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Is Christian Debt Relief Something That We Should Do?

“Dear Steve,

Owe over $60K in credit card bills.

Like some Americans, we were effected by the downturn in the economy. Our household salary has been cut in half and it’s been a struggle. The priority is the mortgage and utilities. The credit card bills are paid last. Nevertheless we are behind on the credit card payments. We were thinking of taking out some retirement money and settle with the credit card companies. Don’t know if that is a good thing or not. At this point, we would like the constant calls, even on Sundays. Please help. I see some ads on your site “christian Debt Relief”, is that a route we should take? Thanks.”

I often hear the term Christian debt relief but to be honest with you I have no clue what it really means. Previously I wrote “Is Most Christian Debt Advice Bogus? Here’s What Jesus Would Really Do.” and talked about this.

The right decision to deal with your debt is one that allows you to address the situation and move forward in a responsible manner.

For example, is it more responsible to protect the money already in your retirement account or to spend it and hope life does not through you a curve and prevent you from rebuilding those funds in the future?

Is it more responsible to face being sued by embarking on debt settlement and potentially having your wages garnished and being in collections, or better to seek protection under the law and prevent that from happening?

Do you need to be punished for your past financial mistakes or do you need to learn from them and move forward with what you have learned?

I am not a fan at all of touching the retirement funds that are protected from creditors in cases of bankruptcy. In debt settlement you will wind up in collections, you could be sued, your wages could be garnished, a lien could be placed against your home, etc.

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However, if the goal is for you to repay your debts based on what you can reasonably afford, protect your retirement funds, prevent being sued, silence all debt collectors and avoid liens, then the more appropriate answer for you is bankruptcy.

Before you leap to any conclusion I think you should click here to find a local bankruptcy attorney and go talk to them about the protections afforded to you under the law by seeking protection in bankruptcy.

Once you do that, come on back and let’s chat about it.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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