Community Based Debt Elimination
Debt elimination is a goal that has been around almost as long as debt itself. Preparing and sticking to a budget is one way to deal; while another is to stack debt payments. One could also look into a consolidation loan, and it becomes very evident that there seems to be almost as many ways to get into debt as there is to get out. But what if you do not want to apply for yet another lending instrument to solve your borrow situation? You have already tried the old “friends and family” route with little avail. And the more structured non-borrowing option of credit counseling or a consumer proposal do not sit well with you either, now what? Have you heard of community based debt elimination?
Debt Workshops
When this option is tabled many scratch their heads in confusion? The often ask if it is a government based program, but surprisingly it is not something that is so secular based. Some churches have workshops designed to help people get out of debt. Through education and a community based support, parishioners achieve their goals to pay off all or a large portion of their debt. The focus is usually the unsecured debt and they are often only left with a mortgage and car payment. Unloading all the credit card and line of credit debt.
Benevolence Funds
Another form that these programs can take is something that is referred to as: Benevolence Funds. These are funds setup by a religious institution. Often at the church or temple level that is often funded on a community basis. The access rules range far and wide. From not having to pay the money back to making structured payments of a period of time, much like traditional credit counselin
g, these programs are helping people.
Ideally, the best approach would be a combination of both some type of financial assistance and meetings to help with the emotion side of dealing with one of the most common problems in debt accumulation: over spending / being a shopaholic. Correcting
the problem is best done on two fronts, dealing with the symptoms and the cause at the same time. This is the approach these community based debt elimination programs often take with success. The challenge becomes locating them. But one could always champion the cause and approach their religious organization. These initiatives are in play already and maybe all that is stopping your temple/church from starting one of these programs is a little helping hand.
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