taking a hiatus from posting.

This is not the end of Carmon Cents’ blog but just a chance for me to regroup, reinvent, reorganize and restructure for a few months and come back refreshed. In the next few weeks I will be asking all the subscribers to this blog to join my upcoming newsletter, so look forward to that.

Thanks for your support and I look forward to continuing our relationship. This is something I am passionate about so giving up is not an option. I encourage you to continue your journey to financial success and if you ever have any questions or comments for me, email me anytime.

Statue of limitations

It never fails. You’re home one evening about to eat dinner and the phone rings, the voice on the other end is a collector calling about a credit card or loan from years ago. So what is the limitations on that? Can they still collect after 5 years, 6 years or more? Am I obligated to pay?

Some points concerning Statue of Limitations:

• The Statue of Limitations (SOL) is the time limit for a creditor to file a lawsuit against a delinquent debt.
• This starts when the debtor becomes delinquent.
• The SOL only covers lawsuits; it does not affect other types of collection actions or the account being sent to the credit bureau.
• If there has already been a lawsuit resulting in a judgment, the Statue of limitations are different.

Here are the Statue of limitations for debts.

Here are the Statue of limitations for judgments.

The bible has many verses on paying our debts. It is the right thing to do! We are in violation of scripture when we have delinquent or outstanding debts and we have the money to pay but we don’t.

“Do not withhold good from those to whom it is due, when it is in your power to do it. Do not say to your neighbor, “Go and, come back, and tomorrow I will give it,” when you have it with you.”

Even if the statue of limitations have expired on old accounts, when you do one day have financial surplus, those old debts should be repaid. If it is in your power to do so, it will release a weight off of you and most importantly, God will be pleased.

“Don’t even try it” tax deductions

Benjamin Franklin said “in this world nothing is certain but death and taxes.” We are required to pay taxes to support individuals and government programs locally and nationally. While frustrating at times, Christians are commanded by God’s word to pay taxes.

“Because of this you also pay taxes, for rulers are servants of God, devoting themselves to this very thing. Render to all what is due to them; tax to whom tax is due; custom to whom custom; fear to whom fear; honor to whom honor.”(Romans 13:6-7)

To lighten our load there are various tax deductions that can help you reduce the amount of taxes you have to pay. A tax deduction is an expense you pay with variable amounts that you can subtract, or deduct, from your gross income, which allows you to pay less in taxes. However, it is wise to consult a professional Certified Public Accountant (CPA) to be certain about which deductions you can use. Many people get wrong or misleading advice and it ends up doing more harm than good once their taxes are filed.

I came across an article on MSN Money titled “10 don’t even try it tax deductions.” This article and professional assistance can guide you in the correct steps to take to ensure you don’t end up in trouble with the IRS.

Financial Honesty

What role does honesty play in our finances? How important is it to be truthful or is a “small lie” here or there not too significant? According to God’s Word, it is paramount.

In the book of Exodus, Moses was overwhelmed with complaints from the people of Israel. He was handling every complaint as they sought him for God’s guidance. Jethro, his father-in-law gave him wise advice and instructed him to “select out of all the people able men who fear God, men of truth, those who hate dishonest gain; and you shall place these over them, as leaders…” (Exodus 18:21) God wanted men who could be trusted, he placed significance on the fact that if he can trust them in financial issues, he can trust them to be leaders and guide his people according to his instruction.

Do you make unlawful “minor adjustments” to your taxes? Are you a saleman that willingly withholds pertinent information to close the sale? Are you getting paid for a 40 hour work week but only working 30 hours, stealing 10 hours of your employers time and money? Are you refusing to pay your tithe? Are you curtailing your financial legal obligations (debt) to take weekend vacations, buy a new wardrobe or go out with friends?

Do your actions show that you sacrifice your integrity for financial gain? When we strive to maintain a relationship with God we realize “better is the poor who walks in his integrity, than he who is crooked though he be rich.” (Proverbs 28:6) This does not mean that we should take a vow of poverty but it does relay the fact that our relationship with Christ should be placed higher than our financial status. I believe we should always seek to increase financially but only with honesty and integrity.

This is a life that pleases God. There is a promise in Isaiah 33:16 that those who practice financial honesty “are the ones who will dwell on high. The rocks of the mountain will be their fortress of safety. Food will be supplied to them and they will have water in abundance.”

From dishonest personal taxes to a Bernie Madoff style ponzi scheme in which $65 billion were stolen from clients, our finances should be approached and handled with complete honesty. It may mean our wealth will grow a little slower but God will be pleased and in the end that is all that matters.

The root of the problem

So what if someone wrote you a check to pay off all of your debt today? Wouldn’t that be exciting? You wouldn’t have to put up with the extra job, the time away from family and friends, the strict budget and all the other annoyances with getting out of debt. It would be a cause for celebration if you learned your lesson.

Getting out of debt is meaningless if you never addressed the reasons you got into debt in the first place. If I’m walking through my house and I step on a nail, I would immediately clean my foot and put a bandage on the wound. However, if I don’t remove the nail from the floor, the next time I walk that way, I will step on the nail again. It is the same way with debt, we have to address and correct the real problem or we will continue to financially hurt ourselves. The real problem isn’t debt, debt is only the symptom of various other issues that may need to be addressed.

Here are a few root problems that may need to be fixed so you can stay out of debt:

• Not being prepared – this is the point in building up your savings; things will happen and if you are prepared it dramatically decreases your chances of having to borrow money.
• Greed – The excessive desire for more of something than is needed. There is nothing wrong with desiring increase but not at the expense of submitting yourself to financial bondage. We must learn to be more patient to get things. Luke 12:15 says “beware, don’t be greedy for what you don’t have…”
• Overspending – We can’t afford it but we buy it anyway.
• Health Insurance – Many people don’t have credit card debt but they don’t have health insurance so one unexpected sickness can put them thousands of dollars into debt. I know its expensive but if you can afford it, definitely get it.
• The Jones’ – The old cliché “keeping up with the Jones’.” However, if we take an in depth look at the Jones’ income and compare it to how much goes out in living expenses we will clearly see they have no money and no savings. They are broke!
• Impulse spending – We don’t take the time to think before we buy. We just see it, we want it so we get it right there on the spot. Proverbs 13:16 says “wise people think before they act…”

Many people have paid off debt, only to end up in debt again a couple years later. It’s because they didn’t correct the root of the problem.