But with the credit cards comes a dark, sinister, evil thing called credit card debt. This is a particularly dangerous type of credit because it is unsecured. This means that the card issuer does not have collateral.
For instance, with a mortgage, the loan is secured with the house. If you can't make the payments, the bank forecloses and takes the house to satisfy the debt.
For the Christian, this poses a question of whether it is biblically proper to either consolidate debt or use a debt relief solution. Here is a comparison of the two for you to make an informed decision.
Christian debt consolidation
Based on Christian values and ideas, Christian debt consolidation is very simple. You enter into an agreement with the debt consolidation company. The company negotiates your debts for you and settles on an amount that is usually less than the original amount owed.
If you figure what you would have paid back in aggregate if you had continued with the minimum payments, this is a significant savings. You can actually repay approximately 20% of the total amount of ALL the payments you would have made. Not the outstanding balance owed, but the total of all payments that would have been made over time.
Once the consolidation company settles the amount with your creditors, they make a loan to you and you make one payment to the Christian debt consolidation company.
They then disburse the monies to your creditors and you can be debt free in as little as 24 to 36 months.
Christian debt relief
This is a little different from debt consolidation. Christian debt relief is when you work with a mediator who negotiates your debt down to less than you owed to begin with. This can be as much as 40% of the balance owed. This is also called debt negotiation.
Is it ethical? Of course it's ethical and legal as well. You see, the credit card company makes their money from interest rates. The longer you owe them, the more interest they get.
This is all done by Christians with biblical ideals in mind. There is nothing wrong with Christian debt relief, consolidation or negotiation. All get you out from under the weight if debt while keeping your name in as good a position as possible.
The good thing about both of these methods is that it reflects positively on your credit report. The company you choose to represent you requires the creditors to show your accounts as "satisfied" or "paid in full" on the credit bureaus as soon as they are paid off.
In this way, you can repair your credit rating along the way. Later, you will be able to buy a car or house with no problems.
Federal Debt Relief System
Money makes the world go round and all of us come to realize this hard fact of life at some time or the other. As long as we have sufficient finances to provide for all the basic needs and comfort for us and our loved ones there is no cause for worry. The trouble starts when we fall short of necessary funds to meet our crucial needs and this is when we fall prey to undesired circumstances of incurring a debt. A loan may help us through a difficult time for the moment but when its time for repayment that is when we truly start feeling the crunch. This occurs as though our needs have been met for the time being through a loan but as the incoming finance options remain limited, the repayment of debt becomes a problem.
People of all religions and faith can fall into the trap of incurring a heavy debt however there are certain groups like the Christian debt relief groups who can stand by a person in trouble and help with their debt management skills and planning. The Christian debt relief groups are specially created to help Christians and others who have taken a loan and are finding it difficult to repay the debt. The group or company provides the necessary advice to consolidate the entire amount of the debt and provides solutions and sometimes even financial assistance for debt repayment. A person who is under debt finds immense support and comfort from fellow Christians and this moral and financial strength helps him in overcoming his handicap and repaying the loan.
The inherent purpose and aim of such Christian debt relief organizations is to create a debt free society that leads to the overall development of all the people in the community. It not only provides assistance but also advice based on the teachings of the Bible. The re-enforcement of lost values and principles in the form of biblical teachings help a person to re-instate his faith and give him tremendous moral boost thereby helping him to deal and manage his life and finances in much more stable and organized manner. The Christian debt relief group therefore acts as a strong pillar of the society that helps to strengthen the moral fabric of the Christian community. The intentions are pure and hence the goals achieved are also truly praise worthy.
A Christian debt relief group does not wait for lengthy procedures and form completion processes and hence the help provided is immediate which is crucial for any person who finds himself in financial trouble. Also the group forms a close bond and partnership with its client without expecting much in return. The financial analysis of the situation is done keeping an impartial and practical view of the situation and the solutions provided are therefore very much workable. The backing of the biblical principles and teachings provide the much needed assurance and support that a person under the burden of debt would require. Hence if one finds himself in such circumstances it would be best to enroll the support of such a Christian debt relief group at the earliest.
Both Jessica Bradbury & Tom Frederick are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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