Christian Debt Eliminations

Christian debt elimination provides a sense of freedom that comes with fulfilling one's responsibility to be a good steward of God's resources that have been entrusted to them. The process begins with someone recognizing that they have accumulated too much debt. The Bible writes about how Christians ought to handle their money, including making every effort to live not indebted to anyone else. Looking for means of Christian debt eliminations can be a first step in obedience with one's finances, and can be accomplished through three straight forward steps.

The first thing to look at when thinking about improving a financial situation is considering how someone got into the situation in the first place. For example, sometimes Christian debt elimination is necessary because of the choices people make regarding material possessions. There are times when people forget that they do not need everything. Also people must remember that the Lord will provide for every need. Finally, people get into trouble by allowing themselves to use charge cards so easily. In fact, they are one of the main causes of debtor situations and the reasoning behind needing professional help to overcome.

The next thing that needs to be looked at is how to stay out of debt. Christian debt elimination can happen merely by cutting up any charge cards. The other option is keeping the card in the freezer, which will insure that there will be time to think about whether or not to use it. Lastly, invest small amounts of money into an account. Every time a person has a little extra, they can use it to invest into an account for Christian debt eliminations. After a while the money will add up helping the person to be well on the way to financial freedom, as God intended.

The important aspects to remember is to cut back on the things that are "wants" in order to free up extra money. Put that extra money toward the goal of Christian debt elimination. Remember that the Lord says in Titus 1:7,"For a bishop must be blameless, as a steward of God, not self-willed, not quick-tempered, not given to wine, not violent, not greedy for money." In that, Christian debt eliminations can help set people free of the financial burden that some carry. Furthermore, this step will allow relief from the stress that people feel from carrying around so many unfulfilled financial obligations.

A debt consolidation loan for bad credit is a possibility for those who suffer from monies owed, yet don't believe they have the credit to secure this type of financing. Consolidating into one large payment can save hundreds if not more in interest fees and finance charges. There is no reason to suffer under a mountain of accumulating financial burden. If someone has many different debts or are paying high interest rates, it might be best to consolidate into a lower-rate, single payment. Hired financial advisors can provide advice and whether someone is a good candidate. Some states and community agencies offer free advice on debt consolidation. These advisors can recommend courses of action and can direct a person to sources for a debt consolidation loan for bad credit.

This course of action has certain advantages. For one, the convenience of paying and tracking only one debt is much easier and less stressful to manage than staying on top of numerous debts all with different due dates and lenders. Also, the interest savings on a lower interest loan can be incredibly substantial. Plus, the interest paid on a home equity loan is often tax deductible, providing additional advantages and savings. Finally, debt consolidation is seen by most creditors as a positive step. It indicates that a person is dedicated to repaying debts and some creditors may even be willing to negotiate the amount owed. Romans 8:12 says "Therefore, brethren, we are debtors, not to the flesh, to live after the flesh." A debt consolidation loan for bad credit can provide the freedom that has been sought.

Many financial institutions will provide a debt consolidation loan for bad credit by providing a secured loan. Even with bad credit, the interest on a secured loan can range around 10%, much less than the high interest fees and finance charges carried on credit cards. Consolidating debt can help a person become debt free and is the first step to rebuilding credit and achieving a sound financial future. This is not the complete elimination of debt, at least not immediately. It actually rolls over all multiple debts such as credit card debts, car loans, medical bills and such into one lower-rate loan that is secured by placing a valuable asset, such as a home, as security for financing. Then a person can use that money to pay off creditors and then pay one monthly fee to the bank that provided the financing.

Christian Debt Reduction Loans

Christian debt reduction loans do not actually reduce the total amount; rather they are consolidated into one larger, lower-interest payment which saves hundreds, if not more, in interest charges and finance fees. Additionally, the consolidated debt reduction loan can be for a greatly extended period of time, up to 30 years if using home-equity financing. This minimizes the monthly payment even more, making payments more manageable and easier to erase. Plus, the interest charged on a debt reduction loan, such as with home equity financing, is even tax-deductible, providing an additional financial advantage.

If someone has lots of different debts or are paying high interest rates, it might be best to consolidate into a lower-rate, single payment. Some states and community agencies offer free counseling to anyone that seeks it. These advisors can recommend whether this is a good option, or they can explain alternative courses of action. Psalm 56:3 reminds Christians to not lose hope in any situation. "What time I am afraid, I will trust in thee." Getting a debt reduction loan can be a scary and discouraging time, but always know that God is there.

One alternative to taking out other financing is settlement. When enlisting with a settlement service, specialists work with individual creditors to negotiate the amount owed by as much a 50%-60%. However, debt settlement can have a more adverse effect upon credit as compared with a debt reduction loan since companies advise people to suspend their payments to creditors while they negotiate on the debtor's behalf. This process can take quite some time; all the while the creditor is reporting that no payments have been made. Also, creditors are unwilling to negotiate in the case of secured debts, where creditors hold an asset such a car as collateral for the loan.

Not all creditors are willing to cooperate with settlement efforts and many people choose to avoid the adverse effect settlement inflicts upon their credit history by instead opting for this route. Christian debt reduction loans are a better option in protecting property involved with secured debts, and is a great alternative to bankruptcy, which can blemish credit indefinitely, and results in the loss of property and assets. Christian debt reduction loans provide the lump sum needed to clear debts while leaving a manageable monthly payment. Praying and carefully evaluating the specific situation will lead to the answer God intended for the situation to go.

With a debt consolidation home loan, a consumer can apply for a line of credit or apply to consolidate bills, based on the equity of the house. This is much like taking out a second mortgage. When the bills have become overwhelming, then Christian debt consolidation home loans can offer a lower interest rate and a once a month payment to the consumer who is in need of help to manage their finances.

If a person has equity built up in their house, then it is a possibility to get an equity loan. Many Americans are getting a debt consolidation home loan based on equity to consolidate bills. The consumer goes against their equity, and pays off their existing unsecured debt, such as credit card bills, on a monthly basis. Owners can receive a better interest rate and save thousands of dollars in interest fees and late payments on Christian debt consolidation home loans. Also, consumers may find making a payment once monthly is more manageable. God wants His money managed in the best way possible and as children of God it should be a great desire to please Him in any way. 1 Corinthians 6:19-20 says, "You are not your own; you were bought at a price. With this in mind, it would be only natural to want to glorify God with how money is spent."

There can be closing costs and other fees included with this type of financing. Consumers will want to shop around for the best companies and options available. The last thing needed, is expensive closing costs and points payments when a family is financially stressed to begin with. There are options across the market that offer reasonable closing costs, and perhaps with none at all. Time and research will reveal the best avenue to consider for each consumer's individual financial needs. There are different ways to finance and handle Christian debt consolidation home loans, and research can reveal the various options available.

Financial decisions can be stressful. Getting a debt consolidation home loan is making steps in the right direction to get control of bills. But, putting a house at risk of repossession can also be perilous. Consumers are encouraged to carefully weigh all options and thoroughly evaluate their personal financial circumstances. It is better than filing bankruptcy, but a consumer considering a debt consolidation home loan will need to be fully informed of all of the risks to make a wise decision.





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