Credit Counseling Non Profit

Credit counseling non profit is much sought after today by consumers who are struggling with debt and need answers and help dealing with, reducing, and eliminating debt. The basis and premise of credit counseling non profit is that these types of debt relief firms have official non profit and tax status. Whether credit counseling non profit firms actually provide any better or worse services than traditional credit counseling and debt relief providers has always been up for debate.

To better understand credit counseling non profit and its merits, we must first discuss credit counseling and debt relief in general. This will give us a good overview of the issues at play and how you can benefit from these types of services. Americans have had a deep love affair with credit cards since the introduction of the credit card itself. But as with many relationships, it’s one that can end badly.

Get Started With Debt Relief

Credit counseling non profit and debt relief providers find themselves more in need today than ever before. The economic recession has laid waste to millions of jobs from coast to coast, many of which will never be returning. Home values have plummeted while many have also suffered through reduced work hours and frozen wages. We have no doubt that America as a nation will recover from these trying times, yet in the meantime credit counseling non profit and debt relief programs are helping individuals and families across the land to lower and better manage their debt.

What Is Credit Counseling?

Credit counseling itself can be somewhat mysterious to those who have not had reason to research or take part in a credit counseling program. In a nutshell, these are programs and services that work with your creditors to renegotiate terms on debt. In many cases, interest rates, penalties, fees, monthly payments and terms can be renegotiated, generally allowing for a smaller monthly debt payment. The goal of these programs however is the full repayment of the debts which are owed.

This last point above is highly important as it differentiates credit counseling (whether credit counseling non profit or otherwise) from other debt relief programs. The reason is that credit counseling has the goal of the consumer repaying the entire balance that is owed – and then some. You see, other debt relief programs such as debt settlement set out to dramatically lower the balances which are owed. Paying the full amount owed is a non-starter.

Credit counseling non profit therefore refers to programs and services which still aim to steer the consumer into paying the entire balance that is owed at a lower monthly payment – yet at a higher total amount paid with interest over the term of repayment plan. Another important fact concerning credit counseling, whether credit counseling non profit or otherwise, is that these firms in most cases are actually funded by the credit card companies themselves. The credit counseling agencies are paid a percentage of the debt owed as compensation for enrolling consumers into these programs. Financial scholars have argued that this clearly constitutes a conflict of interest. Whose interests are the credit counseling agencies serving? Follow the money.

National Debt Relief

Fortunately, the debt relief programs as offered by the National Debt Relief Program network of debt relief providers do not involve credit counseling non profit. Rather, these debt relief programs available to you involve arbitrating and negotiating debt to settle accounts for less than is what originally owed. It is these types of programs, services and initiatives (rather than credit counseling non profit) that offer the most immediate and dramatic debt reductions possible – without the need for bankruptcy.

To learn more about these debt relief programs and get a free debt evaluation, please fill out the contact form to the right to speak with a debt counselor today!