We all know the warning signs—inability to make even minimum payments, living off from one paycheck to another, piles of bills waiting to be addressed, and continuous calls and emails from collecting agencies—all of these constitute the major burdens of living in debt. For those who have been living in this situation for so many years, the idea of being debt-free has become but an impossible dream. Fortunately, there are now so many debt-relief options one can take to reverse the situation, such as student loan debt consolidation, refinancing or remortgaging, and taking out a new loan, and for profit or non-profit debt consolidation services, among others. With these options, being debt-free has now become a distinct possibility. With this article, we will focus on companies providing non-profit debt consolidation services.

What is Non-Profit Debt Consolidation?

Companies that provide debt consolidation loans are in this business to help those who cannot manage their debts on their own. These people are usually borrowers with multiple debts from various loans and debts they have accumulated such as those from student loans, home loans, car loans, and credit card debts. For these, companies that are considered “non-profit” provide counterpart non-profit debt consolidation services that, apart from loan itself, also includes a whole range of services such as credit repair, debt management, counseling, and so on. Nevertheless, the primary objective is to help clients to gradually pay off their debts through the consolidated loan. Thus, if you are a recent graduate who is currently struggling with your school loans, you might want to seek the student loan debt consolidation options that these companies offer.

How Does it Work?

Non-profit debt consolidation companies manage to stay in business through company funds generated from private donations, government funds, and even money from the creditor companies themselves. The idea behind companies offering non-profit debt consolidation services is that their sole purpose is not earn more profit from its clients but to sincerely help their clients get out of debt through various means. In addition, since they are aware of the financial status of the borrowers, the companies will go to great lengths to help borrowers achieve debt relief. This is an especially useful option for those who do not anymore have extra means to pay for additional charges that traditional companies will charge.

How Do You Choose the Right Company?

This is actually a good question. Unfortunately, there are many companies and agencies that abuse the “non-profit” status or label. In dealing with the right company, the first thing the borrower must do is to seek certification proving the legitimate (501(c)(3)) “non-profit” status of the company before doing business with an agency. Prospective clients can also check with the Better Business Bureau (BBB), which uses a Reliability Report through which consumers can gauge the performance and legitimacy of these companies and agencies. One can also tell if the company is a legitimate non-profit debt consolidation company if it offers free services aside from the loan including credit counseling, budgeting tips, and the like.