How to get Christian debt consolidations
- 1). Pull a copy of your credit report from Annual Credit Report, a website authorized by the Federal Trade Commission (FTC) to offer free reports under the terms of the Fair Credit Reporting Act. Order your credit score separately, for a fee, by following instructions provided with the report. Christian debt consolidation companies adhere to the same credit qualification guidelines as other debt consolidators. The lower your credit score, the more you can expect to pay in interest rates and fees. Credit scores range from 350 to 850, with scores below 620 considered poor. It is possible to receive debt-consolidation loans with scores less than 620, depending on your overall circumstances and possible availability of collateral.
- 2). Seek general credit counseling help from a church or other faith-based ministry or organization before focusing on debt consolidation. The FTC and many government-approved credit counselors advise against debt consolidation because it is impossible to borrow your way out of debt. Also, the FTC warns against using home-equity loans for debt consolidation because failing to make payments on the loan can lead to foreclosure. Faith-inspired credit counseling can help you take an overall view of your financial situation and possibly find alternatives to debt consolidation, such as less expensive housing, cheaper child care and government or private programs helping with food and other necessities. Contact local churches to find faith-based credit counseling help, or seek referrals from a local chapter of the United Way or Salvation Army.
- 3). Find debt-consolidation companies advertising themselves as Christian debt-consolidation companies once you are ready to begin consolidating debts. Get referrals from churches, the United Way or the Salvation Army. Compare services offered by the Christian debt consolidators against advice you received from faith-based credit counselors. Get a detailed proposal, in writing, describing how the Christian debt-consolidation company can help you. The proposal should include a list of debts you are consolidating and the total cost of the debt-consolidation loan, including all fees, finance charges, the interest rate and the total cost of the loan.
- 4). Show the proposal to a credit counselor at a church or faith-based organization for a second opinion.