DebtFreeIQ.com: non profit debt consolidation guide to freedom

If you’re an American today, on average, you’re likely to have over $4000 in credit card debt. There’s also a 1 in 4 chance that you have at least one card that’s maxed out. Credit is the most popular form of currency in today’s day and age, but it’s getting us into trouble. Non profit debt consolidation companies can help you get a leg up.

What do Non Profit Debt Consolidation Companies do?

Most Americans have several credit cards. A good amount of them have a large amount of debt racked up, with high monthly payments and astronomical interest rates. The task of non profit debt consolidation companies is to contact the institutions that the creditor owes in order to negotiate lower payments and interest rates. Once all that is said and done, the company reports to the consumer to let them know how much will be owed on a monthly basis. The customer writes the check, and the company then disperses the monies to the different lenders.

What else can they help with?

Often, the advisors at these non profit debt consolidation companies will counsel the consumer on how to avoid similar financial straits in the future, and provide strategic financial planning for years to come.

What’s the downside?

Not every debt consolidation company is honest. Some of them will ask for a certain amount, and then take out a large chunk for themselves in administrative fees. The result is that the institutions that have lent you money are receiving well bellow that they had demanded, and begin to call you angrily, demanding the additional funds. They may also submarine your credit rating further by making negative credit reports.

Differentiate between Non Profit Debt Consolidation Companies

The Federal Trade Commission website offers a good set of tips for making sure the company you select to help you in this time of need is in the business for the right reasons. As a rule of thumb, you should avoid those companies that are asking for a large amount of money upfront, they will not help you in your path to becoming debt free.

Debt consolidation is not the best choice for every consumer, and a good company will know that. These firms will have a consultant sit down with you to give you a detailed breakdown of your finances and the weaknesses therein. If a company fails to do so, and offers to take you on immediately, a red flag should immediately go up.

Also, ask the company if they plan on taking any portion out of your monthly payments and for what purposes. The consultant that launches into a convoluted explanation typically has something to hide. The correct answer will be that all of your monthly payment will go directly to your creditors.

No matter what, don’t be deluded by the term non profit preceding a name. This does not mean anything, and unless you’ve seen their tax records, can be entirely untrue. Doing your homework on the company you select is the only way to keep your good financial name safe.

Here are some more non profit debt consolidation resources...

7 Ways to Spot a Credit Repair Scam
If you've recently had an application turned down because of bad credit, you know the importance of good credit as well as anyone. Having bad credit can make life a little inconvenient. You might find yourself paying high security deposits or getting turned down for credit cards, loans, and even jobs....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/27/7-ways-to-spot-a-credit-repair-scam.htm">Read Full Post</a>
12 Reasons Your Budget Isn't Working
Are you about to give up budgeting because you can't get your budget to work? Check out these <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/reducingdebt/tp/troubleshoot-budget.htm">12 reasons your budget isn't working</a> before you throw in the towel. Usually when budgets go wrong, it's because of the method, not the budget itself....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/25/12-reasons-your-budget-isnt-working.htm">Read Full Post</a>
Beware Email and Phone Credit Card Scams
Credit card thieves come up with more clever ways of tricking you into giving your credit card information. They like to pose as your credit card company, calling or emailing you to alert you to trouble with your account. Be suspicious any phone calls or emails you receive from someone claiming to with your bank or card company....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/24/beware-email-and-phone-credit-card-scams.htm">Read Full Post</a>
The Debt Collector Could Be Checking Your Facebook
If you tell the debt collector you're about to file bankruptcy today, you probably shouldn't post pictures of your new Corvette tomorrow. Otherwise, the debt collector could use that information against you. The <a href="http://clk.about.com/?zi=1/1hc&zu=http://azstarnet.com/business/local/article_400b63da-f20e-5d16-900c-7bc6f2728a61.html">Arizona Daily Star</a> report tells of a the debt collector who discovered information on Facebook and used it to confront a businessman who'd lied about his inability to pay a $17,500 debt. That confrontation got him to pay up....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/20/the-debt-collector-could-be-checking-your-facebook.htm">Read Full Post</a>
Could This Be the Best Cashback/Balance Transfer Card Ever?
How does this sound for a cash rewards deal? Five percent cashback on gas purchases, two percent on groceries, and one percent on everything else. What about a 4.99% interest rate on balance transfer for two years?...<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/15/could-this-be-the-best-cashbackbalance-transfer-card-ever.htm">Read Full Post</a>
Which Comes First: Mortgage or Credit Card Payment?
In this economy, more people are choosing to pay their credit cards over their mortgages, according to a <a href="http://clk.about.com/?zi=1/1hc&zu=http://www.marketwire.com/press-release/TransUnion-Study-Finds-More-Consumers-Making-Payments-on-Their-Credit-Cards-Before-Their-1111336.htm">TransUnion study</a> released in February. Traditionally, homeowners would pay their mortgages before anything else because they wanted to keep their homes....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/14/which-comes-first-mortgage-or-credit-card-payment.htm">Read Full Post</a>
Looking for Money to Pay Your Debt?
If every penny of your paycheck is already dedicated to something else, paying off debt seems out of reach. You can come up with the money to pay off your debt, but you have to be creative. For example, have you considered getting a roommate or border? What about selling some old things on eBay or Craigslist? I have a list that includes 77 ways to come up with extra money for your debt. <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/reducingdebt/a/moneyoutofdebt.htm">Check it out</a>....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/13/looking-for-money-to-pay-your-debt.htm">Read Full Post</a>
Will a Magnet Stop Your Credit Card From Working?
I'm pretty sure some of you ladies have had a credit card stop working after you've put it in a purse or wallet with a magnetic closure. Apparently any type of magnet, and possibly even your cell phone, could potentially stop your credit card from working. Check out this article from CreditCards.com: <a href="http://clk.about.com/?zi=1/1hc&zu=http://www.creditcards.com/credit-card-news/magnets-wipe-out-credit-card-data-cell-phones-1272.php">6 answers about magnets' impact on credit cards</a>....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/12/will-a-magnet-stop-your-credit-card-from-working.htm">Read Full Post</a>
The Credit Card Fraudster's Favorite Schemes
Credit card fraud has been heating up right along with the summer temperatures. It seems like there are more credit card fraud stories than ever. In all the fraud stories, there seem to be some types of schemes that credit card thieves like more than others. Perhaps these are the ones that are most successful. Check out <a href="http://clk.about.com/?zi=1/1hc&zu=http://www.cardratings.com/creditcardblog/2010/07/cards-scams-fraud-rings.html">Fraud Rings' Five Favorite Schemes</a> from CardRatings.com.
Police Find Credit Card Skimmers Equipped With Bluetooth
In a few Gainesville, FL gas stations, police have uncovered credit card skimming devices equipped with Bluetooth. This means the credit card thieves don't even have to get out of their vehicle to retrieve the credit card numbers picked up by the device. They just have to be close enough to the gas pump to connect via Bluetooth and then they can download stolen credit card data to a cell phone or laptop computer....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/09/police-find-credit-card-skimmers-equipped-with-bluetooth.htm">Read Full Post</a>