Christian Debt Counseling

If you have struggled to make and keep a budget, or have found yourself falling behind on credit card payments, then Christian debt counseling could be the solution for you. With Christian debt counseling, you get all of the services of a standard credit counseling company, (see also debt consolidation firm) but backed by the Christian values of honesty, commitment, prayer and faith.

In general, credit counseling companies offer several different services. One of the most helpful services provided is budget counseling. A credit counselor will sit down you and go over all of your expenses and sources of income. He or she will help you decipher between needs and wants, and will help you figure out if there is room in your budget to make all of your minimum monthly payments and begin a savings account. Another helpful service offered is education and advice concerning credit reports and your credit score. Your credit counselor will help explain all of the elements of your credit report and the factors that contribute to the credit score. Then, if your credit score is suffering, he or she can provide advice and steps to help you improve your credit score.

Perhaps one of the most useful services provided by Christian credit counseling, or any credit counseling service for that matter, is the coordination of a debt management plan. With a debt management plan, you and your credit counselor come up with a reasonable amount that you can pay toward all of your unsecured debt (credit cards, medical bills, student loans, etc) each month. Then, the credit counselor contacts each of your unsecured debts and negotiates a lower monthly payment, lower interest rates, and the waiving of fees. Once an amount has been agreed upon by all parties, you deposit the set amount into a separate account each month, and your credit counselor uses those funds to pay your debts. The debt management plan is designed to get you out of debt within 5 years – a significant decrease for most people. Another advantage of being on a debt management plan is that your credit counselor can often get your creditors to bring your account to current after a few months on the program. For example, if you were one month behind before entering into the debt management plan, and then you make three consecutive on-time payments, your creditors will often agree to stop reporting your account as delinquent once you enter into the debt management plan. (see Help with debt Problems.)

So, if Christian debt counseling services provide the same services as all of the other debt counseling services, you may be curious about the advantage to choosing the former. That lies in the values of the organization. If it truly is a Christian organization and approaches credit counseling from a Christian perspective, then it could be a better fit for someone who considers him or herself to be Christian. For example, a Christian debt counselor may emphasize that when people find themselves in debt, they are violating a basic Christian tenet of serving two masters – God and money. You are not likely to find this perspective at your standard credit counseling company. A Christian credit counselor may also discuss your obligation to honesty and to fulfill financial commitments, specifically because you are a Christian. Again, this is a unique perspective. Finally, a truly Christian organization is more likely to have your best interests at heart.

Before you choose a credit counseling company, Christian or otherwise, the Federal Trade Commission (FTC) recommends that you ask several questions. First, ask about services offered. Make sure that the company provides plenty of different options and can actually help educate you about your money matters. Next, find out the fees charged. Though most companies charge fees at some point in the process, initial information and consultation should be free, and there shouldn’t be any upfront charges or cost. Also find out if they offer financial assistance if you cannot pay their fees – if they do not, that is a red flag, and you should head elsewhere. Make sure that the company is licensed to practice in your state and that employees are properly certified. Ask about confidentiality and for an assurance that your information will be kept private.

If you want a little bit more out of your credit counseling experience, and are looking for a company that shares your values, then look to a Christian debt counseling service to help you get in financial shape.