Frequently Asked Questions

The debt counseling services we offer at Christian Debt Services provide you with the means to pay off your outstanding unsecured debts and find real relief from excessive financial burdens. High interest rates, job loss, medical bills and many other circumstances can lead to high credit card or other unsecured debt. With Debt Management plans and other programs available, Christian Debt Services can help you consolidate your debts, make your monthly payments more affordable, and help you discover a debt free lifestyle. We want you to understand all the options available to you so you can make the best decisions about your financial future. Below are some of the most frequently asked questions that we receive. If you question is not answered, please contact us for more information.

An unsecured debt is one that is not attached to any specific tangible item that could be repossessed by the creditor. Credit card debt, medical bills that have been turned over to collection agencies, store cards, signature loans, any unsecured lines of credit such as payday loans and revolving charge accounts are all types of unsecured debts. Private student loans that are not government backed may be eligible for some types of programs. Federal Student Loans are government backed and cannot be discharged even in a bankruptcy proceeding.

A Debt Management Program is a debt consolidation or credit counseling plan designed to assist consumers in paying outstanding debt while avoiding bankruptcy and minimizing legal and debt problems.

A Debt Management Plan or credit counseling is a voluntary process to help people who are in debt regain control of their finances, regardless of whether they have good credit or bad credit. The Debt Management Programs provided by Christian Debt Services are a viable option to declaring bankruptcy.

In contrast, when you file for Chapter 13 bankruptcy, it becomes public record. Such a step has serious and long-term drawbacks, which may negatively affect your life for decades and may make it difficult for you to obtain credit in the future.

Debt repayment varies greatly from client to client. However, because high interest rates are usually reduced, clients are often able to pay back their debt in three to five years after their debt management program begins.

If you are delinquent on your accounts now, we can get your creditors to re-age your accounts and show them current. If you pay your bills on time, but have too much credit, and you are not getting ahead by making minimum payments, by reducing your debt to income ratio, you will improve your credit.

Yes, any creditors who contact you should be advised of your plans. Major creditors are usually supportive.

NO. It is your decision as to which debt you want to include in our program. In fact, many people choose to keep at least one credit card for travel or emergency purposes. You can always add on additional credit cards later.

All information you give Christian Debt Services is strictly confidential. Our respect for your privacy is one of the reasons so many people choose or refer others to Christian Debt Services.

Once your enrollment is completed and your first payment is received, payment proposals will be sent to your creditors.

It might be possible in the first few months, as it takes time for your creditor’s collections department to find out you’re on a Debt Management Plan.

That is no problem at all. Creditors just want to be paid. Most creditors will bring your accounts current, stop late and over limit fees, stop collection calls and reduce or eliminate interest.

YES! High interest rates are the real killer. By getting your creditors to reduce their high interest and fees, more of your monthly payment goes to reducing your debt and you can become debt free years quicker than you would on your own.

Probably not. Loans are what got you into trouble in the first place. Most unsecured loans have high interest rates, and if you get a home equity loan, you will be securing your credit cards with your home.

Debt settlement is the process of negotiating with creditors to reduce overall unsecured debts in exchange for a lump sum payment. This is not a credit counseling service or a consolidation loan; it is the process of eliminating your outstanding unsecured debts. A successful settlement occurs when the creditor agrees to forgive a percentage of the total account balance. Please review our section on Debt Settlement for more information.

When you file for bankruptcy it means you refuse to pay back your creditors which destroys your credit. Filing for bankruptcy makes it far more expensive, if not impossible, to buy a house or car, or get a loan for several years.

That is no problem. You are only enrolled in our program for as long as you want to be. You may terminate the plan at any time for any reason with no penalties.