God knows and is faithful
Although most Christian debtors want to pay their bills, sometimes circumstances arise that make it absolutely impossible to make even the minimum payments demanded by creditors or to meet due dates.

It is during those times that stress levels rise, feelings of hopelessness seem to penetrate every aspect of life, and rash decisions are made because of desperation and despondency.

Throughout the Word of God there are recorded incidences where God miraculously delivered His servants from impossible situations, but not before they first had to be subjected to the pressures of that situation.

Christians who are seemingly in insurmountable debt often find themselves in similar situations.

Nevertheless, God's Word gives hope, even in the very midst of despair. “For I know the plans that I have for you . . . plans for welfare and not for calamity to give you a future and a hope. Then you will call upon Me and come and pray to Me, and I will listen to you. You will seek Me and find Me when you search for Me with all your heart” (Jeremiah 29:11-13).

Although at times Christians who are in debt are in reality paying the cost for monetary blunders or errors in financial judgment, it is during those times that God’s grace proves itself sufficient.

In 1572 John Knox, the great Scottish reformer, became a victim of Queen Mary’s burning stake because he would not recant his nonconformist stand for Christ. As the flames ascended around him he cried out with a loud voice, “When I was young and now that I am old, my Savior has never failed my need nor made deaf my prayers at the time that I needed Him most.”

So, as John well knew, God will answer. It may not be at the exact time that we think it should be or when we want it, but He will not turn a deaf ear to our prayers.

God will respond, but His response will be subject to His timetable, not necessarily dependent on either the desires or the needs of His children who are in debt.

While waiting for God
While Christian debtors wait for God’s response, they can take a few practical steps in an effort to relieve some of their financial stress. It is difficult to negotiate with a creditor who has been ignored.

Therefore, it is best for debtors to run toward creditors, not away from them. Most creditors respond best to specific written requests that are backed by detailed plans.

Debtors need to write the creditors a letter (do not telephone them) that states their financial problems and explains what has happened to cause them to default on their scheduled payments.

This letter preferably should be sent before the debtor begins to receive reminder letters or phone calls from the creditor.

Accompanying the letter should be a current detailed financial statement that shows the name of all creditors, the amount owed to each creditor, and how much each creditor has requested for a monthly payment.

In addition, debtors need to send creditors a copy of their adjusted budget that reflects a detailed repayment plan and shows each creditor exactly how much the debtor is able to pay each one of them each month. The letter should ask for their acceptance of the proposal.

Along with these documents, debtors need to send the first month’s payment they have said that they are willing to send. In most cases, creditors are more willing to accept a proposal or make other considerations to help the debtor repay the debt, if the proposal is accompanied by a payment.

Once debtors have committed themselves in the letter, it is extremely important to stay committed and follow through. Do not renege.

Sometimes a debt counselor is necessary to act as an objective third party who will enforce the commitments made by debtors.

What happens if a creditor will not cooperate?
If a debt goes unpaid for an extended period of time, creditors may turn the debt over to a collection department or agency.

Although debt collectors do have the right to demand payment and eventually to take legal action if necessary, Public Law 95-109, the Fair Debt Collection Practices Act, which governs the actions of collection agencies and outlines consumers’ rights, prohibits any kind of harassment.

If a debtor experiences any harassment problems with a debt collector, he or she can report the harassment to the state attorney general’s office.

If debtors have questions about their rights under the Fair Debt Collection Practices Act, the Federal Trade Commission may be able to assist.

Generally speaking, the best chance for debt resolutions for debtors who have already been contacted by a collection agency is to reach an agreement with the regional or district manager and to try to work out a settlement with that manager. A reasonable payback plan and timeframe should be suggested to the manager.

Many times debtors will need a third party reference, such as a debt counselor, when negotiating with a collection agency manager.

Nevertheless, there are times when the best efforts don’t work regarding a negotiated settlement and agreement. This usually happens when debtors have made frequent promises that were not kept or because they failed to respond to warnings issued by the collection agency.

In such cases, the creditor or the collection agency can pursue legal action. The legal actions that creditors can take usually fall into three categories: foreclosure and repossession, legal judgment, or bad credit report.

Foreclosure and repossession. If debt is secured, creditors have the right to take possession of the property used as security according to the terms of the loan agreement. If the security is real estate, the creditor can take possession by foreclosure.

If the security is any other type of property, the creditor can take it by repossession. Although creditors normally have the right to take possession without written notice (some states do require a written notice), most creditors notify debtors that there will be legal action taken against them, if they do not comply.

After this notice, there is a waiting period. If the debt is not satisfied during the waiting period, the creditor can take possession of the property used as security against the loan.

Legal judgment. A creditor may sue to collect a debt. If a creditor wins a lawsuit, the creditor receives a judgment against the debtor.

If the creditor receives a judgment against a debtor, the creditor has two primary options which he or she can pursue. (1) Creditors can secure a court ordered lien against any nonexempt property (the court will decide what property is exempt) owned by debtors in order to raise the money to pay the debt. The debtor’s personal property must be taken by the creditor before real estate is taken. (2) Creditors can obtain a court garnishment against debtors—in states that allow garnishment. This means a creditor can require someone who owes the debtor money (such as a salary) to pay the creditor instead of paying the debtor. The most common form of garnishment is against wages and nonexempt forms of income. No more than 25 percent of a debtor’s net income can be garnished by an individual creditor and no more than 50 percent total for all creditors.

Exempted salary includes Social Security benefits, unemployment benefits, pension plan payments, child support payments, and personal injury judgment payments.

Bad credit report. Instead of seeking a legal judgment, some creditors choose to report defaults by debtors to the national and local credit bureaus. A negative report by a creditor could dramatically affect a debtor’s ability to receive future credit.

Conclusion
The way people deal with creditors says a lot about their character and about their relationship with the Lord. In Matthew 5:25 Jesus said, “Make friends quickly with your opponent at law while you are with him on the way, so that your opponent may not hand you over to the judge, and the judge to the officer, and you be thrown into prison.”

Although in our society we have legally limited a lender’s ability to collect money owed them by debtors, that does not negate the creditor’s authority over the lender. “The rich rules over the poor, and the borrower becomes the lender’s slave” (Proverbs 22:7).

Unfortunately, many people who can’t pay everything don’t pay anything. This is not pleasing to the Lord.

If at all possible, debtors need to pay what they can each month, even if it’s only a partial payment. They must not, however, make unrealistic promises.

Debtors need to approach a promise to pay with the same degree of caution that they would the signing of a contract. When people give their word, they must keep it.

If they make a promise when they know that they won’t be able to keep the promise, they have violated God’s principle of vows. “When you make a vow to God, do not be late in paying it; for He takes no delight in fools. Pay what you vow! It is better that you should not vow than that you should vow and not pay” (Ecclesiastes 5:4-5).