Government Christian Credit Counseling

Government Christian credit counseling provides answers to some of the questions a consumer may ask when trying to decide where to find help for financial problems. Some of the common answers to indebtedness include debt consolidation, debt management, and filing bankruptcy. Other options through government credit counseling include programs that offer a lower interest rate so that a consumer or a student can benefit from debt consolidation. Other perks include lower monthly payments, restoring credit ratings, and stopping collection proceedings. Some companies online offer free or inexpensive debt consolidation and debt management services. The best way to find these types of programs is by doing a search on the Internet.

Primarily services that offer debt management or consolidation may have information where a debtor can get professional guidance about government credit counseling. Professional guidance for debts can include services that help the debtor to negotiate lower payments, lower fees, and lower interest rates with creditors. Services include setting up a budget and finding a way to develop a savings to use for emergencies. Educating the individual on how to avoid debt problems in the future is essential as well as teaching him or her how to avoid overspending on nonessential items. Professional guidance can help a person avoid foreclosure and repossessions as well as improve financial history.

The government requires that every consumer who is thinking about filing bankruptcy to get professional guidance about financial problems. Government credit counseling can provide an individual with a certificate that allows him or her to file bankruptcy if that is what the debtor chooses to do. However, many debtors who get professional help before filing may change their mind when they find out what other options are available to help them regarding financial problems. Many individuals do not realize that there may be a better way. Debt management companies can provide some other choices to consider. Some of these include allowing a counselor to negotiate with creditors on paying off debts, training on how to live modestly, and learning to be accountable with spending habits. "Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal: But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal: For where your treasure is, there will your heart be also" (Matthew 19-21).

Debt consolidation allows the individual to combine all debts into one. If a lower interest rate is used for the consolidation over what the consumer has been paying with creditors then the overall amount paid out will be less. This can help the debtor to stay caught up and will have a positive impact on credit history. Debt consolidation will also stop the monthly late fees and higher interest fees that are usually charged on late charge card payments and other high interest debts. There are some programs through government credit counseling on debt consolidation that have several options for consumers and students. These programs can be found by looking for Federal Family Education Loans and the Higher Education Act online. Many lenders online offer debt consolidation programs as well as refinancing options on a current mortgage. Doing some research online on different lenders will help to identify one that is reputable and can offer competitive interest rates.

Some debt counseling services make false claims about being able to erase negative financial history. Government credit counseling offers facts to debtors about the truth on credit repair, debt management, debt consolidation, and other financial issues so that a person can become informed about companies who make claims that are not true or ethical. Some important things to watch out for include claims that bad credit can be erased and that bankruptcies or other public information can be removed. Every person is entitled to one free copy of credit history each year so that he or she can look over it for any errors. A dispute form can be used to dispute any information that is incorrect. The credit bureau will conduct an investigation of any disputed information and send an answer back to the consumer on how the report was corrected or how the creditor in question proved the information was accurate. Mistakes and information that is older than seven years can be easily disputed and corrected. This does not include bankruptcies that can stay on financial history for as long as ten years.

Reputable counseling services for financial problems offer educational programs to help the debtor learn how to manage finances responsibly without making promises that are not true. Government credit counseling encourages honest education for debtors about managing financial problems. Financial education is important for persons who do not know how to manage their money wisely. A budget is a basic tool that debtors can use to gain more control over their finances. In addition, it will help a debtor to be able to manage monthly payments to stay caught up with creditors. Financial education programs through government credit counseling will also help debtors to understand more about their rights as a consumer, about fair credit reporting and how to handle harassment from collection agencies. A debt management program can help the debtor to understand the importance of saving for emergencies and not overspending. In addition, every person needs to understand how to check their financial history to catch any type of identity theft and to avoid scams and illegal practices associated with some debt management companies.

Corporate Christian Debt Restructuring

Corporate debt restructuring occurs when a company is in a financial crisis and cannot pay its present and perhaps short term future credit responsibilities. In a case such as this, the company looks for ways to spread out its credit obligations with smaller repayment amounts and a longer time with which to pay off obligations. It is, in many ways the equivalent of a chapter thirteen filing for individuals and families. if a business does not want to file chapter eleven, which is a rehabilitation bankruptcy, corporate debt restructuring plans are the most widely accepted way of dealing with cash flow issues. In many cases, even if a company's creditors do not like the plan the company offers to defer credit repayments, a court may find the plan acceptable and therefore the creditors must abide by the plan. Making the decision to make over a firm's borrowing agreements is an admission that things are not going well.

A corporation may begin its corporate debt restructuring plan by seeking the lowering of interest rates on its present debts. Just as a homeowner might seek a new mortgage when he can save a percentage and a half or more on a current mortgage he holds, a company can do the same thing if the loan markets are right for making such a move. For a company, even a quarter of a point or a half a point on a hundred million dollar loan could be the difference between continuing business and closing its doors. In addition to perhaps cutting its workforce, its advertising and production costs, a company saving a million dollars a year on interest payments may be able to survive the roughest of financial weather. The problem comes in convincing the creditors to agree to less money at the moment.

Another way that a company may attempt to save itself from chapter eleven actions is to attempt to stretch its obligations out over a longer period of time. This action would be much like a car buyer getting a seventy two month loan instead of a thirty six month loan. More interest is paid, but the monthly outlay is smaller. The smaller the debt repayments, the more a company will have to put back into shoring up its weak business position. Corporate debt restructuring can provide creative ways of refinancing debt much the way home buyers who want to get into larger homes than they really can afford might use. Creditors of a company seeking debt restructuring might agree to a balloon payment at the end of ten years with much smaller monthly debt repayments each month or each year until those ten years are up. Or perhaps the time period might be five years or three years, depending on the needs of the company and the mood of the creditors.

If a company does seek corporate debt restructuring and first goes directly to its creditors, there may be an agreement to a solution or not. The next step for a company that cannot find relief from a personal encounter with a creditor is to present its plan to the judicial system. In that case, the court may end up deciding in favor of the company's original plan or may devise a plan of its own. But in any case, the court will appoint an overseer, often called a trustee, to observe and even manage the plan's unfolding and implementation. The bottom line is an outsider will be poking around the company's formerly private business and watching with great interest the court's plan being used. So before a corporate debt restructuring plan is actually proposed, a flailing company may hire an outside management company to come in and study the company and make changes that can head off the drastic step of actually going to creditors.

There are companies that are ready to help craft a corporate debt restructuring plan for companies on the edge of falling over. Oftentimes these crises that companies face are brought on by poorly managed day to day operations. In this case, there are firms ready to move in and totally revamp a floundering business's organization from the ground up. These companies can offer the setting of new and realistic business plans, become the middlemen between creditors and current company executives, provide stockholders with up to date restructuring information, examine and realize where the company is not getting as much value from its efforts as it should be and many other issues. For the troubled company executive there is hope from God's Word. "But my God shall supply all your need according to his riches in glory by Christ Jesus." (Philippians 4:19)

In many cases, the best answer for a drowning Christian company may not be corporate debt restructuring, but rather a merger with another company. In fact, troubled companies often become the target of takeover ambitions by other healthy companies. If a company is public and the stockholders are screaming for some outside company to come in and buy out the troubled company, there often can be little the embattled company can do but give in to the merger idea. And sometimes, along with borrowing restructuring can come the practice of divestiture which means that the company actually sells off part of its business to another firm or company in order to keep its most profitable operations going. In any of the cases that have been discussed, these business decisions can bring pain to a lot of people including the families of the workers affected.





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