Nonprofit Credit Card Debt Relief Help
Thursday, May 21st, 2009 Subscribe To Our Feed
There are a number of credit card consolidation debt reduction agencies that can help you get the help and advice you need from your overwhelming credit card debt. Agencies affiliated with one of the two major nonprofit credit counseling trade groups-National Foundation for Credit Counseling (NFCA) and Association of Independent Consumer Credit Counseling Agencies (AICCCA)-subscribe to “best practices” for non-profit consumer debt counseling services. Unfortunately, just because an organization uses the title “nonprofit” does not mean it is trustworthy. Many consumer groups, attorney general offices and even the Internal Revenue Services are after a number of so-called nonprofit credit card debt relief agencies for their unfair practices and false promises. While there are a number of legitimate nonprofit firms offering credit card debt relief programs and credit counseling, you should ask questions and know the facts before entering into a credit counseling or debt management plan.
Credit Counseling Facts
Did you know that most credit card consolidation debt reduction counseling companies are actually underwritten by banks and credit card companies. One thing that companies look for are ways that they can help people to pay their debt back so they are interested in helping these groups. The credit card companies are the last in line to receive money after a bankruptcy since their debt is unsecured. They encourage consumers to enter into a DMP and get credit counseling. DMPs have a couple of immediate benefits to the consumer: 1) because of the bank-sponsored status of most credit counseling companies, when a consumer enters a nonprofit credit card debt relief and credit counseling program, the collection calls usually stop; 2) again, because of the special relationship between the bank and the nonprofit, consumer debt accounts are “re-aged,” meaning that their late payments are essentially taken off their credit reportsóthey get a “clean” bill of health.
Something to Think About:
Before you consider bankruptcy be sure to read more about CuraDebt. If you’re in the position where bankruptcy feels like a realistic possibility be sure to do your research. The team at CuraDebt have been keeping people out of the grasp of bankruptcy for over 25 years.
Potential Problems
You can find most DMPs last only five years. If you keep the payments going and stay on time for the whole five years, your debt will be paid off and your credit report is clean. If you can’t keep up with the program, however, you’ll end up still owing the debt and you’ll have the record of the uncompleted program on your credit report. Just like any other group that you associate with, be sure to ask about rates and compare their costs with other competitors. Ask for references from consumers who have completed that particular program, and also inquire about the exact nature of the credit and financial counseling the firm offers. This way, you can help to weed out potential erroneous operators who just claim to be a good “nonprofit” credit card debt relief.
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To Your Financial Success
-Suze Fulton
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