Carmoncents’ Hiatus

August 13, 2009

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

June 19, 2009

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.


The truth about “zero percent” car loans

May 1, 2009

Who would turn up buying a car knowing you won’t have to pay interest? That’s beating the system right? Well, not really. Many times just because an offer seems like a good deal doesn’t always mean it’s a good deal. We have to weigh the costs and get a complete understanding because going into a transaction with limited knowledge is sure to hurt you in the long run.

The truth

The stipulations for 0% financing are rigid. To qualify you must have excellent credit and a high credit score. This fact screams that only a small percentage of buyers would qualify for the 0%.

If you are looking for a lightly used vehicle you won’t be able to enjoy this “free money” either. The zero percent applies to new cars and usually only to a limited amount of make and models, so there’s a smaller selection to choose from.

Zero percent financing comes with shorter term periods giving y0u less time to pay off the car and resulting in extremely higher monthly payments. The average term is 24 – 36 months.

Not really worth it

Zero percent sounds good because you automatically hear “free money” but the dealership is not in the business of giving out “free money.” If you do qualify for the 0%, you can bet the dealership is making up for that free interest somewhere on the back end of the transaction with fees or add-ons of some sort.

So if you are looking for an “affordable” monthly payment, this probably isn’t the deal for you. The average car buyer needs to push their term out to 72 months just to make the payment somewhat affordable.

An affordable car payment

I believe the most affordable car payment is $0.00/month. Thomas Stanley observed in his book “The Millionaire Next Door” that the average millionaire did not have a car payment. It’s not that they don’t have car payments because they are millionaires but they reached that level because they didn’t have car payments prior. Whether its 0% or 5% interest, the best way to build wealth is steer clear of any car payment and pay cash.


The Riches of Simplicity

April 17, 2009

I was watching a movie this morning on TV named “For Richer or Poorer” about a rich, married couple on the brink of divorce. They owned a fine home, several real estate properties, expensive cars and clothing and lived the typical wealthy lifestyle. However, they found themselves owing millions of dollars to the IRS due to a corrupt accountant. The couple fled a couple IRS agents and ended up in an Amish community where life is all about simplicity. The Amish value simplicity and self-denial over comfort, convenience and leisure.

A Humbling Experience

Naturally, at the beginning of this experience, they hated it because they were far removed from the comfort of their “things.” The community didn’t have flashy cars, their clothes were made of rags, they didn’t dine in expensive restaurants and didn’t care for the conveniences prevalent outside of their community. Their home was simple without the decor and design that the wealthy couple were accustomed too.

Slowly and day by day something funny happened; the more they spent time in this community they realized it really doesn’t take much to be fulfilled. The wife had meaningful conversations with the other women while cooking, scrubbing floors and doing other household chores. Through the process she began to build character while developing the spirit of a finisher. Prior to this experience, she never finished any of the tasks she started The husband, who was very successful with the company he built, was reminded of the fulfillment of helping someone without the promise of a payment attached to it.

The experience also saved their marriage. They had come to a place in their marriage of continuos arguing and fighting. They had become more concerned about “stuff” and less concerned about their relationship with each other. They both admitted they were different people and realized they had lost themselves in all their money, flashy cars, expensive homes and designer clothes.

The Attitude of Simplicity

I wouldn’t say to truly be fulfilled you have to completely adapt the attitudes and customs of the Amish community but it’s a good place to start. The bible says to be careful because “…real life is not measured by how much we own.” (Luke 12:15) When we begin to base our life and our success on what we possess we have completely missed out on the “true riches” that life offers. Advertisers will spend millions of dollars telling you to buy more and own more and you will be much happier or more fulfilled but you will soon find out like the couple in the movie that “things” will never truly satisfy you. It’s not healthy to seek wealth only to enrich yourself without consideration for the needs of others.

The True Riches

What is the makeup of a fulfilled life? It’s not a one-time event that happens but it’s a process of continuous gratefulness and contentment for what you have until God gives you more. For some it’s the laughter of friends, for others it’s a walk in the park with their soul mate. Some find it in the birth of their child and seeing them grow year by year, others find it in watching the sun set or sitting on the lake fishing with family. True riches are found in positive relationships with family and friends. For richer or poorer we all should seek true riches in the peace, love and tranquility of God. Our relationship with Him is more important than our bank accounts and possessions.

So while we advance in our net worth, careers, bank accounts, wealth building and possessions let us not forget that our true riches are in our stewardship, obedience and relationship with Jesus Christ. How do you stay humble as you prosper in your finances? By continously reminding yourself that God is the reason for your success.”


Commitment

April 4, 2009

Today I am making a commitment. I recommit myself to this blog. I haven’t posted in over two months because some days were busy, some days were frustrating, some days there was lack of motivation but if I have learned anything in paying off debt, it’s that there will be obstacles. I must remember that “Defeat may test you; it need not stop you. If at first you don’t succeed, try another way. For every obstacle there is a solution. Nothing in the world can take the place of persistence. The greatest mistake is giving up.”

Through my two months of not posting I learned that days turns into weeks and weeks turns into months. What is the significance of this? Time waits for no one and one day of inactivity can easily turn into one week of no progress. One week of no progress can lead to one month of fruitlessness. If we are not careful we could find ourselves years in the future in the same place we are today.

I recommit myself to this blog! Have you broke your commitment to something that needs to be renewed? Maintaining a monthly budget, paying off debt or working towards your savings goal? Your commitment is the ticket to your destination. I am relating my commitment to this blog with your commitment to your personal finances because unless commitment is made there are only promises and hopes, no achievements. The smallest or biggest hardship can cause you to discontinue your plan so if you have abandoned your commitment, recommit yourself today.

I take solace in the promise of Proverbs 16:3 to “Commit to the Lord whatever you do and your plans will succeed.” This lets us know that we are not in this alone, God is committed to helping us succeed if we commit our plans to him. Don’t let life and daily distractions cause you to lose sight of your plan because commitment will enable you to attain the success you seek.