Benefits Of Non Profit Debt Consolidation

In the midst of economic turmoil more people than ever are desperately searching for ways to pay their credit card debt. Most often, consumers feel trapped in a never-ending cycle of struggle, with no hope in sight. Fortunately for those facing hardship there are options available such as consumer credit counseling and debt assistance with a consolidation company that can provide debt relief.

There are two kinds of consolidation companies: For profit and nonprofit. Both companies provide debt management programs that reduce interest rates and consolidate multiple bills into one simple monthly payment. They can also possibly eliminate or greatly reduce late fees and penalties tacked on to the ever growing balance of credit card payments, but there are some clear benefits of using a nonprofit organization over a for profit one.

Non profit debt assistance generally charges less for their services than a for profit company. The amount charged is usually just enough to cover the operating costs of the organization, allowing the consumer to be in more control of their financial well being by quickly paying down credit card debt. Credit counseling can also take the burden of dealing with stressful creditors and collections agencies away from the consumer. The creditors are willing to lower these high interest rates once a consumer joins a credit counseling agency. The consumer will make one simple payment and the credit counseling agency will diperse these payments on your behalf to the creditors.

Credit Counseling companies have helped many, many people become debt free, but there are a few things to look out for when shopping for the company that’s right for you. Unfortunately, not all companies that claim to be nonprofit really are. One way you can protect yourself is by signing a client disclosure form that states the company will keep your information private, before disclosing the intimate details of financial information, any legitimate non profit will offer this before starting anything. Also be sure to read the client agreement thoroughly to ensure monthly payments are going towards debt and not secret costs or fees. Knowledge is power when deciding on which program and company are right for you and your needs.