Christian Loans - A Humorous Slant

Finding a debt consolidation loan these days is tough enough, let alone if you are a Christian. Let's face it, are we not still persecuting these people? I thought that this was the whole idea? Since when do we start giving loans to everyday run of the mill Christians? Last I looked, the last time I lent money to a Christian I never got it back. I mean I don't mind lending a few bucks to my friendly neighborhood Jew, but Christians! COME ON! So what can you do if you are looking for a faith-based loan and nobody in your church has even three dimes they can rub together, let alone give you a personal loan? Seek and you will find.

All kidding aside, let's look at some of the different issues with consolidating debt, and I suppose debt settlement as well. There are really two phases that we need to look at when consolidating your debt. There is the typical consolidation loan whereby you pay off all of your creditors that you carry bad debt with and are left with one solitary loan at a much lower interest rate, and paid monthly, or biweekly. This is as far you want to go and hopefully you will have learned your lesson and learned how to live within your means. If you have not learned your lesson you will be facing the same problem again in the near future and this may take you to the brink of bankruptcy or on the lighter side a debt settlement which is negotiated by a trustee for you.

Let's look at some of the actual numbers involved with the debt consolidation plan. If you owe let's just say $30,000 and the average interest rate when you combine all the different debts is 18% APR and then you compounded over five years you are looking at a minimum of $14,000 in interest payments for the duration of the term. As you can see and they consolidation results below you end up paying approximately $44,000, and you are paying or $700 every month for your payments. This debt consolidation calculation is as follows; Total Amount to be payed: 43722.42, Total amount of interest 13722.42, Payments: 718.72 per month.

Now let us look at this example if our young Christian friend got smart and decided to consolidate with one creditor and they interest rate of 8% APR (annual percentage rate). And just for good measure let's say that he paid on a biweekly pattern of every two weeks. The total cost of funding for this consolidation loan would be much smaller at $6,000 approximately and payments of under $280 per month. Calculation is as follows; Total Amount to be payed: 36046.11, Total amount of interest 6046.11, Payments: 276.52 every two weeks, or we can call it a fortnight if your English enough for that.

With these two examples you can see the drastic difference in the payments. With the second example of $540 per month compared to the first example of the $720 per month, and the difference in the total interest paid on the loans is approximately $7,000. This is sort of a big deal.you think? So it really pays off to get your debts all bottled up into one payment and one debt as you can well see. Whether or not you are a believer in the faith of Christianity, or you worship Jesus on a daily basis, the same calculations will hold true for you. There is that a few financial institutions that do truly cater to the Christian community and they are Credit Unions.

I can't stress enough how important it is to look at the different levels of funding (or costs of funding) between conventional lenders and your local Christian-based Credit Unions. Credit unions ( I believe) are the last bastion of old-time banking because they do take into consideration your personal history and their relationship with you as a person and not just a FICO score number. This is the way all old-time choose to work. There was the day when you're simple reputation in your local would deem whether or not you are approved for a loan or not. Keep in mind the if you are actually looking for a very specific situation whereby you take out a Christian consolidation loan, you will likely be spending the same on interest rates than your friendly next-door neighbor atheist, hedonist, pagan, or scalp belly - it just comes down to who you want to support with your business.

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Thu, 12 Feb 2009 at 8:20 AM, by ks
I have been reading your blog. I thought it's nice blog.

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