Christian credit counseling provides more than financial coaching for people who are drowning in credit card debt. With the Christian approach, the focus is on spiritual growth, financial responsibility and compassion. According to a recent article by U.S. News & World Report, credit counselors help people with money problems. People who can’t afford to pay off their credit card debt often tap Christian credit counseling services as a more affordable way to handle the situation. A Christian credit counselor withholds judgement, helping to work with your creditors and get you a lower interest rate. Debt consolidation is only one of several benefits. While experts say consumers are in more debt than in the Great Recession, there are positive steps to take.
Learning to set a budget
People who set up a budget figure out where they can cut back on spending and how much they can save. Credit counseling helps you to put your financial situation in perspective with the facts. In most cases, you find all of your credit card statements and other bills so you can track your progress. By signing up for a debt management plan, you get out of debt on a specific timeline. Meanwhile, your budget keeps you on track for the rest of your life by helping you spend less than you make.
Improving your low credit score
If you have a low credit score, Christian credit counseling helps. Some tips you learn include how to check your credit report and dispute inaccuracies. Also, pay your bills on time. Instead of moving debt around with credit card transfers, simply pay off the debt. If you need help paying off a large debt load, turn to debt consolidation through a credit counseling agency. Avoid opening new credit card accounts, closing accounts you already have and falling prey to a debt settlement scam.
Receiving Christian credit counseling isn’t just about freeing yourself from credit card debt. It’s also about understanding your overall financial picture. You can easily reduce stress by resolving financial difficulties. Getting financial advice based on Biblical principles gives you greater financial peace. At Christian Credit Counselors, we help you get a refreshing new viewpoint of your financial situation with positive solutions. If you want to eliminate your debt so you can build true wealth, talk to one of our credit counselors. For more information about debt consolidation, please contact us.
If you have put your credit card statements aside, figuring you will get to it eventually, it’s more important than ever to consider debt consolidation. When you sign up for debt consolidation, you lower your interest rate so you can pay off all of your credit card debt in less time. It’s becoming increasingly more important to pay attention to credit card debt. According to a piece by bankrate.com, rates on existing credit card debt will likely go up as the Fed increases the prime rate. Last year, the Consumer Financial Protection Bureau found a person with about $15,000 worth of credit card debt will most likely deal with about $150 of interest rate charges if the Fed raises the rates by as little as one percent. While rates begin to go up, consider locking in on a lower rate. A trained credit counselor will talk to your creditors to negotiate a debt management plan. Unlike a debt settlement plan, it’s not about walking away from your debt. It’s about facing your debt head one, but enjoying a break given to you by your creditors who decrease the interest rates and often forgive late charges.
Getting honest about the problem
Experts say the first step you can take when you have a lot of credit card debt is to get real or honest about the situation. Consider your future goals and plans. Do you want to retire in five years? Do you hope to get out of debt so you can buy a home in two years? When you figure out your goals, you will likely find the motivation to make positive changes. A Christian credit counseling company will show you how to accomplish your goals with debt consolidation.
Making room in your budget
Some people make the mistake of having an extremely strict budget that is impossible to maintain. When you consolidate debt, you find out how much you will pay every month to satisfy all of your creditors included in the debt management plan. If you owe, for example, $150 a month to satisfy a debt management plan, you know how much is left for other bills, rent or mortgage, food, gasoline, cellular phone, cable, utilities and other items. Make room in your budget or retirement savings and emergency savings. Also, allow for a little breathing room for discretionary spending and entertainment.
At Christian Credit Counselors, we put the joy back into managing your finances. Talk to us about the benefits of debt consolidation before rates on your credit cards go up. For more details about how to get out of debt 80 percent faster than other programs, please contact us.
As more consumers receive credit counseling, an incredibly positive result is a drop in household credit card debt. According to a recent piece by nerdwallet.com, household debt for American consumers went up this year, but mainly due to mortgage and student loan debt. The good news is credit card debt went down by 3 percent. For people who sign up for a debt management plan, credit card debt quickly becomes a burden of the past. The Nerd Wallet research showed the average debt balances for different types of debt. By eliminating credit card debt, it’s easier to tackle all other kinds of debt including mortgages, auto loans, student loans and personal loans.
Looking at the average balances
Sometimes it’s fun to compare yourself to other consumers, getting an idea of what kind of predicament other people face with their finances. A Christian credit counselor gives you complete privacy and helps with a positive approach. Instead of reinventing a formula for success, consider consolidating credit card debt. The debt consolidation approach works for many people who want to find financial peace. As far as average balances, Nerd Wallet found in just one-quarter or three months, credit card debt went down about 3 percent while mortgage debt went up almost 2 percent. Student loan debt went up 1.69 percent.
Figuring out your net worth
When you receive credit counseling, you lay everything out on the table as far as credit card bills. It’s also good to get a financial checkup. Figuring out your net worth is a simple calculation that involves adding up all of your equity, assets, money and then subtracting what you owe. The Nerd Wallet study showed the average balance on mortgage debt is about $171,000. The average auto loan balance is about $27,000, while the average student loan balance is about $49,000. The average credit card debt is much less at about $15,000, but the interest rate on credit card debt is significantly higher. Paying off credit card debt with a debt management plan is a key secret to financial success.
At Christian Credit Counselors, we help you improve your credit score over time with financial education and tools. We help consumers get out of credit card debt by positively confronting their debt. Talk to us about how we work with creditor to lower your interest rate and work out a plan. For more information on credit counseling, please contact us.
In this passage from Proverbs 2: 1-5, listen to the words “if”. Those are statements of our part and then listen for the word “then”. That is the statement of God’s part. God has a part and we have a part…
“My son, if you accept my words and store up my commands within you, turning your ear to wisdom and applying your heart to understanding—indeed, if you call out for insight and cry aloud for understanding, and if you look for it as for silver and search for it as for hidden treasure, then you will understand the fear of the Lord and find the knowledge of God.”
Far too often we want God to do His part before we are willing to do our part. We want the promises of the “then” but not the requirements of the “if”.
This is especially true when it comes to our finances. We want God to pour out His blessings on us, we want God to take care of our bills, we want God to get us out of debt, we want God to get us a better job. But God also expects us to do our part: To be faithful and disciplined.
Listen to Proverbs 14:23 – “All hard work brings a profit, but mere talk leads only to poverty.”
If we work hard, we will profit. If we only talk about work, we will be in poverty.
Are you trying to escape financial bondage? Here is what I recommend: Search the scripture and find a promise of God related to your goal or need. Then set about doing your part to achieve that goal and trust God to do His part. He is always faithful but expects us to do our part as well.
And don’t forget that understanding how you view money and its purpose is as important as budgeting. I invite you to take the free MoneyLife Indicator assessment at Crown.org.
Chuck Bentley is the CEO of Crown, the largest Christian financial ministry in the world, founded by the late, Larry Burkett. He is an author, host of My MoneyLife – a daily radio feature, and a frequent speaker on the topic of Biblical financial principles. Follow him on Twitter @chuckbentley and visit Crown.org for more help.