Non profit credit card debt consolidators offer services to develop a debt repayment plan. They do so by talking with creditors to lower your monthly payments in return for receiving their money over a longer period. This approach helps because you only make one single payments based upon how much money you can set aside each month.
If your debt is overwhelming and takes up much of your income it’s time to go to a non-profit debt consolidation agency. The company can arrange bills repayment in a way that allows you to live a comfortable life. If you have decided that you need such a service read on to learn what to do before you contact a non-profit consolidation service.
Reputable Non Profit Credit Card Debt Consolidators
Not-for-profit debt consolidation services are usually more affordable than their for-profit counterparts because they charge lower fees. However, there have been many scam artists in the debt consolidation industry, which is also true for non-profit consolidation agencies.
You will want to make sure that the company has a good reputation before you hire and give them your sensitive personal and financial information. The easiest way to do this is to check with your local Better Business Bureau to see any complaints filed against the company. You may also ask them a list of satisfied clients that you can call for a simple satisfaction survey.
Also, remember to learn from many educational material and financial courses that the agency offers. A good debt management company usually includes free credit counseling and budget management within their plans. However, it is important that you check out the fees for the programs to avoid higher costs and interest rates as a compensation for their free services.
Costs of Non Profit Debt Consolidation Services
Most non-profit debt consolidation agencies do offer free credit counseling services. But since there should be a price to the service you need to understand how they charge a fee for their service. When you are selecting an agency you want to work with compare how different agencies structure their costs, especially how they calculate your monthly bill.
A debt consolidation company that does not charge their services, however, might incorporate higher interest rates or other fees. The agency incorporates these charges into the overall fee structure, which you would have to pay throughout your program. In this case they include the fee in the monthly amount you will remit to them for distribution to your creditors.
Find a Non Profit Credit Card Debt Consolidation Agency
A reputable network of services that you want to look into is Consumer Credit Counseling Services (CCCS). The CCCS has many offices throughout the country. Each agency in the CCCS network is a member of the National Foundation for Credit Counseling (NFCC) and offers a common set of services. This organization has been around for many years and has a good record with the BBB.
Every counseling agency in the CCCS network has certified credit counselors who can help you in developing a budget and managing debt. The budget counseling involves analyzing your financial situation and developing an affordable spending plan. The company may end up offering a debt management plan if you can set aside some money but the amounts aren’t just enough to pay off all your creditors in full.
In short, hiring the right non profit credit card debt consolidation company is a great move for you if you are deep in debt. However, you must do your home work first by creating a list of reputable companies that you want to work with.