Non profit debt consolidation: Pay your debt at a low cost

How does one look for a debt consolidation company and how do we know that it is non-profit?

These are a couple of common questions most people usually have when faced with the unlikely prospect of bankruptcy and debt consolidation.

This article is extremely helpful in providing guide and basic information regarding non-profit debt settlement.

The cautionary tips are invaluably inspired.

Non profit! There's an article I found on NON profit companies - you should read it before you make any choices! It's called Credit Counseling Lies Exposed, and can be found at: debtfreeasapblog.com/non-profit/#/?p=835

Don’t be fooled by the words “non-profit.” Claiming a debt management plan is “not-for-profit” is ridiculous, but it’s fooled many people into making poor money choices.

Know that entering into a consolidation program with any company to reduce your interest rates, prevents you from purchasing a car or home until the program is completed. This is due to the fact that being in this program will be stated on your credit report. If you quit the program for any reason or miss one payment (ever), forget about buying another car or home on credit until it falls off your credit (7 years from your last payment). This wasn't explained to me when I enrolled and it was impossible buying a car, which I needed for work. I ended up being dropped from the program, because I missed one payment while I was between jobs. However, I did find a good company that settled my debts and they even included free credit repair. I only ended up paying about half of what I owed (including their fee). I recommend DWScott Financial. I think their website is deleted.

sorry no solicitory pr personal info per TOS.

Is Non Profit Debt Consolidation Better Than a For Profit Debt Consolidation Program?
I Dont know
But you must refer or study well before took it

Consolidation is combining multiple payments into one monthly payment where its distributors to your creditors. In Debt consolidation, or a debt management plan/program, aka credit counseling, you pay back the FULL debt, but with lower interest rates.

Depending upon whether its a for profit company, a law firm, or a non profit will determine various interest rates. For example, I have a law firm I use to send clients to and Discover is a 17.99% interest rate. But with the other non profit company I have, Discover drops to a 6.99% interest rate after 3 payments, so it doesn't hurt to shop different companies strictly for rate benefits. Ultimately you want a payment you can afford, and you need to pay extra to pay off your debt effectively.

You only owe taxes if you do a debt settlement, implying you pay less than what you owe, and the tax you owe is based on how much you saved. For example, of you owed 20,000 in credit card debt and settled for $12,000 you would have a tax liability for $8,000, which is computed based upon what you made, etc. I'm not an accountant but that's the basic gist of it.

Hope that helps.

Plagiarized from: http://www.creditinfocenter.com/pres...btConsol.shtml

would go through a lawyer to consolidate. All actions from that party would be legal

will this show up on my credit score?

Can you tell me how to know if the company I am working with is legitimate? I called the Better Business Bureau in their state and they had no listing for this company. It is CreditGUARD of America, Inc., in Boca Raton FL, at 1-800-838-7132. Before I sign the forms, I need to be sure they are legit? thanks.

i have went with a company on this subject and i am still getting calls! the name is Credit Alliance Group... are they a scam or real? Do I need to go another route and if so which one should I take?

OK - I've taken an initial look at Credit Alliance. They seem to offer "3" models to choose from. All involving debt settlement - as you "upgrade" your package other bells and whistles are added in. Basic pgk (debt settlement) - Prof. pkg (ds and credit repair) - Elite (ds, cr and adding positive trade lines on your reports (not sure about the positive payment reporting without look at the agreements). All include the "DANN' box (an additional monthly payment with that?) - not a big fan but we can deal with that later.

First, about the phone calls. NO Debt Settlement company can stop phone calls, when the accounts are still with the original creditor. They have an absolute right to call and the FDCPA (fair debt collections practices act) does not apply. At the very beginning of any settlement program, you are going to get calls (I assume right now that you don't have any money available to settle your debts with your creditors so you are starting to save up your money so you can present a reasonable settlement offer) - right now you are really 'buying time'. You can't settle your debts unless you have money to do so - good intentions don't pay off the creditor so you are going to have to ride it out for a bit. Even if you do this on your own. Explain to the creditors that you are going through a rough time and simply can not afford to make any payments right now (which I assume is the truth) - explain that you are trying to find a way out of this mess and that maybe in another 30 days or so, you situation may improve. Keep doing this as you save. Be polite, yet firm. Don't give them any personal information.

Control what information is communicated -
Don't give a collection agent any personal information. Don't tell them where you work, where you bank or your checking account number. When they start off the call by saying, "I just want to update or confirm our records; can you confirm your work number or bank account information"? Don't tell them. You can be polite and say, I'm sorry, what can I help you with? The more that you remain in control, polite but firm, the better chances you will get what you want out of the negotiation. The more private information you give them, the easier it will be for them to pursue you if you can't work something out.
Putting it simply, if you have to go through the process of suing someone, would you spend your time going after someone that you had very little information on (don't know their banking information, where they work or even if they are working, etc) or someone that you could easily follow-up on to get your money? So, control the information you provide, don't give up personal information and remain polite but stick to the task at hand. The more in control you are, the more likely you will be successful.


How much debt do you owe? How far along (delinquent) are the accounts and what did CAG 1. charge you and 2. tell you how long it would take for you to become "debt free". I can further explain the process from the time that you initially stop making your payments to your creditors (the "what happens") if you want me to... Hope this helps you.

i owe many different bills medical credit card auto some medical go back years and not sure how many. i need to consolidate them ithink it is around 15.000 or more. where do i turn.

I have five credit cards that total about $30,000.00. They are seriously overdue. collectors are calling, sending letters in the mail and just the other day I received a letter from an attorney saying that if I didn't respond within 14 days I would be sued in court, facing possible wagw garnishedment. I don't know what to do. Do you have any suggestions?

Me also, we have the same problem. And i fell annoying to receive many attorney letters and phone calls just for informing to pay my debts. my question is it is really effective using debt settlement for this problem? or should i need also a lawyer to answer their letters? open for more suggestion.

hi people
i would just like to share with you'll how to choose a good settlement company
the first thing you see is how long has that company been in operations
the second thing is that you got to know whether they are listed with the bbb and what are the their ratings
the next thing that you got to see is whether they have a license number to settle your debts and whether they are a genuine company or not
they should not have and enrollment fee off more than 10% na that should not be charged all upfront in order to proceed with your debts , they should satrt your payment as soon as you are confirmed that you will pay of the debt via the program (your first monthly payment )
they should not charge their enrollment fee upfront
the next thing is that they should nit have a monthly fee of over $50 to %60
they should be able to deal in any debt other than secured debt and insured or govt legislated debts like tax and student loans
they should not have a success fee of over 10% of the amount you save through their program
and they should have enough of success stories to show you
and the fees of that company should be displayed easily on the company website or the program advertisement
well these are just may thoughts others may have a different opinion of them and suggestions are always welcome and so are corrections

You should get someone to review your entire situation, how much money is coming in and then what you owe. Don't pay a company an upfront fee without them doing a complete financial analysis of your situation. Many true accredited non profit companies will initially review your situation for no charge, and then charge you much lower fees than many of the "for profit" companies that are in the industry. You have to do your research. In addition, many of the non profits will negotiate with your creditors for you and they will start you on an organized program.