Christian credit recovery appeals to consumers seeking a way out of debt using Christian values and ideals. Many companies recognize this growing trend and now cater to Christian consumers seeking to reduce their debt load. Christian credit recovery companies are plentiful on the Internet and offer services ranging from debt counseling to debt consolidation. The commonality among these companies is the recognition that debt is a bondage that is not supported by biblical teachings and must be overcome.
Christian Debt Counselors
Traditional credit counselors work with clients to determine strategic paths out of their debt problems. They do this by reviewing income and liabilities and helping the individual develop a budget to pay down debt and keep household expenses in check. Christian debt counselors essentially work the same way; however, their advice encompasses Christian values such as giving a portion of income to the church. Biblical principles of debt are the basis of Christian debt counseling. A Christian debt counselor will also help consumers discover the spiritual freedom that comes from resolving their debt issues.
Christian Debt Relief
In addition to credit counseling, some companies offer services such as Christian debt relief. Debt relief is essentially debt management or consolidation. In this case, the company will combine all of your debts into one monthly payment for you. It will pay the individual creditors on your behalf. There is a nominal fee for this service.
The company will also work with your creditors to negotiate better interest rates on high-interest credit cards. In some cases it may be able to negotiate a lower monthly payment. Debt consolidation does appear on your credit report. However, if your score is already low, the effect may be minimal.
DIY Christian Credit Recovery
Many of the services that credit recovery companies offer can be performed without the use of an intermediary. Restoring your credit on your own can save you money in the long run. This money can be put toward your debt balance. The first step for Christians attempting to reduce debt is to transfer ownership to God. Other suggestions include developing a budget that includes setting aside money for tithing and stopping the use of credit cards. Request a copy of your credit report to get an accurate view of the state of your credit. Review the report and report any errors immediately. Pay debts timely to rebuild a good payment history. Christians undergoing credit recovery need to be patient, because time is the best healer for credit issues.
Warnings
The Federal Trade Commission warns consumers about companies making claims about restoring credit and quick credit relief. Many of these companies are fraudulent and may end up costing you money and destroying your credit further. Unfortunately, many of these companies advertise themselves as being Christian in an effort to entice consumers to use their services. Before signing a contract or paying any money to a credit recovery company, it is best to visit the Better Business Bureau or the Consumer Reports website to investigate the company first.
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