The main benefit of Christian debt counseling is that the counselors are trained to know the ins and outs of getting you out of debt.

So How Do You Find One Of These Modern Day Saints?

Although there are many incredible websites that promise the world, you want to be careful to avoid agencies that overcharge, under deliver and in some cases damage your credit rating even further.

Here are 4 things every consumer should expect from a reputable Christian credit counseling service.

• First, they should take a at your entire financial picture. The good, bad and ugly as they say. From what they see, they should paint a realistic picture about were you really stand financially. From, not so bad to… maybe bankruptcy would be a better option than debt counseling.• Next, they should evaluate your budget (if you have one) in complete detail letting you know where you can cut expenses. No budget? Then they will help you establish one.

• Once they have your new budget, they will determine if you are a candidate for their debt management services or if you need to see a bankruptcy attorney. If you are accepted to their program, they will discuss the benefits and drawbacks of their plan as well as how much you will need to spend each month to eliminate your debt.

• And lastly, once you are on your way to debt freedom, a good Christian counseling service will continue to help you set financial goals as well as continue to educate you about managing your finances.

Avoid Credit Counselors Who Are Just Out To Make A Buck!

Like anything in life, if it sounds to good to be true… get out of there. You want to watch out for excessive fees or if an agency is pushing you too hard to get into their debt management service. They should spend time educating you to the point that you can become a savvy consumer and make an intelligent decision on your own.

One scam that you most need to be careful of is Debt Settlement Firms or debt negotiation firms. These are NOT credit counseling services despite the confusing language they use in their advertising.

No matter what the name of the website and how convincingly nonprofit it sounds, these companies are in the business of making money. And while they may help lower your debt, the chances are that they will also lower your credit score by damaging you credit.

Are You Ready To Find a Real Christian Credit Counseling Service You Can Trust?

Check out these websites to find an agency in your area. The National Foundation for Credit Counseling or try The Association of Independent Consumer Credit Counseling Agencies.

Chad

There are Christians who would disagree that filing bankruptcy is an acceptable option by saying that “only the wicked do not repay what they borrow”. But their rendering of this Psalm is too hard.

In fact, if you choose to file bankruptcy you have a good Biblical case to move forward without the guilt that an overly oppressive view can cause. Which long term can harm your relationship with God.

But before you run off to decide whether you want to chapter 7 or 13 it, let’s look past the religious jargon to decide if declaring bankruptcy is the right choice for you. And who knows, you might be surprised.

Now that you know that I think Christian bankruptcy is okay, let me come clean and tell you I have never filed personal bankruptcy, so everything you are about to read is from the perspective of someone who fell into a lot of debt, but fought and clawed my way out. So there, that is my disclaimer.

First, going bankrupt is almost never a good option. It is actually pretty expensive to file bankruptcy (starting around $1000 with filing and attorney fees). It dramatically affects your credit almost immediately. And you will be wrapped in various legal issues that require a qualified bankruptcy attorney to navigate through.

And even if you feel like the late fees, credit card balances and over the limit fines are out of control to the point that you feel hopeless, there are times when should you avoid bankruptcy at all costs.

• When you think it sounds like an “easy way to get out of debt quick”.
• You think you can “just file bankruptcy” and the slate gets wiped clean and all of your problems disappear. Because they won’t!
• If you can, with a reasonable and sustained effort get out of debt. And by reasonable and sustained I mean 4-5 years of selling off ALL of the “toys”, sticking to a budget and even working an extra job to pay down the money you have borrowed.

With that said, here is when you should consider filing bankruptcy as a Christian.

• You have developed a budget and in doing so realized that you could not possible pay off your current debt obligation in a reasonable time (6+ years).
• You have found a local bankruptcy lawyer who can help you understand the legal ramification of what you are about to do.
• You understand the options of Chapter 7 (total bankruptcy) and Chapter 13 (a repayment plan).
• You have sought reliable Christian Credit Counseling and Debt negotiation help, but it hasn’t helped.
• And lastly, but really firstly, you have prayed and asked God to give you wisdom, peace and hope for the situation.

So while Christian bankruptcy is never a great choice, if you have corrected the source of the problem that got you into this mess and can honestly say to yourself and God that you have tried the alternatives to bankruptcy and have still not found the debt relief you need, then bankruptcy might be the ‘light at the end of the tunnel‘ that will finally relieve you from the hopelessness that threatens your happiness.