Debt Consolidation Blog

Christian Debt Consolidation Company Versus A Regular Debt Consolidation Company
By Darnell Scott

Repaying numerous loans and facing the hassles of creditors proves to be tedious after some time. So if you can’t face all this, it is better to seek the help of a debt consolidation company. A debt consolidation company replaces all your loans with a single debt consolidation loan. You only have to pay the debt consolidation the monthly payments; the company then pays all the creditors. You then don’t have to handle the creditors or face their bickering.

There are basically two types of debt consolidation loans; secured and unsecured. In the secured loan, you have to pledge collateral for the loan. If you fail to repay the loan, this collateral is seized by the company. In the case of the unsecured loan, there is no need of any collateral being pledged. However, the amount that can be borrowed here is lower, with a higher interest rate.

Christian debt consolidation companies and regular debt consolidation companies basically provide the same facilities. The difference lies in their beliefs. The Christian debt consolidation company ensures their fellow Christians that it is Biblical to take advantage of any program that is run by a Christian debt consolidation company. Christians generally feel it’s wrong to fall into debt. Some say that it is not permissible for a Christian to owe money even for auto and home loans. However, there are others who feel that it is okay to sustain some form of debt, as long as the item the loan is taken for has potential worth appreciating.

Christian debt counseling companies say that it is allowed to be in debt if the loan was taken to produce an income or if the value of the item equals or exceeds the amount borrowed. Christian debt counseling companies say that we have to pay back whatever is borrowed. They quote from the scriptures that “The wicked borrow and do not repay, but the righteous give generously” (Psalm 37:21).

Christian debt consolidation companies feel that living life is increasingly more difficult with increasing debt. So they are committed in helping people gain control of their finances and to become debt free. It is due to all these thinking that the christian debtor generally feels that they cannot deal with a regular debt counseling company, but are comfortable with a christian debt consolidation company. Christian debt consolidation companies claim to let people refinance their debt at lower interest rates; sometimes even zero interest.

However, whichever debt consolidation company you choose, it is better to do some background check on the company. Find out how long the company has been around, and if there is no information, then there is no need of approaching the company. The best way of finding more information on the companies is by checking with the local Better Business Bureau, state Attorney General and the consumer protection agency. You can also find out from the Attorney General if a license is required to run a debt consolidation service, and if the debt consolidation company has a license. However, never be fooled of any company claiming of being not for profit; no one works without profit.

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Debt consolidation is an approach people in debt adopt to get out of debt. With debt consolidation, all of your previous loans are replaced with a debt consolidation loan that is availed from the debt consolidation company. This company negotiates with your creditors to reduce the interest rates of their loans, and even the loan amount. This then leads to a single, lowered monthly payment to be made to them. The company then pays all your creditors their money with the money you send them every month.

However, there are many Christians out there who are uncomfortable with being in debt, more with the debt that is out of control. This is because some Christians feel that it is not acceptable for a Christian to owe anyone any money, even for necessities like a home. But there are also some Christians who feel that loans that don’t place a burden on the family are acceptable. This is the reason there have been a growth in the number of Christian debt counseling companies that specialize in catering to Christian clients in the recent years.

When you approach a Christian debt consolidation company, you are assisted in consolidating your debts and are provided with a repayment schedule. The company arranges to let you to continue tithing while providing the additional and necessary spiritual counseling that you need to stay out of debt. Spiritual counseling here is offered in a way that is consistent with Christian beliefs and with the teachings of the bible.

Getting the help of a Christian debt consolidation company proves to be beneficial in the long run as creditors are usually more than willing to extend favorable terms to such clients, thinking that they will repay their obligations in good faith. The Christian debt counseling company also helps you reshape your payment schedules, renegotiate your loans and reduce your interest rate. Most of these firms are non profit debt consolidation companies and are in the business only to help fellow Christians get back on their feet and be freed of any heavy debt.

However, be wary when choosing the right Christian debt consolidation company for your needs as there are many companies out there that claim to be non-profit services, but are actually out there to get as much as they can do from whomever they can. Contact the consumer federation of America to find out more about the Christian debt counseling company you wish to approach. There are many companies out there that have caused more damage than repair to the debtor by offering improper advice.

The Christian debt consolidation company may offer lower interest rates; however, they may not be always honest. Some charge debtors more than what they make in fees. So like other debt counseling companies, do a background check on the company before using their services. Get feedback from previous clients and customers of the company to find out if they benefited from approaching a Christian debt consolidation company. Find out how long the Christian debt consolidation has been around. If there is not much information, then there is not much use in approaching them.

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