A nonprofit debt consolidation company exists to help consumer debtors get out of debt and stay out of debt. The credit counseling service helps debtors to pay off all debts in a timely fashion and repair damaged credit. They also offer materials to teach clients how to make credit work for them and how to build a good credit rating.
If you are so deeply in debt so that you are no longer able to keep up payments to creditors while the fees and interest rates just keep accumulating, you are a prime candidate for a non profit debt consolidation service. Some of the people who would benefit from a credit counseling service find themselves on the verge of foreclosure and/or bankruptcy.
How a Nonprofit Debt Consolidation Company Works
At the beginning of your contact with a non profit debt consolidation service, you will fill out a form with all of your information — online or by calling the firm directly. Once the company received your application a certified credit counselor will contact you to verify your information and what you want to achieve through a relationship with his or her company.
The counselor will give you credit educational materials so you can learn how credit works, how to keep a good credit rating, and how to get rid of your debt. They will help set financial goals, teach you different ways to reduce spending, and other financial strategies to help build your credit.
If debt consolidation is an option you want to pursue, the counselor will offer and estimate of the monthly payments you will need to make and how much you could save in interest and fees if you consolidate now. The counselor will then work with you to design an affordable payment plan.
Non profit debt consolidation firms will usually send you written information on the ideas discussed with you and other services they can give. Once you have chosen to take their debt management plan the firm will draw up an agreement and send it to you. You will need to check this contract for accuracy, sign it and return it to the firm.
How Nonprofit Debt Consolidation Company’s Program Works
As soon as the debt consolidation firm receives the agreement they will start to contact your creditors to verify that the balances are correct. The firm then sends a proposal to each of your creditors stating that they agree to work with you on your debt consolidation plan and to verify new, lower interest rates and exact monthly payment amounts.
You will have to make one payment every month to the debt consolidation firm before the chosen disbursement date and the firm will send your money to each of your creditors as agreed upon. As the payment process goes on you will understand your debt status by reading the monthly statements you get from your creditors and from the firm.
Your monthly payments will remain the same while you are enrolled in the debt management program. As each debt is paid off the extra amount will be applied to balances on other credit accounts and so on, until you are debt free.
During the program a counselor should be available to answer any questions you may have. In addition to the monthly statements you will also be able to get access to the website of the nonprofit debt consolidation company to see the progress you are making. As bills are paid off one by one you will have the peace of mind knowing you are becoming debt free.