Christian debt management is commonly used to define various kinds of Christian-based debt services. A Christian-based debt service provides debt counseling and financial management services to clients who are not comfortable with settlement processes and consolidation programs offered by mainstream debt relief services. Christian debt management companies and other such debt consolidation companies make similar boasts about the type of results they deliver and how their plans work. However, it is important to keep in mind that no two Christian-based debt management companies or debt consolidation agencies will provide the same level of financial assistance to their clients.
What kinds of loans and debt strategies are offered by Christian-based debt consolidators? In general, a typical Christian-based company will offer a variety of consolidation options, but these strategies tend to fall into three basic categories. These include pre-settlement loans, post-settlement loans, and debt management plans (DMP). The specific programs offered by each organization may vary, but a typical Christian-based debt consolidation firm would offer these options.
Pre-settlement loans are made by non-profit firms that are often supported by the church. Such firms come into contact with people who have huge debts while they are unable to pay them back. These people may have recently lost their jobs or their businesses might have fallen apart. Such individuals generally face pressing financial needs that prevent them from being able to pay their loans. A typical christian debt consolidation firm contacts these individuals and offers them short-term financial assistance.
Post-settlement loans are made by financial firms that are primarily approved by religious groups. Such companies may not require collateral, but they do expect a good credit rating from their clients. Such firms may be able to provide better interest rates than non-religious firms, but they are unlikely to provide lower monthly payments.
Debt management plans (DMP) offer a way for individuals to consolidate their loans while also reducing their monthly payments. DMPs differ from most other financial firms in that they do not require any collateral or good credit. A Christian-based christian debt consolidation firm can also offer lower interest rates than non-religious firms.
A third type of program is offered by Christian based firms. This option is much more flexible than the others. A Christian based solution allows an individual to become debt free without having to stop making payments. This is possible since the payments that the client makes to his/her christian debt consolidation company are used to pay for the services of the counselors who will be used in helping him/her to become debt free. Payment amounts and schedules for these services may vary. In addition, these firms may be able to combine all accounts into one.
The monthly payment for a christian debt consolidation program may be different from that of a regular service plan. The reasons for this include the fact that the monthly payment made to these companies does not have to go towards interest or fees on unpaid balances. Instead, they are used to pay for the services provided to someone who is struggling to become debt free. These services may also have additional charges such as extra hours worked during the week, counseling or debt resolution. As with all services, these fees may be higher if the client is in need of immediate financial assistance.
If an individual already has a reasonable monthly payment and would like to reduce that payment even more, he/she may wish to use an advisor who offers a combination of programs. A combination of services will help an individual to become debt free by using extra money from his/her monthly payment. However, it is important to make sure that the advisor offers services which will actually benefit him/her rather than a combination of programs which will not prove to be beneficial. Using an advisor who offers a Christian based debt solution can be a good way to get free financial counseling which can also lead to financial freedom for someone.