What Are The Benefits Of Using A Non-Profit Debt Consolidation Company

What Are The Benefits Of Using A Non Profit Debt Consolidation Company?

If you have so much debt that you can't see the light at the end of the tunnel, one thing you don't want to do is let the financial problem get far enough to have to face losing your automobile, your home or being forced to file for bankruptcy.

Non profit companies that offer credit card counseling services for debt consolidation could be the perfect solution for easing the burden of crushing debt. Having a solution to a problem allows you to breathe a sigh of relief knowing that you are working to extricate yourself from your troublesome money problems.

How can a non profit debt consolidation credit counselor help you alleviate your debt? Here's a short list of how their services can help you:

• Cut up to 70% of your outstanding credit card debt.
• Stop bill collectors from calling you at home or at work.
• Consolidate numerous credit accounts in to one low single monthly payment .
• Lower both your interest rates and the amount of debt you have.
• Credit counselors work with your creditors to reduce your monthly minimum payments.
• The non profit debt consolidating credit card counseling company takes over the disbursement of payments to creditors.
• Your bills will be paid on time after you make your payment to the debt consolidation company.
• You'll receive a statement showing how much and what creditors were paid monthly.

Since annual interest rates on credit cards run from 18% to 24%, making only the minimum payment mathematically dictates you'll have to pay for 30 years to pay off the credit card. That is a depressing future.

A credit counseling company would eliminate some late fees and reduce interest rates in some instances. As part of your agreement, creditors will be paid and your credit score will correct itself. This shortcut to financial solvency will reduce the time it would take to pay off the debts and presents a “win-win” situaltion for both you and your creditors.

Like any financial agreement, be sure to research the subject and the company itself before entering in to a legal agreement. Some of these firms have used the money taken from clients to enrich themselves claiming the monthly payment was a fee due to them for their financial services, while some others didn't pay the their clients' creditors, causing more damage to the consumers credit rating.

Clarify what fees are due for their services and how an when these fees will get paid. Insist that your creditors are paid immediately upon receipt of your payment. While this type of company can be a blessing, you also need to know their business methodology is sound.

Long term, you stand to gain financial freedom doing business with a reputable, established non-profit credit counseling firm. They help to take financial pressure off of you and give you time to re-establish your financial future.