While our Christian debt relief affiliate provides Christian debt settlement services, there are other debt reduction options available that Christians may want to consider when addressing their unsecured debt and credit card debt problems. One of those Christian debt relief solutions is Christian credit counseling.

Christian credit counseling is a non profit service offered to consumers. Christian consumer credit counseling services work directly with a consumer’s lenders to reduce outstanding balances, eliminate late fees and over the limit fees, and reduce interest rates. The goal of the Christian credit counseling service is to find a workable solution where both the lenders and the consumer are satisfied with the payment arrangements. Christian credit counseling services educate the consumer about credit, financial management, and household budgeting in order to further the goal of a healthy financial future. Under the new bankruptcy law, a debtor must undergo consumer credit counseling with an approved agency before filing for bankruptcy.

Once a Christian debt counseling service has reviewed your finances, they may set you up with a debt management plan. In this debt management plan (DMP), it is your responsibility to deposit money each month with them. The Christian debt counseling service will then use these funds to pay your monthly unsecured debts directly on your behalf. Non profit Christian debt counseling programs are designed to shorten the time it takes to eliminate your unsecured debt through both the reduction of your credit card interest rates and the waiving of fees being charged by your creditors. These debt plans are designed to insure that 100% of the contracted debtor balances are paid to the creditors in the DMP.

In order to determine whether a debt management plan (DMP) is right for you, it is important that the certified Christian credit counseling service has spent the required time with you carefully evaluating your financial situation. The DMP typically takes longer than a Christian debt settlement program. Most debt management plans require a minimum of 48 months but can take significantly longer. Be sure to request the precise length of time it will take to complete your personal debt management plan. Oftentimes, the DMP monthly payment amount is simply too high and not affordable based on the monthly budget. Christians in serious financial circumstances such as this may want to consider Christian debt settlement services as a viable alternative to filing bankruptcy.

A Christian debt settlement program is designed to pay back a portion of your debt to each of your contracted creditors, who will have pre-approved these reduced amounts known as offers or “settlements”. Therefore, the monthly payment (commitment) amount designed in a Christian debt settlement program can be far less than the Christian credit counseling service’s monthly payment. Our website also includes information about Christian debt consolidation loans as it is another alternative debt relief solution.