Non Profit Debt Counseling

Non-profit debt counseling services can provide help for consumers dealing with too much installment debt, credit card debt or even facing home foreclosure. They normally can provide the same assistance to the consumer as for profit debt counseling services but charge a very small fee or none at all. Non-profit debt counseling services do not magically make all of a consumer's debt suddenly disappear. Instead, they educate the consumer and negotiate with lenders to give a person the time to pay down their debts.

Non-profit debt counseling services educate the consumer by examining the root cause of the consumer's debt problems and help with budgeting and future fiscal planning. This is done by making a detailed analysis of a person's overall spending, finding ways to decrease spending and creating a budget. This leaves more money to pay off debts. The consumer is also taught about credit scores. They learn how a person's credit rating is harmed by late payments, returned checks and too much outstanding debt.

Non-profit debt counseling services are able to negotiate with lenders to give consumers a better chance of paying off their debts. Banks, credit unions and credit card companies will often give a consumer a lower interest rate, reduced payments or a time extension on their debts if approached by a non-profit debt counseling service. These new terms are based on the budget that the consumer and the non-profit debt counseling service have created.

Non-profit debt counseling services can be funded by various government agencies or they may be funded by lending companies. Private companies fund counseling services because it is in their best interest to have consumers pay their debts, even if at a reduced amount. These counseling services can often be found by contacting the very company the consumer owes money to. The advantage to the consumer is that the lender and the counseling service already have a relationship and a solution to a person's debt problems can be found quickly.

Various government agencies also fund non-profit debt counseling services. At the federal level, the Department of Housing and Urban Development offers excellent non-profit debt counseling. At the state level, the department of Consumer Affairs or its equivalent in your state is a good starting point for debt counseling. Many cities and counties offer assistance under various titles. Check for the agency that offers social services in your location for information.

There is plenty of assistance available to the consumer who is in trouble with their debt load. Bankruptcy or foreclosure is not to the advantage of the lender or the consumer. However, it is up to the consumer to act and act quickly. Time is of the essence. Non-profit debt counseling services can provide the required assistance in a timely and effective manner.