Introduction to Nonprofit Credit Card Consolidation Debt Reduction
If you need help with your credit card debt and mounting debt issues, there are a number of credit card counseling debt consolidation agencies you can use. You can go with agencies that are associated with one of two main nonprofit credit card debt relief trade groups — the National Foundation for Credit Counseling (NFCA) and the Association of Independent Consumer Credit Counseling Agencies (AICCCA). You shouldn’t trust an organization just because it’s called “nonprofit”. There are a number of so-called nonprofit credit card debt relief agencies that are actually under investigation by the Internal Revenue Services and other consumer agency groups for unfair practices and false advertisement. In order to avoid the illegitimate nonprofit credit card debt relief agencies, be sure that you ask a lot of questions and get the facts before you go with your credit counseling.
Facts about Credit Counseling
Did you know that most credit card counseling debt consolidation counseling companies are actually underwritten by banks and credit card companies. These agencies are ultimately helping the banks and credit companies so that’s why they are here to work with people to pay back their debt. The credit card companies are the last in line to receive money after a bankruptcy since their debt is unsecured. The companies therefore encourage credit counseling and want their customers to enter into a DMP. You can find that credit companies enjoy when customers use a nonprofit credit card debt relief agency because the benefits are great like the “re-aged” payments and removed late payments from the credit report and the collection calls will stop.
Interesting Fact:
Bankruptcy rates have skyrocketed in recent years. Even with all the better options available to them, many people think this it the best way out of debt. Read more about CuraDebt before you start bankruptcy proceedings.
Credit Problems
The programs with the DMPs are for five years. If you keep the payments going and stay on time for the whole five years, your debt will be paid off and your credit report is clean. Your credit report will be noted and you will still have the debt if you cannot keep up with the program. Look for the rates that they will charge you and compare with other companies. Ask questions about their specific credit help experience and get references for your future nonprofit credit card debt relief program. Getting the right answers to these questions should help you weed out the unscrupulous operators hiding behind the “nonprofit” moniker.
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To Your Financial Success
-Suze Fulton
