If you are interested in availing of a debt consolidation service, what you need to do first is to decide whether you should consult a traditional company or one that is labeled as a non-profit company. For many, the latter kind provides friendlier terms, comprehensive financial guidance, and maybe even free non-profit debt consolidation services, depending on what kind of company you choose. For these reasons, one can assume that they are actually better options. If you need more convincing as to why these kinds of companies may be better compared with others, here are three reasons why non-profit debt consolidation is an ideal option

They Cost Less Compared with Other Companies

One of the more popular misconceptions about non-profit debt consolidation companies is that they offer free services. This is just a misnomer. A non-profit debt consolidation company will still require its client to pay for their services; however, they will only charge fees that are relatively lower than other companies. The main reason why they do not need to charge as much for the services they offer is because they operate from funds generated from donors, sponsors, and grants including those coming from business organizations such as department stores, government grants, and even the credit card companies themselves.

They Can Re-negotiate your Loan Terms

One of the main advantages of seeking non-profit debt consolidation services is that they will not simply provide you with a consolidated loan, they will also communicate and negotiate with your creditors to lower your debts or help you come up with a payment plan that you can afford. The company will first examine your incomes and expenditures, identify how much you can set aside for monthly payments, and then re-negotiate your existing loan terms on your behalf. With this service, you no longer need to endure the humiliation of pleading with your individual creditors because the debt consolidation company will do that for you.

They can lower your monthly payments. Apart from the above, the company will also work out a monthly payment plan with lower interest rates that will help you pay off your debts easily and on time. By negotiating with individual creditors, the debt consolidation company will also successfully cut down your interest rates and minimize late fees or penalty charges. With the added service such as debt consolidation, you can also consolidate your bills into a single monthly payment, which they will then distribute among all your creditors.

They Offer Free Extra Services

Another advantage of dealing with a non-profit company is that they offer extra services at no cost to its clients. One of these include free non-profit debt consolidation counseling, in which they will not just help you create a debt management plan but also help you improve your attitude and personal habits to steer you toward the achievement of your debt plan. Aside from counseling, the company will also provide free money management advice, saving tips, and budgeting guidelines to ensure that you will be able to stick to your plan.