Christian Credit Card Debt Negotiations
Christian credit card debt negotiation provides an opportunity for the consumer to regain control of finances. Through companies that offer negotiated settlements for consumers it is possible to reduce total payoff and reduce interest on charge accounts. Professionals through consumer counseling agencies serve as a liaison between borrower and lender to bring about resolution. Estimated settlements can be anywhere from 30-55% of the payoff balance. Either way, a borrower overwhelmed with financial problems should attempt credit card debt negotiations if possible.
Reorganization of finances is possible through charge account settlement. Lenders will sometimes agree to a reduced amount to settle an account if the amount is paid in full at the time of settlement. Begin by locating a consultant who can discuss reorganization with the borrower. Once the borrower is accepted into the credit card debt negotiation program, the consultant will have the consumer complete forms that will encompass individual financial details. It is essential to stop using the charge accounts while working towards the solution.
Professional working on behalf of the consumer will access financial criteria and begin working on a plan to bring about resolution. The borrower must agree to the plan before the process can begin. Settlement companies will begin initial contact by sending all lenders a letter explaining the program and their representation. After that an offer will be made to each lender pertaining to credit card debt negotiations. The initial letter sent to lenders should stop all harassing letters and phone calls to the borrower. It is imperative to understand the importance of following through with a plan once engaged in a credit card settlement.
The consumer begins the credit card debt negotiation process by setting aside monthly sums of money (instead of making payments), to be used at the time of settlement with each lender. A sum will be determined as the credit card debt negotiations begin, and the consumer will make those monthly payments into the savings account established for that purpose only. Those funds are inaccessible until the final settlement is made. The consultant will make regular contacts with the consumer during the credit card debt negotiations. The amount of funds needed to achieve the payoff settlement must be available to complete the settlement. The estimated time to payoff accounts through a credit card debt negotiation can range from a year and a half to about three years, depending on the amount to payoff.
The greatest debt negotiation was accomplished by Jesus Christ, "How much more shall the blood of Christ, who through the eternal Spirit offered himself without spot to God, purge your conscience from dead works to serve the living God? And for this cause he is the mediator of the new testament, that by means of death, for the redemption of the transgressions that were under the first testament, they which are called might receive the promise of eternal inheritance" (Hebrews 9:14-15). The ultimate negotiation and debt elimination is available for all humanity.
Credit counseling services can be extremely helpful to people who have found themselves in piles of debt and are considering bankruptcy as their only option. A credit counseling service can offer hope in the form of a workable payment plan. Those who are growing increasingly anxious about their debt and think that bankruptcy is the only option, can consider using these services first.
Financial counselors work as middlemen between the debtor and the creditors. They can negotiate on the debtor's behalf to lower interest rates on some debts and even reduce payments on others. The credit counseling service will help establish an account with them in which the debtor is expected to deposit money into each week. The counselor then uses those funds to pay off creditors. Depending on the amounts debt and also depending on the individual's income, a debtor's payment plan may span several years. However, it will likely take even longer if someone chooses not to use these types of services because they will be paying full amounts at higher interest rates.
People should be aware of some potential drawbacks to using a credit counseling service before agreeing to work with them. First of all, although they probably will not report the debtor's situation to the credit bureaus, the creditors that are owed may report that the debtor is not paying according to the original agreed upon terms. Therefore, a person's score may suffer as a result. However, if someone is making late payments or missing payments altogether, their situation is already suffering. In that case, working with credit counseling services is still a better option than filing for bankruptcy.
Another issue that some see as a drawback, although it is actually a huge blessing, is that the counselor as well as the creditors will expect the debtor not to use or apply for any additional crediting sources while they are in the repayment process. This is difficult for people who have become accustomed to using credit cards, but it is an important step in changing the habits that brought on the debt in the first place. Along those lines, some credit counseling services will encourage, or mandate, that their client take some kind of budgeting and wise spending course.
People who want to get help with their finances certainly can find the help they need. Credit counseling services can be found in cities across the country as well as through the Internet. A simple Web search will yield many results. As someone researches the various options available, they should be sure to ask questions and fully understand the terms. Working with a credit counseling service can be an important first step toward true financial freedom. "Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law," (Romans 13:8)
Christian Credit Reference AgencyCredit reference agencies are organizations that collect from financial institutions personal financial data on individuals. Then they organize this information and make it available to others. The term is used widely in the United Kingdom; in the United States the term credit bureau is more well-known. The terms credit reference agency and bureau can be used interchangeably.
Every creditor that someone has borrowed from, whether for a car loan, a mortgage, or a charge card, keeps a record of financial history. In the United States, there are three primary companies: Experian, Equifax, and TransUnion. Each one works independently, and none of them have any governmental affiliation. Obviously lenders want to know what financial history has been so that they can determine if lending their money is a good risk. The credit reference agency can tell them about past lending experiences. Each one assigns a score, or credit rating, to the financial history. This simple figure is often the only thing lenders look at when determining what terms to offer for a loan.
It is not just lenders who access personal information from these companies. Potential employers are frequently turning to reports from a credit reference agency to gain a better perspective on a job applicant's character and integrity. Some people think this is inappropriate, but some employers believe that how people handle their finances is a good indication of how they will handle work responsibilities. Everyone should order a copy of their financial history from at least one credit reference agency for a number of reasons. First of all, it is good to see what lenders see when they access history through credit reference agencies. If the score is low (under 620), a person will want to do what can be done to increase that rating, especially if planning on applying to buy a home or a car in the near future. 1 Timothy 2:2 says "For kings, and for all that are in authority; that we may lead a quiet and peaceable life in all godliness and honesty."
Another good reason to obtain a copy of a financial history report is to check for inaccurate information. It is entirely possible that the credit reference agencies have incorrect data. If errors are not corrected, the applicant could be adversely affected next time applying for a loan or a charge card. They must be notified in writing if the report contains errors. Keep copies of all documentation and correspondence that reported incorrect data. A person can easily order a copy of the financial report from any or all of the credit reference agencies by contacting them through the Internet. They can usually send the report immediately.
Dispute credit agency complaints can be received through the Internet on a complaint webpage or through the mail with both methods needing a signature (or electronic signature). Once an individual decides to dispute credit agencies, a note will be placed under the accounts or information they are disputing so future lenders will know that certain information on the financial report is being challenged. Unfortunately, the owner of the report making the complaint must prove the information to be incorrect. Sometimes this is hard to do, especially in the case of identity theft. However, consumers should stand strong. "Plead my cause, O LORD, with them that strive with me: fight against them that fight against me." (Psalm 35:1).
Typically the identity theft victim is unaware that their credit cards and other information are being used. This makes a hard case to prove when making a dispute credit agency complaint because the victim has not reported cards lost or stolen (which is valid proof in challenging information). Those that challenge the bureaus on the basis of identity theft should prove that they were somewhere other that a location near a store or place of business where their identity was being used. If they can prove this, then their complaint will be satisfied and the negative information dropped from their report.
If the proof is not found, the note stating the complaint will be removed from accounts on the victims report file. A dispute credit agencies complaint will be kept on the record for one year should the victim find proof to remove the negative financial information. Other dispute credit agency complaints include misspellings of names, wrong addresses, or wrong employment information. Those with names similar to others, especially in the same geographic area commonly have intertwined reports. One must prepare for human error when reviewing a report for inaccuracies, as over 25% of all report files contain major inaccuracies that can lower a person's score.
It is suggested that to challenge the Christian company's information, an individual should obtain the services of a lawyer. The reporting agencies tend to begin the process of dispute credit agency complaints quicker when a legal document is presented to them. Many law offices have special rates available for the preparation of a complaint to any or all three nationally recognized credit reporting agencies: Equifax, Experian, and TransUnion. Once reviewed by a representative, the credit report owner will be notified with a decision regarding the complaint or a request for more information. It is advised that individuals seeking to make a dispute credit agencies complaint, prepare any proof they have available and send it simultaneously with the complaint document.