Christian Debt Relief

The term “budget” gets tossed around a lot. 

A budget can be simple or complex. It should reflect our income and our expenses, and it should be honest. One thing that is often missing is that they do not always reflect our values. Instead of merely creating a financial budget, let’s instead consider keeping God first and creating a Christian budget.

When Christian financial concepts are important to your household, there are a few twists to conventional budget suggestions. Some things will hold true, too, of course.

Many people believe that they are using one even when they have never actually put it into practice. Implementing a budget is the best tool available to ensure financial security, whether for an individual, family, or business. Creating a budget does not just mean jotting down your bills and tossing the paper in a drawer, but conducting a thorough review of your income and expenses and then taking actions based on your findings.

Why Take the Time to Create a Christian-Minded Budget?

“Every prudent man acts out of knowledge”

Proverbs 13:16

First things first— let’s understand why it is important to have a budget. Consider your budget to be the foundation of your financial home. Your budget is the groundwork for everything that you will be building on top of it. It will help you determine what you currently do with your money and, more importantly, what you should be doing with your money.

A good Christian budget will be like a solid foundation for a home. 

It should be confident and complete. No bricks should be leftover, and no empty spaces should remain. If you find that you have money left over, you will want to create a home for it in your budget.

Sometimes your new budget may show that you cannot cover your expenses or have credit card debt that has gotten out of hand. In this case, speak with a Christian Debt Advisor for a free professional consultation to learn about Christian debt relief programs that are available to you. 

How is a Christian Budget different?

“Honor the Lord with your wealth, with the firstfruits of all your crops” Proverbs 3:9

Most budgets begin with your largest expense first. Generally, that would be your housing expense. On a Christian budget, we should place the tithe at the very top of the list. Even if there’s no chance of tithing while in debt, place that line item at the very top to keep everything in proper perspective. 

When we place God first, we can trust that the rest will fall in place as he intends. 

How Should A Christian Budget Should Look

The best budget is the one you will use. 

Here is where personal finance will become personal. I cannot tell you what budget to use or how it should look because your finances may be drastically different from the norm. I do always encourage simplicity! While I applaud high-level attention to detail, that can be tough to maintain in the long term. 

While your budget will be unique to your situation, there are some guidelines you can follow.

• Use your preferred vehicle: Excel, Google Docs/Sheets, a pen and pad; anything that works for you is fine!
• Expect it to evolve- add some padding to your savings if you can so that when unexpected expenses arise, you’re covered
• Follow a template, like these provided by our friends at SeedTime
• Consider the 10/45/25/20 framework
  • 10% of income is dedicated to tithing 
  • 45% is dedicated to needs (housing, food, etc.)
  • 25% is dedicated to wants
  • 20% is dedicated to savings and debt repayment

Plan and Persevere to Keep your Christian Budget Current

“May the Lord direct your hearts into God’s love and Christ’s perseverance.”

2 Thessalonians 3:4-6

Once you understand the purpose of a budget, you should prepare for the tricky part- sticking to your plan!

Your new Christian budget will:

• Guide how you spend your money.
• Shed light on your financial blind spots. 
• Set you up for a successful debt reduction plan. 
• Bring peace to your financial situation.
• Help you automate your savings.

When you have reached your weekly limit on eating out, but your friends invite you to a meal, you’ll learn just how dedicated you are to your budget. Suppose you’ve already spent the money set aside in your new Christian budget. In that case, determination and perseverance will keep you on target.

Allowing small cracks to form in that foundation now can result in an entire collapse in the future.

Stay Aware

“Know well the condition of your flocks, and give attention to your herds”

Proverbs 27:23

A regular review is the final component in keeping your new Christian budget in tip-top shape. Life is ever-changing, and our finances change right along the way. If anything has changed in your life, update your budget immediately. Otherwise, take some time bi-monthly or quarterly to review your situation. This regular review will allow you to catch any trouble areas in advance so that you can keep from straying too far off course.

Creating and implementing an honest Christian budget will provide you with awareness of your financial situation that will pave the way for a stable and predictable future. It will allow you to see trouble coming months in advance so that you can prepare. You will be able to spend your money confidently, as you have prepared and anticipated every dollar that you spend.

Complete the simple form below for a free budget review and to explore Christian debt relief programs that will have you debt-free faster than you ever thought imaginable.

When it comes to debt relief programs and ensuring a debt-free future, you have four main options available. How do you know which one is right for you?

Here’s a quick summary to help you make the best decision.

Debt Relief Option #1 – Debt Consolidation

While a common consideration for those with high credit card debt, debt consolidation offers some fairly significant disadvantages.

1. Debt consolidation does not reduce the overall amount of your debt. With a debt consolidation loan you’ll still pay back 100% of your debt, plus interest. A debt consolidation loan basically transfers your credit card debt from one place to another.
2. Debt consolidation loans are usually “secured” loans that cannot be lowered or negotiated. This could put your home, car, or other personal assets at risk in the event of default.
3. Funds from the debt consolidation loan are used to pay off your credit card debt. For some people, having credit cards with zero or low balances is too much of a temptation. Before they know it, they’re back in the same position again with high credit card debt.

Do your research before you choose Debt Consolidation. It’s a decision you’ll be living with for many years to come.

Debt Relief Option #2 – Credit Counseling

Credit counseling organizations usually try to reduce the interest rates and fees associated with your debt. Like debt consolidation, though, credit counseling doesn’t actually reduce the amount you owe. You’re still responsible for 100% of your total balance.

Many people are also surprised to learn that credit counseling can actually cause your monthly payment to go up. If you’re looking for some immediate financial relief and want to have more money in your pocket for rent, food, tithing, and more, credit counseling may not be the best option for you.

Debt Relief Option #3 – Bankruptcy

Yes, bankruptcy will often eliminate all of your debts… but it also produces some significant negative consequences that you should be aware of.

• The bankruptcy will show on your credit report for at least seven years
• It will be much harder to obtain loans or other forms of credit in the future
• The higher interest rates you pay as a result of filing bankruptcy may offset any gains you received from eliminating your debt
• You’ll likely have unexpected attorney expenses due to laws that were recently enacted
• A credit counseling course will be required within six months of filing bankruptcy…even if you have already taken one
• Bankruptcy will stay on your court records for 20 years and could easily be uncovered when you apply for a job, a loan, or rent an apartment

In addition, bankruptcy has a social stigma that many people prefer to avoid. Think long and hard before choosing bankruptcy as a debt relief solution. In most cases, it should be your last choice.

Debt Relief Option #4 – Debt Settlement

The three previous debt relief solutions all have some fairly significant negative consequences to their use – from not reducing the overall amount of your debt to taking five years or more to get you out of debt to potentially increasing your monthly payments.

Debt settlement, though, offers some of the best features of the other methods and eliminates many of the negatives. That’s why we believe that debt settlement is a great choice for those looking to reduce or eliminate their debt.

With debt settlement you’ll:

• Immediately lower your monthly payment
• Reduce your credit card debt
• Become debt-free in as little as 24 months
• Pay no fees until your debt is reduced

Have more questions or want to learn more about the FaithWorks Financial debt settlement program? Visit our FAQ page or click here to receive a free consultation and quote from one of our friendly Christian Debt Advisors.

Finally…the hard work is done.

You’ve reviewed your debt relief options (including debt consolidation, credit counseling and bankruptcy) and have determined that debt settlement is the right choice for you.

Perhaps it was because you could get started for free. Or maybe you liked how quickly debt settlement could help you reduce your debt. In any event, it’s great to have the decision made.

Now what?

Well, you want to be sure to choose a debt settlement company that is right for your personal situation. Here are 7 quick tips for choosing a reputable debt settlement company.

1. Make sure you select a company that follows FTC regulations. Unfortunately, there are some unscrupulous companies out there. The FTC recently stepped in to help protect consumers. You can also protect yourself by choosing an FTC-compliant company.
2. Don’t pay any upfront fees. In fact, there should be no fees until your debt is reduced. FaithWorks Financial believes that you should ‘Get results first…pay fees later’. You’ll want to choose a company that has a similar philosophy.
3. Avoid debt settlement companies that don’t offer a free consultation. The consultation will give you a window into how the company works and help you gauge how responsive their debt advisors are. You deserve to work with experts who will quickly respond to your questions and who put your wants and needs at the top of their priority list.
4. During the free consultation make sure you ask the debt advisor if he or she is the person you will be working with throughout the debt settlement process. Many companies have sales teams that close the sale, leaving you to work with someone else for the duration of the program. At FaithWorks Financial we believe in developing a long-term partnership with our members. That is why we try to limit your communications to no more than two of our Advisors. You’re treated as an individual, not an account number. Your Christian Debt Advisor will take the time to learn about your unique circumstances and be with you through the entire process. This personalized approach can help you reduce your credit card debt even more and save you as much money as possible.
5. Get as much upfront information as possible on how long the debt settlement process will take and how much it will cost. FTC guidelines require that these details be communicated to you…so don’t let a company beat around the bush!
6. Make sure your funds are held at a third-party financial institution in an FDIC-insured escrow account. Avoid companies that ask you to send funds directly to them. It’s your money. You should have complete access and be able to make withdrawals at any time.
7. Consider a Christian Company. Faith-based companies often take a more ethical approach to business and may be more likely to look out for your best interests.

Have questions or want to know more? Click here to receive a free quote and consultation.