Consumer Christian Debt Management
A consumer Christian debt management program can help people with financial problems by teaching them sound financial practices and standing by them as they attempt to eliminate the stranglehold of excessive indebtedness. This type of program would probably be considered a step above financial counseling. Although such counseling is foundational to the program, a debt management program actually obtains a single payment from the client and then disburses payment to all creditors. However, this is merely one aspect of the entire process. The most valuable part of the program is that it teaches principles of financial management to the client so that he or she can eventually dig a way out of indebtedness and establish a solid financial future.
Setting up a realistic budget is one area which will definitely be covered in a consumer debt management counseling session. In order to construct a unique financial plan for each client, it is necessary to see where funds are currently going. After establishing a list of recurring expenses, and noting spending habits for a few weeks, it will become clear how money is spent and where any 'leaks' are located. Then actual decisions need to be made as to where and how to spend available funds so as to meet all obligations and move toward financial goals.
Other topics which may be covered during counseling include creating a financial action plan, controlling and reducing debt, and learning how to save money while shopping for necessities. The importance of starting a savings account will also figure into the instruction. This will eventually help individuals to not have to rely upon credit cards to bail them out of emergency situations. Speaking of credit cards, the proper use of these items and how to avoid common credit pitfalls will be discussed. However, during the time that the client is involved in a consumer debt management program (which may be a duration of several years), the consumer will not be allowed to use the cards with which he or she has incurred the present problem. Some programs suggest reserving a single card which is not part of the program for true emergencies. Topics such as buying a home, car or insurance will also likely be covered. The program is supposed to be designed with the client's needs and interests in mind, so do not hesitate to ask for help with specific areas related to consumer debt management.
A typical consumer debt management program will be run by trained and certified professional counselors. These individuals will also help the client by working with creditors to possibly reduce or eliminate certain late fees or over-limit charges. They will also establish a monthly payment amount with the creditor and try to arrange for further time to pay off the debt. On-going counseling and assistance should be available throughout the program, and most have evening and weekend sessions to accommodate any work schedule. Some organizations even check up on former customers after they have completed the program to make sure they are staying on track with their financial goals. Many have continuing online resources, such as financial tools, calculators and a variety of helpful articles about relevant topics.
At this point, it might be wise to clarify that there is a great difference between a consumer debt management program and debt negotiation. The latter may be risky and have a negative impact upon one's credit score. In turn, this may make it more difficult to get credit in the future. Most states have laws regulating the programs and services of negotiators. Contact the Attorney General of the state for further information about these regulations. Check with the Better Business Bureau before entering into agreements with any organizations. The better Business Bureau can inform consumers about prior complaints lodged against these businesses and whether they are in compliance with current regulations. If such caution seems unnecessary, remember that some negotiators have falsely represented what they are able to accomplish in the area of removing negative information from a credit report. Others have signed people up for debt reorganizations without informing them that this is actually a bankruptcy filing!
Contrary to commercials and advertisements aimed at those in need of consumer debt management, 'credit repair services' will not be able to remove negative information from the credit report if it is accurate. Also, consumers already have the right to have incorrect information removed from their reports with no cost to themselves. A free credit report from the three top credit reporting agencies is available once a year so that consumers can keep informed about their own credit scores. The only way to change a bad report is to faithfully continue to pay off the debt. Therefore, any credit 'repair' services are an unnecessary expense.
The best way to deal with consumer debt management is to obtain information about handling finances in a Godly manner, and then to act on this information. There are some Christian organizations which use biblical principles to teach consumers about properly managing their finances. These can offer information, counseling, prayer and a financial action plan built on biblical principles. Otherwise, the possibility remains that unwise financial practices will be repeated and the cycle of debt will continue to add great stress to an individual's daily life. "For what shall it profit a man, if he shall gain the whole world, and lose his own soul? Or what shall a man give in exchange for his soul?" (Mark 8:36-37) The spiritual aspect of financial instruction is an area which is often neglected. However, a person's relationship with God is actually his or her greatest treasure.
Consumer Christian Debt SolutionA consumer debt solution can be just what is needed to alleviate financial frustration and get out from under multiple debts. Almost every person will at some point in life be in debt of some form. Borrowing funds to finance various ventures and needs is not only common but in many cases expected. Many who seek higher education take out loans that require payment after graduation, those who desire to purchase homes might take out a loan, whatever the reason, debt can quickly add up if a person is not watchful. People tend to be in the mindset of instant gratification, meaning that they want whatever is desired as soon as possible. In a day and age of credit cards, expensive taste and instant coffee, consumers many times do not even realize how fast debts can pile up until the time bills start to pile up and they realize that they have joined the ranks of thousands who are in need of consumer debt solution.
Combined with relatively low monthly payments and high rates of interest many fall into debt at an alarming rate and do not realize until faced with mounting debts and not enough resources to successfully emerge from a potentially hopeless situation. The reasons for how and why consumers fall tricky periods of financial frustrations are limitless, but no matter a person's situation, there is almost always a consumer debt solution that will help to lead the way to a more successful and lucrative future free of pressing debts and the stress that occurs as a result. Whatever a person's situation, multiple solutions can be found.
There are several solutions that can be sought after in the hopes of diminishing bills. Those who are in the process of undergoing a consumer debt solution should keep a few tips in mind that can go a long way towards the prevention of falling into a similar situation in the future, where one has many bills to pay and not enough money to spare. First of all, people would be wise to make certain of the possession of every possible form of insurance. Health insurance is a must along with automobile, as a person cannot always control the amount of health care that is needed and bills for such services can become very expensive and add up quickly and studies have been conducted that have shown that one of the most common reasons given by those who file for bankruptcy is that of medical bills.
Another tip for those who desire to avoid ever falling into a situation that can quickly become out of control is to make certain to have a decent amount of money put away in some form of savings plan. A good amount to set aside, according to experts in the field, is enough to live off of for at least six months, to cover the time a person might have to spend between jobs. Having such a plan set in place is a very good idea as a person is wise who has adequately prepared in the case that they will for some reason lose a steady source of income. If enough has been set away the need to apply for loans is non-existent which can go a very long way towards the prevention of ever requiring the need for a consumer debt solution. Experts also suggest that those who do inquire into strategies for solutions, that people make sure to find a plan that asks for no more than twenty percent of a person's regular paycheck in order to ensure that any and all required payments will never exceed income, as doing so can lead to further financial upsets.
Those who are in the need for a consumer debt solution should begin by perusing the Internet. There are many businesses that offer various solutions for those who find themselves with more expenses than they can handle. Experts in the field are available to assist those in need with multiple options for the consolidation of several debts, and such help is relatively easy to find for those who know where to look. Electronic sources can be found such as web sites and the like that provide not only information and suggestions for multiple solutions and tips on consolidations, but also tips on how to get professional expertise geared towards a person's own unique situation.
There is hope for Christians who perhaps feel like there is no way out from underneath a pile of debts. Counseling services and financial experts can be found to not only help find a consumer debt solution that will serve to improve a person's situation but help to cultivate the peace of mind that is priceless, as the Scripture says, "Thou wilt keep him in perfect peace, whose mind is stayed on thee: because he trusteth in thee" (Isaiah 26:3). Financial struggles are common and most can expect to have some sort of struggles at various points in life due to natural ebbs and flows. Those who find themselves in a situation that can seem impossible to get out of can rest assured with the knowledge that there is most likely a consumer debt solution that will fit their needs. Many companies can be found that offer assistance based on the individual needs of customers, and promise to provide clients with quality help that can be relied upon and put into practice in the hopes of securing a better financial future for many years to come.