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Tuesday, November 22, 2011

Know certain facts of a non profit debt consolidation company

Know certain facts of a non profit debt consolidation company

If your debts have mounted up, then it becomes really hard for you to deal with it. You will be constantly getting harassing calls from the creditors and will be stressed out to get your mail box filled up with threatening letters. In such a situation, dealing with the credit card companies as well as with the collection agencies can seem to be very frustrating experience for you. Hence, you’ll try to search for some professional debt relief services that will help you deal with all such hurdles. As you’ll search for a non profit debt consolidation company, you‘ll find that there are many companies that try to make out profit from your financial hardship. Thus, you should make a proper research work to find out a suitable non profit debt consolidation company. Before you enroll under any such program, you must know certain facts about this program.

  1. Are you aware of the non profit debt consolidation companies?
A debt consolidation company will be considered as non profit if it won’t charge any fees from you for rendering possible debt helps. The representative of the company will negotiate with the creditors to reduce the interest rate on your credit cards. Now they will consolidate all your bills/cards into one big loan and you have to pay single monthly payment to the consolidation company. The company will accordingly distribute that amount to your creditors. In order to be successful in this program the company will help you in planning a budget, save money and make your payments on time. They will even educate you how to talk to your creditors and suggest you possible ways to rebuild your credit score.

  1. Are you able to find a non profit debt consolidation company?
If you want to find out an organization considered as non profit debt consolidation service provider, then you have to search the internet. There you’ll find many companies that will promise to offer you non-profit debt relief services. Before you choose one, you should look for the statement that implies its non profit status. This will help you know whether or not they truly hold a 501C3 issued by the IRS (Internal Revenue Service) of your state. You should even check the BBB (Better Business Bureau) to know how long the company is into this business and whether or not there are any unresolved complaints against this company.

  1. Are they offering you credit counseling free of cost?
You must ensure the fact that the non profit debt consolidation company you’re choosing will offer you free credit counseling sessions. It’s often found that there are families who have faced financial crisis due to sudden mishaps and require necessary guidance to overcome such situation. In such situations, credit counseling can be helpful for you to handle your finances properly. In a counseling session the representative of the company will teach you how to control your debt within a short span of time, and stay debt free for the entire life.

Lastly, if you find that a debt consolidator of a non profit debt consolidation company is claiming that they can fix your credit rating within no time, then you should not enroll in there program. It’s because a non profit debt consolidation company can only help you find errors on your credit report and make you understand the credit scoring process. They can even coach you properly to improve your credit score and help you erase the errors on your credit record. Hence, if a debt consolidation company claims to do more than this with your credit score then you should not rely on them.

About the Author:

Rick Murphy is a contributory writer associated with the Debt Consolidation Care Community and has written several articles for various financial websites. He holds his expertise in the Debt industry and has made significant contribution through his various articles.

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