Christian Debt Consolidation
Let’s say that you have some unsecured debt. Unsecured debt is debt not attached to a tangible asset that could be repossessed by a creditor in case of a loan default.
In your case, you have accumulated some hefty balances on credit cards and have outstanding medical bills as a result of emergencies and unforeseen expenses.
The debt is set at about a 29.99% interest rate. You went on the internet and discovered that if you were making the minimum payments of $339 each month (which you are), it would take you 31 years to pay off the $10,000 that you owe!
You know if you could get the interest rates reduced you could pay the balance off much sooner. For example, if you had a more rational 8.99% interest rate, you could pay the $10,000 off in five years with a monthly payment of just $207 instead of $339.
That is why you might want to consider a Christian debt consolidation plan for your unsecured debt.
This is Not a Loan
The idea of a debt consolidation plan is threefold:
- Obtain a reduced interest rate on your outstanding debt
- Lower the monthly payment
- Pay the debt off quickly
Christian debt consolidation is not a loan. It is a voluntary procedure to help you regain control of your financial health regardless of your credit situation. It is an option to declaring bankruptcy.
If you do file bankruptcy, it becomes a matter of public record and can stay on your credit report for 10 years. It may make it almost impossible to obtain credit in the future.
Christian debt consolidation is designed to assist consumers in paying off outstanding debt. Your creditors are contacted and asked to re-age your accounts to show them current. They are asked to lower the interest rates. The idea is to get you to a monthly payment you can afford and pay the debt off in three to five years.
This is a viable alternative to declaring bankruptcy or getting another loan. If you receive a credit card consolidation or overall debt consolidation loan, you are in the same boat that got you in trouble. Taking out another unsecured loan.
Even worse, if you take out a home equity loan, you are securing your debt with your home. That means if you end up not being able to pay back the loan, you could lose your home. Consider Christian debt consolidation as another method to help you manage your finances once and for all.