Non Profit Debt Consolidation Benefits and Downsides
You may wish to consider a non profit debt consolidation company to help you consolidate your debt If you have multiple debts and can’t repay all your creditors. It means your multiple bills will get replaced by a single monthly bill.
A non profit debt consolidation helps you in the similar manner like a normal consolidation company. Only difference is that, they don’t charge anything for budget counseling and negotiation with creditors.
The debt consolidation non profit companies, listed under sec 501(C) 3 of IRS, are considered as charitable organizations. They receive funds through consumer donations and in return they provide free help to the underprivileged people to pay off their debts.
Benefits of non profit consolidation:
There are certain benefits to get rid off your debts through debt consolidation non profit companies. The company does not charge you for negotiating with your creditors, to:
- Lower your interest rates
- Eliminate or reduce late fees
- Waive off/reduce the over-the-limit charges on credit cards
Downsides of consolidation:
Though a debt consolidation non profit company sounds too good to be true, you have to be aware of the fraud companies. Such companies will try to trap you with lucrative offers and false promises. But, in the long run, they will extract more money from you. So, you should be careful in not giving away too much personal information like, your credit card number, bank account number to an online consolidation company.
Be careful in choosing the right non profit debt organization and lead a happy, debt-free life. Also, read about getting your debt management information organized.
This article on debt consolidation non profit is by Robin Williams.
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