A Christian Debt Consolidation Warning…
If you have read my other Christian Debt Consolidation post you will know that I believe in this simple process of becoming financially free.
With that said, I do have one word of warning. While a consolidation loan is far from some type of sinister scam the money guys pull over on unsuspecting victims, you do have to be careful.
And here is how.
Because when you consolidate it does exactly what you want, it lowers your interest rates, compresses your bills into one payment and frees up extra spending money each and every month, it also gives you the opportunity to continue spending.
And with continued spending comes the real chance that you could make your financial situation even worse than what you are trying to get out of.
So when you decide that a Christian consolidation loan is the way you want to escape the money trap, just be careful that you also are committed to good money management and controlled spending.
A budget will be your best friend when you decide to consolidate.
Let me know what steps you took or will take to keep the spending within your new budget.
Chad
Debt Consolidation – What To Expect…
Christian debt consolidation can be an intimidating alternative when you are searching for debt relief. At least it was for me. The idea of letting someone see the financial mess I had made was, well, scary.
I didn’t want to get scammed.
I didn’t want to look like an idiot.
And yet I needed help. I couldn’t provide myself the consolidation relief that I needed. I mean, I was the one who got myself into mountains of credit card problems.
I wish I had know at the beginning how easy getting help was. And not only did I not feel like an idiot, but ultimately I felt encouraged, educated and empowered to improve my money management skills.
Here is what you can expect.
#1 You just fill out the simple form on the right. You don’t have to worry about anyone sharing your information. It is completely confidential. I don’t even get a copy of the information submit.
#2 You will get a free no obligation financial consultation over the phone by a trained consolidation counselor. They will review your financial situation and let you know what options you have for getting the relief that you are looking for.
#3 After you agree upon the best plan for you, your counselor will begin contacting your creditors with four goals in mind.
- Reduce your total amount owed.
- Lower your interest rates.
- Eliminate all late fees and over the limit penalties.
- Stop the harassing calls from collection agencies.
#4 To ensure that you get on the road to a debt free life, your credit counselor will provide you with the money management skills you will need to completely eliminate your money problems. The skills you learn will be things like budgeting, how to control spending and saving for the future.
Christian Debt Consolidation… 7 Reasons to Call Today!
Christian debt consolidation may be the debt relief you are looking for. Here are seven reasons why consolidating today might just be the help you are looking for.
- Stop the harassment from collection agencies. The only thing worse than being up to your eyeballs in credit card debt is to have your creditors hounding you at home, at work or even on your cell… during church. Yeah, that happened to me. I know, turn off your phone.
- You get a ready made plan. I could never say enough about the importance of having a plan that points you to the light at the end of the tunnel. When you have bills piling up month after month and overlimit fees and intrest charges are building faster than you can pay them off, having a little light at the end of the tunnel is that little something that can make all the difference.
- Overall you can have a lower monthly payment. So getting control of the run away fees in #2 and actually lowering your monthly payment really is the best of both worlds.
- Usually when you consolidate, you will only have one bill to pay. No more writing out 6-10 to even a dozen payments. They all get rolled together into one easy payment.
- Professional consolidation services usually can reduce your interest rates and late fees. Lower fees equals more money going to pay down your debt.
- The Plan in #2 leads to this one… you get a quick and consistent payoff. Probably the most rewarding thing about debt consolidation of your credit cards is that you will finally start to see your balances go down month after month.
- When you put all of these together you get benefit #7, peace of mind. When you have a plan and you can see it working, it feels good.
So pray about it today and start looking for the financial help that will put you on the road to the peace God intended for your life.
What are other reasons you would consider to consolidate your debt?
Let me know below.
Chad
Free Christian Debt Counseling Is Tricky, Know These 3 Things Before It’s Too Late…
Knowing that free Christian debt counseling is available when you are in deep financial trouble, can be reassuring. And yet it may not be enough.
There are tons of counseling services whose help can range from helping you completely restructure your debt, to reducing or even eliminating all of your late fees.
Here’s where it get’s tricky.
With all of the options you have, how can you guarantee that the service you are selecting has strong relationships with your credit card companies and actually know what they are doing so that they can help you negotiate a smart payment plan that puts you back on the road to financial health?
One way is to make sure you know the answers to the following 3 essential questions you must ask the Christian counseling company you are considering.
#1 Do they “front-load” their entire fee into your first payment to them?
- Why does this matter? Some companies will take their “service fee” out of you first payment to them. When they do this, you will become automatically 1 month behind with all of your creditors.
#2 Are they a member of the Independent Consumer Credit Counseling Agencies (AICCCA)?
- Why does this matter? This is a national organization dedicated to honesty and integrity in debt counseling services both online and off.
#3 Is your money problem about more than financial management? Is there anger, stress, anxiety or depression to go along with the bills?
- Why you should care. Dealing with the stress of money and all the problems that go along with too much financial strain may require professional help. A good counseling service should be able to help you uncover the roots of your money problems.
That’s not an exhaustive list of things you should know, but it will get you started in the right direction.
Your goal should be to find a service that will help you more than they are out to help themselves.
Knowing these three essentials will help you weed out the ones just looking to scam you out of a quick buck.
Good luck and let me know who you find!
Chad
Christian Debt Relief in 4 Easy Steps…
Can you get real christian debt relief in only 4 steps? Absolutely, but you have to follow the steps religiously. No deviation and no backing out.
So what are the four steps to real relief?
#1 Get a grip on your finances.
At the point that you are asking the question, how can I find relief from my money problems, you already suspect that you have a problem with your finances.
Whether it is too little coming in or too much going out, the first step to getting a break from the frustration of credit gone bad is to take an honest look at what shape your finances are in.
Knowing the truth about your debt to income ratios will go a long way in making step two not only productive, but safer. The worst thing you can do is go into step two uninformed. That is what leads to people who really need relief being scammed by the ‘credit help’ charlatans out their.
#2 Face the facts.
If you are in over your head, the sooner you can get help the better. Most likely you didn’t find yourself in this mess overnight and it isn’t going to work itself out without real effort on your part.
If you want to multiply the results of your work to get out of debt faster, you will need a professional. Whether it is a Christian nonprofit credit counseling group or a consolidation loan from your local lender, there are people who can help you assess your personal situation and develop a realistic plan that works with the resources you have.
#3 Go on a debt diet.
Once you have a plan to find financial relief, you have to stick to it. You can’t fall off the wagon because of a new car, purse or concert.
You need to manage your money wisely. Get on a budget. Cut your spending. And most importantly work the plan you committed to in #2.
It was the only way I could undig from my financial disaster. And don’t get me wrong, at times it was horrible. But now that I am living debt free, all the pain I endured looking for just a little relief, is just a distant memory.
And it’s not even that bad of a memory. I am actually kind of proud that I did without somethings and postponed others. I think I am better for it.
#4 Stick with it.
Once you find the relief from the crushing financial stress of being over indebted, don’t go back.
For me this isn’t a problem, I remember the suffocating pain of owing more than I could pay.
But for you, watching your sister or neighbor or co-worker get that new “thing” might be too much to take.
It might tempt you to fall back into a cycle of spending too much. You might say to yourself, it’s only a hundred bucks a month… or what ever. But it is all of those little bills that add up to the mountain of debt that you are looking for relief from right now.
So don’t fall for it. You were made for more than getting stuff!
That’s it. Four easy steps to finding real Christian Debt Relief!
Which step do you think is the hardest?
Let me know below in the comments.
Chad
Christian Money Management is the Key to Debt Solutions.
Christian money management education is a must for any individual or couple who wants to gain control over their debt. In fact, of all the teaching that is done “to us”, managing our money is one of the gapping holes in all of our learning. And it doesn’t matter if you are single, married, in college or still a teenager, we all suffer from a lack of good money managing skills.
So it is up to us to take control of our own financial management plan and learn the basics that will ensure that we understand credit, debt, budgeting and spending. If we don’t, no matter how much work we do to eliminate our debt, we will fall right back into the same debt trap we have worked to get out of.
So what are the basics of good Christian money management?
First, you have to get on a budget that helps you understand where your money is, where it is going and how you can plug up any holes that are letting your hard earned cash leak away. This will let you maximize getting out of debt and just as importantly, staying that way.
Next once you are out of debt, protect your credit at all costs. If you can’t stop spending on credit cards, then don’t take them with you shopping. If you still can’t stop, get rid of them.
After that you need to build up your cash reserves that will be there in an emergency. How much? Well that’s up to you and what your financial goals are. But you should consider, if you lost your job, how long would it take to replace?
Along the same lines as reserves, you need the rainy day fund. Think about the potential big expenses in you could run into. Whether it is an accident in your car or a major appliance breaking down, do you have enough in your savings to cover at least one of these common occurrences?
And lastly, as a Christian, you have to educate yourself about what is important in your life. All of your money management problems can be solved when you have buying “things” in the right perspective. Knowing what is important will stop those out of control spending sprees and the impulse “just gotta have it” buys that can take all of your attempts to manage your money.
With just a small amount of Christian money management education and a few simple tool and worksheets, you can be a pro at keeping your personal finances in check and on track!
Trust me, if I can do it, so can you.
Chad
Is Christian Debt Settlement a Scam? Are The Christian Based Companies Truthful?
Christian debt settlement is not for the faint of heart, especially with all the wolves in sheep’s clothing out there trying to part people who need help from what money they do have.
This approach to getting out of debt should be used with caution, but not totally avoided.
Even the Christian based companies that are advertised as your salvation to the credit trap you find yourself in should be viewed skeptically and checked into fully before you sign up OR hand over any money.
In fact, many debt settlement companies charge significant upfront fees as well as ongoing additional fees to assist you in lowering your debt load.
These fees are supposedly based on such things as the number of debts they will be negotiating, the amount of money you own through your various loans or even the amount of debt that they negotiate for your creditors to forgive.
When to consider Christian Debt Settlement…
Debt Settlement for the Christian should be a last alternative to unloading the burden that is keeping you from the peace that God intended for you.
Before you pick a company to start the process you should consider the following.
- Christian debt settlement is for people who are in a REAL hardship situation.
- It is NOT for people who are tired of paying their bills and are looking for an easy way out of the mess they are in.
- And, you want to avoid bankruptcy and repay as much of your debt as you are capable of repaying.
What Should You Expect When You Settle Your Debts?
First, you will stop paying your creditors. But you don’t get to keep that money that you are saving.
Instead, you save it in a separate savings account where it can build up until the day your settlement company negotiates your final payoff.
Eventually the creditors will take the hint that you are no longer paying your loans and they will write your debts off of their books.
Unfortunately they do not stop trying to collect the money that you owe them. In fact, they will only become more aggressive as time creeps by.
There will be a point when the creditors will be ready to settle on the debt you owe them. Sometimes for as little as 25% of your total balances, but more likely in the 50%-75%.
Still Unsure? Think You Might Be Stealing?
Christian debt settlement can make you feel like you are stealing. You might be concerned that you are somehow skipping out on debt you legitimately owe.
But if you really considered and prayed about the three “rules” above and you feel that you honestly can say:
- “No, I’m not just trying to get out of debt so I can buy that…”
- And “I want to avoid bankruptcy so that I can repay as much as possible.”
Then, don’t be so hard on yourself.
Life happens.
Even the most careful stewards of their money can run into trouble sometimes that they can’t get out of. What is dishonest about paying back as much as you possibly can?
By the way, don’t think that the credit card companies didn’t expect some people to be unable to pay them back when they allow these huge credit lines and then increase the interest rate to 20%-25%.
And lastly, with Christian debt settlement you are trying to do the honorable thing by not filing bankruptcy and completely walking away from obligations.
You are trying to do what is right for you and for your creditors, so that you can enjoy the rest of the life God has given you!
Christian Debt Consolidation Loans, Blessing or Curse?
Christian debt consolidation loans can seem like a real answer to your prayers, but are they just another trap that banks and the credit industry have created to keep you tangled in a web of bad debt?
The truth is, a consolidation loan can be either one. This page is here to help you weed through the double talk and to find your way out of the credit frustration you have found yourself in.
So, what is a Christian consolidation loan, anyway?
Well, debt consolidation loans are loans that you get from a bank to pay off all of your current debts. So instead of paying several bills every single month, you only have one payment to make on all of the money you owe.
Debt consolidation loans for Christians (or not) can either be unsecured or secured. That simply means that if the loan is unsecured, you only have to give your word (and proof of income. If a consolidation loan is secured, then you have to have some collateral to guarantee the loan. In most cases this is your home or some other asset that ensures your repayment.
But, how do you know as a Christian, if you are a good candidate for a debt consolidation loan?
- • Do you have several bills that you have to pay each month, usually with different due dates and amounts?
• Are you having a hard time staying up to date with all of your bills, causing you late fees and higher interest rates?
• Are you current interest rates higher than 8%-10%?
• Do you have equity in your home that you could use to simplify your life?
So, what do you need to get a Christian debt consolidation loan?
- • You will have to show that your income will allow you to repay the loan. This may require that you provide a current budget that addresses all of your spending.
• Documentation showing that you own the collateral that you intend to use (unless you are applying for an unsecured debt consolidation loan).
So that’s what the bank will want from you, but what should you look for from the bank to ensure that your consolidation loan will do more good than harm?
- • You must know all of the fees that will be charged in order to get the loan. Some companies are notorious to scam people in debt because they realize what a vulnerable situation it can be.
• Your interest rate is critical. Make sure you know what you are signing up for. With a secured loan, the rate will likely be less than with an unsecured debt loan, but only you can decide if that is okay for you. It may make more sense for you to pay a slightly higher rate in exchange for not having to tie the debt to your home.
• This one will seem obvious, but make sure that your monthly payment will be less for the new loan than for all the bills you are consolidating. Otherwise, you are wasting your time.
So, quickly before you run off and get a Christian debt consolidation loan at your local financial institution, do you want to know the potential downside of consolidation loans?
- • While a debt consolidation loan allows you to pay smaller monthly payments, the loan period is typically much longer.
• With secured loans, you are linking the loan to something of value that you own. If you fail to repay the loan, you could loose your stuff.
• A consolidation loan does not stop you from spending money on your credit cards once they are paid off. It is completely possible that you could fill them right back up and have both a consolidation loan, as well as all you previous credit card bills coming to your house again.
So the real question is, can Christian debt consolidation loans really set you free from debt?
Yes!
But all the other good Christian money management guidelines still apply (and even more so) once you have consolidated your bills. Consolidation loans only solve your debt troubles if you stop spending more than you make.
And if you don’t stop spending?
You will discover yourself stuck in the debt trap that the consolidation loan was suppose to get you out of.
So be careful, pray and let God lead you concerning a consolidation loan.
Chad
Christian Credit Repair Should Be At The Top Of Your List As A Christian.
Why should Christian credit repair be so important? And what about being a Christian makes it especially important that you fix your credit?
Well first off, as a Christian it is important to know how to repair your credit so that you don’t have to be under the heavy burden of be indebted to another person. It keeps you from living your best life. When you know that you owe someone something it affects your relationship with others, with God and even with yourself.
And the second reason to focus on Christian credit repair is that when you are in debt and have bad credit, you can’t give freely when you see someone in need.
Okay, this is getting creepily close to sounding sermon-esque, so why don’t I stop now and let you know how to repair your credit.
The Steps To Christian Credit Repair Are Simple!
First you have to know your financial goals so that you can create a spending and savings plan that will help you get there. Set goals that are going to help you become the person God made you to be. Do you want to buy a house, start a business or take a missions trip?
If so, great, while you are working to improve your credit you have a reason for the effort you are about to put toward repairing your credit.
Now your spending plan has to provide for your expenses today and at the same time build cash reserves for your future goals.
Your spending plan must include the following key elements.
- • Enough money to cover your current living expense. Nothing can get buy here and fall into the “I’ll just charge it” category
• Second you have to have an element of savings for those future dreams God has given you.
• And last but certainly not least is an emergency fund for all of those unexpected expenses that pop up and demand your money or in the past your credit.
Next you have to understand your credit report. Why? Because credit is essential in achieving your goals in the future. Bad credit equals paying more for everything you ever finance in the future.
You can get a free copy of your credit report online at
http://www.annualcreditreport.com
. Don’t fall for the slick advertising and free sounding website names, many will charge you, but not this link it is completely free once per year.
Once you have your free credit report, you need to review it in detail to be certain there are not things on there that are incorrect. This will give you the blueprint on how to repair credit.
From here you want to build up the positive entries on your credit report so that they dwarf any negative entries.
How?
Make small purchases using your credit and then make ALL of your payments on time. Why small purchases? Because you can make lots of then, get them paid off and get them onto your credit report much quicker than when you are working with large purchases.
Also, as you are making small purchases and paying them off, be careful to NEVER let your total balances become higher than 50% of your available credit on that line of credit.
So that’s it, a simple plan on how to repair credit as a Christian. It’s not glamorous, or instant, but it does work and within 6 months to a year, you will have fixed your credit.
Make sense?
Chad
Is Christian Debt Free Living Even Possible In Today’s World?
As a Christian, debt free living is not only possible, but a freeing way to live. Because when you are debt free, you can focus on the things in your life that are really important, like your relationships with God, family and friends. You can keep up with your health by reducing your stress. And you can live in the confident assurance that you are indebted to NOONE.
And let’s face it, being free from debt, just feels better than the alternative.
But here’s the thing, debt free Christian living doesn’t come by accident, or wishful thinking. In fact, living debt free is a choice that you must make everyday in every financial decision you encounter. And just like making new years resolutions to get fit, spend more time with family and friends or to read your bible everyday, it can be hard to stay committed to your decision.
So what is the solution?
Here are three easy ‘Christian Debt Free Living Secrets’ to keeping you committed to stay out of debt forever.
Christian Debt Free Living Secret #1
The first this you have to do is… get out of debt! Whether you do it by Debt Consolidation, Credit Counseling or just good old fashion paying it off, you have to eliminate your debt to live debt free.
Now, Christian debt free living does NOT have to mean that you never use credit again. In fact, credit can not only be a very convenient way to live, but it can be essential to meeting your financial goals of getting a mortgage, buying a car or even ensuring the lowest possible car insurance.
The point is not to eliminate debt and credit from your life, but to master the use so that you control the debt, not the debt controlling you.
For some that may mean that you never charge a balance larger than you can pay off when the bill comes, but for others, it means you don’t take your credit cards with you EVER, because you know you will spend more than you can afford.
Christian Debt Free Living Secret #2
Make a plan to stay debt free. You have to make a plan because, as I have said before, living debt free doesn’t happen by chance. It is a choice you have to make each day. And in order to keep your sanity, living by a pre-made plan is the only way to keep from being consumed with the daily temptations that will lure you back into a cycle of debt.
Your plan should consist of good money management focused in three specific areas. First, you have to have a budget. They are painful, they are often ugly (when things we think we want do balance with our incomes), but they are essential to being a debt free Christian.
Next, you have to set priorities. Without priorities, the daily temptations are too hard to ignore. When you know you are saving for a new car, house or pair of shoes, it makes it a lot easier to walk past the killer deal on that thing you don’t really need.
Lastly your plan has to make room for emergencies. They are going to happen. And just like you know the phone bill, house payment and electric bill are all coming due next month, so are emergencies a part of what you need to allow for. Otherwise, you will be sunk back into debt and debt free Christian living will only be a memory of the past.
Christian Debt Free Living Secret #3
Stick to it! Once you are out of debt and have a plan to stay that way, stick with it. There is nothing easier than falling off the wagon of your debt freedom if you don’t stay committed, even when everything else seems better.
Here are 3 quick ways to make sure you stick with your choice to live debt free.
- Remember the pain of being in debt. There was a time when you couldn’t sleep. Creditors were hounding you and you longed for the day it would all be behind you. Just don’t forget where you came from.
- Remember what is important to you. Is it more important to save up for a house, your children’s college or is spending now and risking your future worth what ever you are thinking of entering debt to get.
- Lastly, stay away from temptation. If you know you have troubles when you peruse the mall, then don’t go hang out for the day. Or if you see that your neighbor just got a new car, ease the temptation by remembering that they just got a new bill that comes to their house also.
So that’s it, the secrets to living your Christian life completely debt free.
Hope it helps you as much as it has helped me.
Chad