Workshop enables consumers to master their finances
By Sylvie Belmond belmond@theacorn.com

Most consumers who incur credit card debt don't recognize how costly it is to repay it in the long term, said Jerry Troyer, president of financial services provider The Malachi Group, during a financial workshop at Life Spring Community Church last Saturday. The Malachi Group's motto is that financial literacy holds the key to financial liberty.

A $7,000 credit card balance incurring a 20 percent interest rate would take 29½ years to pay off with minimum monthly payments of $117. At this rate the consumer will have paid $41,418 to settle the bill, Troyer told a small group of people who attended the workshop in Moorpark.

Saving money for retirement doesn't work the same way because laws favor creditors, not the average investor. If a person puts away $200 per month for retirement, earning 10 percent in interest, he or she will save $152,000 in 20 years.

This amount is not enough to cover costs during the twilight years without extra income, said Troyer. A couple spending $5 per meal three times a day would need more than $240,000 to cover food expenses for 22 years, he said.

Typical wage earners should consider finding a second job to pay off consumer debt and save more money, Troyer said.

Attendees at the workshop reviewed their own budgets on worksheets provided by the presenters.

Troyer, a former banker, said he founded the Malachi Group to help people gain insight into their own finances so they can achieve their goals, plans and desires through sound planning practices.

"About 80 percent of the people who come to the workshops have more expenses than income, so people need to make a plan so they don't have to fight about money and wake up at night wondering how they're going to pay their bills," he said.

Debt, coupled with a growing unemployment rate and reduced home values, is causing stress for some families in Moorpark and throughout the country, said Tony Amatangelo, senior pastor at Life Spring Community Church.

"Many people are upside down on their homes and trying to figure out what to do about that. Money is difficult to borrow; companies are downsizing and asking for voluntary salary reductions, and overtime work is being eliminated," he said. Increases in the everyday cost of living aggravate the problem.

Life Spring leaders, who have been approached by church members seeking financial guidance, decided to host the workshop to help people respond to the financial crisis in a practical way.

The information will help the Guintu family of Moorpark to forge a path in difficult times.

"People are struggling and becoming more involved in where their money is going, said Rowena Guintu, adding she attended the workshop with her husband James, who recently lost his job as a video game programmer, because her family can use all the financial tools they can get.

"We don't have the luxuries of life we used to have, so we need to stick to a budget, and the information will help us to allocate the funds we get every week," she said.

Guidelines provided by Troyer helped Guintu to understand escrow accounts that are used to help families put money away for annual expenses and long-term goals, she said.

"The ideas put forth by Troyer were practical in that he gave us a step by step approach to gaining control of our finances," said Hank Laird, executive minister at Life Spring Church.

For more information about Life Spring Community Church, visit www.lifespringcommunity .org. For more about The Malachi Group, visit www .malachigroup.net.