Christian Alternatives to Bankruptcy – Consider Christian Debt Settlement
Author: Mansi Gupta
The recent recession in the U.S. economy has created both employment and financial challenges for Americans and Christian families alike. Credit card debt problems will no doubt reach an all time high as unemployment rates continue to rise. Christians face the reality that filing bankruptcy may be their “only way out”, but that is not necessarily the only workable solution that may be available. Filing bankruptcy should be the “choice of last resort” and the reasons are outlined below. Christian debt settlement is a viable solution to be considered by Christian families hoping to turn their financial situation around and live a better, debt free life.
Why Avoid Bankruptcy – When Christians face such extreme financial hardship that they feel they must explore something as “life changing” as filing bankruptcy, we encourage them to seek out all other Christian debt reduction alternatives first. Filing bankruptcy may allude to the feeling of a “fresh start” and might provide immediate relief from the unbearable stress created by financial difficulties. However, this is not necessarily an accurate picture of the “brighter financial future” you are seeking. A bankruptcy filing will remain on your credit report for up to 10 years. You will face difficulty in securing home mortgages or vehicle loans at reasonable rates of interest, potentially costing thousands of dollars in additional interest charges resulting from high interest rates. Needless to say with the recent financial problems U.S. financial lending institutions are experiencing, individuals deemed a credit risk are being scrutinized more closely than ever before. A bankruptcy can also impact future employment opportunities as more employers are now completing credit checks as part of their screening process. Again, with unemployment rates at an all time high in 2008, you don’t want to lose that perfect position because you are deemed irresponsible when your credit history is evaluated. Walking away completely from your financial obligations should be the last resort for a Christian. All Christian alternatives to bankruptcy should be investigated first, including Christian debt settlement, Christian credit counseling, and even debt consolidation loans.
Why Christian Debt Settlement May Be The Right Solution – Christian debt settlement is becoming a more well known form of Christian debt reduction because it offers many distinct advantages when compared to other Christian alternatives to bankruptcy. Christian debt settlement is a debt reduction solution involving the negotiating of creditor balances down to a mutually agreed upon “reduced amount” that is considered payment in full by the creditor. For this reason, Christian debt settlement is often referred to as Christian debt negotiation. Christian debt settlement is gaining in its popularity primarily because it provides the following benefits for Christian unsecured debt problems:
· Provides an ethical and honorable alternative to bankruptcy.
· Allows the client to maintain privacy and control over their financial affairs (unlike bankruptcy which becomes public record)
· Allows the client to take charge of the program and control their own financial destiny (unlike bankruptcy where the courts decide all matters)
· Provides a relatively short program duration, typically taking 2-3 years to resolve Christian unsecured debt problems (in contrast to the longer Christian credit counseling programs which can take 5-9 years to complete)
· Requires the lowest overall total financial payout (when compared to debt consolidation loans and Christian credit counseling)
· Provides the most flexibility of any Christian debt reduction program in terms of monthly budgeting
It is no surprise that Christian unsecured debt problems create stress and worry that often feel unmanageable for Christian families. But there is hope in a variety of Christian debt reduction solutions. If you are facing financial troubles, then researching the various Christian alternatives to bankruptcy is the first step to changing your financial destiny. It is advisable to do your research and your “homework” so that you select the best Christian debt reduction solution for your situation. Christian debt settlement is just one option that clearly offers numerous benefits and advantages over other forms of resolving Christian unsecured debt problems. The decision is ultimately yours and must be right for you and your family.
Article Source: http://www.articlesbase.com/business-articles/christian-alternatives-to-bankruptcy-consider-christian-debt-settlement-675348.html
About the Author
Liv Worthington has worked in debt management for many years. She takes pride in helping all of her Christian clients find Christian alternatives to bankruptcy like Christian debt settlement when they need a Christian debt reduction solution to provide credit card debt relief.
Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?
More debt than income qualify for debt reduction service?
Or is bankruptcy the only option? We dont want to do that but is there a debt reduction company we can use to get those bills paid off instead? Thanks in advance.
credit card debt reduction settlement or bankruptcy?
Due to lost of 60% of my family income we have no choice other then put our home in for a short sale or forecloser. We also had about $80,000 in credit cards debt which about two payments behind. I also had a rental property worth about $100,000 and owed about $49,000. the property was bought when I was single to help out a family member and they make all of the payment. If we are going to file for bankruptcy I am sure they would loose their home and that would be the last thing I would want to do. I know my family life is screwed up but don’t want that family member lost their home because of me. What could I do so they can keep that home? thanks
I forgot to mention We live in California.
Do debt reduction services make you file bankruptcy?
I’m in about $4,000 in debt and was considering a debt reduction service. I heard that you have to file for bankruptcy to complete them. Is this true and what all is required to follow through and complete a reduction service. Is it worth it?
Bankruptcy, consolidation, or debt reduction?
I’m looking at an uncomfortable situation. My family has a considerable amount of debt. We’re talking around $30,000. We are currently able to manage payment on our cards, but we’re not able to get anywhere. We’re at a point of near desperation. So I was wondering what was best? Should we file for bankruptcy, try to get a loan for debt consolidation, or try one of the debt reduction programs out there?
I’m really not sure what would be best. Consolidation would be ethically best in my opinion, but from the couple of places we’ve tried, no one will give us a loan. Any advice or personal stories would be appreciated.
Many debt reduction services charge large fees. They also often times make you save all the money up (including their fees) before they contact the creditors. This can make someone with good credit get bad credit because some of these services recommend to people to stop paying off their debt completely. I wouldn’t use any service except maybe a credit counselor. A credit counselor will help you set a budget and create a payoff plan for your debt. Use the below link to help you find a reputable one.
You could even get away with doing everything yourself.
First pull your credit reports from the three major credit bureaus:
Experian, TransUnion, and Equifax
You can get free ones at http://www.annualcreditreport.com.
Then take note of how much money you owe and to whom.
If the account(s) is delinquent:
Order the accounts by either smallest to largest amount (makes you feel like you are accomplishing something quicker), or largest to smallest interest rate (will end up saving you money in the long run).
Start saving up what you owe for each account. Keep making payments on any that are still open or in good standing.
After you have saved a total to pay off the first amount contact the creditor and see if you can negotiate a reduced payoff amount…if not then you can pay in full.
If the account(s) is in good standing:
Make all of your payments on time.
Order the accounts by either smallest to largest amount (makes you feel like you are accomplishing something quicker), or largest to smallest interest rate (will end up saving you money in the long run).
Pay the minimum on all the accounts below the first one listed, then pay all the other money you have devoted to paying off debt to the first account listed.
Once the first account is paid off apply all of the money you were paying on the first account and start paying off the second account on the list. Repeat until everything is paid off.
You may want to go to the library and check out The Total Money Makeover by Dave Ramsey. It explains everything I just told you in greater detail.
Im pretty sure to qualify for any service you have to have more than $5,000 in debt.
The Credit Score (also known as your MyFico score) is calculated with the following breakdown:
* 35% – Payment History
* 30% – Credit to Debt Ratio
* 15% – Credit History
* 10% – New Credit
* 10% – Credit Types in Use
A small loan consolidation with low interest is the best (for credit cards)I found interesting information about your answer & options here. http://all-debt-consolidation-loan.blogspot.com/2007/07/loan-consolidation.htmlGood luck!