Christian Debt Consolidation

Many Americans seek out the help of Christian debt consolidators, and for good reason.  According to Federal statistics, about 4% of the U.S. population has $10,000 or more in credit card debt.  To many of us, that appears to be a lot of debt.  Even more surprising is that Americans owe an estimated $866 billion on their credit cards.

Debt consolidation is a service that interests many Americans.  But what are Christian debt consolidation services, and how do they differ from traditional debt consolidation providers?

Christian Debt Consolidation Services

In this article, we're going to talk about the reasons many Americans seek the services of a Christian debt consolidator.  These are individuals that provide help with debt settlement services as well as creating debt reduction plans.  We're also going to talk about finding a reputable Christian debt counseling service, including the various solutions they may offer.  Finally, we're going to briefly explain some of the debt consolidation help, or options, that are available to the general public.

Christian Debt Solutions

When we first decided to include a debt consolidation section in this publication, we did a lot of research.  Debt and loans are a big part of nearly everyone's personal finances.  As we were searching for information, we kept running across a large number of websites claiming to be offering Christian debt solutions.

What we didn't understand is the link between Christians and help with debt problems.  Interestingly, that relationship goes back to biblical times.

History of Christian Debt Management

The Bible has over 2,000 verses or references to earning, saving, spending, investing, and giving money away.  Christian debt consolidation services are based on a system of helping others to help themselves, and lending a helping hand.  While the concept sounds great, we were skeptical.  The more we looked, the more suspicious we grew.

It was difficult to see a strong link between the Bible and managing debt.  So we moved on to look at what we thought were charities offering legitimate help in managing one's debt.

All Kinds of Christian Debt Help

Let's start by talking about the attributes, or qualities, of a company that offers genuine Christian debt consolidation services.  The first thing you should look for is a statement about non-profit status, usually reference to an IRS 501(c) (3) non-profit charitable organization.  These same companies often offer free credit and debt counseling, along with the proper guidance to help you stay out of debt through budgeting.

False Claims of Christian Help

At the other end of the spectrum, there are companies that claim to be Christian debt consolidators, but these companies have absolutely nothing to do with this helping-hand concept.  In fact, it is quite easy to find companies on the web claiming to offer Christian debt help, but their websites point out why such services are a bad idea.

Somewhere in-between, you can find companies claiming to offer these services; but if you read the fine print they talk about making "donations."  These donations are made directly from your monthly payment, or donations are made to a "Christian" non-profit organization from the company writing the debt consolidation loan.

We have to admit that we had to search pretty hard before we found what we thought were legitimate Christian debt consolidators.  Unfortunately, most of the companies we found ranged from somewhat suspicious to very suspicious.  It was disheartening to see the abuse of the term "Christian" was so widespread.

Finding Legitimate Debt Consolidation Services

Since we have performed a lot of research and reading on this topic, we're going to try and save you some time.  We'll tell you what to watch out for when selecting a debt consolidator - Christian or otherwise.

Potentially Misleading Debt Services

• If the company appears more interested in offering you a chance to talk to a free debt counselor, then be suspicious that the company is more interested in writing down your private information then helping you control your debt.
• If the company appears to be pushing you towards filling out a debt consolidation application, then you should be suspicious that the company is trying to give you a quotation for a consolidation loan - and the hard sell will follow.
• If the company promises to offer you instant credit repair, then be very suspicious since instant credit repair is not possible in nearly all situations.

Signs of Quality for Debt Services Help

• Companies offering real Christian debt consolidation services will focus on forming habits to get you out of debt, manage your finances, as well as credit counseling.  The focus is on forming good habits to keep you out of debt first.  Filling out a debt consolidation application will always be secondary, or as a last resort.
• You should look for a statement about non-profit status, which will usually contain a reference to being an IRS 501(c) (3) non-profit charitable organization.
• Look for credit counselors that are members of the National Foundation for Credit Counseling or NFCC, which is a non profit organization that is dedicated to the setting of standards for debt and credit counseling.  The NFCC seal assures you that the agency has met the high standards, and ethical practices, set forth by the NFCC.

Please don't misunderstand us to say that every debt consolidator is evil.  That is simply not true.  You can find some very reasonable payment arrangements or loans through these companies.  The warning here is that if you are seeking the help of a real Christian debt consolidation company, then you are liable to run into a lot of companies that have disguised themselves as offering such services.

About the Author - Christian Debt Consolidation

Bill Sharlow is the Editor of Money-Zine.com.  Copyright © 2004 - 2010 Money-Zine.com