Non profit debt consolidation is something you would certainly want to consider if your dept has becoming unmanageable and your monthly interest payments are wildly imbalanced compared to your monthly income.
What is Nonprofit Debt Consolidation?
First of all you need to understand what a typical nonprofit debt consolidation company is and looks like. Usually a nonprofit organization has certified counselors that help, educate, counsel, and sometimes administrative that consolidation loans for their clients. They do make a profit if they managed to sign you up for a credit report fee or a debt consolidation loan. What they have to gain is a kickback from different that consolidation lenders or credit report providers in the form of a commission. They don’t actually charge you interest on a loan so they can truly call him sells a nonprofit organization.
Why Nonprofit Debt Consolidation?
If you are over extended and overwhelmed because of bad luck, or bad financial choices you will typically and up looking for some form of debt consolidation at a lower interest rate than what you are paying monthly all your credit cards, high risk loans, or even department store purchasing cards.
Sometimes consumers (you perhaps) have fallen on hard times because of a layoff or family medical crisis. In this case you have to take drastic steps to consolidate all of your debt into one larger debt with a low-interest monthly or biweekly payment. Of course, debt consolidation companies compete for your business because they make a profit, and that profit always varies depending on the business model of the lending institution.
This is why smarter consumers (like you) have chosen to look for some form of nonprofit debt consolidation.
Finding Nonprofit Consolidation Companies
Usually you can use the Internet to find nonprofit consolidation which enables you do shop around and research the different consumer loans available without the embarrassment of facing a real person in the form of a loan officer. This also makes it easy for you to check out literally hundreds of different nonprofit companies in a short period of time – and let’s face it, there is probably only a handful of reputable lenders in your local area that you could phone or visit, taking up a lot of unnecessary time.
Of course you will notice that most all of the debt consolidation companies on the Internet that promise to be nonprofit claimed that they are not making money from you using their service. There are some really good sites that have a vast amount of information all of the right way, and the best way to consolidate your debt without costing you a lot of extra money. CLF (which you are on now is one of those).
In a perfect world you could negotiate with all of your creditors on your own time and without the help of a trustee, lawyer, attorney, barrister, or what ever you want to call them, because then you don’t have to pay a penny to lump all of your debts into one monthly payment. But since we know it is not a perfect world, and we know that you have to have a license to negotiate with creditors such as banks, high risk lenders, unconventional lenders, and credit card companies. I have even seen debt consolidation trustees who have to negotiate the debt incurred from furniture loans and personal computer loans.
This is the rub, if you want to consolidate your debt you have to have somebody who is a licensed agent to negotiate with your creditors and these people charge you money for their services which only makes perfect sense. So where exactly do you find completely, absolutely, truly, guaranteed nonprofit debt consolidation?
Truly Nonprofit Debt Consolidation So You Don’t Have To Pay
The only true nonprofit service you can find is one that provides informational data on past consumers who have chosen to consolidate all their debt by themselves. Many times you can download instructions or tutorials in a PDF format which explain in detail all the steps required to negotiate a settlement with your creditors for “pennies on the dollar”.
The problem is that many of these web sites that provide down-loadable instructions for consolidating your debt by yourself charge a fee (usually between$35-$50) and they are certainly making a good profit.
So you need to find free down-loadable consolidating instructions that cost you absolutely nothing in this includes onetime fees or recurrent fees on a monthly basis. Always make sure you read closely before committing to any of the above because some of these debt consolidation companies charge your credit card monthly when you thought you are actually paying a onetime fee.
The best way to find information on how to consolidate your debt on your own, or by yourself for nothing is too simply research consolidation online and find small tidbits of pointed advice. Read on.
Free DIY Debt Consolidation Tips
Here I would like to give you some consolidation tips for absolutely nothing and we don’t make a direct profit from this information. These are steps you can take to consolidate all of your bad debt by yourself. Try not to be intimidated when you take the steps, and you may want to print out this page or simply bookmark this page in your favorites. Be sure to follow the steps in the exact order I have presented them.
Step By Step Nonprofit Debt Consolidation
- Step One – write down your debts/ you need to write down on a piece of paper all of your debts and make sure not to miss a single item. When you see all of your different debt categories written down on a piece of paper (and not on a computer because the process of actually writing down how much money you owe creditors is critical to giving you a wake-up call) the process will truly enlighten you do your true situation and you will feel much better – believe me.
- Step Two – categorize your debt/ once you have written down all of your different debts you need to categorize them. Categorize each type of debt into the different possible areas. Make a new heading for each one of these categories. For example, you would have a heading called Credit Card Debt under which you would list all the different credit cards you have and beside each credit card write the name of the bank or lending institution that has issued you the card. The same goes for all other categories of debt that you may have. Make sure to include all of your good debt such as a mortgage or vehicle loan.
- Step Three – add up debt/ now you should have a clear picture of all your different debt categories and creditors that you owe money to. Beside each one of your debt types write down the amount you owe to that creditor. Don’t worry about including the amount of APR (interest) you are paying on the debt – why? – because you’re going to be paying this off anyway.
- Step Three – transfer your debt/ now you need to transfer all of your debts to the creditors that are the easiest to deal with and negotiate with. Generally speaking credit card companies are the easiest to negotiate a settlement with so consider that. If you have a loan with a credit union I highly recommend transferring as much debt as possible to a Credit Union creditor because they can also be quite flexible as far as a debt settlement goes. You may not be able to transfer all of your debt to one creditor or one particular credit card, but that is OK. As long as you transfer all of your debt to 1-3 different creditors. The lower the number the better. For example, if you have a credit card with a high maximum credit limit (such as $10,000, $20,000, $30,000, $40,000) you may be able to slowly transfer all of your debt to that card. The same goes for a credit union or “friendly lender”. Why am I asking you to transfer your debt to only a few “friendly” creditors? – because you don’t want to have to negotiate with multiple creditors because it is stressful and time-consuming, and not to mention you won’t consolidate for the lowest rate possible. This may take some time This WILL take some time to transfer all of your different debts to just a couple of creditors, because you may have to do withdrawals and deposits in small incremental amounts over time. Be patient because your reward is huge and your stress will be lower.
- Step Three – negotiate a settlement/ now it is time to negotiate a settlement with those one or two creditors that you have moved all your debt to. Simply give them a call and let them know you want to make an appointment to discuss with them a negotiated settlement for paying down all of your debt over time. As you can well imagine, they don’t like getting phone calls like this but don’t let this intimidate you going forward – millions of Americans have to consolidate their debt every week. This is just normal lending practice. Don’t be afraid to be a tough negotiator and ask for a settlement that requires you to pay a small fraction on the dollar.
Important Step For DIY Debt Consolidation – Lender’s Preception
A critically important factor in doing your own debt settlement is perception. You want to make sure your creditor(s) are highly motivated when it comes to agreeing to a settlement. It’s a fine line – you want them to think that a settlement is only way they can recoup some of their money, but at the same time you want them to believe that you are able to make all of your monthly payments on time until your debt is cleared. I’m not suggesting being insincere or untruthful, but merely suggesting you keep your creditor eager to consolidate all of your debt for pennies on the dollar.
What To Look For in a NonProfit Debt Consolidation Company
Some of you may not want to use the DIY debt consolidation step-by-step method above, and one somebody else to carryout the negotiating process and the settlement particulars. Very understandable.
Some nonprofit companies simply ask for donations via their web site, and some do actually make a profit from charging you on interest and closing fees. In fact, most all consolidation web sites are managed by companies that make a profit of some kind to do the use of their services, expertise, and online literature.
If I might make a suggestion – I would not be so concerned about finding a debt consolidation company (online or off-line) that did not make a profit, but a company that makes a small profit and works on volume. This can be an issue also because as the old saying goes, “you get what you pay for”. However, there some debt settlement services out there that don’t cost you a lot of money in the fees and they do a good job of negotiating your settlement in good faith. We will be listing some of our favorite consolidation companies on a number day.
In conclusion, you have two choices. One, do yourself, or pay somebody or some companies to do it for you. Most companies you find online who promise to work on a nonprofit basis are making money from selling other related services, so just be aware of the reality as you seek.
But always remember that “if you seek you shall find”. Don’t give up hope.
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