Our mission is to act as the internets premier Christian Debt Consolidation information website providing access to high quality impartial and free information to help you make the right Debt Consolidation choices.

In a series of expert articles we will examine a range of Christian Debt Consolidation solutions which will provide you with the information you need to decide if you should seek expert advice from a Christian Debt Consolidation organization or take alternative action.

If you like the site and value the information we have provided please recommend us to your friends, colleagues and fellow Christians.

So let us start by looking at why you may wish to consider visiting a Christian Debt Consolidation Service.

Some debts are good and some are bad. Experts argue over the definition of good and bad debt and usually fail to agree. That’s because debt is a personal thing and one mans good debt is another mans bad debt.

Truth be told debt becomes bad when it creeps up on you and you realize that all you can afford is to make the minimum payment on your credit card each month. Or worse still, you can’t afford to make a payment in a month and your income is not sufficient to cover your living expenses and payment commitments.

If you find yourself in this situation, and sadly, millions of Christians around the world do, then it really is time to seek the help of a Christian Debt Consolidation expert.

Now before we continue, please bear in mind that there are a large number of different Christian Debt Consolidation Solutions and we will cover each one in turn on this website. Check out our Categories section in the right hand tool bar to see the different options available.

Often the first thing we do is hear the term Christian Debt Consolidation Loan, think that will help us and take up an offer without fully exploring all the options.

Christian Debt Consolidation Services include:

• Debt Consolidation Loans
• Debt Settlement
• Debt Payment Plans
• Credit Counseling
• Creditors Negotiation
• Credit Repair
• Bankruptcy
• Credit Card Consolidation
• Snowball Payment Plans

Any one of these services could be right for you and often, a combination of different options can prove to be most effective.

Armed with the information provided by this site you will be well placed to choose to manage your own debt situation or seek the advice of a Christian Debt Consolidation Service having understood a little more about the options they are likely to present in advance.

Always seek the advice of professional Christian Debt Consolidation Service before entering into any form of agreement with creditors.

If you find yourself in a situation where your minimum monthly credit card payment exceeds your available income you need a solution fast. As I repeat over and over again on this site resist the temptation to make a snap decision and rush headlong into a Christian Debt Consolidation loan. There are other options and they may be more suitable.

So if a HELOC is out (and it should be if all you are attempting to do is refinance existing debt). What are our options? Well as we’re specifically talking about credit card consolidation in this article we’re seeking to consolidate these by applying for a new credit card that will charge us a lower interest rate. There are often 0 percent or low interest rate cards available (at the time of writing this article I can see cards offering 0 percent on balance transfers for up to 12 months).

If you can get one, these cards can represent a fantastic opportunity to pay off some debts. They should not represent an opportunity to keep spending and indeed your new card should reside in a drawer at home for emergency use only. Pay the maximum you can each month and because of the 0 percent interest you are actually paying off the debt more rapidly without accumulating additional interest.

Now comes the fine print. On the surface these cards represent great deals and some do but sadly, the Credit Card industry doesn’t live by Christian principals and often glosses over some key facts of which you need to take into account before entering a Credit Card Consolidation exercise.

Firstly, shop for the lowest interest rate and not the lowest payment. The methods used to calculate minimum payments differ, often, significantly. This means if you only make the minimum payment each month it could add years to your repayment term and that is not an exaggeration.

Secondly check the “universal default rule”. This basically means that if you are more than 30 days late on any payment to anyone, the interest rate on your credit card could shoot up and your credit score may be damaged. A card without “universal default” is preferable.

Make sure you fully understand the fees involved? Does the card have an annual fee? If so, what is it? A real doosie is the Balance Transfer Fee which is popular with many card providers. They may offer 0% interest but they often charge fees for taking on your debt. A common figure at the time of writing was 3%. Thats right another 3% added to a debt you can’t really afford. Then there are late fees, over the limit fees and other costs that can be associated with using the card. Are these fees more attractive than those of your current card suppliers or more expensive?

You should also check what interest rate will be payable when the teaser rate expires. Is it better or worse than your current deal?

You may well benefit from calling your existing card company and asking them for a better deal. After all, if you’ve been a customer for many years and you can point to other offers they may be prepared to offer you something better.

So how do you know when it’s time to consolidate credit cards? Well if you think you’re having money problems, you are. If you can’t afford to make the minimum payments and all you cards are maxed out you have a problem. If you’re in this situation take action before it’s too late. You only get to live once and life brings forth enough challenges without those brought about by debt. Consider consolidation, debt management, debt counseling, cut your expenses and entertainment.

Notice once again that we’re talking about multiple options here. Finding the solution that’s right for you will involve methods of debt reduction other than simple debt consolidation. Find a Christian Debt Consolidation Counselor that cares and can help. Don’t just accept the first offer of help or respond to an advertisement that pinches a nerve. Make inquiries to several firms until you find one that isn’t out to rip you off and has your interests at heart.

Finding the right Christian Debt Consolidation Service will strengthen you faith and put money back in your wallet. It might not be easy but with trust in God and a steely resolve you will come out the other side stronger.

One of the most useful Christian Debt Consolidation strategies is the process of negotiating with your creditors to settle your unsecured debts for “less than you owe”.

Now this is not for the faint hearted and if you are suffering stress due to high levels of personal debt emotions will run pretty high. For this reason alone handing off debt settlement to a professional makes perfect sense. But there are other reasons which we shall cover here.

Debt settlement through negotiation is an aggressive, yet ethical approach to paying off your creditors at reduced amounts and avoiding bankruptcy. To enter a Debt settlement program you are typically required to have a minimum of $10,000 in unsecured debts.

If you have read some of our other Christian Debt Consolidation articles you will know how important it is to ensure these programs are tailored to your personal financial situation.

Debt settlement firms are typically “for profit” organizations, and therefore, will not provide the services that credit counseling agencies do, such as budget planning and financial counseling. For this reason you are better seeking advice from one of a “not for profit” organizations first and contacting a debt settlement only if it is part of Christian Debt Consolidation solution. A debt settlement firm will lower your monthly payments by requiring just one “reduced monthly settlement payment” as part of their program design.

Debt settlement programs are suited to those individuals under serious financial strain and who are finding it almost impossible to meet even their basic financial obligations. Creditors will actually settle for less than outstanding balance owed because they realize a consumer could file bankruptcy. This carries a great risk for them and they will often settle for something rather than nothing. For this reason accepting a reduced amount as a result of polite negotiation is often in their best interest as well as yours.

Whilst debt settlement is an excellent strategy to get out of debt in a relatively short amount of time, and with the least cash outflows of all methods (bankruptcy excepted - but make sure you read the Christian Debt Consolidation Guide to Bankruptcy) there are disadvantages.

The process requires that you commit to saving money and setting aside “lump sums” so that your accounts can be negotiated for reduced amounts.

A creditor will not negotiate on an account whilst it is fully paid. Accounts must be allowed to lapse as a result of missed payments as part of the debt settlement program. Delinquent and missed payments are reported by creditors to the national credit bureaus, and this is ultimately harmful to your credit rating.

Also, in a classic twist of irony, the IRS considers a debt forgiven to actually be taxable income! You may find it hard to believe but the IRS will expect to receive the appropriate amount of tax for the amount written off at the end of the tax year. This is often overlooked and you would do well to inquire about this in detail when discussing your situation with the debt settlement firm. This can also necessitate seeking the advice of a tax professional.

Clearly there is a cost attaching to these financial services which has to be taken into account as in the short term you are actually increasing your debt! This is why we recommend starting with a not for profit organization (that doesn’t mean its free by the way) as they will be able to put forward a solution using a combination of debt reduction techniques and strategies. In this way you only pay for what you need and can be confident the plan is right for you.

Christian Debt Consolidation Home

Sometimes declaring bankruptcy can be the best solution to your debt problems especially if they are insurmountable. It is not however an easy option and carries consequences which are not always fully explained. In this Christian Debt Consolidation guide article we will provide practical information on bankruptcy but please, please never act without taking professional advice.

There are basically two types of bankruptcy usually available:

Chapter 7 Bankruptcy

Under Chapter 7 you are effectively asking the court to forgive all your debts. You are required to surrender all assets that are not exempt (this varies from state to state). Exempt property will usually include some home furnishings and the tools of your trade. A court appointed trustee will handle this process.

Filing for Chapter 7 Bankruptcy ends any wage garnishments and the harassment from debt collectors. It is however an emotionally charged experience. The appointed trustee screens all of your transactions for an extended period of time. This is pretty humbling often accompanied by feelings of failure.

Chapter 13 Bankruptcy

Under Chapter 13 you may keep a mortgaged house and your car and rather than surrendering all assets you look to pay off debts over a typical 3 to 5 year period.

The court will determine your monthly disposable income and this amount is handed over to the court appointed trustee who in turn allocates the amount to your creditors.

At the end of the term any remaining debts are usually discharged. This may sound a better option than Chapter 7 Bankruptcy but again each case has to be examined on it’s own merits. We all have unique situations and the most appropriate choice (which may not be bankruptcy) will vary according to many different criteria.

I have to be honest and say that filing for bankruptcy should be considered as the option of last resort as the consequences are far reaching. There are other options such as Christian Debt Consolidation, Debt Management Plans, Credit Counseling and Debt Settlement to name some.

Bankruptcy affects your credit report for between 7 & 10 years and even after that period you may still experience difficulties if you are looking to obtain new loans or credit.

Here at the Christian Debt Consolidation Guide one of our guiding principles is to encourage Christians to explore every option to solving debt problems. That’s why, again and again we recommend you seek professional advice from a firm willing to explore all the options. Don’t believe all the advertising hype suggesting one solution will solve all your problems. It takes a combination of many and all of our needs are unique.

Please let Bankruptcy be the option of last resort and only if recommended by a Christian Debt Consolidation Counselor. To do otherwise could leave you with increased debts and an even more intolerable situation.

What Does A Christian Debt Consolidation Program Include?

A Christian debt consolidation program includes everything that a traditional debt consolidation service can offer including:

• Debt Consolidation
• Debt Management
• Debt Settlement
• Debt Counseling

But it takes things one or two steps further.  To begin with many Christian Debt Consolidation offerings are not for profit (as I’ve said previously though always check) so this can provide reassurance that any advice given is genuinely in your interests and not the firms.  Additionally, they place a strong emphasis on permanent debt solutions.  That is to say they help to change the way you think about and manage your money.

It is well evidenced and documented that traditional debt consolidation provides only temporary relief to an individuals money problems.  Why?  Because most people taking consolidation loans don’t change the behaviors and habits that got them in a mess in the first place.  In fact many have substantially increased debts just a few short years later.

So one of the unique facets of Christian Debt Consolidation is it’s focus on working with people to directly influence a change in behavior to ensure that once they have their debts under control they stay on the path and become debt free.  As mentioned above, so many repeat the mistakes that got them into debt in the first place so this concern is very in tune with Christian principles and values.

To put this a little more directly once you have worked with a Christian Debt Consolidation Counselor they hope you got on with the rest of your life and never have need of their services again.  By comparison the more traditional debt consolidation service looks forward to seeing you again and again and again.

Which do you think would be the best solution for you.  I’ll take the Christian Debt Consolidation service every time.

If, each month, you are only managing to make the minimum payment, or worse, missing loan or credit card payments altogether, a Christian Debt Consolidation loan could roll up your debts into one manageable monthly payment.

However, the mantra “look before you leap” was never so apt as you will need to take account of all the relevant issues as a Christian Debt Consolidation Loan may not be right or available for you.

In its simplest terms, a Christian Debt Consolidation loan will pay off your existing debts and bring together the money you owe into one loan with one manageable, monthly repayment. You will still have to pay back all of the debt, but with an effective Christian Debt Consolidation loan you should be able to reduce your monthly payment, obtain a lower rate of interest, or be able to spread the costs out over a longer time period.

How can a Christian Debt Consolidation loan help with debts?

Advantages of a Christian Debt Consolidation Loan:

• If you are careful about managing your spending, a Christian debt consolidation loan can help by reducing your monthly payments
• By spreading out the term of the debt you will often be able to reduce the monthly repayments to a more manageable level. Most people are often paying the ‘minimum payment’ allowed on the existing debts. This often just means covering the interest component of the loan while leaving the actual total amount owed unchanged leaving you indebted in perpetuity.
• It can improve your credit rating - If you are able to pay off the loan and accrue no further debt, this will have a positive impact on your credit rating
• It should reduce the interest you pay - If your debts are with store or credit cards that have a high interest rate, then you will generally pay back less interest on your debt with a loan. Make sure you stop spending on your cards or better still cut them up.

Disadvantages of Christian Debt Consolidation Loan:

• Oftentimes the lender will require security for the loan, therefore your are at risk of losing your home should you be unable to pay.
• The payment term for the loan (particularly where the debt is secured) may be considerably longer and the overall cost of borrowing may be greater in the long run.
• Initially, the amount you owe could well increase as fees may be added to the loan.
• The biggest disadvantage of a Christian Debt Consolidation Loan is that you will start spending the money freed up to enhance your lifestyle. This is a huge mistake and the majority of the extra money you find in your pocket each month should be used to increase the rate at which the debt is repaid.

How do I find the best Christian Debt Consolidation Loan?

The best way to find a good debt consolidation loan is to seek professional advice. Remember, debt consolidation may not be the best answer for you so find a Christian Debt Consolidation Service that will thoroughly investigate all the options on your behalf and make appropriate recommendations. A Christian Debt Consolidation loan is rarely the first and only choice in solving your debt challenges.