How to Choose Debt Consolidation Non Profit Companies

Debt consolidation non profit companies are usually more trustworthy than the for profit versions. You will still have to pay fees for their services, but you can have more confidence that the primary goal is not making a few extra bucks off of your credit crisis.

However, you will want to screen even non profit debt consolidation companies. Follow these steps to make sure you aren't going to end up worse off than you were to begin with.

Instructions

1. 

   CALL THE BETTER BUSINESS BUREAU.

   Any debt consolidation non profit worth its salt will be registered with BBB, have a proven track record, and minimal complaints. If they aren't registered...skip them. There are plenty of debt consolidation non profit companies, so no use wasting time on a risk.

2. ASK FOR THE 501(c)(3) CERTIFICATE.

   If they are truly a debt consolidation non profit, they will have the non profit certificate to prove that tax status. If on the other hand they are only masquerading as a non profit to get you in, then you know you are being tempted by bait.

3. 

   BE SURE YOUR CREDIT WILL NOT BE DAMAGED.

   Before meeting with anyone from a debt consolidation non profit be sure they can not only walk you through consolidation and get you a better comprehensive payment but also ensure that your credit will be improved not damaged. If 'credit counseling' is reported to your credit agency it can often be viewed as negatively as bankruptcy. Also, if you receive interest rate reductions some creditors will report you as 'in collections' because of their computer accounting system. Be sure your debt consolidator non profit can make sure this won't happen.

4. COMPARE SET UP FEES AND ONGOING CHARGES.

   Now that you have narrowed the list it is time to start comparing. Take your list of truly local companies that are verified by the BBB and are truly non profits. Call and make sure their payment system is very clear and up front. Write down the particulars. Call the next company. If one company charges 10% and the next charges 9% and the next charges 15% of your total debt and the last one charges a smaller flat fee then you have your answer.

5. 

   DOUBLE CHECK THE MATH.

   Whenever you are meeting with a credit counselor do your best to keep up with the math. If they tell you they will charge 10% and then it comes out to 12% on your calculator bring it up before you ever pay. Part of this process can be learning to calculate your own finances and handle them better for yourself in the future.

Tips & Warnings

• Take advantage of debt consolidation non profit's practice of a free initial consultation.

• Once in the process be completely up front with the debt consolidation non profit. Otherwise you are wasting time.

• Be aggressive with your debt consolidation plan.

• Be sure to follow the advice above and get a guarantee that this will not be reported as 'credit counseling' and that no account will be listed as 'in collections.'

Resources

• Pay Off Debt Faster by Writing Online
• Eliminate $1000 of Debt a Month with Online Writing
• Suggested Reading on Personal Finances