Christian Credit Card Debt Management

Many people struggle with Christian credit card debt management. The current society is one which is obsessed with instant access and immediate gratification, elements which make credit cards necessary yet dangerous at the same time. Those who suffer under great financial burdens can easily fall into despair and feel as if there is no way out, however, hope is not lost. There are many services and programs available that will assist people in proper management skills while simultaneously offer tips and advice on how to not only successfully emerge from a pile of debt, but breathe a little easier in the process.

The biggest pitfall consumers fall into is when they overspend their monetary means, spend more than can be spared from paycheck to paycheck. Debt can accumulate quickly over a short period of time and if people are not watchful there is the potential of being slammed with unexpected bills that remain unpaid due to insufficient means. Credit card debt management is imperative in order to preserve good financial habits that will continue through life and pave the way good credit standing. Awareness is of vital importance for the building of good financial habits and a person should never blithely spend, as doing so can cause poor credit history which can cause further financial struggles and lead to a path which could potentially have negative effects on credit history and fewer options for the future.

Smart credit card debt management begins with wise choices and wise choices with adequate research and planning. A person would not take a trip to a location they had never been to before without a map or at the very least a guide to aid them in a successful venture. In the same way, a person who takes charges of personal finances should not do so unless they have a plan, goals or at the very least an expert in the field to advise them. Overspending, while easy, can just as easily be avoided. A person who is ready to take charge of finances needs to know or have an idea on a limit to how much they can plan on spending. Being aware of how much one has in their disposal will help to cultivate an awareness which is needed a one is less likely to overspend if they know the current state of monetary assets and contribute to effective credit card debt management. People should check credit statements and accounts on a regular basis, and always be certain that when a credit card is applied for, the required interest rate should by no means exceed that of regular income.

People who are in the need to borrow money need to be careful as to the kind of plan they go with through a bank or lending agency of choice. The reason for why so many find themselves steeped in debt with no easy way out is because lack of preparation for the amount of interest which results in any form of borrowed funding. Over spending can lead to high interest rates which quickly accumulate over time but can be avoided with adequate credit card debt management strategies. Interest charges are one of the ways that banks and lending agencies have to implement in order to ensure that the borrowed funds will be returned in a timely manner. Interest rates vary depending on the customers financial situation and standing and the type of debt that they possess.

Tips and advice on adequate methods for successful credit card debt management can be easily be found by those in need. The Internet is an excellent source of information regarding various strategies and several financial companies have sites that can easily be accessed that are full of not only relevant information but ways through which to contact financial experts if needed. People who might not be confident to adequately manage their own finances can rest assured because there are a plethora of services and features available that can provide all the help a person might require.

Experts offer many tips on how to avoid overwhelming debt. For example, people do not usually require five different forms of plastic and can just as easily manage with a single credit card. Having just one eliminates the confusion that can come with dealing with multiple rates of interest, bills, and account information and so on. A single card can also go a long way towards building positive credit card debt management. Another tip is to pay the balance in full at the time of every payment. Interest rates can vary depending on how much a person chooses to pay, due to the fact that a certain amount must be paid by a specified time. If the balance is paid in full, the need for extra fees will be eliminated.

Financial frustrations and penniless pitfalls can be avoided through smart choices and adequate credit card debt management. Most people will at some point be under one debt or another, but the duration and extremity of the situation can be successfully dealt with as long as person remains aware of their means and current with payments in order to maintain the level of confidence that is required for success and a positive outlook, as the Scripture says, "in confidence shall be your strength" (Isaiah 30:15). Confidence in times of monetary struggles can prove to be invaluable and can help lead to wise decisions and a secure financial future.

Online Christian Debt Management

Online debt management was the woman's all consuming passion after a collection agency bully had threatened her with wage garnishment and told her she was a dead beat mom. With tears flowing down her face, she had trouble even pounding out key search words, but eventually she found a national company she had heard of before and began talking to an agent. Online debt management companies are but one part of the network of credit counseling services, with many of them independent and working under the non-profit moniker, located in towns and cities all across the country. The agent was kind and sympathetic and told the woman that two million American people used the service of online credit management companies or local credit counseling agencies in 2007. The particular company that the woman had chosen was a non-profit organization and that gave the woman some comfort.

All credit counseling, with online debt management being no exception, begins with asking the client about income and all debt information. Included in this interview are all expenses such as groceries, charitable gifts, gas, heating, utilities, food and related costs as well as how much all the monthly credit payments are. All of this is required so that the credit management agency or company can know how much of a comfortable monthly repayment can be made towards the client's debt. The comfort level of the client in terms of paying back the debt is of utmost interest to the counseling company, for the plan will fail if the client cannot meet the requirements. Being in the clutches of debt can be as confining as a prison cell, but God can offer all a life of liberty. "Now the Lord is that Spirit: and where the Spirit of the Lord is, there is liberty." (II Corinthians 3:17)

The single mom stated that a couple of small payday loans were beginning to mount in interest very quickly and wondered if those debts would also be covered in the online debt management repayment plan that would be devised. Unfortunately, the payday loan industry has seen fit not to include their products in the counseling plan, but the counselor told her not to worry; later he would share an idea with her to get rid of those cirrus cloud high interest loans quickly. What the counselor did not offer to bring up because the woman never asked was the effect that credit counseling had on a person's credit score. Amazingly enough, many of the components of credit counseling are the same ones in chapter thirteen bankruptcies. This legal filing asks not for loans to be liquidated but rather made more accommodating so that the debtor can pay them. The results are the same on the credit score. Both a chapter thirteen bankruptcy and credit counseling have a very negative impact on credit numbers.

The plan for getting this mom out of trouble would begin by the credit agency negotiating with the lenders for lower interest rates on the consumer loans she had. In truth, most of the negotiating had been done with each lender long before the conversation and in actuality the counselor would know right away how much interest could be taken off each account. For this woman, nine hundred dollars a month in credit payments became four hundred and fifty dollars a month in the matter of a few minutes. The sigh on the phone after the news was audible and then the online debt management counselor shared with the woman that some of this extra money the lady would start having could be put on the payday loans the woman had amassed.

Not a single online Christian debt management counseling service differs in its core plan for clients. The approach has been worked out over the years with all lenders and does not vary, beginning with a cutting of debt payments about in half. Some creditors are not quite so amenable to having their interest rates cut by fifty percent, but the average is about so. With a halved debt repayment, the client is happy and the process can begin with a single monthly payment being sent to the online debt management agency. When the money arrives at the agency, in most cases whether the company is for profit or a non-profit a ten percent fee is extracted from the payment and the remaining amount is sent to each lender. Then over time, as the first account is paid off, the monthly money paid on that account is placed on the payment of the next one. In a very short amount of time, even the largest of debts can be paid off in five years.

But there is a flea on the dog's back about all of this. Less than fifty percent of all clients using an online debt management or a local credit counseling service stay with the plan through fulfillment. No discipline, too much discretionary money each month, a love of gadgets or eating out or traveling or, you name it, but people jump ship. If they had only put some of that discretionary money on top of their agreed monthly repayment and the credit could have been paid in four years or maybe three and a half. And jumping ship in the middle of this process can hurt someone's credit that much more. So before even agreeing to such a plan, make sure that all resources have been exhausted. Is there an extra job that could be taken on or possessions that could be sold to get that debt down to a manageable level?

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