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The Best Debt Consolidation Company

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Sometimes all you need to do to find the best debt consolidation company is look in the mirror. Although the entire industry is built around making you believe that you don't have any other options, you do. This article will take a look at a few of them and how you can use them to dig your way out of debt.

First, let's look at the old saying "You can't borrow your way out of debt." I couldn't agree more, and there are few statements that hold as much truth and insight as this one. However, when looking at a debt consolidation loan, you're not trying to borrow your way out of debt. You're trying to (or you should be, at least) decrease the total amount that you're paying on high interest rate debt, and thus decrease the amount of time that you need to pay it off.

Remember, compounding interest is the 8th wonder of the world, and so it goes with debt as well as savings. A credit card at 20% APR and a $1000 balance is going to hit you for $17 a month just to keep up with the interest accrual. $17 a month could add as much as 5 years onto your payoff schedule. That's a lot.

All that aside, take a look at your biggest money drains which are likely your house and your car. You may have equity in your house that you can get out in the form of a home equity loan or line of credit. Another option is refinancing into a new mortgage which might make sense if the prevailing rate is lower than what you locked in when you bought the house (assuming you went with fixed rate). Remember, though, that when you do this you're putting your house up against you unsecured debt, thus making it secured debt. This decreases the risk for the bank because they have an asset-backed loan, but in increases your risk since the bank will take your house if you default on your loan.

Cars are generally a good option as well. If you're making payments on your car, you can't afford it. Sell it and buy one with cash. Cars are depreciating assets, and it's one of the great fallacies of today's society that we equate expensive cars with wealth. In a time when you can lease a $50,000 vehicle for $350 a month, nice cars don't equal wealth. And if you speak to someone who is wealthy they'll tell you the same thing. Unless they're ridiculously wealthy. Then they'll have a driver.

The Best Debt Consolidation Company

Whether a Christian can get into debt (‘money or property which one is obligated to pay another') is being debated within the Christian community. Some say it is not O.K. for Christian to owe any money, even for auto and/or home loans. Others say that it is O.K. to sustain some personal debt as long as the item purchased is an asset with the potential to appreciate. Another that it was purchased to produce an income or that the value of the item purchased equals or exceeds the amount owed against it or the debt is not so large that repayment puts undue strain on the budget.

Christian debt consolidation companies point to the passages in the scripture regarding debt and borrowing. ‘Owe no man any thing, but to love one another' (Romans 13:8). Proverbs warns us that, ‘Just as the rich rule over the poor, so the borrower is servant to the lender' (Proverbs 22:7). Christian debt consolidation companies also say that it is very clear in the scripture that we are to pay back what we borrow as it says ‘The wicked borrow and do not repay, but the righteous give generously' (Psalm 37:21).

Christian debt consolidation companies say that the Lord wants us to live an abundant life which becomes increasingly more difficult with increasing debt and that being free from any financial encumbrances is an incredible empowering feeling. Christian debt consolidation companies are committed to helping people get back control of their finances and become debt free. This is an interesting twist on the words of the scripture but many Christians believe that they cannot deal with a non-Christian organisation but are perfectly comfortable with Christian debt consolidation companies. Interestingly, Christian debt consolidation companies do not have any restrictions on the religious beliefs of the people that they lend to – of course, that would be discrimination, but it is worth wondering why they claim to be Christian debt consolidation companies and not simply debt consolidation companies.

Christian debt consolidation companies claim to be offering people the ability to re-finance their debt at lower interest rates, some even to zero interest. The simple fact is that being a Christian debt consolidation company or a non-Christian debt company does not seem to have made any difference in their ability to make false claims! There is no reason to choose a Christian debt consolidation service over any other apart from personal preference.

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Both Allen Wright & Angela Rogers are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Allen Wright has sinced written about articles on various topics from Modelling, Insurance and Property Sale. Allen helps people learn more about the through his website about the. Allen Wright's top article generates over 550000 views. to your Favourites.

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