Non profit debt consolidation companies are designed to help consumers get out of debt and stay out of debt by helping them to pay off all debts in a timely fashion and repair damaged credit. They also have materials available to teach clients how to make credit work for them and the strategies behind building a healthy credit rating.
Your first contact with a non profit debt consolidation company, will be speaking with a Certified Credit Counselor. They will ask you several questions about your debts and the money you earn. They will also need to know what you hope to achieve through a relationship with their company. After a review of your application the credit counselor will put together a few strategies for debt consolidation based on your answers. Both of you will come to a decision on the best course of action. Once you have decided on the program and the monthly amount you will pay, you will sign a simple contract with the non profit debt consolidation company and the plan will be set in motion.
Most non profit debt consolidation companies charge a fee for their services. This fee will be incorporated in the monthly amount you will remit to them for distribution to your creditors. You will send them one sum and they take care of paying your creditors. Non profit debt consolidation companies offer services to lower your monthly payments to creditors, reduce or eliminate interest fees. Most of the time they are able to cut the amount of the debt 35 to 75%.
As you can see this can save you a bundle of money and systematically eliminate your debts. These companies also offer educational materials so you can learn how credit works, how to keep a good credit rating, and how you can be debt free and still live a good life. Many of these non profit debt consolidation companies offer strategies to build your credit to AAA standards. A good credit counselor will be able to keep you out of foreclosure or bankruptcy by finding a way for you to keep your home, car, and get you out of debt for good.
Most non profit debt consolidation companies offer an online site where you are able to view your account 24 hours a day-seven days a week. You can view your payment history and see the progress you are making in paying off your outstanding debts. Even though you are working through a non profit debt consolidation company to pay your creditors, you will still receive a monthly statement from them, as well as, a monthly statement for the debt consolidation company stating all payments made.
Employing a non profit debt consolidation company will help you to breathe easier, knowing your bills are being paid on time and you are not behind in your payments. You will be amazed at the speed in which you will be able to climb out of the pit of debt you find yourself in.
These companies also have several payment options from which to choose: Money order, cashier check, money gram, express payment, western union, military allotments, automatic withdrawal, pay-by-phone, personal checks etc.
If you are in debt and you don’t know which way to turn, look into non profit debt consolidation companies. I’m sure you will be glad you did.
Li Ming Wong
http://www.articlesbase.com/debt-consolidation-articles/tell-me-about-non-profit-debt-consolidation-companies-211231.html
October 31st, 2009 at 9:07 am
is debt consolidation through a non profit company a good idea? has anyone done it before? recommend it?
I have a few credit cards that have high month.y payments and its getting to be too much and i dont know waht to do?? i was told to check into debt consolidation throught a non profit organization but im scared it will ruin my credit since it will show i am not paying my bills on time??? has anyone had to do this before and do you recommend it if you are struggling to make payments?? if not what other options do i have?? besides balance transfers
October 31st, 2009 at 2:09 pm
If you are truly struggling to stay afloat, do it. My sister was $12000 in debt and she just couldn’t keep up.
She consolidated her debt and is slowly paying it off in a 5 year period.
Here is the catch.
When you consolidate your debt, you are not allowed to poses any credit of any kind. No credit cards, no loans.
Make sure you are comfortable with that before you decide to go through with debt consolidation.
Your credit rating will go down, but you can always rebuild.
My parents filed for bankruptcy 15 years ago and their credit has long since recovered.
I wouldn’t recommend bankruptcy though, your credit will be ruined for 7 years.
Your credit bounces back much faster after debt consolidation.
If you did consolidate your debt, an easy way (after you have paid it all off) to rebuild your credit is through a secure credit card.
You put money down on the card, usually $200-$1000, and you get that money back after 1 year (provided that you do not miss a single payment).
It will raise your credit rating and you can then apply for loans and other credit cards.
Best of luck to you.
References :
October 31st, 2009 at 2:11 pm
It shows on your report…..worse if you don’t "complete" the program…..that should be your last last option….
You should get all your bills together…..call each one and politely ask for a rate reduction….even a temporary one…..then list them smallest balance to largest……focus on paying down that first one w/ every spare cent you find….try to make minimums on all others….once you have that first victory under your belt…you might stay motivated to tackle the next smallest balance….
At the same time…..you gotta take your medicine….lose the internet/cancel the cable/lower your cell/lose your landline….sell your wii on ebay…..
get a weekend morning shift at McDonalds…deliver pizzas….sell the baby clothes at a consignment store…..clean your neighbors’ garages for $50 a pop….
It is NOT forever…..just bear down and stick to it…
References :
October 31st, 2009 at 2:13 pm
We did this a few years back. Basically, what usually happens is that the company will negotiate with your credit card companies for lower rates. They then have you send them roughly what you would have been spending each month anyway or your minimum payments, maybe a little more, and they take that money and start aggressively paying off those account for you.
You won’t really suffer bad credit because of this – in fact, you’ll pay off the debt faster and have lower rates, so it will help you in the long run.
But you have to make sure you’re in a position where you’ll
-actively make all those regular payments until the accounts are paid off
-not use those credit cards again! You’re basically freezing those accounts, to be closed whe you’re done.
-Not take new debt to take the place of your old card accounts
Now, technically, you can do all of this yourself, and probably even save a little money in doing so. But some find that it’s easier to have someone else coordinate everything, and just send in a single payment each month (they may even request or require and automatic transfer of funds from your bank account eachmonth).
For the record, we did this a few years ago, and it worked really well. We had to change some of our spending habits (no more buying on credit, just used the American Express chage card because you pay the whole balance off each month). But it was worth it to get out from under all that debt.
Good luck!
References :
October 31st, 2009 at 2:15 pm
no dear
References :
Jaipur Rugs Foundation
http://jaipurrugs.org/
http://jaipurrugs.org/ENGAGE.htm
http://jaipurrugs.org/Lets%20Weaver%20Dream.htm
http://jaipurrugs.org/Man%20Behind%20Maxim.htm
http://jaipurrugs.org/mission.htm
http://jaipurrugs.org/Support%20Agencies.htm
http://jaipurrugs.org/Achivments.htm
November 1st, 2009 at 3:34 am
[...] See the article here: Tell Me About Non Profit Debt Consolidation Companies | Emily Holling [...]
November 2nd, 2009 at 1:00 am
The key piece of solving your debt crisis is to ensure you do not discount the condition completely. You must analyze the problem and resolve how to answer it. Talking to people with economic knowledge (be it family, a close friend, or even employees at the concerned credit card company), can bring about viable solutions. Timing is of the essence, so you must be fastidious; nevertheless taking the necessary steps to negotiate a settlement can sometimes be the advantageous decision.
November 3rd, 2009 at 2:47 am
[...] Tell Me About Non Profit Debt Consolidation Companies | Emily Holling [...]
November 16th, 2009 at 7:41 am
Debt consolidation has number of ways. If you have a home, try to use the equity of your home and obtain a home equity loan to eliminate other small debts. This way you are left making only one payment per month instead of interest s for each loan. You give us problem, we will give you solution.