What You Need to Know About Debt Consolidation Non Profit
There are quite a few non profit debt consolidation companies available to advise you on your finances. One
misconception that consumers often have is that nonprofit organizations are always free. You could be charged a fee
for enlisting the help of a non-profit company. Debt consolidation companies ease your financial stresses by
negotiating with your creditors and these negotiations will lead to a revised payment plan. Your income and
financial needs are carefully considered and put into a plan to eliminate your credit card debts.
The Basic Process
First, a non profit debt consolidation company will schedule a free debt counseling appointment to discuss your
finances. Then, the advisor will work with you to create an income and expense sheet in order to help you budget
more effectively in the future. After reviewing your finances, your advisor will determine the amount of money you
can reasonably pay each month to your creditors. Finally, the reasonable monthly payment figure will be
communicated to your creditors in order to negotiate a revised payment plan. In most cases, the creditor will agree
to lower your interest rates and waive late fees.
The Advantages of Non Profit Programs
The goal of non profit debt consolidation companies is to lower your monthly payments to creditors in order for
you to pay off your debts more expediently. Going through a consolidation company may be essential to reducing your
interest rates and eliminating fees. In addition to this, non-profits try to make sure that every consumer is
financial educated in order to avoid financial problems at a later time.
Another way that nonprofit companies differ from for-profit companies is because they are more willing to accept
one monthly payment for several creditors. A nonprofit company will distribute your monthly payment among several
credit companies based on the agreements with those creditors. Also, when your accounts have been reported to
collections, your financial advisors will accept the collections calls for you and keep up all communications with
your creditors on your behalf.
What Does Non Profit Mean?
The sole funding of non profit debt consolidation companies comes from consumer donations, creditor
contributions, and benefaction of other business entities. Creditors will usually set aside a percentage of the
consumer’s monthly payments for the funding of the nonprofit organization. You can look at company websites to
check the status for example; “IRS 501 (c) (3)” is an indicator of tax exempt status. A non profit company would
have tax exempt status but a for-profit company would not. A non profit debt consolidation service will not always
be free but their fees are typically less expensive than the fees of for-profit companies.
Be Advised and Beware
Unsuspecting consumers can still be scammed by non profit organizations. Please be sure to read all of the
information before employing any debt consolidation company, non profit or otherwise. Make sure a company hasn’t
had trouble with the Better Business Bureau and ask your friends and relatives for referrals.
Consulting with a debt consolidation company can really help you get back on your feet when it comes to
creditors but make sure you are well informed about any company you may choose or you may end up worse off than you