Debt relief service

There are a number of non-profit debt consolidation companies available to help counsel you about your finances. One mistake consumers often make about non-profits is that the services are free. Non-profit companies can charge you for their assistance. They do provide help with debt consolidation by negotiating with your creditors. These negotiations lead to a revised payment plan based on your income and financial needs in order to help eliminate credit cards debts reasonably.

What To Expect

Non-profit debt consolidation companies provide financial assistance by scheduling a free debt counseling appointment to discuss your financial status. They will also work with you to prepare an income and expense sheet to help you budget more efficiently. The debt counselor will then figure out what amount of money you can reasonably pay each month based on your financial figures. They will take that amount back to the creditors to negotiate a revised payment plan. Often the interest rates will also be reduced and fees may be waived if the creditor agrees.

Non-Profit Benefits

Non-profit debt consolidation companies have a mission to help you lower your monthly debt payments to make it more feasible to eliminate debts. They may be instrumental in reducing interest rates and removing fees for late payments. Non-profits also aim to ensure that each consumer receives a financial education and creates a budgeting plan to keep them out of future debt problems.

Non-profit agencies may also be set apart from for-profit companies because of there allowance to accept one monthly payment for several creditors. The non-profit agency then will divide up and distribute the money amongst creditors based on previous negotiations. When accounts have begun to fall into collections, debt consolidation counselors will also handle collection calls and all communication with creditors on your behalf.

Why Are They Non-Profit?

Non-profit debt consolidation companies are considered non-profit because they operate from consumer donations, creditors, and other business entities. Creditors typically also offer up a percentage of monthly payments on each debtor’s account that goes back into the non-profit’s funding. Consumers can check company websites and look for the status of the agency. Look for terminology such as ‘IRS 501(c) (3) non profit charitable organization status which is granted by the IRS for tax exemption purposes. Non-profit organizations will not always be totally free but those that impose a service charge will generally be lower than other debt counseling agencies.

Buyer Beware

There are still potential for non-profits to scam unsuspecting consumers. It is essential that you read all information before committing to any debt consolidation program, non-profit or otherwise. It is always best to ask friends and family for referrals and check company reviews with the Better Business Bureau. Debt consolidation companies can really be an asset to your financial situation but can also be a detriment if you are scammed out of your money.

By: Seamus McKenzie

If unexpected health issues have left you sick about your rising medical bills, a job loss has eliminated your regular income, or a divorce, accident, or similar tragedy has devastated you with a large amount of unsecured debt, you need help. There are several options available, among which are bankruptcy, debt consolidation, debt settlement, and doing nothing but making minimum payments or ignoring the issue, hoping it will go away. While there may be appropriate times for considering bankruptcy, for many this is an embarrassing and unethical solution to their debt problems. On the other hand, settlement can be an ethical approach to handling accounts because it offers a renegotiation of terms of the original contract between both parties. This is also where debt settlement legal advice is worth every penny.

As is often the case, there are those who would capitalize on your best efforts to clear yourself financially. One way to avoid being taken advantage of is to go with a law firm that specializes in settlement, or a debt solution company that has a lawyer on staff. In the rather rare event that a creditor might decide to try and sue you, a lawyer can assist with legal letters and advice. Certainly, debt settlement legal advice is worth every penny when you are facing a potential lawsuit. With the right choice of such a settlement company, you already have access to an experienced lawyer; you don’t have to go looking for your own and the expense that comes with that.

Should you feel the need to go to court in the process of settling your debts, the in-house legal counsel that comes with a law firm solution company, or company with a lawyer on staff, will be invaluable. You will be represented by someone who knows your case completely and has a vested interest in seeing that you win. You will, in a very real sense, have the team behind you as you deal with your frustrated creditor.

Trying to work one’s way out of the quicksand of unsecured debt can seem hopeless for the person who is trusting his own instincts or puts himself in the hands of unskilled, even unscrupulous debt reduction businesses. Having debt settlement legal advice is worth every penny when it allows successful negotiation between you and your creditor, all the while protecting your legal rights and dignity, so that you can feel secure about your financial choices.

By: Hector Milla