Bill and Myra Byrne used a Christian debt consolidation counselor to negotiate settlements, lower interest rates, eliminate fees, and simplify payments. They became debt free in 2008. In 2025, comparable paths include nonprofit debt management plans, debt settlement, and consolidation loans. Consumers should check credentials, understand fees and credit impacts, and consult trusted advisors before enrolling.

A faith-first approach to a common problem

Bill and Myra Byrne found themselves overwhelmed by unsecured credit-card debt. Concerned about their finances and their witness as Christians, they turned to a faith-based debt consolidation counselor as a last resort.

What the counselor did

Their counselor, Mike, negotiated directly with creditors, arranged a single monthly payment, and reduced interest and fees. In their case they negotiated settlements that averaged about 35 cents on the dollar and secured lower interest rates on some accounts. Eliminating late and over-limit fees and reducing interest gave the Byrnes enough breathing room to cover family expenses while paying down obligations. They became debt free in 2008.

How faith shaped the decision

The Byrnes chose a Christian firm because shared values mattered to them. Their counselor understood concerns about stewardship and reputation, and the plan emphasized making good on obligations in a way consistent with their beliefs.

What to know today (2025)

"Christian debt consolidation" can describe several things: a faith-based credit counselor offering a debt management plan (DMP), a company that negotiates settlements with creditors (debt settlement), or a for-profit service that packages consolidation loans. Options now commonly include:
  • Nonprofit credit counseling and DMPs, where counselors negotiate lower interest and collect one monthly payment to distribute to creditors.
  • Debt settlement, which negotiates reduced balances but can damage credit and may trigger taxes on forgiven debt.
  • Debt consolidation loans or balance-transfer credit cards, which replace multiple accounts with one loan or card at a new rate.
  • Bankruptcy, which remains a legal option when debts are unmanageable.
Regulators and consumer agencies recommend checking the credentials and practices of any firm you consider. Ask whether the agency is nonprofit, whether it enrolls you in a DMP, what fees apply, and how services will affect your credit. Use resources such as your state consumer protection office, the Consumer Financial Protection Bureau, and the Better Business Bureau to research firms.

Practical questions to ask a faith-based counselor

Ask how they interact with creditors, whether they provide a written plan, how fees work, and whether the counselor is affiliated with a nonprofit or a for-profit company. Talk with your spouse, pastor, or trusted financial advisor before signing.

Bottom line

A faith-based debt counselor helped the Byrnes negotiate reduced balances, lower interest, and a simpler payment structure that fit their values and timeline. Today, similar outcomes may be possible through nonprofit DMPs, debt settlement, or consolidation loans - each with trade-offs. Vet providers, understand costs and credit implications, and choose the option that aligns with both your financial needs and your convictions.

FAQs about Christian Debt Consolidation

What is the difference between a debt management plan and debt settlement?
A debt management plan (DMP), usually offered by nonprofit counselors, redistributes payments to creditors and may lower interest rates without reducing principal. Debt settlement negotiates to reduce the amount owed but can hurt credit, involve fees, and may create tax issues on forgiven debt.
Will using a Christian debt consolidation firm protect my credit?
It depends. A nonprofit DMP can improve payment consistency but may appear on your credit report. Debt settlement often lowers your score because accounts may be closed or marked settled for less than full balance. Always ask how the service will be reported.
How do I vet a faith-based debt counselor?
Confirm whether the agency is nonprofit or for-profit, request a written plan and fee schedule, check reviews and complaints with the Better Business Bureau and state consumer protection office, and consult the Consumer Financial Protection Bureau for guidance.
Are there tax consequences to settling debt?
Yes. Forgiven debt in a settlement can be taxable as income in many cases. Consult a tax professional about your specific situation.
Should I talk to my church leaders about debt help?
Yes. The Byrnes recommended discussing options with family, friends, or a pastor. Church leaders may know reputable counselors or offer congregation-based support.