How to Find the Best Non Profit Debt Consolidation Services
Non Profit Debt Consolidation is a great way to go when looking for a debt consolidation solution. Debt consolidation is basically the process of taking out one loan to pay off many others. This process can be done by taking out a secured loan (a home equity loan or an auto loan) and using the money to pay off all your debts including your credit cards and other smaller debts that you have. But, the way that most people do it is to take out a secured credit card debt and then pay it off with a lower interest rate credit card. That leaves them with one bill and only one payment to make each month.
Debt consolidation works the same way with unsecured credit card debt. The consumer just takes out another loan and pays off their debt. Or in this case, they take out a secured credit card debt and pay it off with that. They may also decide to put the car out on the open road and just walk away. Either way, the end result is the same.
Most non profit debt consolidation services will only work with reputable debt management companies. These companies will charge fees that are based on the percentage of the total debt that you have. They will consolidate all of your unsecured debts into one account. Your monthly payments will be combined into one bill, which goes to your new creditor. It’s simple really.
When searching for a non profit debt consolidation agency, be sure to check the Better Business Bureau. Any business that spends any time at all advertising their services needs to be safe. You should be able to find at least one complaint against the company before you sign anything. If not, look somewhere else. There are plenty of non profit debt consolidation agencies that do not advertise or sell anything of value to consumers.
Non profit agencies offer a couple of different options. Some charge a reasonable flat-rate fee for all of your unsecured debt. This includes credit cards, student loans, medical bills, and anything else that you owe money to. The idea is to negotiate a low interest rate and payment plan that you can afford. This allows you to pay off your debt more quickly. In some cases this works.
However, you may end up paying a lot more in interest than you would if you took out a loan at a good interest rate. Also, in some cases the interest rates are based on your credit score. If your credit score is poor, then you may end up paying a higher interest rate than someone with a high credit score. Of course, this depends on the company you choose.
Other non profit debt consolidation services are just simply a collection agency that contacts your creditors on your behalf. They do this to try to get their money back. While it’s usually best to negotiate down the amount you owe, you may be able to get them to take the collection charges you owe out of your monthly payment. These can be quite profitable for the collection company.
It’s important to realize, though, that some non-profits will try to get you to take out loans from them. They will use these to pay off your creditors. Remember, though, that if you have to pay extra for this, it’s usually because they profit from your misfortune. You need to make sure they are truly helping you or using collections to try to recoup what they can.