DEBT PROGRAMS – FAQ:
Q. What exactly is your debt freedom program?
A. This is not a loan. This is a program based on Christian principles
that was designed so that you do not need to borrow any more money. “..
and the borrower is servant to the lender.” (Proverbs 22:7) Our
Christian debt program combines all of your unsecured monthly bills into
one affordable monthly payment. To help get you out of debt as quickly
as possible, our Christian Credit Counselors will arrange to lower your
interest rates and reduce any fees. This will dramatically reduce your
overall debt, dramatically escalate your pay off time and lead you back
to the simple life that is intended for all who walk the Christian path.
Q. What do your debt freedom programs have to do with Christianity?
A. Any Christian burdened by debt knows the spiritual costs: excessive
focus on money; excessive focus on self; a sense of being enslaved to
the debt; a decreased sense of personal integrity; a heavier spirit
which interferes with loving relationships at home, at work and in the
community; and overwhelming distraction from service to God, family and
society. No one who is financially bound can be spiritually free. Our
debt programs are driven by Christian principles and we provide debt
programs that enable Christians to resolve their obligations with
integrity.
Q. How does the debt freedom program work?
A. Shortly after you submit the information request form, a
highly-trained Certified Christian Credit Counselor will contact you to
help you to assess your current debt situation and to explain specific
Christian-based debt programs. If we are able to find a Christian debt
program that fits your goals and needs, you authorize our non-profit
service provider to contact your creditors. Our Christian Credit
Counselors will arrange to get your interest rates and monthly payments
reduced to an amount that is more affordable for you to pay. From that
point forward, you no longer have to pay high interest rates and fees.
All of your debts are consolidated into one simple, manageable reduced
payment which you submit through our Debt Freedom Program. The funds are
then automatically forwarded to your creditors on your behalf. The
single payment makes budgeting and bill payment much easier for you. You
receive regular monthly statements from your creditors so that you can
monitor your progress.
Q. Why would my creditors agree to lower my interest rates?
A. Banks qualify for tax credits from the government when they cooperate
through these debt programs. Therefore, your creditors will lower
interest rates, reduce or eliminate fees and do whatever they can to
help us help you get your life back in line with Christian principles.
Q. Why do I never seem to make progress paying off my debts?
A. Certain accounts (especially credit card accounts) are intentionally
structured to keep you in debt. High interest rates and/or fees may be
eating up the bulk of your payment each month. This is like running on a
treadmill. The solution is to get your interest rates reduced through
our Debt Freedom Programs.
Q. How much time will I save by utilizing your debt freedom program?
A. A typical credit card account may take more than 20 years to repay.
Our Debt Freedom Programs are structured to complete within three to
five years on average. Since there are never any pre-payment penalties,
you can accelerate your debt program if you prefer. Many of our clients
complete their debt program ahead of schedule.
Q. How much money will I save utilizing your Debt Freedom Programs?
A. Of course every situation is unique. Our debt freedom programs may
reduce your total repayment expense by up to 60% or more.
Q. How will my credit score be affected by my participation in your
debt freedom programs?
A. Again, each situation is unique. If you are delinquent on your
accounts now, our client services department can arrange to have your
accounts re-aged and reported as current. If you pay your bills on time
but have too much debt, our debt freedom programs can help you to
improve your debt-to-income ratio. By re-establishing a timely payment
history and/or by reducing your debt to income ratio, you can improve
your credit score.
Q. Will I continue to receive harassing phone calls after I enroll in
your debt freedom program?
A. If you are being contacted by bill collectors at your home or work,
you know how upsetting this situation can be. No practicing Christian
wants to avoid his obligations and responsibilities. As a Christian, you
want to repay the debt. When you utilize our debt freedom programs, you
authorize our non-profit client service department to be pro-active and
contact all of your creditors on your behalf. Your creditors
automatically receive written confirmation of your enrollment in our
debt freedom program and will begin to direct inquiries to us. In most
cases, collection calls begin to dissolve within a few weeks. Within as
little as three weeks you can begin to answer your telephone again
knowing it will not be a creditor.
Q. Which creditors participate in your debt freedom program?
A. Participants include all major credit card companies (Visa,
Mastercard, Discover), department stores, medical clinics and hospitals
to name a few.
Q. What is unsecured debt? What types of debts will qualify for your
debt freedom programs?
A. An unsecured debt is when the creditor holds no collateral. Examples
of unsecured debt include credit cards, personal loans (signature
loans), medical bills, charged-off accounts and accounts with collection
agencies. Examples of secured debt include vehicle loans, mortgages and
home equity lines of credit. Our debt freedom programs are designed to
assist with most forms of unsecured debt. Secured debt will not qualify
for the debt programs that we offer.
Q. Can I resolve my mortgage and/or car loans with your debt
programs?
A. No. These are examples of secured debts and will therefore not
qualify for our debt programs. See the preceding question and answer for
more information.
Q. Should I get a loan instead?
A. In most cases, no. It is difficult if not possible to get out of debt
by borrowing. Unsecured consolidation loans are among the highest risk
loans and carry very high interest rates to match the lender’s risk.
Secured loans (i.e. home equity loans) may offer more attractive rates,
however one should always compare the overall repayment expense. Even at
a low interest rate, a fifteen or thirty-year loan will end up costing
you several times as much in total repayment expense. Also, converting
unsecured debts (i.e. credit cards, etc.) into secured debt (i.e. home
equity loan) puts your home or other assets at risk in the event of an
unforeseen financial hardship like a health problem or a period of
unemployment. Our debt freedom programs allow you to simply accelerate
the repayment of your existing debts.
Q. Must I include all of my accounts in your debt freedom programs?
A. Generally, no. Many of our clients choose to keep at least one credit
card for travel or emergency purposes.
Q. How do I know if I qualify for your debt freedom programs?
A. Anyone with unsecured debt automatically qualifies for our debt
freedom programs. If you are seeking to rid your life of this financial
and spiritual burden, simply complete the getting started forms. One of
our credit counselors will contact you.
Q. Is my information kept confidential?
A. Yes. We treat your personal information as we would treat our own.
For a more thorough review of our strict standards of confidentiality,
read our privacy policy under the “Legal Stuff” section.
