Fighting debts is a situation nobody wants to be in. In reality though, most of us find ourselves in a debt tangle at some point in our lives. It takes some doing to own a “debt-free” tag. There are a number of services available to aid and advice a debtor. And in case a debtor happens to be a Christian, additional help can be made available by way of services rendered exclusively for Christians – Christian debt relief.
There are quite a few organizations that offer Christian debt relief services. The dividing line between a Christian debt relief and other financial services is that Christian debt relief services propagate and infuse biblical values into finance management. Since the Christian debt relief services are spiritually inclined, many of them work on a not-for-profit agenda. Others may operate at relatively low costs. Many of the Christian debt relief services are funded by charities and hence, follow the non-profit order of business.
There are various Christian debt relief programs offered by agencies offering Christian debt relief services. Here is a low-down into the various programs that are offered under Christian debt relief services:
- Finance/credit counseling programs.
- Debt management & budget planning.
- Credit card debt relief programs.
- Programs that cater to student loans, medical bills, unsecured debts etc.
The details of the program may vary from company to company but the underlying principles are just about the same – promoting finance management the biblical way.
The first step under any Christian debt relief program is to scan and analyze a debtor’s financial status. In case the debts can be relieved by formulating an intensive repayment plan, it is worked out and the debtor is directed to stick to it with precision. This plan is construed after a careful analysis of outstanding debts, the monthly income, expenditure and liabilities. With a majority of funds being devoted towards repayment of debts, it becomes a matter of time before debts fade out.
However, when the debts are absurdly large in comparison to a debtor’s paying capacity, the companies may vouch for debt negotiations or consolidation loans. The Christian debt relief organizations set up negotiations with creditors. The creditors may lower the interest rates or settle for one-time payment at reduced rates. In case of one-time payments, your money shall be deposited with the Christian debt relief company till it is enough to meet the payment. This single payment is generally negotiated at a lower value than the original debts.
In case the creditors settle for a regular monthly payment, it is usually negotiated at a lower interest rate and is routed via Christian debt relief company to the creditor. The debtor pays just once to the company which in turn makes payment to the creditors as per the settled for rates. Since these rates are lower than the ones at which original debts were charged, money is saved on the interest and the debtor is also relieved of having to put up with multiple payments per month.
Christian debt relief programs also offer consolidated loans. This is a single loan taken up by a debtor to repay all his/her outstanding debts. The loan is offered at rates beneficial to the debtor. So, multiple debts are cleared away and the debtor needs to tend to a solitary loan taken at a considerably low rate of interest. There are certain conditions that need to be met by a debtor to be eligible for such a loan. Such loans are available in lieu of collateral. So, you may need to put up your home or any other valuable asset as collateral. In case of credit card debts, a Christian debt relief program may arrange for consolidating your debts on to a single low interest card thereby relieving you of multiple payments and mounting interest rates.
Though debt relief services are meant to ease the debtor’s burden, there are many fake companies lurking in the market. Here are a few pointers that will help you avoid scams:
1. Try and get recommendations of a Christian debt relief from a pastor/church.
2. Avoid any company that makes claims that seem too good to be true.
3. Pass off a company seeking huge or advance payments for their services.
4. Check with authorities for the agency’s background.
The Christian debt relief services not only offer best financial solutions but also preach ethical personal finance handling techniques.