Do Debt Consolidation Non-Profit Companies Really Provide Free Service?
Guest Post:
People who are in debt often choose debt consolidation non profit companies to pay off their huge financial obligations. When such debtors cannot afford the bills of for profit debt consolidation companies, they opt for non profit companies. When income flow is less than what is due, people usually go for debt settlement companies.
As payments fall behind, late payments and fees accrue to a level which is so high that it becomes impossible for debtors to pay extra consolidation fees. Paying for a for profit debt consolidation company is unrealistic when there are non profit debt consolidation companies. But the question lies as to whether or not such debt consolidation non profit companies really offer their services for free. Read on to know how you can check whether a debt consolidation company which claims to have a non profit status is really so. Follow these steps to make sure that you don’t end up being worse off than you were to begin with.
- Ask for 501(c) (3) certificate: If a company is truly a non profit one, then they will be able to show you the certificate received by the IRS that proves their non profit status. If, on the other hand they are camouflaging their status, then be aware of such companies so that you do not lose more money than you ever imagined.
- Call the Better Business Bureau: Any debt consolidation non profit companies will be registered with BBB. They must be having a proven track record and minimum complaints. If they aren’t registered skip them. Don’t waste time on taking risk.
- Be sure that your credit score will not be hampered: Before speaking with anyone from a non profit debt consolidation company, be sure that you will not only be able to repay your debts through a comprehensive repayment plan but also you won’t hurt your credit score.
- Compare set up fees and ongoing charges: As you’ve checked the non profit status of such companies with the BBB, write down the particulars. Check which company offers you the lowest fee and then commit yourself with one of them.
Are non profit debt consolidation companies really free?
Non profit debt consolidation companies may offer you fees much lesser than the ‘for profit’ ones but they are not free. Non profit debt consolidation companies actually operate with the help of funds that are received through consumer donations. These may be voluntary donations made by debtors, credit card companies, department stores etc. In most cases, creditors offer a certain percentage of your monthly payment to the debt consolidation non profit companies.A debt consolidation non profit company will offer you free counseling before trying to consolidate your debts. The counselor will give you free tips of budgeting and money management advice. Select the right debt consolidation company and check the non profit status before enrolling yourself with one such company. The company should be able to offer you the best rates in accordance with your financial situation and affordability.
Guest post provided by company hyperlinked in article.
Note from The Money Jar Budget Blog:
Debt consolidations aren’t always the answer. Tip: If you do carefully weigh your options and choose to consolidate, change your habits. Don’t reuse newly paid off credit cards. Create a workable budget & take it as an opportunity to work toward getting debt free!
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