Non Profit Debt Relief Organizations

Non-profit debt relief organizations offer the same services as profit-based debt relief organizations. The difference is that their operations are run on charity based donations as well as government grants accessed through their non-profit status. To be certain that a debt relief organization is in fact a non-profit you can check the ‘About’ section of the company’s website. If the company is a non-profit it should clearly state as such on this page and it will refer to achieving IRS 501 (c) (3) non-profit charitable organization status.

But why do these things matter? Below are some of the reasons you may prefer to get help from a non-profit organization.

Security of Being a Recognized Non-Profit

There is a certain security in seeking assistance from a company that has declared its non-profit status. Especially in the debt relief industry, which deals with people who are bogged down by debt, a non-profit company signals that help will not cost exorbitant amounts and it will be genuine. To achieve non-profit status a company must conform to certain stipulations and this in itself provides a layer of safety in an industry that is fraught with scams.

No Outrageous Promises

Non-profit debt relief organizations do not offer outrageous promises. It is not uncommon to come across companies that claim to be able to improve credit scores instantly or to cut debt in half in a short space of time. A non-profit debt relief organization will not make irresponsible claims because they are aware that their continued status depends on their customer feedback.



Free Credit Counseling Services

Credit counseling is offered by all debt relief organizations, but there is usually a fee attached. While non-profit debt relief organizations may also charge a fee, this fee should be considerably less than the cost of the same service at a profit based company. The bonus of the service provided by the non-profit debt relief organization is that they usually make referrals to other local social service organizations that can offer support in other areas. This can make a huge difference to a family trying to deal with several problems at once and can increase the likelihood of success of the financial management plan because of the attention given to other areas of family life.

Debt Consolidation Loans on Offer

The debt consolidation process entails switching a series of unsecured high interest loans for a single low-interest secured loan. To make this possible, in most cases you need to offer considerable collateral, which comes down to risking your home. This reality does not change under a non-profit debt relief provider, so you need to carefully weigh the risks and rewards involved in a debt consolidation loan.

Non-profit debt relief organizations can offer a sense of security that is invaluable at a time when it can feel like everything is up for grabs. Even though you may feel safe because of the non-profit element of the organization you should ensure you know what you are getting into before signing on the dotted line.

Comments