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. When you work with a nonprofit credit counseling agency, you will be treated to high quality credit counseling 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 payments into one, and request lower credit card interest rates from 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 and other 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: a nonprofit debt management plan administered by a nonprofit credit counseling company. A debt management plan is a debt relief solution that may be recommended to you after completing a credit counseling session. You can start a online credit counseling or call the number on the right to speak with a certified credit counselor. During the session, you’ll identify the root cause of your financial problems, develop a personal budget that maximizes savings, and be provided with a debt relief solution that best meets your personal situation. One potential solution is the debt management program. Here are the features of this program:
- 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 governmental and nonprofit organizations that can help you improve your overall personal financial situation.
Nonprofit Debt Relief vs. For-Profit Debt Relief Companies
The debt relief industry is rife with scammers: companies looking to take advantage of debt-distressed consumers. Nonprofit debt relief companies, like NFCC nonprofit credit counseling companies, offer advice and programs that keep your best interests in mind. Here’s how to tell the difference between a for-profit debt relief company and a nonprofit debt relief company:
- Look for the NFCC-affiliation – make sure the debt relief company you are considering working with is a member of the National Foundation for Credit Counseling. NFCC member organizations are all 501(c)3 nonprofit debt relief organizations.
- Make sure you are not being charged any up-front fees. In fact, the Telemarketing Sales Rule for Debt Relief Companies requires that no debt relief company can charge you up-front fees before offering you a service.
- Check complaints filed at the Better Business Bureau for the debt relief company you want to work for. Are there numerous complaints? How have they been resolved?
- Check with your state attorney general and/or consumer protection bureau. Is the debt relief company that you want to work with licensed in your state? Are their actions or ongoing investigations for this company?
- Make sure the nonprofit debt relief company you are working with offers you a 100 percent free analysis. If you are working with a credit counseling company, they should provide you with thorough credit counseling and budget counseling for free.
What About Nonprofit Debt Management Programs?
If you do end up working with a nonprofit credit counseling company, your counselor may recommend that you join a nonprofit debt management program. This is a program that consolidates your monthly debt payment into one payment, which may be auto-debited from your account. Nonprofit debt management programs have the following features:
- Lower monthly payments
- Lower interest rates
- A monthly fee ($25-$50)
- Automatic debits of your consolidated monthly payment
- Pay off your credit card debt completely in 3-5 years
What About Nonprofit Debt Settlement?
There are no nonprofit debt settlement companies. Debt settlement typically require that you make payments to a debt settlement company, and not your creditors, until you have a stockpile of money saved up. At that point, the debt settlement company contacts your creditors and attempts to negotiate a settlement, or paying less than what you owe. If your creditors agree, you pay a portion of your original debt and a fee or percentage to the debt settlement company. While there are no NFCC-nonprofit debt settlement companies, you can receive free advice from a credit counseling company on this method of debt relief. Here’s what you should do before considering debt settlement:
- Call a nonprofit credit counseling organization like InCharge Debt Solutions for a free review of your debts, income and assets.
- Compare the pros and cons of debt management and debt settlement programs
- Review the impact of debt settlement your credit score
- Consider Do-it-yourself debt settlement