What Is A Non Profit Debt Consolidation Firm?
A non profit debt consolidation firm is a company that will help you get
out of debt for a fee. Lets take a look at the process you will go
through when you decide to sign on with a non profit debt consolidation
firm. This is just and overview of the basics.
Steps to becoming debt free.
1. You will fill out a form with all of your information. This can be
accomplished on line or by calling the firm directly.
2. Once your submission has been reviewed a certified credit counselor
will contact you and go over your information with you to check for
errors. When verification is completed, the credit counselor will talk to
you about the results you desire through the program. The counselor will
give you information on education and budget options and discuss
alternative ways to get rid of your debt. If debt consolidation is an
option you want to pursue, the counselor will provide and estimate of the
monthly payments you will need to make and how much you could save in
interest and fees if you consolidate now.
3. The counselor will help you every step of the way. You will work with
them on an affordable and practical spending plan, They will set goals
and teach you how to obtain them, and teach you different ways to reduce
spending, and other financial strategies to help you get on track. Non
profit debt consolidation firms will usually send you written information
on the ideas discussed with you on the phone and other services they can
Counseling and any information about the best ways to become debt free
are usually provided free of charge. The counselors are dedicated to
working with a client for as long as it takes them to become debt free
and make sure you know how to remain free from debt.
Once you and your counselor agree upon the best plan for your
circumstances, You will need to take a few more steps to complete the
The Debt Management Program:
1. An agreement will be drawn up and sent to you containing particulars
of the services you have chosen to take advantage of from the non profit
debt consolidation firm. This paperwork includes the date your payments
to debtors will be sent. You will need to review this contract for
accuracy, sign it and return it to the non profit debt consolidation
firm. When the agreement is received by the debt consolidation firm they
will contact your creditors to verify that the balances are correct. Each
of your creditors will be sent a proposal stating that they agree to work
with you on your debt consolidation plan, and to verify new, lower
interest rates and exact monthly payment amounts.
2. You will make one payment every month to the debt consolidation firm
before the chosen disbursement date. The firm will forward your money to
each of your creditors as agreed upon. You will still get statements from
your creditors and you will receive notice from the firm of payments
3. Your monthly payments will remain the same while you are enrolled in
the debt management program. As each debt is paid off the additional
money will be applied to balances on other credit accounts. This will
help pay off your debt sooner.