The concept of Christian debt relief revolves around two basic premises, Christian credit counseling and financial education. It attempts to provide a holistic approach to achieving personal goals which at the moment is conquering your financial debts. The initial premise involved in this debt reduction plan is to meet with Christian counselors to avail of their Christian credit counseling program. This process involves the examination and evaluation of your current financial situation. It takes into account things that challenge you and why you have reached the point where you are neck deep in debt.
The meeting with Christian counselors is more of an interactive process wherein they work with you to set financial goals and at the same time attempt to resolve financial barriers. In order to accurately set financial goals as well as resolve financial barriers that challenge your financial capability, your income along with your expenses will be closely scrutinized. As part of the debt reduction plan that will be formulated under the Christian debt relief program a detailed monthly budget based on your assets and liabilities will be drawn out for you. This process also provides Christian counselors with the opportunity of beginning the financial education of the individual who has maintained financial debts.
The financial education process involves teaching individuals the proper ways on directly negotiating with creditors. This means that you can sit down with creditors and offer more credible payment schemes based on your monthly budget. Part of the financial education process you undergo with the Christian counselor is the formulation of a debt management plan to arrive at benefits that you can actually rely on. Advantages and potential challenges of the available options will also be tackled including the possibility of personal loans, bankruptcy, and other payment schemes that you may find attractive for your current financial situation. The process of financial education will also include discussion of your rights, laws and regulations, as well as other sources of assistance that you can tap based on your specific situation.
When you decide to make Christian debt relief a viable alternative and possible solution to your financial debts it may interest you to look at the common concerns of others who have taken the step towards a more holistic approach to reach their financial goals.
1. Is Christian credit counseling similar to a debt management program?
It is not the same thing. Christian credit counseling is actually a process wherein examination and evaluation of your current financial situation and available options will be tackled. It takes into consideration your specific situation and attempts to uncover the reason for your financial debts. Although it may be considered as a type of debt reduction plan it covers a more holistic approach and provides the general guidelines to help you overcome your financial barriers.
Debt management programs on the other hand is something that a Christian counselor might recommend if he feels you are qualified for it after examination and evaluation of your financial situation.
2. Is a consolidation program synonymous to a debt management program?
Yes there is no difference between the two terms. Debt management program is the generic term used by the financial industry to refer to all programs that fall under this category.
3. Is there a difference between a debt management program and Christian credit counseling?
The two are actually interconnected processes that anyone with financial debts can benefit from. You see, Christian credit counseling actually gives you an idea on what steps you did wrong which resulted in your current financial situation. Debt management plan on the other hand gives you a way to apply the potential solutions identified during the Christian credit counseling which is part of the debt reduction plan you have drawn up with your Christian counselor.
In a debt management plan your Christian counselor will help you determine the best possible way that you can enter a consolidation program generally using unsecured credit. The result of a debt management plan is that you will be able to get payment schemes that are within your monthly budget. Moreover, just like when you are directly negotiating with creditors you will also be able to get greatly reduced interest charges including better timeframe to settle your debt. Using these two processes will help you reach the financial goals that you have identified for yourself and result in an improved financial capability.
4. Is it important to go through Christian counseling before I avail of a debt management program under a Christian debt relief plan?
Yes it is important and it is a must that the steps be preserved. This means you cannot just go into a debt management program simply because unless you go through a financial education process you always run the risk of repeating the mistakes which have led you to your current financial debts. What is worse is that the next time around, you may already be going into bankruptcy instead of a Christian debt relief plan. Determining the factors and solutions that fit your specific situation is one of the keys to reaching your financial goals. You must set your sights to long-term gains to get a realistic result in your struggle against debt. And this can only be done through a Christian credit counseling session.
It is quite understandable why some people become apprehensive of the Christian credit counseling process involved in a Christian debt relief plan. However, you must keep in mind that a Christian counselor will only help you see the financial barriers that are preventing you from reaching your financial goals. By creating a debt reduction plan based on your specific situation you will be able to overcome all your current debts. Be assured that a Christian debt relief package can help you build a debt management plan that you can keep up with.