Reduce Your Christian Debt
Reduce your Christian debt by taking a proactive approach to the situation, wherein the borrower takes steps to realize the gravity of the situation and works diligently to eventually become debt free. Paying off these account balances is something that anyone can do with determination and a good plan. Doing nothing is not an option, because over indebtedness problems lead to bad credit, higher interest rates and fees on credit cards, and ultimately, loss of assets such as the borrower's home. The good news is that there are solutions to reduce your debts. A step by step approach is the best way to get started. Review the situation and start making a list of ways to begin the process.
To begin, list all liabilities, which would be anything paid out monthly. It would be a good idea to also list the interest and fees paid to creditors each month. List all income and find the difference between income and pay outs. Also keep in mind to allow a percentage for spending on living expenses such as groceries, gasoline, and miscellaneous. Reduce your debts starting by finding out if the income coming in each month is sufficient to cover the regular monthly payments due. Is more being spent than is earned? Sometimes just cutting a few corners and not spending on truly unnecessary items will be a good starting point to reduce your debt.
Creating a spending plan and sticking with it will help. This may take some discipline because when one is used to spending without guidelines, spending on a budget takes much forethought and determination to initiate a real positive change. Quit using credit cards unless there is an emergency and pay more than the minimum payment each month to help reduce your debts. Use a debit card that is linked directly to the checking account to reduce your debt. This will help to stop incurring new balances to repay. Work to pay down the balances already incurred by doubling up on payments when possible, especially on charge cards.
If unable to plan a manageable budget on ones own, seek help from credit counselors. There are many organizations that employ professionals who can offer assistance through consumer credit counseling services. Reduce your debt by working with these counselors who also can offer negotiations with creditors to lower interest rates and fees along with a plan to consolidate accounts. Live on a budget, so the end result won't be filing bankruptcy, a poor choice because the derogatory message such a choice makes which will remain on the personal credit report for seven to ten years. Experience the feeling of freedom that comes from taking positive steps to reduce your debts. Blessed be the Lord, who daily loadeth us with benefits, even the God of our salvation. Selah. (Psalm 68:19)
Reducing credit card debts is on the priority list for many people. But an even higher priority may be researching techniques on how to reduce the debt already incurred. Too many people fall prey to the power of plastic, especially when it beacons for that "must have" special purchase. If the temptation to have now and pay later has hit a grand slam into one's finances, then now is the time to act.
A planned commitment is essential when reducing credit card debt. The commitment financial freedom begins with the cutting up and hiding of unnecessary credit cards. Digging out of the hole involves more than paying off existing debt, but also involves staying true to the "debt stops here" mantra. People wanting financial freedom must learn to resist the urge to keep spending money they do not have. In other words, impulse purchases must stop. Remember that the Bible says, "Godliness with contentment is great gain" (1 Timothy 6:6). A time may come when planning your purchases is not as pertinent, as it is while whittling away now. However, while in the process of trying to reduce the amount owed, try to examine purchasing habits. The path to financial freedom may seem painful, but it does help instill healthy, lifelong spending habits.
In the midst of reducing credit card debts, some people find it helpful to clean the card credit card closet out completely. Sources state you don't want prematurely close accounts. However, paying them off is essential. Apparently, lending companies take notice when spending is low and are prone to offer better deals during a purchase drought. Therefore, better offers for lower interest rates may be offered, thereby helping the reduction process.
However, just because the cards are around does not mean they should be used to the max. Remember to focus on reducing credit card debt; don't add to the problem. People are able to build up good credit with on-time payments in the process of paying the cards off. However, the key words are "on time." Late payments not only increase the interest and balances due, but those late payments will come back to bite in the future. At times, the difference between receiving a better loan or mortgage offer, lies in past financial history.
There are conflicting opinions on reducing credit card debts and payment policy. Some sources state you must conquer the largest amount first. After the biggest amount is paid off there is a downhill ride in paying off the small amounts. Other sources strongly recommend the "snowball approach" in reducing credit card debt by paying the off the smaller amounts first. This method works in that it seems to increase confidence and knowledge, as financial freedom is achieved step by step. Apparently, the largest amount can be daunting and unmanageable, so in reducing credit card debt one should work their way up.
Erase Christian Credit Card DebtIn order to erase credit card debt, a debtor will need to carefully consider all the options available to him/her that will not only accomplish that goal, but give the debtor the tools to avoid getting into financial problems again. There are several options available to do this, and the most popular is finding a nonprofit company that can work with the creditors and debtor to agree on a payment plan that includes lower interest rates. Consolidating is one way to eliminate the amount of monies owed, and that is especially pleasing to the debtor. No more payments have to be sent to the creditor, but a monthly payment is sent instead to the company that obtained the agreement to consolidate. The company opens an account for the debtor and distributes funds to the creditors every month. It is an effective way to erase credit card debts, but usually means the debtor must get rid of all of their cards up front. There are for profit companies that do this also, but the debtor will have to pay a fee to access the services.
Another way to erase credit card debts is by hiring settlement lawyers. They can sometimes negotiate what is owed down to 50-65 cents on the dollar with payments extending from 9 to 24 months. This method means paying the lawyers a fee to erase credit card debt, which is sometimes a percentage of the amount that has been saved. This method is most commonly used by creditors with very large credit card debt and larger income, and is hard for the smaller debtor, who earns less, to afford. Another method used that is fairly common among attorneys is bankruptcy. Depending upon which kind of bankruptcy is filed, that which is owed may be entirely forgiven, or partially forgiven. Using this method has one serious drawback, and that is it stays on the record for a long time, and there is always attorney fees to be paid.
A company that helps with consolidation of bills usually offers counseling to the debtor so he/she doesn't fall into the same pattern again. By the time the credit card is paid off, the debtor has become accustomed to being without a credit card (since that was part of the agreement), so it is easier to learn new ways of managing his/her finances. To erase credit card debt relieves a debtor of a heavy burden, so the relief of finding a way to eliminate credit card debts means a lot to a person. The lessons learned though the experience of acquiring and finding the means to eliminate debt, along with the counseling received, can and should be passed on the next generation if that person has children. "Poverty and shame shall be to him that refuseth instruction: but he that regardeth reproof shall be honoured." (Proverbs 13:18) When children are taught to appreciate the wisdom of managing money well, they will not follow their parents into financial trouble where they, one day, have to worry about how to erase credit card debts.
Stop credit card debt by taking some simple actions toward clearing up individual credit. Credit cards are a major problem not only in the United States but all over the world. Materialism has taken reign over reasonable living, and it would do many people well to recall Proverbs 22:7: "The rich ruleth over the poor, and the borrower is servant to the lender." There is a way to prevent excessive debt, but it will not happen overnight. However, with patience and hard work one will start seeing results quickly.
First thing to do is obtain one's credit report. One may think they are aware of all their liabilities, but these in depth financial reports will show everything that is owed and perhaps reveal mistakes that need to be cleared up. It is very important that credit card accounts are paid before it goes to collection or the person has to file for bankruptcy.
The second thing to do to stop credit card debts is to observe past spending habits. What is the card used for? Why can't the balance be paid off each month? Most people use this borrowing tool on a daily basis instead of check cards, cash, or checks. If one records spending habits faithfully, this may not be a problem, but if not keeping track of what is spent, they could be in a world of trouble. Attempt to eliminate such obligations one month at a time by only using cash and check. Of course, continue to pay the account payments, but use this method for several months and see how spending habits change and how financial woes decrease.
Third, now that one understands where spending habits need to be changed and how easily it can be to stop credit card debts, create some goals, rules, and rewards. For instance, if a Christian can stop credit card debt by paying double on their account payment each month, then perhaps they can consider planning a nice visit with an old friend. The rewards should not cost a lot of money (if any at all) because that would defeat the purpose. Tell close friends of the plan to stop credit card debts. Having an accountability partner will be a good support system and might even encourage that person to excessive spending of their own.
Having a plan to eliminate continued borrowing and telling friends and maybe even family about the plan to stop credit card debt will help one rest easier knowing that the end of debt is in sight. It may be a long time from now, but at least they are working in the right direction. There are many professional services available that can help create a plan without consolidating or filing for bankruptcy. Remember, the best way to stop credit card debt is to create a plan that works for each individual and stick to it.