What Is Nonprofit Debt Consolidation?
Nonprofit debt consolidation companies work with credit card companies to get you out of debt without having to take out a loan. Your debt is consolidated into one monthly payment, but the nonprofit reaches agreements with card companies to reduce interest rates which lowers your monthly bill. The nonprofit takes monthly payments from the consumer, then distributes them to the card companies in an agreed upon rate.
Why Work With a Nonprofit Debt Consolidation Company?
Nonprofit debt consolidation companies (also referred to as nonprofit credit consolidation companies) are dedicated to improving the financial lives of the people they serve through debt counseling services.
When you work with a nonprofit credit counseling agency, you will be treated to high quality credit counseling services and offered debt relief solutions that are best-suited to your situation, not driven by a sales commission or profit motive. Many for-profit credit card consolidation companies are criticized for offering products, services and advice that benefit the firm’s bottom line more than the client.
InCharge is a 501(c)(3) nonprofit credit counseling organization. Our mission is to help you find debt relief and our advice is based on the details of your personal situation. We may tell you that bankruptcy is your best option and refer you to a bankruptcy attorney. We may recommend our debt management program: a program that consolidates your credit card payments into one, and request lower credit card interest rates on your behalf. Our credit counselors may determine that you qualify for a government housing program that can lower your monthly mortgage payments. As a nonprofit credit counseling company, we help you regardless of your ability to pay for counseling services.
Best Nonprofit Credit Consolidation Programs
The best nonprofit debt consolidation program is one where you do not need to take out a new loan. Nonprofit credit counseling agencies offer that through debt management plans.
A debt management plan is a debt-relief solution that may be recommended to you after completing a credit card counseling session. You can start online credit counseling services or call the number on the right to speak with a certified credit counselor. During the session, counselors will help you identify the root cause of your financial problems, develop a personal budget that maximizes savings, and provide a debt-relief solution that best meets your personal situation. One potential solution is the debt management program.
Here are the features of a debt management plan:
- Consolidate credit bills into one easy monthly payment
- Pay off your debt faster (debt free in 3-5 years)
- Lower your interest rates regardless of credit score
- Stop collection calls
- Eliminate late fees and over-limit charges
- Build a realistic budget and financial plan you can follow
If a debt management program is not the best credit card debt relief solution for you, we may recommend bankruptcy and refer you to a bankruptcy attorney. We may also provide you with referrals to government and nonprofit organizations that can help you improve your financial situation.