Questions & Myths

Questions & Myths

When money is tight, and there's too much month left when the cash runs out, those ads about debt settlement start to sound attractive. But there are questions.

  • Is resolving your debt for less than what is owed, really easy?
  • Can anyone do it?
  • What are the consequences?


Myth: Anyone can get their balance cut in half for any reason.

Truth: Legitimate debt settlement businesses qualify clients. Companies like Christian Debt Network also ask for details about the hardship. Lenders want to make sure a consumer is having legitimate financial problems. "If they're making $200,000 a year and don't feel like paying their bills, that is not acceptable," points out Christian Debt Network.

Myth: You have to pay someone to help settle your debt.

Truth: Abraham Lincoln said, "Anyone who represents themselves has a fool for a client." The same works with debt settlement. You wouldn't file for divorce without an attorney, why would any rational person try to navigate the arcane and intricate laws surrounding debt settlement without an experienced negotiator working for them? Qualified debt settlement companies know the percentage each creditor is likely to agree to. The professionals have more leverage with creditors.

Debt Settlement vs Debt Consolidation

People often confused debt settlement with debt consolidation. They are two different animals.

In debt consolidation, the consumer continues to make monthly payments — to a third party who takes a cut —and the debt consolidator passes what's left on to creditors.

In debt settlement, the arrangement is similar — but different. The consumer continues to pay monthly payments but to the settlement company instead of the creditor. The settlement company has negotiated a lower amount acceptable by the creditor and keeps the difference as compensation for the legal work.

While debt consolidation is a relatively new concept, debt settlement has been around for thousands of years. The idea only became popular in America in the late 1980s as bank deregulation loosened consumer lending practices.

Even In Debt, Give Thanks!

Keep praying, and in all things, even when in debt, give thanks to God. "Give thanks in all circumstances; for this is God's will for you in Christ Jesus" (1 Thessalonians 5:18).

Contact Us

Want To Talk? Let Us Call You

Send us a message

By clicking on the button “Get Your Results”, you authorize Christian Debt Network and/or any of the attached/linked service providers to contact you by phone, text, email, mail or by artificial or pre-recorded voice, even if you are listed on any Do Not Call List. By clicking you also agree to Christian Debt Network’s Privacy Policy and Terms of Service, and further agree anyone contacting you because of your consent may use an automatic telephone dialing system, even if the phone number provided on this page (or any phone number associated with you) is a mobile phone number that could cause you to be charged for the call. Your consent to receive automated calls or text messages is not required for any purchase or availability of goods/services from Christian Debt Network or its partners. If you do not consent you may call us at 800-484-2740 to further inquire about our services and programs.