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Christian debt relief or Christian debt consolidation is all about helping you to repay bills and putting your financial life in order using the biblical principles of honesty, honor, and financial responsibility. Christian debt consolidation services are offered by consolidation companies and non-profit organizations. Any debt relief company will offer you a free Christian debt counseling session before you get started. Check out the following topics to get more information.
Is Christian debt consolidation different from others?
Christian debt consolidation is the same as any other bill consolidation program. Christian consolidation programs are specifically based on the biblical principle that one man cannot serve 2 masters.
When a person is in debt, he remains under the authority of 2 masters - God and his creditors. By freeing himself from the bondage of debt, a man can devote his time to the service of God. This is why you need to pay off your debts faster and lead a debt free Christian life.
How do you benefit from Christian debt consolidation?
Christian debt consolidation companies make it clear that as a debtor, you should honor your debts. The aim of Christian consolidation is not only to help you reduce your financial burden but also to show you the way to live within your means in order to ensure that you don't fall into the debt trap again.
With Christian consolidation program, you get the following benefits:
Reduced interest rates by negotiation with creditors.
Affordable plans to pay off debts in few years' time.
Multiple bills are replaced by a single monthly payment.
How much can you save through Christian debt consolidation?
It is difficult to say how much you'll save through the program as your financial situation is unique. The counselor will give you the monthly payment details after you've enrolled into the program. You'll be able to get an idea about your savings from that. If you still face problem, then check out the calculators to calculate how much you'll save through consolidation.
Are you committing a sin by paying back what you can?
Debt is a necessary evil in the current economic situation of the country. Bible does not prohibit debt straight away. However, it does praise the virtue of paying back what you owe and living a life without any financial constraints.
It is true that you’re not paying the full amount through the Christian consolidation programs. Nevertheless, you’re not ignoring your financial responsibilities like a wicked Christian. Rather, you’re honestly trying to pay back as much as you can.
Keep it in mind that creditor/lender is not bound to accept your offer. He’ll accept or reject as per his will. He is less likely to make a decision which won’t go in his favour.
There is yet another thing which should be taken into consideration. When the lenders/creditors agree to reduce interest rates, they are actually losing profits. They are committing an act of mercy. This allows them to express their gratefulness to the Almighty for his benevolence.
When will you be able to repay bills through this program?
This basically depends upon you and the following factors:
How well the debt counselors negotiate with your creditors
How much you owe in total
How much you're paying to the counselors every month
How frequently you miss payments
It usually takes between 2 and 5 years to repay bills. If you're lucky, then you may be able to eliminate debt within a year also. The counselor will give you an idea about the repayment term. Make sure you ask about the tenure of the program before enrollment. After all, you wouldn't want to be tied with debt forever. Your aim is to free yourself from financial chains and serve God like a true Christian.
Does this program help you only to repay credit card bills?
Apart from credit card bills, you can repay medical bills, store card bills, utility bills, payday loans, etc. through Christian debt consolidation program. However, you won't be able to eliminate your education bills and home loans through this program.
Do you have to include all your bills in this program?
You have the full freedom to choose the bills you want to repay through the program. You can include one credit card bill or multiple bills in the program. The choice is fully yours. However, the counselor will help you make the best decision. You can include more unsecured bills in the program later also.
Why should you take advantage of these options?
You can get the answer of this question from Bible itself. Debt is highlighted in a negative manner in Bible. God despises any form of debt which is not repaid on time.
As per the Proverbs 22:7: "The rich rule over the poor, and the borrower is servant to the lender".
You become the servant of the lender after taking out a loan from him. You sign an agreement where it is explicitly written about the things you’re allowed to do. The lender becomes your master. You’ve no will of your own. However, a true Christian has only one master, and that is God. Therefore, Bible admires the virtue of leading a life without any financial obligation. A Christian debt relief program helps you do so.
Psalm 37:21 comments: "The wicked borrow and do not repay, but the righteous give generously."
Wicked Christians don't bother to repay the loans. However, honest Christians need to repay what they’ve borrowed. If you’ve taken out a loan, then it is your responsibility to pay back your lender, no matter what the circumstances are. A Christian debt relief program helps you fulfil your financial obligations.
Deuteronomy 15:1-2 says: "At the end of every seven years you must cancel debts".
As per the Bible, each creditor should forgive the loan given to a fellow Israelite post 7 years. Creditor/lender can’t ask the borrowers to repay the loan post that period. They can only ask the non-Jews to pay back the loan.
However, if you really wish to be a devoted Christian, then it is best to pay off your dues before 7 years. A Christian consolidation or settlement or management program will enable you to clear your dues before that period.
How do you get Christian debt help?
Christian debt relief services provide Christian debt counseling where Christian debt counselor evaluates your financial situation to see whether debt consolidation or settlement is better for you.
If you choose consolidation as your Christian debt relief option, the counselor will negotiate with creditors/collection agency and work out a repayment plan on your behalf. For more details on how Christian consolidation works, take a look at the information on debt consolidation programs.
Instead of the consolidation program, you can take out Christian debt consolidation loans. But you need to think whether you're comfortable with an extended loan term and high loan costs.
What are the other Christian debt relief options?
Other than Christian consolidation, you can choose Christian debt settlement and management services that help you to manage and pay off your bills comfortably. A brief idea about Christian settlement and management services is given below.
Christian debt management services: This type of service is similar to that of a debt management program which helps you merge several bills into a single monthly payment. Here, debt counselor co-ordinates with your creditors/collection agency to lower your bill payments and eliminate extra charges. The basic principle of these services is to show you the way to financial freedom by helping you live within your budget.
Christian debt settlement services: This kind of service works just like the general settlement program. So, you can enroll into this program where the consultant will negotiate with your creditors to lower your principal, interest, and late fees. However, the Christian debt settlement service or program is primarily available to the individuals with a minimum of $10k of debt or more.
The Christian debt settlement program or service works on the principal that individuals have to be debt free in order to serve god whole-heartedly. This is why the Christian settlement companies help debtors to get back on their financial track and devote themselves in the service of God.
No matter what your religion is, you should honor your commitments and meet your financial obligations. Until you're able to pay off your bills completely, your life will be in bondage to debt. Christian debt relief services free you from financial obligations and help you stay away from debt so that you can conform to the Christian way of life.
By signing up for counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the pay off amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.