A Christian debt settlement program 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 debt relief should be used with caution, but not totally avoided.
Even the Christian debt settlement companies that are advertised as your ‘debt help salvation’ to the credit card debt you find yourself in should be viewed skeptically and checked into fully before any Christians sign up OR hand over any money for “debt reduction”.
In fact, many debt settlement services charge significant upfront fees as well as ongoing additional fees to assist you in lowering your debt load and with unsecured debt management.
These fees are supposedly based on such things as the number of credit cards they will be negotiating, the amount of money you own through your various loans or even the amount of debt negotiation they do to “save you money” and make you debt free (aka get 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 debt consolidation, credit counseling and the following.
- What Should You Expect When You Settle Your Debts?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.
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, remember that 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!
With Christian debt settlement you are choosing the honorable alternative to filing bankruptcy and completely walking away from obligations.
So, what is your take on Christian debt settlement, drop a note below…