Christian debt consolidators are financial services that provide basic debt consolidation services to their clients, along with counseling and budgeting assistance that is understood to apply Biblical principles to the process of money management. In some cases, the work of this type of non-profit debt counselors is to not only help clients develop sound financial management skills that make use of a Biblical approach, but to apply those same principles to other areas of life. This broader approach aids the client in developing stewardship practices that promote the wise use of time and talents along with the prudent and practical use of financial resources.
The actual structure of programs offered by Christian debt consolidators will often depend on the firm’s interpretation of the Christian message itself, in particular as that message relates to the proper management of assets. Any of these services will aid in the basics of assessing the current debt load and determine if the client qualifies for a debt consolidation loan, and work to come up with a monthly installment plan that is within reason. The type of support and instruction provided in terms of helping the client learn to manage money and other resources more effectively may vary from one firm to another.
Some Christian debt consolidators will focus solely on money matters, including the development of a budget that makes it possible for the client to include tithing and other types of offerings as budget line items. If the debt consolidation firm is associated with Christian churches or organizations that emphasize free will offerings rather than a strict interpretation of the tithe, the focus of the counseling may be more on building financial reserves even as the debt is being retired. At the same time, the consolidator will likely encourage the client to financially support his or her local church and denomination by incorporating a line item into the monthly household budget that amounts to a certain percentage of his or her disposable income, although that percentage may be less than the typical ten percent of gross income that is typically understood to represent a tithe.
Depending on the approach to Christian stewardship that is employed by the consolidation firm, the counseling may encompass more than addressing stewardship in financial matters. The idea here is to help the client develop an approach to all resources using basic Christian principles that encourage balance and wise use of time and talents. For example, some Christian debt consolidators may provide insight into how to manage time more effectively so that the client can interact with family or friends more, participate more in the life of the community, and still devote enough time to revenue generation that it is possible to enjoy an equitable standard of living.
As with other types of debt consolidation services, the quality of advice and support offered by different Christian debt consolidators will vary. In fact, consumers who are hoping to receive help with their debts from this type of faith-based service should not make assumptions simply because a firm promotes itself as offering debt consolidation help from a Christian perspective. Before committing to any service, it is important to look into the program thoroughly, including the rate of interest applied to the consolidation loan, the amount of the monthly installment, and any fees or charges that are assessed on the front end or over the life of the loan. If there is also a desire for financial counseling, determine if the service does offer help with budget planning before signing any loan contract.