Choose Non-Profit Debt Consolidation Agency

Choose Non-Profit Debt Consolidation Agency

Debt Consolidation, Circa 1948 (Photo credit: Orin Zebest)

Choose  Non-Profit Debt Consolidation Agency

Choose non-profit debt consolidation agency if you decide to go the debt consolidation route.  Agencies that have received non-profit status from the IRS will provide the most beneficial services to customers.  Nonprofit agencies can charge only modest fees to their customers.

The non-profit debt consolidation agency negotiates with creditors to lower the interest rate on your outstanding balances to make the payments on the amounts owed affordable.  Monthly payments on many accounts can be lowered into one affordable lump sum.  The non-profit debt consolidation agency helps to manage the monthly payment as well as maintaining a civil relationship between the consumer and the creditors.

Advantages to you when you Choose  Non-Profit Debt Consolidation Agency

The enrollment process begins with a free counseling session to review your unique financial situation.  It is your overall financial situation that dictates the plan to be crafted for you when you choose a non-profit debt consolidation agency.  If you decide to sign on the agency will negotiate with creditors to lower the interest rate and forgive the late and over limit fees.  A new payment date for the future will be agreed upon.

Once the creditors sign on they will have a manageable single monthly payment.

When you choose non-profit debt consolidation agency it needs donations beyond the small fees it charges to maintain its existence.  You are not in a position to donate much or you wouldn’t be there.  Your fee is tailored to your ability to pay.  Some people and companies donate to these agencies primarily for the tax write off.

When You choose  non-profit debt consolidation agency verify its status

In order to verify the status when you choose non-profit debt consolidation agency you should go to the company’s “About Us” section of the web site.  An authentic non-profit debt consolidation agency will mention that it operates under IRS 501(c) (3) non profit organization status.  There have been many agencies falsely claiming to be a non-profit debt consolidation agency in order to take the money and disappear shortly after.  Avoid scams with these 2 points:

  1. Don’t disclose financial information to any alleged non-profit debt consolidation agency without checking their IRS status.
  2. Before signing the agreement check the amount you need to pay each month.

Check the Impact on your credit score of the Plan Offered before agreeing to it When You Choose Non-Profit Debt Consolidation Agency.

Debt consolidation agencies that operate “for profit” HURT your credit score! You pay them first.  The loan goes further and further into delinquency until they accumulate enough of your money to offer a lump sum in settlement.  The loans then are closed out as not paid in full.  This pathetic technique will haunt your credit score for years to come.  You could do much better on your own.

Insist that a Non-Profit Debt Consolidation Agency will demand that all future payments be recorded to the credit reporting agencies as “timely.” As soon as you start with your timely payments your score will be on the road to a steady increase. Remember you are not asking to reduce the principal.  When the loans are eventually paid off they will be recorded by the credit reporting agencies as satisfied per contract.

Special thanks to Martha Jackson.  This article was written by Finance Writer Martha Jackson.








Enhanced by Zemanta
The following two tabs change content below.
After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

Latest posts by Edward St. Onge (see all)