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PR Log - Debt Consolidation Non

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					PR Log - Global Press Release Distribution




                                   Debt Consolidation: Non Profit Credit Services

       By Michael J Brazier
       Dated: May 06, 2010

       These frequently asked questions will help you find a reputable nonprofit Debt Consolidation program
       where the counseling services will actually get you out of debt and improve credit over time.

       It’s easy to become a bit confused when trying to find a reputable nonprofit Debt Consolidation program
       where the counseling services will actually get you out of debt and improve credit over time. If you have
       accounts that are current or past due less than 6 months a consolidation plan can help you save thousands in
       interest and improve your credit rating over time.

        These frequently asked questions will help guide you down the right path to financial freedom and better
       explain the ins and outs of a debt consolidation program with a nonprofit organization.

        Do I need a certain amount of debt to qualify? No. A true nonprofit organization will consolidate any
       amount of debt if there are potential savings found in the free consolidation consultation. Agencies
       requiring a certain amount of debt are for profit and sales agents make a hefty commission off large debt
       amounts, not small ones.

        Will the creditors require I close all my accounts. Yes. Any account consolidated will have to be closed
       either before enrollment or in the enrollment process. They key to a debt consolidation program is to get out
       of debt.

        Do I have to consolidate all my debts? No. You can choose which accounts you want to consolidate. Some
       creditors do require that all accounts be enrolled if theirs is in the program but the stipulation is few and far.
       A certified credit counselor will encourage you to close all accounts as the end goal is to get out of debt, but
       again, it’s not required.

        Do you reduce my balances or payback the entire debt? A consolidation program pays back the full debt
       amount at reduced fixed interest rates. A settlement program pays back part of the debt but requires
       accounts to first charge off, leaving your credit tarnished for seven years with multiple negative marks.

        Are my payments sent each month? YES. This is how you’re kept current and helps maintain and increase
       your credit score over time. Remember, timely payments account for 35% of your credit score so it’s
       important for a non profit organization to ensure such is maintained for you on the accounts consolidated.

        How low do the interest rates drop to? This depends on the creditor as each have their own guidelines for
       consolidating debts with non profits. Typically, the APRs go anywhere between 0% and 10%, depending on
       the creditor.

        How long will this take me to be debt free? A consolidation program is designed to get you out of debt in 5
       years or less. A good non profit will allow you to pay off the debt faster as able without any additional fees.


        Is the due date changed with my creditors in this program? Yes. A nonprofit consolidation org will allow
       you to select a due date that fits comfortably around your other monthly bills and pay schedule. This date is
       then modified with the other terms once enrolled into the program.



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PR Log - Global Press Release Distribution




 Who handles my creditor and collection calls? There should be customer service department if not an
assigned certified credit counselor to manage your creditor calls. The customer service department should
be –in house – and available during normal business hours so they can contact your creditors on your
behalf.

 How will I know my creditors are being paid? You’ll still receive your monthly statement from your
creditors that show the payments being made on your behalf. A consolidation org can usually provide a
breakdown of the payments as well if you do not receive statements from your creditors.

 What happens if I miss a payment? A nonprofit agency should not charge you for missing a payment or
making a late payment. A creditor on the other hand may take a missed payment as an opportunity to
default back to the original rates and terms you had before consolidating.

 What’s a financial analysis? A financial analysis, or budget counseling session, outlines your debt to
income ratio on a monthly basis. This is done to ensure an affordable monthly payment is provided on a due
date that works around your other monthly bills.

 How will this affect my credit? A debt consolidation plan can improve your credit score over time. 35% of
your credit score is contingent upon consecutive timely monthly payments. Another 30% of your score is
affected by the amount of debt you owe. So by having a consolidation company make your payments for
you at reduced interest rates you automatically help influence 65% of your credit score with timely
payments that reduce your balances faster, at lower fixed APRs.

 How do I get started? Freedom Debt Management, Inc is a BBB rated A+ nonprofit org specializing in
budget counseling and debt consolidation. Contact a certified credit counselor by visiting our website
freedomdm.org and complete a contact request form or speak to certified credit counselor on the LIVE
CHAT feature. Call 800.901.1563 and see what counseling services are available for you based on your
specific situation and long term credit goals. You can be debt free and improve credit, Freedom Debt can
help.

###

Certified credit counselors work with potential clients to assess their current financial situation and
determine what their best option may be.

Category           Finance, Society, Consumer
Tags               debt consolidation, credit services
Email              Click to email author
Phone              561-362-3014
Fax                800-543-0402
Address            941A Clint Moore Rd
City/Town          Boca Raton
State/Province     Florida
Zip                33487
Country            United States




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