Best Non-Profit Debt Consolidation & Credit Counseling
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Nonprofit Debt Consolidation

If you are looking to consolidate debt payments into one convenient monthly payment, you may want to work with a nonprofit debt consolidation company, like InCharge Debt Solutions.

Information About Nonprofit Consolidation

What Is Nonprofit Debt Consolidation?

Nonprofit debt consolidation is a way to erase credit card debt without having to take out a loan. It is managed by nonprofit credit counseling agencies and is one of the most attractive debt-relief options for consumers struggling to keep pace with credit card debt.

Nonprofit debt consolidation is really just another name for debt management programs. Nonprofit credit counseling agencies work with consumers to create an affordable monthly budget that includes enough discretionary income to get rid of credit card debt. Card companies offer to reduce interest rates, which helps lower monthly payments and knock out debt faster. Consumers make one consolidated payment each month to the nonprofit counseling agency, which then distributes the money in agreed upon amounts to each card company.

What Types of Debt Can a Nonprofit Debt Consolidation Company Help with?

Nonprofit debt consolidation companies deal exclusively with unsecured debt, mostly in the form of credit card debt through their debt management programs. Other unsecured debt could possibly be included, but because the primary benefit of the debt management program is reduced interest rates – and few businesses other than credit card companies are agreeable to that – there isn’t much gain for the consumer.

Some other forms of unsecured debt that might be included are:

  • Department store or retail credit cards
  • Medical bills
  • Personal loans (unsecured)
  • Payday loans

The list of debts that can’t be consolidated in a debt management program includes mortgages, car and boat loans, federal student loans and income taxes.

Why Work with a Nonprofit Debt Consolidation Company?

Nonprofit debt consolidation companies (also referred to as nonprofit credit counseling agencies) are dedicated to improving the financial lives of the people they serve through debt counseling services.

When you work with a nonprofit credit counseling agency, you will be treated to high quality credit counseling services and offered debt-relief solutions that are best suited to your situation, not driven by a sales commission or profit motive. Many for-profit credit card consolidation companies are criticized for offering products, services and advice that benefit the firm’s bottom line more than the client.

InCharge is a 501(c)(3) nonprofit credit counseling organization. Our mission is to help you find debt relief and our advice is based on the details of your personal situation. We may recommend our debt management plan, a program that consolidates your credit card payments into one, and request lower credit card interest rates on your behalf. Our credit counselors may determine that you qualify for a government housing program that can lower your monthly mortgage payments. Or, we may tell you that bankruptcy is your best option and refer you to a bankruptcy attorney. As a nonprofit credit counseling company, we help you regardless of your ability to pay for counseling services.

BBB A+ Rating for InCharge Debt Solutions

Best Nonprofit Credit Consolidation Programs

The best nonprofit debt consolidation program is one where you do not need to take out a new loan and can eliminate your debt in 3-5 years. Nonprofit credit counseling agencies offer that through debt management plans.

A debt management plan is a debt-relief solution that may be recommended to you after completing a credit counseling session. You can start credit counseling services online or call the number on the right to speak with a certified credit counselor. During the session, counselors will help you identify the root cause of your financial problems, develop a personal budget that maximizes savings, and provide a debt-relief solution that best meets your personal situation. One potential solution is the debt management program.

Here are the features of a debt management plan:

  • Consolidate credit bills into one easy monthly payment
  • Pay off your debt faster (debt free in 3-5 years)
  • Lower your interest rates regardless of credit score
  • Slow down collection calls
  • Eliminate late fees and over-limit charges
  • Build a realistic budget and financial plan you can follow

If a debt management program is not the best credit card debt relief solution for you, we may recommend debt settlement or bankruptcy and refer you to a bankruptcy attorney. We may also provide you with referrals to government and nonprofit organizations that can help you improve your financial situation.

Nonprofit Debt Relief vs. For-Profit Debt Relief Companies

The debt relief industry is rife with scammers: companies looking to take advantage of debt-distressed consumers. Nonprofit debt-relief companies, that are  NFCC-certified, offer advice and debt counseling services that keep your best interests in mind.

Here’s how to tell the difference between a for-profit debt relief company and a nonprofit debt relief company:

  • Look for the NFCC-affiliation. Make sure the debt-relief company you are considering is a member of the National Foundation for Credit Counseling. NFCC member organizations are all 501(c)(3) nonprofit debt relief organizations.
  • Make sure you are not being charged any up-front fees. In fact, the Telemarketing Sales Rule for Debt Relief Companies states that debt-relief companies can’t ask for a payment in advance for services to help settle or reduce your debt.
  • Check complaints filed at the Better Business Bureau for the debt-relief company you want to work for. Are there numerous complaints? How have they been resolved?
  • Check with your state attorney general and/or consumer protection bureau. Is the debt-relief company that you want to work with licensed in your state? Are there legal actions or ongoing investigations for this company?
  • Make sure they offer you a 100% free analysis. If you are working with a credit counseling company, they should provide you with thorough credit card and budget counseling for free.

What About Nonprofit Debt Management Programs?

If you do end up working with a nonprofit credit counseling company, your counselor may recommend that you join a nonprofit debt management program. This is a program that consolidates your monthly debt payment into one payment, which may be auto-debited from your bank account.

Nonprofit debt management programs have the following features:

  • Lower monthly payments
  • Lower interest rates
  • A monthly fee ($25-$50)
  • Automatic debits of your consolidated monthly payment
  • Pay off your credit card debt completely in 3-5 years

What About Nonprofit Debt Settlement?

There are no nonprofit debt settlement companies. Debt settlement typically requires that you stop paying your creditors, and instead make monthly deposits in a savings account. When the account reaches a level high enough, the debt settlement company contacts your creditors and attempts to negotiate a settlement for less than what you owe. If your creditors agree, you pay a portion of your original debt and a fee or percentage of the amount owed to the debt settlement company. While there are no NFCC-nonprofit debt settlement companies, you can receive free advice from a credit counseling company on this method of debt relief.

Here’s what you should do before considering debt settlement:

  1. Call a nonprofit credit counseling organization like InCharge Debt Solutions for a free review of your debts, income and assets.
  2. Compare the pros and cons of debt management and debt settlement programs
  3. Understand that late charges and fees result when you stop paying your creditor
  4. Review the impact of debt settlement on your credit report (the negative information remains there for seven years) and your credit score
  5. Consider Do-It-Yourself debt settlement