What You Should Know About Non Profit Credit Counseling
Consumers searching for solutions to their debt problems often discover credit counseling and consolidation services. This is a great choice to help you get your debt under control and reduce the amount of minimum monthly payments you are making. As you perform your research, you may discover that there are non profit credit counseling services out there. What are these and are they a good option for you?
Does a Non Profit Credit Counseling Service Charge a Fee?
One of the biggest misconceptions about a nonprofit credit counseling service is that they don’t charge their clients a fee. You need to remember what nonprofit actually means. Any company or organization that calls itself nonprofit simply puts all earned income back into the business. This can be in the form of employees’ wages or improvements to the business. However, they do sometimes charge a fee for their services. Some companies may request a ‘donation’ instead of charging a fee.
How Does a Non Profit Differ From a Regular Consolidation Service?
The only real difference is where they put their fees. A for profit service may have shareholders or another way that they share the dividends with employees. A non profit credit counseling agency puts all money back into the business.
Which Choice is Better for Me?
It really depends on what your goals are. You need to do your research and narrow your choices down before deciding who you want work with to get out of debt. Non profit versus for profit may mean nothing to you. One is not necessarily better than the other. As with anything, do your research before jumping into any debt consolidation services.
Non profit credit counseling can be a good deal for the consumer if they charge lower fees than a for profit service. However, don’t let the term nonprofit lead you to believe that they are necessarily cheaper or better than another service. You still need to research any company that claims to be a nonprofit to make sure they are legitimate.