Debt can be a financial burden on anyone’s life and finding the right debt consolidation service can relieve families of the heavy weight brought on by debt. Christian debt consolidation loans may just be the type of service ready and waiting to help you and your family reach a debt-free life.
What are Christian Debt Consolidation Loans?
Although there are a number of plans, generally debt consolidation loans combine all of your eligible loans into a single, manageable monthly payment. Christian debt consolidation loans offer lower interest rates than most major credit cards. This allows more of each payment to be apply directly against your principal balance.
In addition to lower interest, the monthly fees associated with the loan often are substantially less than those currently found in a collections account. This again allows your money to work smarter toward reducing your debt.
What Debts Can I Consolidate?
Not all debt can be consolidated into a single Christian debt consolidation loan. Any debt secured by an asset cannot be included along with certain other type of debts including:
- Auto loans
- Payday loans
- Student loans
- IRS tax debts
However, there are a number of debts that do qualify, many of which are mistakenly thought to be ineligible. The debts eligible for a debt consolidation loan include:
- Credit cards
- Medical bills
- Personal loans
- Collection accounts
- Other unsecured debts
Reviewing all of your outstanding debts with a debt counselor will help determine which are eligible for a debt consolidation loan. For those debts not eligible, your counselor can assist in providing guidance on how to pay back the debt or may recommend a debt settlement solution.
How Will My Credit Score be Impacted?
A Christian debt consolidation loan can offer the chance to improve your credit. However, simply shifting debt from one place to another alone is not enough. By making a debt consolidation loan a part of a working financial plan, your credit score will improve over time.
Debt consolidation loans pay off current debt and this is the first step toward a healthier credit score. Nevertheless, it will take time. Even though individual debts are paid off, the result is a larger loan that will have a single monthly payment. Missing the new debt consolidation loan payment can have worse negative impacts than missing a payment of a lower balance debt. When you begin your debt consolidation loan, it is imperative to your own financial well-being to follow it through to the end.
Do I Qualify for A Christian Debt Consolidation Loan?
In nearly all circumstances, you likely qualify for a debt consolidation loan. Through tax credits, banks are incentivized to work together with debt consolidation programs. The incentives contribute to reducing monthly payments up to 50%.
By speaking with a debt counselor, they will determine which debt consolidation loan will best meet your needs. Every financial situation is unique and finding the right program goes a long way to working your way from under the financial pressures of debt.
What Steps Do I Need To Take?
Becoming debt-free is a process and it takes time. Through proper planning and a commitment to becoming debt-free, a Christian debt consolidation loan may help realize your goals sooner than if attempting to go it alone. To help you get there, take the following steps:
The first step is to take stock of your debt situation. Gather all of your most recent credit card and loan statements. On a piece of paper, write down the outstanding balance, monthly payment, and interest rate of each debt.
Contact a counselor
Speak with a debt counselor. They will be able determine which debt program will be appropriate and which debts will be eligible to participate.
Make a budget
The success of any debt program relies on the ability to set and stick to a monthly budget. Just because your monthly payment was reduced does not mean you are able to spend again. In fact, quite the opposite. If you have additional cash flow, now is the time to bolster emergency funds, save for education, or increase your tithing.
There will be many things that are tempting to spend your money on and incur more debt. Before spending any money, ask yourself if the decision will help or hurt your chances of becoming debt-free. You will likely already know the answer, but when you consciously ask yourself about why you are spending money, the satisfaction of becoming debt-free will be much more rewarding.
Achieve Financial Freedom
For many, becoming debt-free is only a dream. But, a Christian debt consolidation loan can help you avoid bankruptcy and stop the harassing calls. Coupled with a little hard work and perseverance, the dream of becoming debt-free is within reach.
Contact us today and we will work with you to help make your financial dreams become a reality.