Christian Debt Reduction Loans

Christian debt reduction loans do not actually reduce the total amount; rather they are consolidated into one larger, lower-interest payment which saves hundreds, if not more, in interest charges and finance fees. Additionally, the consolidated debt reduction loan can be for a greatly extended period of time, up to 30 years if using home-equity financing. This minimizes the monthly payment even more, making payments more manageable and easier to erase. Plus, the interest charged on a debt reduction loan, such as with home equity financing, is even tax-deductible, providing an additional financial advantage.

If someone has lots of different debts or are paying high interest rates, it might be best to consolidate into a lower-rate, single payment. Some states and community agencies offer free counseling to anyone that seeks it. These advisors can recommend whether this is a good option, or they can explain alternative courses of action. Psalm 56:3 reminds Christians to not lose hope in any situation. "What time I am afraid, I will trust in thee." Getting a debt reduction loan can be a scary and discouraging time, but always know that God is there.

One alternative to taking out other financing is settlement. When enlisting with a settlement service, specialists work with individual creditors to negotiate the amount owed by as much a 50%-60%. However, debt settlement can have a more adverse effect upon credit as compared with a debt reduction loan since companies advise people to suspend their payments to creditors while they negotiate on the debtor's behalf. This process can take quite some time; all the while the creditor is reporting that no payments have been made. Also, creditors are unwilling to negotiate in the case of secured debts, where creditors hold an asset such a car as collateral for the loan.

Not all creditors are willing to cooperate with settlement efforts and many people choose to avoid the adverse effect settlement inflicts upon their credit history by instead opting for this route. Christian debt reduction loans are a better option in protecting property involved with secured debts, and is a great alternative to bankruptcy, which can blemish credit indefinitely, and results in the loss of property and assets. Christian debt reduction loans provide the lump sum needed to clear debts while leaving a manageable monthly payment. Praying and carefully evaluating the specific situation will lead to the answer God intended for the situation to go.

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