A debt consolidation company is only eligible to use a non profit debt consolidation status if it receives the “non profit” status from the IRS. These companies help consumers negotiate with their creditors. Here is information on one such non profit debt consolidation program.
A non profit debt consolidation organization can guide you to consolidate your debts. The organizations often offer a free counseling session for their clients and review the financial situation before offering a debt relief solution.
The organization negotiates with the creditors on the basis of the amount you can afford to pay. It can negotiate with creditors to lower the interest rate on the outstanding balance to make the monthly payment affordable to pay off.
Know about the advantages of the non profit debt consolidation program. There are two ways that a non profit debt consolidation organization can lower the monthly payment. The counselors associated with the organization can negotiate with the creditors to cut down interest rates as well as waive off the late fees.
When you work with a non profit organization, you can often make a single monthly payment to the organization. The organization divides and distributes the amount among the creditors.
In summary, here are a few benefits of consolidating your debts:
1. Cut down interest rate: You can lower your interest rate when you are associated with a non profit debt consolidation organization. The counselors associated with the company can negotiate with the creditors on your behalf. Once the creditor agrees to rearrange the payment, it can help you manage the debt with ease.
2. Offer debt repayment plan: When you enroll in a debt consolidation program, the creditors can offer a debt repayment plan. Once the interest is reduced, it can help to lower the bill payment.
3. Single monthly payment: When you enroll in a debt consolidation program, you can merge your multiple payments into a single monthly payment. You can often make a single monthly payment, and it can help you avoid missing payments. You are required to make payment to the organization and it can disburse the amount among the creditors.
4. Waive off late fee charges: The late fees, penalty charges along with the interest rate pile on the outstanding balance when you have a delinquent account. The financial experts associated with a debt consolidation company can sometimes negotiate on your behalf to waive off the late fees.
5. Reduce the number of collection calls: When you start making payment to the creditors through a consolidation program, you can avoid the harassing calls from the creditors.
How are the companies able to afford to provide their services? A non-profit debt consolidation company typically depends on donations from people or companies looking for a tax write-off. There are a few companies that may charge a small fee on the basis of a given client’s income in order to further handle operating expenses. You should check the “About Us” section in the company’s website to find out whether the company is non profit.