Non profit debt consolidation companies offer various debt help services that are available to you. When you think about nonprofit debt consolidation services, you will associate them with the terms credit counseling and debt consolidation. These are the two main functions of non profit debt consolidation companies but there are other options available to you as well.
This article will focus on explaining the main services and the difference between the two primary functions of non-profit debt consolidation services along with the importance of using a non-profit company. It will also explain other services offered by a not-for-profit service.
Debt Consolidation Services
The first service offered by a nonprofit debt consolidation agency is debt consolidation. Let’s use this example to illustrate how this function works.
You have different credit cards and different debt associated with each particular card. If you are carrying a balance on four credit cards and each one has a different interest rate and a different monthly minimum payment, how are you able to keep track of these payments along with how much you owe on each of them?
If you hire the non-profit organization, they will work with your creditors to lower interest rates along with your monthly payments and will simplify your work to manage the debts into one payment for you. You will have to pay a nonprofit debt consolidation company a lump sum each month and the firm will disburse the money to your creditors.
Credit Counseling Services
The second main function of not for profit debt consolidation companies is credit counseling. Debt consolidation exists to cure the symptoms of your debts; credit counseling tries to solve the main cause why you fall into debt. A nonprofit debt counseling firm usually offers credit counseling service for free.
Let’s say you’re able to manage and pay off your current debt. How can you make sure that this situation will not happen again in the future?
Credit counseling will help you in learning how to manage your debt and to prevent the situation from ever occurring again. A good credit counselor can help you better manage your credit along with how to spend when using credit. They can help recognize and find ways to change the behavior that caused you to be in a situation you are now in.
Other Services of Non profit Debt Consolidation Firms
Other services of non profit debt consolidation companies include money management budgeting as well as financial education. Many people who fall into debt are spending more than they can earn. They do not have a budget that helps them live within their means and the high credit card debt can be traced back to this.
Some not for profit debt consolidation companies also offer financial education courses that, in addition to the above topics, also include learning about retirement, investing and other financial topics. Not many nonprofit debt consolidation companies offer this service but it can be very valuable to build your financial future.
Choose the Right Debt Relief Consolidation Services
If you are considering non profit debt consolidation companies know your needs first. Depending upon which non-profit organization you use, there may be other functions which the organization has to offer. Some offer investment advice so that as you learn to manage your credits you can also learn to budget and start to save more money to rebuild your financial life.
When you hire a credit counseling service think beyond just debt consolidation. Also, consider taking financial courses that helps prevent the situation from happening in the future. Using this approach you’ll get the full benefits of services offered by non profit debt consolidation companies.