non-profit debt consolidation organizations.?
June 24th, 2010 | 
Author: Can anyone give me a short list of some legitimate non-profit debt consolidation or credit counseling organizations? I have called a few or left my contact information online and it seems that they are so eager to get my commitment to allow them to help me with my debt. I don’t know if they are sincere or just want to charge me for their services. I am new to researching these type of non-profit organizations and I just wanted someone who is more experienced to tell me what to expect or look for when I talk to one of these representitives. Thanks for your help!
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These are two completely different concepts: debt consolidation/settlement and non-profit debt management programs.
There is no such thing as a "non profit" debt consolidation firm. Stay away from any "debt consolidation" company that promises to cut your payments and debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment. Many people who sign up with “debt consolidation” firms incorrectly assume that they have the power to force your creditors to accept settlements…they don’t. Your creditors have the right to refuse settlements and take you to court.
If you’re going to do debt settlement anyway regardless of the risk, then you can do this own your own. You don’t have to pay anyone to wreck your credit rating to attempt settlements…you can do this yourself for free by ceasing payments to your creditors and forcing your accounts into default. Save the money to build an account to offer settlements…If the process works, you can settle for less…if it fails…you’ll see your creditors in court.
If your credit card debt is out of control, you may want to enter into a non profit debt management plan like Consumer Credit Counseling Services (CCCS). They can negotiate reduced interest and payments (but NOT settlements). They will require you to stop using all credit and to cut up your cards.You can get a referral at: http://www.nfcc.org
If you are near/at the point of default on your cards, you should try to settle directly with your creditors rather than going through CCCS.
I would visit http://debtreliefreviews.net/ They have a lot of good information on debt consolidation and can suggest a good company and alternatives.