Churches offer free debt help and advice

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Churches offer free debt help and advice

Households that are struggling with their debts can turn to churches and other charities for help. All of the advice provided to a client is given to them for free. There are no obligations or fees involved. If the person decides to use a service offered to then the debt assistance provided is ongoing.

Many of the churches are part of the Christian Against Poverty (CAP) organisation. Others operate their own independent debt relief centre. There is some form of assistance available in all cities, districts, and borough across the UK. Households therefore have a number of options available to them.

There are no restrictions on religion or faith, and people of all backgrounds can contact one of these churches for advice. The aim is to help the vulnerable and poor address any debt arrears they have, but the services are open to people of any income as well. Many families on welfare also contact one of these churches.

The charities also try to be pro-active, so if someone needs help with paying their bills before they fall behind, they too can use these church based debt programmes. Everything from mortgages to credit cards as well automobile or payday loans are covered, along with monthly bills such as for energy costs.

Types of debt advice provided by churches

The programmes will vary by location and by which charity is providing the service. Many of them do offer similar services though, and they include the following.

There are never any restrictions on who can get help. The charities will assist people of all religious beliefs, races, nationalities, gender and backgrounds. Clients of the debt centres may be in poverty, have a disability, or be on benefits. All types of people can seek help.

The advice will always be provided for free. The assistance is non-judgmental and confidential. This means that when assessing the applicant’s income and financial situation, this information will never be shared by the specialist.

The debt reduction services are extensive. Many of the churches work with hundreds of companies on finding solutions. In fact, Christians Against Poverty has help borrowers of over 1000 different banks or finance companies. They also help individuals deal with energy suppliers, providers of payday loans, mortgage holders, credit card companies, and even landlords.

All of the programmes are normally run from dedicated Debt Centres at the local churches. This is where the counselling will take place at. The client will be able to meet with a coach or specialist from one of the not-for-profits. All of the sessions will take place on a face to face level. This means the person will get personal support from these schemes.

After an assessment takes place, the borrower will learn about solutions for their arrears. Some of them include debt management programmes (DMP), payment plans, help in negotiating, CAP plans and much more. Not-for-profits can also help the borrower consolidate their various bills or loans or enter into an interest rate reduction with their lender.

The coach and the client will decide on the best method available to either reduce or eliminate their debt and then proceed as needed. Or if the borrower needs help in entering into a payment programme such as an Individual Voluntary Arrangement (IVA), then the churches can usually help with that too. There is never a commission charged for the assistance provided.

In dire cases, if the family is too far in debt and approaches like a payment plan or interest rate reduction won’t help, then the next step is assessing a Debt Relief Order. A specialist from the church may recommend this for borrowers that owe less than £15,000. They will also help complete forms needed for the court.

Other social services are also generally offered. The teams at the churches understand that often people fall into debt as they are struggling to pay their bills each month. So some of the centres may operate a food bank or offer advice on accessing housing benefits. If clients turn to these other charity services for a short period of time, it can help them reduce their expenses so they can get back on track.

Not-for-profit charities can also help with bankruptcy for eliminating debts. This step is never taken lightly. A representative from the church can provide information on this process Or they can help complete forms for a bankruptcy petition. If a solicitor is needed for court, then signposting will be provided to them.

The advice is ongoing. There will be assistance given as needed until the family is debt free. Even after then the person can always contact a church for other assistance. The aim is to stop the cycle of turning to high priced lenders such as a credit card company during a difficult period. Instead individuals need to develop a cash based budget.

Clients of the churches will also have money management stressed to them. This includes many different activities. But the first step usually involves creating a budget. They will assess all bills that the household has. Whether it is a mortgage payment or money being paid for energy costs, this is all part of the budget that is created. It also considers the client’s income.

Locations for counselling

The churches will normally help people from all areas and not turn anyone away. The locations that offer this debt advice are below. Or they may offer referrals to a place that is closer to where a family lives.