Debt Calculator
Thursday November 21, 2024
Thursday November 21, 2024
Non profit debt consolidation can be a lifeline for those who find themselves in financial trouble. The vast majority of people will at some time or another, experience financial problems. To extent of those problems will vary. Some people will struggle a great deal while others will not. For the former (those with very bad financial problems) help from a third party might be necessary. One option individuals may want to consider is debt consolidation.
A debt consolidation company will attempt to negotiate lower interest rates on outstanding debt (namely credit cards) owed by their clients. They might also pay their client’s bills relieving them of this responsibility. The benefits are numerous. However, there are some risks involved, the most serious being scammed. Below, we will discuss how to best avoid being scammed by non profit debt consolidation companies.
Work With Reputable Companies: This is probably the very best way to lower ones chances of being scammed. Before an individual agrees to work with a non profit debt consolidation company, they need to perform their due diligence. The internet has made this easier than ever. In many cases, typing the name of the company into the search engines and reading what comes up is all that is required. If their customers, both past and present, have good things to say about them, great. If not, beware.
Understand the Fee Policy and Structure: It is extremely important that individuals understand the fee policies and structure of the debt consolidation company they are considering working with. Some non-profits will provide consolidation services for free. Others will either require payment or ask for monthly donations. Individuals need to clearly understand the policies of the company they are considering working with as it pertains to payment. They should only proceed if they feel comfortable with it.
Carefully Consider The Proposed Payment Plan: Most debt consolidation programs will provide prospective members with a copy of their proposed debt re-payment plan. This is simply a payment schedule that includes the amount of money that will be paid to each creditor every month. Individuals need to look it over and verify exactly how much will be going toward your bills. Some consolidation programs will take a portion of their member’s money for administration and other fees. Individuals will want to avoid this as much as possible because it decreases the amount of money that goes toward paying off ones debt.
Check For Complaints: It’s a good idea to contact the Better Business Bureau or the state attorney general in whatever state the non profit debt consolidation company is based to ask if any complaints have been filled.
Ask For Referrals: Asking around to see if any family members or friends have worked with a good debt consolidation program is sometimes a good idea. If someone a person knows and trusts can recommend a company, this is ideal because they will then know first hand whether or not a particular program is worth working with.
If you are having financial problems and need help, consider working with a non profit debt consolidation program. They can help lower your interest rates, will often pay your bills for you and in some cases provide counseling. All of these things can help you and your family get back on track, financially.