Have you found yourself in overwhelming debt to the point that you feel as though you will never break free? Then it is probably time to consider a debt management program. Christian debt management programs can work to consolidate your debt so that you only have one monthly payment rather than several. They can also work to eliminate or reduce interest rates which can make it easier to pay your debt.
How do Debt Management Programs Work?
Debt management programs work to help you regain control of your finances while paying unsecured debt. Debt management companies work with creditors to reduce monthly payments and interest rates on your behalf. Doing this will help you pay off your debt sooner than you would on your own.
When you consolidate your debt as part of your debt management program, you agree to make one monthly payment you can afford. This satisfies creditors while helping you pay on the principle of your debt, not just the interest.
Before you consider a debt management program, it’s important to know what types of debt are included. Many people are under the assumption that all debt qualifies. The following is a list of the different types of debt you can pay through debt consolidation when you use a Christian Debt Consolidation Program:
- Credit Card Debt
- Personal Unsecured Loans
- Past Due Medical Bills
- Collection Accounts
There are times when past due IRS debt can also be included. Debt consolidation programs are basically for anything besides your house or car that is considered unsecured without a title or deed.
When you decide to seek help with your debt, a debt counselor will look at your overall financial situation to determine what type of plan is best for you. They will look at how much debt you have, what types of debt, if you have a financial hardship and your ability to repay the debt you owe your creditors.
Once this is done, the counselor will explain all the options that are available to you. That way you can make the best decision for you when it comes to getting out of debt.
Benefits of Using a Debt Management Program
There are many reasons why you would want to use a debt management program. For starters, it will eliminate those pesky calls from collection agencies. But, the benefits are much more far-reaching. They include:
- Credit consolidation without a loan
- Create a monthly budget with realistic financial goals
- Make timely payments to improve your credit score and credit report over time
- Improve your overall financial stability
- Avoid bankruptcy and the issues that come along with it
The benefits of using a Christian debt management program far outweigh the angst of always worrying if you’ll be able to make your monthly payments. It is also far better than doing continual damage to your credit score and credit report.
Benefits of Choosing a Christian Debt Management Program
While choosing a debt management program is important, you don’t want to go with just any company. Choosing a Christian Debt Management Program over the competition comes with several additional benefits. A Christian debt counselor works on the Biblical principles of honesty, honor, and financial responsibility. Their debt programs are centered on the Biblical belief that when someone is in debt, they are serving two masters, God, and their creditors. Christian debt counselors help people to live a debt-free Christian life so that God is the only master that is being served.
Christian debt counselors have the compassion to realize that bad situations can happen to good people. Each client is treated with respect in a non-judgmental atmosphere.
Things to Consider Before Entering a Debt Management Program
It’s important to understand that getting rid of debt doesn’t happen immediately. It requires patience and discipline. Here are some other things to consider:
Debt management programs typically last 3-5 years.
If you drop out for any reason before it’s over, you risk losing all of the progress you made.
You will likely be asked to close all credit cards while in the program.
There are some cases where you may be allowed one credit card for emergencies only, but that is determined by a case by case basis.
Be accurate when reporting income and expenses.
You’ll want to give your credit counselor the most accurate information when it comes to income and expenses so that the right program and payment schedule can be established. Not being truthful will only end.
You can pay off debt early.
If you get a raise or have extra income, you can usually increase your payment in a debt management program so that you can pay off your balance quicker.
In the end, debt management programs work if you stick with them and are responsible with payments and don’t take on any unnecessary new debt. If you are finding it increasingly difficult to pay your debts and would like to learn more about debt management programs, contact Christian Debt Counselors today. Let one of our caring staff members listen to your problems and help you deal with your debt to make responsible financial decisions.