Christian Debt Consolidation

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Author:
Glen D. Williams

Christian debt relief counseling is a phrase that's a little misleading because it implies there is something different or even superior about the counseling being offered. This isn't to say anyone's trying to mislead, just that the products, procedures and options are the same whether you're a Christian, or not. The fact is, all good debt and financial management techniques are rooted deeply in the Bible and are, therefore, Christian. It doesn't matter whether you're talking debt management, consolidation relief or elimination, there is so much Biblical counsel you may not even need counseling.

The Bible And Debt: What is tha Biblical counsel? First of all, debt is slavery and you can't serve 2 masters, God and money. This means the solution to debt isn't more debt. Maybe you could work more...work six days and rest one. Maybe you could improve your skill through training or college...a highly skilled person will be promoted. Maybe you could work harder...laziness is stealing. These are ways the Bible says we can increase our income. To decrease our outgo, the Bible says we are to follow a complete spending plan so we don't run out of money. This usually means saying "no" when it makes you unpopular to yourself and your loved ones. To get our spending under control and save our house, in 1991, we ate potatoes or rice for dinner 2 nights per week and bought no new clothes for the first year. By 1997 we had no debt other than our mortgage, were living on 1/5 of our income and saving and giving away the rest. 7 years after that, despite a huge stock market loss and 2 years of no employment, we moved into our new custom home on 20 acres. Giving is another way the Bible says we can increase our income. I don't know why it works...I only know it works.

Debt Consolidation Services: Based on the spam in my inbox, there is such a thing as Christian debt consolidation. I'd be really skeptical of anyone offering this. You see, this is just another kind of loan but usually at a much higher interest rate than that money could cost under other circumstances. This is because someone who needs a loan to consolidate loans is a high credit risk. The Bible teaches that debt is slavery, so, I have difficulty accepting that there's anything uniquely Christian about getting a loan. Here's the deal...if you can consolidate your debt to a lower total payment and a shorter term, then it makes sense to do so. By no means should you use the equity on your house to pay off credit cards because, though the payment will be lower, the term is 10 years longer. If we're going to use Christian principles, we need to make decisions that get us out of debt, not just prolong the slavery.

Christian Debt Management: There are many debt management companies, who, for a fee, will control your money for you, pay your bills and give you an allowance for optional spending. This, they will tell you, will get your creditors off your back and allow them to negotiate reduced payments, etc. If you're on the verge of bankruptcy, this may be a viable option, but not one that is necessarily Biblical. It sets up a dependency on the management firm and prevents you from learning how to do what the Bible says to do...plan your spending so you have enough money when you need it. A good counselor will teach you how to do this for yourself. If you aren't going to do the work to get your spending under control, no program will work. If you're committed to getting your budget under control, a good Christian Finances and Stewardship Process is probably all you need.

Christian Debt Relief: For Christians, debt relief is usually something we do for ourselves by following the Biblical guidelines above. Sometimes, under dire circumstances, and within the law, people have to file bankruptcy to relieve their debt. This is not something Christians should plan for, because every charge slip we sign is a promise to pay. Bankruptcy was set up for emergency situations where circumstances outside of your control make debt relief necessary for your family to survive...not as a money management technique. If you'll use the Christian principles I've given you to discipline your spending and pay down your debt, you will never need debt relief counseling, whether it's Christian or not.

Glen Williams is an Ordained Minister, Founder and CEO of E-Home Fellowship (EHF), Inc. and Webmaster for www.web-church.com. He has been active in ministry since 1989. You can comment on his articles at Web-Church Christian Forums.

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A Quick Note From The Publisher... If you like the article above, you may be interested in the following article which is also related to Christian Debt Consolidation... Debt Consolidation: Friend or Foe? Debt consolidation has become big business in this country over the last several years. Consumers with the good conscience to avoid filing for bankruptcy are turning to debt consolidation in hopes of saving their credit and getting out of debt sooner. But is it really necessary to turn to a debt consolidation company? Critics of the programs offered through most debt consolidation companies would, of course, tell you no. Many debt consolidation companies have gained a bad reputation. This isn’t really surprising considering that some debt consolidation companies have filed for bankruptcy protection themselves. Several have claimed to be non-profit and been shut down for circumstances surrounding hidden fees. Debt consolidation companies have gotten such a bad name as of late that some don’t even call themselves debt consolidation companies any longer. It’s doubtful they believe that it’s hard for consumers to recognize that they are in fact debt consolidation companies. However, so many have been warned to stay away from debt consolidation companies that it’s probably a smart business move on the part of any debt consolidation company to keep the term out of the company name. You may have seen the word “Christian” in the name of some debt consolidation companies. Obviously religion has little to do with debt consolidation and this is seen simply as a sales tool to play on the moral obligations a lot of people hold when it comes to borrowing money. The fact that so many companies are stooping to the level of claiming to be a religious organization should make it pretty plain to see that there may be some question as to the ethics of companies like this. Debt consolidation, negotiation, settlement, whatever you want to call it, is a personal choice. What...