The average person is no stranger to debt. In fact, numbers from the Federal Reserve show that the average household carries more than $137,000 in debt. Despite your best efforts to pay any debt you owe, there are times when it can get overwhelming and you need help in the way of debt consolidation and counseling. Hiring Christian debt counselor is one of the options that can help lead you on the path to fiscal responsibility.
What is a Christian Debt Counselor?
It’s important to know how a Christian debt counselor is different than an original debt counselor. A Christian debt counselor works on the Biblical principles of honesty, honor, and financial responsibility. Christian debt consolidation programs work on the Biblical belief that a person cannot serve two masters. When someone is in debt, they cannot serve their creditors and God. The only solution is to pay off creditors in order to live a debt-free life.
Before hiring a Christian debt counselor, it’s important to ask several key questions:
What types of debt can you help me manage or pay off?
Credit cards, personal loans, collections accounts, medical bills, as well as some other unsecured debt are all eligible for debt counseling and consolidation programs. Mortgages, car loans, IRS tax debts, student loans, and payday loans are all not eligible for debt counseling or consolidation programs.
How can debt consolidation help me?
If you are struggling to make monthly payments, a Christian debt counselor can look at your situation and help you determine how you can combine all your debts into one monthly payment you can afford. This can often shorten the number of payments allowing you to lead a debt-free Christian life sooner rather than struggling to make multiple payments each month.
What is a debt settlement program?
There are times when bills are unable to be paid due to a financial hardship. When this is the case, a debt settlement program may be an option. This process involves negotiating with a creditor to pay off a percentage of your total debts at a settlement amount you both agree upon.
Since this type of program may not be suitable for all situations, it’s important to seek the help of a Christian debt counselor who can review your case to see if you may be a candidate. If you are, they will refer you to an attorney network that will handle your case. Debt arbitrators will negotiate with your creditors on your behalf, to reduce your overall debt and avoid bankruptcy. It’s important to know that you may be charged a smaller retainer fee compared to a non-attorney based company.
Will all debt counseling and consolidation programs eventually lead to bankruptcy?
Not at all! The goal is to avoid bankruptcy at all costs. Once you decide to contact a Christian debt counselor, they will thoroughly examine your situation to see whether a debt consolidation or debt settlement plan would be best suited for you. The goal is to regain control of your finances, pay off debts, and devise a plan that will help you better manage your finances. People who find themselves in financial difficulty often survive by borrowing from one creditor to pay another. Eventually, there are no more credit lines available. Debt counselors are often contacted at that point or sometimes before it gets to that point.
Creditors will often tend to negotiate because when someone files for bankruptcy it is very likely they will receive little to nothing of the money owed to them. It is often in their best interest to work something out.
Why should I speak with a Christian debt counselor?
When you choose a Christian debt counselor you not only get sound financial advice, but you are receiving it from the Christian perspective which is something other debt counselors cannot offer. For those who are grounded in their Christian faith and beliefs, a Christian debt counselor offers a comforting and supportive ear to go to when times get tough. A Christian debt counselor will not only help you deal with your current financial problem and help you get out of debt, but they will also help you develop a financial plan for the future. When you have a financial plan in place it can make it easier to manage your money and avoid the same problems again.
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.
If you are experiencing a financial hardship, hiring Christian debt counselor is a wise decision. If you are ready to find help, contact Christian Debt Counselors today. Let one of our caring staff members listen to your financial problems and help you find a solution and a path to financial stability.