Non profit debt consolidation: Repay your debts at a low cost

You can approach non profit debt consolidation companies when you are struggling to manage your multiple bills. Have a look at how a non profit consolidation program can help you out to solve your debt problems through single monthly payments.

How non profit consolidation companies help you repay your debts

Debt consolidation non profit companies can offer complete professional guidance to help you manage your multiple bills. The steps in this program are similar to a for-profit consolidation program.

You can look for the debt consolidation non profit companys website to check IRS 501( c) (3) non profitable charitable organization status. This section of the IRS includes provisions for tax exemption granted to non profit organizations.


The greatest benefit of enrolling in a non profit consolidation program are:
  1. Single monthly payment
  2. Reduction/elimination of late fees
  3. Get rid of collection calls
  4. Improve your credit

How non profit debt consolidation is different from for-profit consolidation

Non profit debt consolidation For-profit debt consolidation
Non profit status from IRS
Free counseling session
Single monthly payment

When to take help of a consolidation company

Struggling with multiple credit cards

You are facing problems in managing your multiple credit cards and you want professional help to avoid serious debt problems in future.

To get rid of collection calls

After you enroll in a non profit credit card consolidation program, you just have to inform it to your creditors/collection agencies, and the number of calls usually get reduced.

Want to modify payment plan

Taking help from a debt consolidation non profit company can help you modify your credit card payment plans by making a single payment towards your multiple bills.

Need guidance from a professional

By following advice of a non profit debt consolidation companys consultant, you can reduce your debt and get a firm grip on your finance.

Want to improve credit record

Enrolling in a consolidation program and paying off your outstanding dues in full, can help you improve your credit record, as the account statuses will be updated as Paid in Full.

Want some free cash in hand

Usually, non profit consolidation companies get financial assistance from credit unions and business organizations, so they usually charge low fees for offering consolidation programs.

Tips to get result from the best consolidation program

  • Resolve all your doubts in the free counseling session
  • Co-operate with the company representative
  • Accept only the best repayment plan
  • Make sure your creditors have accepted the plan
  • Read through the entire agreement carefully
  • Review statements to be sure that creditors are receiving payments

How to avoid scams in non profit debt consolidation

1 Revealing personal details:
Reveal your personal details and financial information to nonprofit debt consolidation companies in person and not over internet or phone.
2 Monthly payment:
Make sure you know how much you need to pay as professional fees and what will be your monthly payment towards paying off your debts.
3 Religious affiliations:
Beware of companies using Biblical principles or religious affiliation while offering non profit debt relief programs just to attract customers.
4 Reference from friends:
It is advisable to work with a non profit consolidation company where any of your friends has worked with and is satisfied with the service.
5 Payment plan:
Do not believe if the company tells you that enrolling in the program will help you in reducing the loan amount; if it happens, it's a settlement program and not a consolidation program.Know the difference.
6 Registered complaints:
It is better to not take help of a company which has too many complaints registered against it. Victims register these complaints with CFPB, FTC, and State Attorney Generals office.
7 Forced to make decision fast:
It is advisable to not get help of a consolidation company which forces you to make a decision fast. Their only intention is to sell a program and might not be interested in solving your debt problems.
8 Company accreditation:
If a company is not licensed, do not approach them. You can get to know whether or not a company is a licensed one, simply by checking their "About Us" section from the website.

What are the services offered by the non profit debt consolidation companies?

The non profit debt consolidation companies will help you to consolidate your bills like any other consolidation company. The company will list your income and expenses, and calculate an amount that you can pay every month for repayment. It will also make a list of the debts that you owe and the name of the creditors. It’s the company’s work to contact your creditors and negotiate a plan with them that fits your budget. This can be done by reducing interest rates , waiving late fees, and extending repayment time.

Is the service free of cost?

The term non profit doesn’t imply free service. The company may charge a minimum setup and monthly fees. There are a few companies who advertise about voluntary fees but may charge the full fees later, evcn if you can’t afford it.

How do I know I need help of non profit debt consolidation program?

There are times when you feel you can’t manage your finances and debts properly. You may be using a lot of credit cards for buying stuffs and have racked up a lot debts. You don’t know how to pay them off. Collection calls are bothering you a lot and you just want to get rid of them. These are examples of situation where you might need professional help to sort out your finances. You can go for a non profit debt consolidation program to get free of you financial hassle.

How will I know if the company is fraud or not?

An acknowledged and authorised non profit debt consolidation company will generally analyze your situation and tell you how much to save before making any offer to the creditor. They might also send you free information about their services without asking for your personal information like your credit card number. However, if the company claims anything mentioned below, beware and check the background of the company twice:

  • They can stop all kind of collection calls.
  • They can get your debts paid off for "pennies on the dollar".
  • They have advertisements that promise government bailout program for debt.
  • They charge fees before giving any plans to consolidate your debt

What is the maximum time limit of repaying my debt under the program?

Generally, the time limit for repaying debts under non profit debt consolidation program is 3-5 years depending on the amount you owe along with your financial situation.

Last Updated on: Fri, 9 Oct 2020