Non-Profit Debt Consolidation

Non-profit debt consolidation organizations are available throughout the country that provide financial relief for debt-ridden consumers through Consumer Credit Counseling agencies and other credit counseling sources. They offer assistance to many households that need help and that also need to limit financial fees and other business charges for services. Those who are overburdened with debt from unsecured loans accrued through credit card charges and personal loans may find non-profit debt consolidations to be the answer. Consolidating is just one of many financial strategies offered by credit counseling sources.

Consolidating, negotiating, financial education and management advice are all services offered by many non-profit financial organizations. Consolidating is one of the most used services through credit counseling sources. A consumer who wishes to enlist the help of a non-profit debt consolidation agency needs to first understand that 'non-profit' does not necessarily mean 'free' to the consumer. Although an agency that offers these services to consumers cannot legally charge a fee for services rendered, 'voluntary donations' are recommended to offset operating costs. Most suggested donations are certainly manageable by debtors and there is a necessity of some way for the non-profit debt consolidations agency to supply its operating funds.

It is also necessary to note that these agencies cannot operate on consumer donations alone. A non-profit debt consolidations company also receives financial support from large companies such as department stores, gas companies, credit card companies and other business sources. When an agency arranges a consolidating program for any consumer, a portion of the consumer payments to the particular business or businesses is kicked back to the non-profit agency. Businesses are appreciative for help in getting their debtor accounts updated through non-profit debt consolidation agencies.

Providing assistance for consumers who need these services has led to questions about conflict of interest. It is by no means illegal or unethical, but understanding of how these organizations operate provides consumers with knowledge to ask the right questions. Non-profit debt consolidations can be very helpful and provide low interest, low payments and shorter term pay offs for consolidating of unsecured loans. A non-profit debt consolidation source has the ability to secure reasonable, money-saving consolidation options with little cost to the consumer. Overall, though, God will be the source of strength and conviction for the debtor to overcome their financial troubles. "Trust in the Lord and do good; so shalt thou dwell in the land, and verily thou shalt be fed." (Psalm 37:3)

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