Howard Dayton is the founder of <a href="https://compass1.org/">Compass— Finances God’s Way</a> and the former host of this program.  0:55 - WHAT'S THE FIRST LOAN TYPE WE SHOULD AVOID?Finance Company loans: <ul><li>High interest rates, large fees, and closing costs.</li><li>Important to differentiate between interest rate and the APR, as the latter includes additional costs.</li></ul> 1:24 - AND THE SECOND?Payday loans:<ul><li>Viewed as "legalized robbery."</li><li>Typically have an APR of 390%.</li><li>Creates a cycle of borrowing due to high interest rates, with borrowers often giving away their entire paycheck to cover the loan.  </li></ul>2:21 - WHAT'S THE THIRD LOAN TYPE?Pawnshop loans:<ul><li>Short-term loans based on an item's value which is lost if the loan isn't repaid on time.</li><li>Interest rates range from 5-25% per month.</li><li>Many borrowers never reclaim their pawned items.</li></ul> 3:21 - AND THE FOURTH?Auto title loans:<ul><li>30-day loans using car titles as collateral.</li><li>Risk of car repossession if payments aren't made on time.</li><li>Referred to as "legalized auto theft" since you lose both the car and its equity regardless of loan size.</li></ul> 3:57 - WHAT'S THE FINAL LOAN TYPE TO AVOID?Tax refund loans: <ul><li>People anticipate tax refunds in April but might take a loan if they're cash-strapped.</li><li>Some tax preparers offer these loans without highlighting high interest rates that can be in the triple digits on an annual basis.</li></ul> 4:40 - DO YOU HAVE ANY TOOLS OR RESOURCES TO HELP PEOPLE NAVIGATE THEIR FINANCES BETTER?A six-week video titled "Navigating Your Finances God's Way."<ul><li>Covers topics like debt, saving, generosity, investment, work, honesty, etc.</li><li>Suitable for various settings: Sunday school, small groups, workshops, or individual study.</li></ul> To learn more, go to <a href="http://www.navstudy.org/">navstudy.org</a>. And you’ll find all Compass training materials at <a href="https://compass1.org/">Compass1.org</a>.   On today’s program, Rob also answers listener questions: <ul><li>Should I tithe before or after taxes?</li><li>How can I invest for retirement while on SSDI and without earned income?</li><li>Should I use my 401 K to pay off my variable rate home equity loan?</li><li>Is the id.me login for IRS.gov legitimate, and should I switch from an I bond to a bank CD?</li><li>How can I help a woman with recurrent ovarian cancer financially, especially when she's working in a low-paying job?</li></ul> RESOURCES MENTIONED:<ul><li><a href="https://www.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/">Moody Radio Network</a> as well as <a href="https://afr.net/podcasts/faith-finance/">American Family Radio</a>. Visit our website at <a href="https://www.faithfi.com/">FaithFi.com</a>where you can join the FaithFi Community, <a href="https://faithfi.netviewshop.com/donate2">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

George Washington once said, “There is no practice more dangerous than that of borrowing money.” Our nation’s first president— a man who faced danger many times on the battlefield— thought borrowing was more dangerous. Today we’ll talk with Howard Dayton about 5 very dangerous ways of borrowing that you should avoid.

5 Types of Loans To Avoid With Howard Dayton

FaithFi: Faith & Finance | Oct 2, 2023

Show Notes

Where Faith Meets Finance

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