Should I Trust Non Profit Debt Consolidation Companies?
Contributed by Melanie Vannuys
Should I Trust Non Profit Debt Consolidation Companies?
Even if you are not overwhelmed by debt, you would have to be living under a rock if you haven't seen the countless ads for debt consolidation companies - non profit and for profit alike. They promise debt-ridden consumers a debt free life in only a matter of weeks or months. However, be aware of the wolf in sheep's clothing.
How Does A Non Profit Debt Consolidation Operate?
Non profit debt consolidation companies supposedly get their money from "donations." However, claims have been filed with the Better Business Bureau and various state Attorney General offices stating that a portion of the money that is supposed to be used to pay off debts, goes to the "non profit" company's bottom line. Then, when the money that was supposed to be used to pay consumer debt is no longer there, the payments that the non profit company was supposed to be making are late. And we all know what happens to your credit report when payments are continuously late.
How Do I Avoid Using A Non Profit Debt Consolidation Company?
Experts are in agreement that consumers can often get better results by talking to the credit card companies direct. However, you should know up front that it will take time, patience and work. There is no magic wand that can be waved and the credit card companies will magically lower your interest rates or monthly payments. So if you are ready to relieve yourself of your mountain of debt, here are a few simple steps you can take:
