If you are riddled with outstanding credit card payments and other unpaid bills, you can contact a company that provides debt consolidation not for profit. Everything you owe, be it a student loan, a medical debt, or car payments, can be combined and made into one monthly payment.

The debt consolidation company will take out new loan with a lower interest rate to cover this payment. Part of the service is likely to include credit counseling. The agent working for the consolidation company can also negotiate with your creditors to try and reduce the total of the debt that you owe.

How do they do this without making a profit? These companies are able to offer the service for little, or no, cost because they receive funding from government grants, creditors, or from donations. Even so, there is no quick-fix and it will take time before your debts are cleared.

In fact, it will take years to clean your slate. Furthermore, you will have to become very self-disciplined and acknowledge the fact that you have been spending above your means. It is going to be very tempting, when you get the new loan, not to spend any of it on things other than your debts.

If your house or car has been pledged as collateral for the loan, they will be seized if you default on your payments. Therefore, you cannot afford to make any silly, irrational, or impulsive decisions that you will regret. If you fail, you will end up worse than ever. However, if you stick with the plan, your future will soon start looking brighter.

Finding a reputable non-profit debt consolidator can be quite difficult. This line of work is, unfortunately, open to abuse and many companies mishandle their grants or donations. Others mislead people into believing that they are a locally based operator when they actually operate from another country. This can cause untold problems.

With thousands of non-profit consolidators vying for business, there are some important facts to keep in mind before utilizing such a particular agency. Numerous consolidators claim to be non-profit but they actually make millions. The non-profit label is basically used as bait to lure desperate individuals. Others use this status to contravene the telemarketing laws which are not applicable to non-profit organizations.

The best way to gauge the authenticity of the consolidation company is to ask for proof of its Non Profit 501 (c) (3) Status. Not every non-profit operator is free of all charges, but they should have a voluntary fee structure in place. Some are quite happy to advertise a voluntary fee but make you pay for it even if you cannot afford it.

If an agency is vague about its fees, or has high fees, or makes you pay a supposed voluntary fee that is way beyond your means, try a different agent. Also check that the first monthly payment will go to your creditors, not to the debt consolidation agent. The last thing to know is that a genuine ‘debt consolation not for profit’ company will spend a lot of time reviewing your financial situation. Companies that offer a quick turnaround time should be avoided.

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