Are you swimming in debt and are being constantly harassed by credit card companies? Maybe you should consider a nonprofit debt consolidation. Do you know what debt consolidation companies do? First of all, these companies will try and negotiate with credit card companies to reduce and consolidate your debt into a more affordable lump-sum payment. They will combine all of your debts into an easier monthly payment and will try and obtain a lower interest rate for you. These companies typically offer credit card counseling and additional information to educate people on the dangers of credit cards and debt. Other benefits that you can receive from these types of companies are that they will try and help you waive late fees (and over the limit fees), will eliminate collection calls, avoid filing for bankruptcy and eventually become debt free. Many people like nonprofit debt consolidation companies because they do not have to take annoying collection calls and deal with the credit card companies anymore. All of the services are done by the consolidation company (for a fee). Don’t let the non-profit part of the company fool you, these companies still charge a fee and work essentially the same way as a for profit consolidation company. The difference is that the IRS has allowed them to file as a nonprofit entity and some companies receive federal grants so that they can provide their services and a cheaper or reduced cost to the debtor.

Remember to be prudent when selecting a nonprofit debt consolidation company. Just because they are a nonprofit, doesn’t mean that there are still people out there that want to scam and trick you into getting more money. Nonprofits have the ability to pass out bonuses to their CEO’s and employees and might use their nonprofit status to pretend to be the good guys while in reality, they are just like any other debt consolidation company.

Searching for nonprofit debt consolidation services might be troublesome as there are so many services advertised on the internet, radio and television. Keeping that in mind, what are some things you should look out for when searching for a reputable nonprofit? First of all, make sure that the company is an actual nonprofit! Many companies will try and trick you by calling themselves a nonprofit but actually are for-profit. Just because the wolf cause it’s self a sheep, doesn’t mean that the wolf is actually a sheep. You can go to the IRS website and search for the company to verify that the company has filed their 501 nonprofit statuses and is an actually nonprofit agency. On the same lines as nonprofits, there are some companies that call themselves “Christian Nonprofits” to suck in fellow Christians. A good nonprofit should have a low fee structure or should provide their services for free. Make sure to ask about their monthly fee structure and read the fine print before agreeing to any services. Some internet companies will tell you that payments are voluntary and later charge you high amounts for their services once you are locked into the company. The best thing to do is ask a lot of questions and read the whole contract for hidden fees before signing with the agency. If the nonprofit does not answer your questions, is rude and will not provide the answers you are seeking, move on to a different agency. Remember that there are plenty of agencies that do want your business and it’s best to “shop around” before settling for one. A good company will spend a lot of time with you to answer your questions; you should never feel rushed when talking with a representative. A good nonprofit consolidation company will be honest with you and tell you like it is. If they promise you that you will get out of debt fast (within months), they are lying to you. Getting out of bad credit home mortgage loans can take years upon years.

So now that you’re ready to search for a nonprofit debt consolidation company, what exactly are you looking for?

With the millions of search results for nonprofit consolidation organizations, one might be overwhelmed by the how exactly to go about choosing the right company. There are many companies that will try and deceive and trick you with the nonprofit title so be wary and do prudent research before settling on one company.

First, make sure that company is an actual nonprofit by going to the IRS website and verifying the companies nonprofit status. When performing the initial conversation with the company, never give away any personal information such as credit card and bank account information. Make sure to ask whether the company combines a service fee with the monthly payment. Some companies will bundle a service charge and take allocate some of your money to the company. Many people have been duped into paying into a company and seeing little to no reduction in their debt balance.  If you are a woman, another alternative is to try and obtain a small business loan for woman grant through a lending company.  This, of course, will only work if you actually planning on operating a start-up small business. 

There is hope for you! The worst thing that can happen is that you're stuck in the same spot you were in before. So give it a try and start researching to get a nonprofit debt consolidation.