What are your options? Weigh the pros and cons.If you can qualify for a mortgage, borrowing against the equity in your home to consolidate all of your debt does have certain benefits, as well as real pitfalls. On the positive side you can immediately eliminate monthly payments. You can also stop bill collectors from calling or taking
legal action because, after all, you’ve paid your debts in full. Finally, the process may actually help you improve your credit rating. First of all, you have to be able to qualify for a loan or a mortgage. You risk losing your home if you’re not able to maintain the payments set up when you borrow against the equity in your house. The debt you’re paying off is not eliminated, it is simply restructure and you run a risk of overextending yourself again. And something a little less tangible, but still very real, you may get a false sense of security… a feeling that the debt is no longer there when in fact it’s tied up in your home. Would a debt consolidation service or consumer credit counseling program be better?Signing up for a debt consolidation service or consumer credit counseling program will immediately decrease your monthly payments to the debts you still owe. Bill collectors will not be harassing you as much, though there is the possibility that collection action will not go away entirely. The programs do teach better money management skills and are successful in eliminating penalties, interest and additional fees on the debts you already have incurred. However, you will not be able to get new credit cards while in the program and you’ll need to qualify by having a certain level of unsecured debt because these programs only work with unsecured debt. If you’re behind on your mortgage you could still lose your home. And it’s possible that participating in such a program may have a negative impact on your credit rating. A couple of tips before you join.
Christian Debt Consolidation Companies – A False Sense of Security?
Claiming Christ in BusinessMore and more companies are adding the word ”Christian” to their titles such as; loan companies, debt-counseling, consolidation firms, and even singles websites. I believe in some cases this is a tactic used to lure people into a
false sense of security. People trust the name and become vulnerable to getting ripped off. I looked into two Christian consolidation companies to see what they might offer compared to the “non-Christan” Companies. The first company I looked at, Christian Debt Consolidation by Christan Crossroads, claims to help resolve debts quickly with integrity, I am guessing this means the other companies lack integrity. This company also claims to reduce debt up to 70%(depending on circumstances) as well as lowering interest rates. Late and over limit fees will be eliminated. This is non-profit company allows you to make one payment a moth on the day you choose. With God’s directions on the side of how to reduce your debt by using God’s plans. The other company I looked at Surf-In-The-Spirit Debt Consolidation, claims to only work with Certified Christian Debt Organizations How do you become a certified Christian organization. This company also reduces debt by up to 50%, reducing or eliminating interest , and able to preserve or rebuild credit. When a consumer asked a question about the companies being able to restore credit, they replied that they are not able to do so. The companies will report that you have satisfied the requirements for the program. Okay.