Editor’s note: This is the second of a continuing series of stories about getting out of debt and using money wisely.
Statistics for the past seven years show that financial stress is the number one cause of divorce in America, said Bill Arrrowood, financial counsel for Kentucky River Foothills’ Financial Partners program.
Most of that stress comes in the form of credit debt.
“Credit is so available,” he said. “Everyone is wanting to hand you a credit card and no one is asking if you can afford that card.”
The average American newlywed who has borrowed money for school will typically graduate with $15,000 in student loans and their average credit card debt is $9,000, he said.
When it comes to paying off debt, many are approaching it in the wrong way, Arrowood said.
“A log of (recent college graduates) will start trying to invest money in 401ks when it would be best to start attacking their debt,” he said. “They have to change their behavior. Their tendency is to take the highest interest rate, but a lot of times, you get tired of trying to do it and stop. It’s kind of like being on a diet. We recommend that you start with your smallest balance and keep doing it until you beat them all.”
An eight-step financial plan is available for free at www.newlywedfinances.com. The list encourages newly married couples to calculate their credit score, begin saving for retirement, create a monthly cash flow and review life and disability insurance needs to name a few examples.
The site features “A Few Financial Rules of Thumb” that include: saving at least 15 percent of your gross salary for your retirement; making sure that monthly mortgage payments do not exceed one half of your monthly take-home pay; and knowing that if you are paying minimum payments only or having a credit card payment that exceeds 20 percent of the monthly take-home pay, you are carrying too much credit card debt.
Foothills Community Action Partnership’s Financial Partners is a local, 12-week financial class program that teaches married couples how to make the right money decisions and how to achieve financial goals.
The Financial Partners follows the concepts of Dave Ramsey’s Financial Peace University.
In his book “Financial Peace Revisited,” Ramsey begins the chapter on money and marriage with a look at the differences between the way men and women handle money.
“When it comes to money, men tend to take more risks and don’t save for emergencies. Men use money as a scorecard and can struggle with self-esteem when there are financial problems. Women tend to see money more as a security issue so they will gravitate toward the rainy-day fund,” Ramsey writes.” (Page 196)
The program teaches participants how to make a cash-flow plan for each paycheck, how to develop a cash envelope system and how to pay off debt.
Classes are taught by accredited counselors in a one-on-one setting and/or in a group setting and include videos, workbooks and group discussions.
The program is available in Madison and several surrounding counties.
Classes are going on constantly, but it’s best to call ahead and be placed on the waiting list, Arrowood said.
For more information about the program or to be put on the class waiting list, call 624-4116.
Ronica Shannon can be reached at rshannon@richmondregister.com or 623-1669, Ext. 234.
Local News
Pay up!
‘Til debt do us part’: Debt and marriage: how to survive
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Judge weighs constitutionality of legislative redistricting
Kentucky’s deadline for filing to run for legislative seats was in flux on Monday because a judge did not immediately rule on a lawsuit challenging the constitutionality of newly redrawn district boundaries.
Franklin County Circuit Judge Phillip Shepherd said he expects to enter a ruling in the case by mid-week.
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Couple recovering from injuries suffered in weekend house fire
A couple was hospitalized after their home was set ablaze Sunday by a spark from a cigar, according to a county fire official.
County Fire Chief Jim Cox said the city and county fire departments were called to the home at 111 Concord Road in the early afternoon. Waco Volunteer Fire Department and the Richmond Fire Department also responded.
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EKU closes dining room at Arlington Clubhouse
A Richmond country club is no longer offering dining to members, but remains available for catered events and will be open on certain holidays.
Arlington Country Club, which has been a staple of Eastern Kentucky University for the past 40 years, laid off all dining staff late last week, according to Tom Coffey of the EKU Foundation.
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Standoff at Super 8 Motel ends peacefully
A bizarre drug-fueled standoff at the Richmond Super 8 Motel ended peacefully with no one hurt, including a child who was in the room with a man that police found wielding two knives.
About 1:53 a.m. Friday, police received a call about a man who was threatening someone with a knife at the motel on North Keeneland Drive, according to Richmond Police Chief Larry Brock.
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Trial for couple accused of human trafficking delayed
The trial for a Berea couple accused of human trafficking involving their daughters has been delayed.
Despite Monday morning television reports that the trial was beginning Monday, it was postponed because the attorneys are not ready to try the case.
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Richmond man charged with child porn possession
(Editor’s note: The following story contains graphic information some readers may find offensive.)
A Richmond man has been arrested for possession of child pornography as a result of a nearly one-year investigation by local police.
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Noted author to deliver keynote address for Black History Month
Almost a year ago, Arnold Rampersad stood in the East Room of the White House as he was presented the National Humanities Medal by President Barack Obama.
On Thursday, Feb. 16, the noted author will stand in O’Donnell Hall of Eastern Kentucky University’s Student Success Building to deliver the keynote address for the university’s Black History Month observance. Rampersad’s visit is also part of Eastern’s year-long Chautauqua lecture series, and the title of his talk, “Black History: The Challenge of Living with Others,” coincides with this year’s Chautauqua theme, “Living with Others: Challenges and Promises.” -
Habitat for Humanity
Habitat for Humanity of Madison and Clark Counties, which has built 160 homes for people in need since 1992, is seeking applicants for partner families, according to Judy Flavell, executive director of the organization.
“We really need applicants right now,” Flavell said. “More people can qualify for Habitat homes than people realize.”
Eligible applicants must have lived in Madison or Clark counties for at least one year, have a stable income, be able to pay a modest monthly mortgage and be able to demonstrate that their current housing is overcrowded, physically substandard, too expensive, unsafe, or they are living in subsidized housing, according to Habitat.
For more information about eligibility, or to apply, call Habitat for Humanity at 625-9208 or visit its office at 1417 East Main Street in Richmond. Visit online at habitatmadisonclark.org. -
Occupational therapy dept. at EKU offers program for adults with memory loss
For local adults who are experiencing memory loss related to dementia or Alzheimer’s, the Department of Occupational Therapy at Eastern Kentucky University has provided “The Place to Be” for the past two decades.
The department will again sponsor the free eight-week program on Thursdays and Fridays, 10 a.m.-2 p.m., beginning Feb. 9. Participants can attend Thursday and/or Friday. Applications still are being accepted (call 893-0653) for the free service, which is offered in Room 100 of the Dizney Building on EKU’s campus. -
Bible Belt towns in state consider going ‘wet’
In this Appalachian college town where socially conservative views are bedrocks of life, some people want to do what was once unthinkable: legalize liquor sales.
Supporters say passing the measure in Tuesday’s special election in Barbourville would tap a new revenue source in a place where hundreds of jobs are evaporating as one plant shuts down and another cuts its workforce in half. But from the pulpits to the courthouse square, opponents have been pressing their case that uncorking liquor sales would irreparably harm the town of about 3,200. - More Local News Headlines
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