If you’ve followed the news, you’re probably aware that money is tight these days. The banks don’t want to lend to anyone who has bad credit, but those are precisely the people who need to find a way to refinance their loans. There are some places that will refinance for you, but the terms are sometimes confusing and sometimes seem like they might not be a very good deal. So what should you take into account if you need to refinance with bad credit?

• Ask a lot of questions. Do not be afraid to ask questions from the loan officer you are talking to. Many of these people are fast talkers who are paid to get you to sign the papers as quickly as possible. Therefore, it is your job to hold back and not make any rash decisions. No matter how bad your situation is now, it could get even worse if you sign a bad deal.

• Take the time to think it through. It sounds tempting that you’ll reduce your monthly mortgage payments by $200. But remember that doing it will ultimately cost you thousands of dollars more since you’re creating a new loan with longer terms and paying more fees. This might be a good deal, especially if it means that you can stay in your home. However, you need to ensure that you will be able to afford that new payment and to decide if it’s worth adding thousands of dollars to your expenses.

• Talk to a lawyer. Most people want to believe they can understand the documents themselves. However, you need to speak to a lawyer who understands these things and who works for you to make sure you didn’t miss something. Even though it will add to your expenses, ultimately, you’ll be happier if you do it and your bad credit finance loan will not feel like such a burden if you understand what you’re getting into.

Let’s first talk about a bit about what these kinds of places do. In essence, the way a debt consolidation service would work is that they take all your bills, combine them into one lower payment and then help you get out of debt by allowing you to pay just one payment to them instead of dozens of payments to every creditor you have. There are thousands of companies all over the United States offering such services. Some are legitimate and some are not. But how can you tell the difference between them? What sets the real guys apart from the fakes in the world of debt consolidation? And what does any of this have to do with Christian debt solutions?

Basically, a legitimate company will have their information displayed clearly, with correct spelling on their home page and they will answer any questions you have. They will tell you how long they’ve been in business, they will meet with you in person and they will be realistic in their estimates of what they can do for you. That last is especially important since so many people who are drowning in debt see only the dollar signs and the relief that they are promised. However, in order for you to get relief, it means your creditors will have to take a loss. Typically, you can expect to get your creditors to settle for around 70 to 80 cents on the dollar or a little better if you’re able to pay most or all of your debt at one time. I have seen cases where people were able to settle for as little as 40 to 50 cents on the dollar, but those are extremely rare.

In essence, what some unscrupulous people are doing is to try to pull you in using your religious beliefs. One place I saw who claimed they were a “Christian run” debt consolidator and said they could get your debt settled for as little as 35 to 60 cents on the dollar. Of course they managed to rush to write that and misspelled 35 as 305. They also had other misspellings in their text and looked incredibly fishy. A further hunt turned up dozens of people complaining of scams by the place and saying how they were bilked out of hundreds and even thousands of dollars, having trusted them because they thought they were religious people doing God’s work.

So how can you protect yourself? Follow these simple guidelines:

• Look for a place that has been in business for a while.
• Be realistic. Don’t expect them to settle for next to nothing.
• Check them out. Ask friends about them and check the Internet for scam warnings.
• Check with the Better Business Bureau if they’ve had complaints filed.
• If you specifically want a Christian debt solution service, speak to your priest or minister and get recommendations from him or her. That’s your best bet by far to find someone reputable.