Non Profit Debt Management for Fixed Incomes (cont.)
Contributed by Lisa Marie
This is not, however a lot of money from one customer. It's the small little sums of money that they charge you that all add up to pay the bills. Personally, I don't want to know what the presidents of their organizations draw as a salary. What they do is charge you a small fee, usually on a per creditor basis. this fee is usually voluntary, so if you don't want to pay for it, you don't have to. But let's face it, operation costs do accrue and we should all pay our fair share of these.
So why is can a non profit debt management be bad?
The truth is, when you enroll into one of these programs, your creditor has to agree to the terms. If you were a creditor, would you be happy about your money not coming in the way you planned? The answer is no. Your creditors under the debt management service still have to report to the credit bureaus regarding your payment. As long as your payments are on time, they cannot report any differently.
But they can, and do write little notes in the comment sections stating "Under Credit Counseling" or something like that. What this does is informs potential new creditors that you couldn't pay your original debt and needed help doing so. How do you think that future creditors will take the news? If you needed help paying off these debts to begin with, why on earth would they extend a new line of credit to you at a good rate. Caveat emptor.
