The Benefits of Non Profit Consolidation Services

Having financial troubles can be an anxious time; with bill and debt collectors constantly calling on the phone or knocking at your door. Being unable to make even a small contributory payment makes the feeling of helplessness even worse; it is at this time, or in the best case scenario, prior to this time, that one should start seeking or start taking some professional steps to get back onto an even financial keel.

For the inexperienced, talking and discussing any payment issues with a credit card company or a bank can be a frustrating and pressurized experience as the financial institutions you talk to do not want to lose any money so are, in most cases, very reluctant to waver from their, and your, original agreement. In order to counter this issue you can do one of two things either; learn how to deal with this situation and become the dictator rather than the one being dictated too or, seek out companies that can help with this issue. We will look at both, but initially let's look at the help you can get.

There are many companies that deal with debt consolidation but quite often they will take a share of the savings for themselves as well as a fee or they ask for an ongoing management fee, in a lot of cases they save you very little as your savings are passed onto them, my opinion is to stay clear of companies that try to make money on yours and others misfortunes. However, there are companies out there that operate a non-profit service and also perform a better duty for you. These Non Profit Consolidation Companies are designed to help people who are in difficult financial situations.

Non Profit Consolidation Companies: What are they?

Non Profit Consolidation Companies operate to benefit those in financial turmoil, they offer free financial counseling; do not be confused by the title 'Non Profit Consolidation' however; Non Profit Consolidation does not mean that the service is free, there will be a charge for their services but in most cases it is a true fee. A true fee will reflect the costs incurred when processing your account and as the title suggests will not contribute towards the company's profit.

If you are wondering, 'what's in it for the Non Profit Consolidation Companies then?' look at it this way: When you plant a seed you nurture and care for it by watering it, feeding it, protecting it; but initially you reap nothing from this nurturing; it's not until the plant has matured and producing fruit year after year that you start to reap the fruits of your labor! The non profit consolidation company will regain a percentage of the people it assists as future customers so it makes sense to offer a good service for a cost covering charge, this is why quite often the service you get from a non profit consolidation company s far greater than the service offered by one that is trying to fleece you from the outset.

The best place to find a good non profit debt consolidation company is on the internet, there will be an element of searching but it is worthwhile to find a good company that will get you back on path. When you have a list of companies you should check them out with the better business bureau to ensure they are reputable companies.

The way that these non profit debt consolidation companies sort out your finances is that they work down the list of all your creditors negotiating either; lower repayments, usually as a result of getting the creditor to lower their interest rate. Once this negotiation has taken place they will consolidate the amounts and request you pay them a set amount each month so they can take care of the payments to your creditors therefore minimizing the amount of contact you have with your creditors.

Now I did say that there were two options, and the second method involves two steps, the first is to deal with your creditors yourself using methods that are both ethical and legal to reduce your repayments or the term of your debt allowing you to be debt free in as little as three years. These little known methods are known to the credit card companies and financial institutions but have not been made common knowledge as these very same institutions want you to remain in their debt for as long as possible as this is how they make their money.

You can find out more about these methods by visiting either of my sites that are linked to at the end of this article. The second step that you incorporate after completing step 1 is to apply for the lowest possible interest rate debt consolidation loan; which are very accessible nowadays, to people with a bad credit history or who have financial issues. A combination of these two steps will give you the financial freedom you desire in a lot shorter time than you could ever have imagined possible.