Enjoy a Debt-Free Lifestyle with Non-Profit Credit Counseling
The most reputable credit counseling services are non-profit, but this doesn’t mean they all offer the same quality of service. The aim of non-profit credit counseling services is to help people who are spending all of their earnings to repay debt and have nothing left at the end of the month for savings.
There are many reasons people find themselves in debt. They may not have enough income to cover their daily expenses, they may have had to pay for an unexpected home or automobile repair or a huge medical bill. Whatever the reason, a non-profit credit counseling service can help them consolidate their debt so it can be quickly and easily repaid.
There are several trade associations for non-profit credit counseling. They include the Association of Independent Consumer Credit Counseling Agencies (AICCCA) and the National Foundation for Credit Counseling (NFCC). Each foundation has member agencies all over the country to help individuals and families get out of debt.
A good quality non-profit credit counseling company will often give applicants a free, no-obligation counseling session. Their debt situation will be reviewed, and they will be asked to think about their long term goals.
Counselors will examine the applicant’s expenses, income and debt including the interest rates. Based on this, the counselor will recommend a plan for spending as well as a budget. This is a very important step because it will not only help repay the current debt, but help people stay out of debt in the future. Non-profit counselors help with credit card debt as well as secured debt.
If the applicant is interested, the counselor will recommend a Debt Management Plan. The debtor must agree with this plan in order for it to be effective. This type of plan usually consists of a three to five year plan to repay debt, lower interest rates on existing debt, negotiation with the credit card companies to stop extra fees and penalties and freezing credit card accounts.
When looking for a reputable non-profit agency, people should ask about any fees right in the beginning. A good agency will be happy to give information about their fees in writing. People can also ask for references from the agency’s former clients.