Non Profit Debt Consolidation Assistance

Expert assistance can help get you out of debt. However, that help can be tough to afford. Free nonprofit debt consolidation may be the answer.

Loan consolidation is the combination of several existing loans into a single new loan. By consolidating your debt, you may be able to significantly cut your monthly payments. However, be warned that this will extend your repayment period, which in turn means you’ll be paying more interest over the lifetime of a loan.
You can roll many kinds of debt into a new consolidation loan, including credit cards, home mortgages, and student aid.

The Counselor’s Role

Credit counselors are there to help you analyze your financial situation and draft a plan to eliminate your debt. They can also help you draw up a reasonable monthly budget so you can avoid credit problems in the future.

The Federal Trade Commission has debt-related tips for consumers, including information about credit counseling and debt management plans. They note that reputable counselors, in addition to helping you manage debt and develop a budget, can also offer free educational materials and workshops.

However, they warn consumers about counselors who may charge a fee up-front, won’t offer free information about their services, or try to enroll you in a debt-management program without reviewing your financial situation or providing financial counseling.

Benefits of Debt Consolidation

If done responsibly and for the right reasons, debt consolidation carries with it many benefits. You may be able to reduce the interest rate on your debts by negotiating with creditors, and if you work with a debt counselor, he or she will do this for you. Consolidation also simplifies your debt – instead of several monthly payments, you’ll have only one. Late fees can also be reduced or eliminated by combining your bills into one payment.

Debt consolidation also offers more long-term benefits. By making regular on-time payments, you’ll stop collection activities, knock down your debt, and eventually be able improve your credit. The ultimate goal is to develop more responsible spending habits so you won’t find yourself in debt in the future. The American Financial Services Association Education Foundation offers consumer tips to heighten personal financial responsibility.

How Do I Choose A Consolidator?

The American Association of Debt Management Companies has a comprehensive list of credit counselors. Here are a few things to keep in mind when choosing a consolidator:

* Look for an organization that has an in-person branch. It’s better to meet personally than to conduct counseling over email and the phone.
* Ask for references from family and friends, if possible.
* Also, ask the company itself for references from satisfied clients.
* Make sure your chosen consolidator has a good record with the Better Business Bureau. Also, search for online reviews of the company.
* Don’t provide any personal financial information to a consolidation company until you have decided to work with them.

Make sure to thoroughly interview the consolidator before deciding to work with them. Here are some of the major questions you should ask:

* How long have you been in business?
* What are the exact steps I need to take to clear my debt? How can you help me with this?
* Can you help me develop a reasonable monthly budget?
* How long will it take for me to be debt-free?
* What are the costs, if any?

As with any other financial decision, make sure you’re comfortable with your chosen company before signing any agreements.

Non Profit Debt Consolidation Assistance

The Counselor’s Role

Benefits of Debt Consolidation

How Do I Choose A Consolidator?

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