Christian Debt Consolidation

Christian Debt Consolidation

The bible makes it clear in Psalm 37:21: The wicked borrow and do not repay, but the righteous give generously. You know you're not wicked because you want to repay, and your righteous because you do give generously (maybe a little too generously, as evidenced by your credit card debt).

Sometimes even people with the best of intentions can find themselves deep in credit card debt. Of course, you want to get it all paid off, but the credit card companies are charging such high rates of interest and fees that it seems like you'll never get out from under the pile of debt. Most people who are in deep can only afford to pay the monthly minimum; however, it can take up to 20 years or more to get your debt paid off this way. You hear advice all the time about paying more than the minimum, but maybe your income can't support that. It's hard to know what to do, but you want to be out of debt. A Christian debt consolidation may the answer to your prayers. This type of program will offer the ultimate counseling component, along with your ideal debt consolidation solution.

How Can Christian Debt Consolidation Help Me?

If you're a Christian considering debt consolidation, but have been scared off by horror stories, don't give up! There is hope! Yes, there are corrupt companies out there, but there are also Christian debt consolidation services out there who are on your side. Many Christian debt consolidation services are non-profit, which means that they are partially funded by participating creditors. Some creditors like banks, retailers and credit unions) donate a small portion of each payment to the agency because the Christian debt consolidation service is helping you manage your money better so you can pay your obligation to them. If you didn't pay your debt, your creditors would have to incur the costs of collection and possibly legal action. In addition, any donations made to the organization are tax deductible because it is non-profit. Although these agencies are partially funded by creditors, they may still ask you for a small monthly donation, but again, it's tax deductible and is usually not enough to cover the cost of the service being provided to you.

The Christian Debt Consolidation Process

The Christian debt consolidation begins by having an agent from the Christian debt consolidation company you choose talk to creditors of your unsecured debt to let them know you are enrolled in a debt consolidation program. The creditors are not required to cooperate, but they generally do because they realize you are trying to get help as a last alternative. Sometimes the agent can stop late fees, negotiate lower interest rates and lower monthly payments, and re-age your accounts so they are listed as current, not late. (This, too, is up to the creditor in the end.) Based on your new payment plans and your income, you and your agent will work together to determine an affordable monthly payment for you to accommodate the creditors included in the plan. They help you set up a budget that includes secured debts and the accounts in the debt consolidation program. You will pay your unsecured debts on your own, but you will make one payment to the debt consolidation company who will in turn divide that payment among your creditors.

Another benefit to Christian debt consolidation programs is that if your creditors have been harassing you either by phone or by mail, they will stop. Instead, they will direct all correspondence and phone calls to the agent for the Christian debt consolidation company you're working with.

Is Debt Consolidation My Only Option?

When it comes to Christian debt relief, you do have other options. You can try to negotiate with your creditors on your own, but it can be time-consuming and trying. You can also check into a debt consolidation mortgage, which is like a home equity loan. The beauty of this is that the interest is tax deductible. However, you will probably have to pay closing costs and possibly points, which can add up to thousands of dollars. In addition, your house is your collateral, so if you miss a payment, you put your home at risk.

To thoroughly explore your options, do extensive research on the Internet. Your credit future is too important to risk, and since you want to do the right thing, you want to find a company who has your best interests at heart so you can feel good about your finances again.

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