subject: Non-Profit Debt Relief [print this page] For profit debt relief is debt settlement, and non-profit debt relief is credit counseling. But credit counseling, although operating under "under non-profit", will ask for a set up fee and $25/mo. for their Debt Management Plan.
Debt settlement and credit counseling offer the same services--debt negotiation. Credit counseling agencies run on charity based donations and via the "non-profit" jacket, they also get something from the governments. Over the years, many scam non-profit debt relief entites have sprung, so to be sure that your agency is legitimate, run their company name by the Better Business Bureau and also by the National Foundation for Credit Counseling.
If debt settlement and credit counseling offer the same service, why choose credit counseling over the other?
One is for safety purposes. Agencies that want to be awarded the non-profit operating status must conform to the rules and regulations of the government.But in an industry that has desperate consumers in debt as clients, being granted the non-profit status, can not guarantee that the agency would not play underhanded. But having that status giv
Two is if your debt amount is less than $10, 000 and the account status is still current, the original creditor would most likely not settle for less than the full amount. They would want to collect on everything, and that can be done, by credit counseling's Debt Management Plan--which negotiates the interest rates, so the consumer can pay for the principal amount of debt.
More on how to choose the right non-profit debt relief agency (according to the Better Business Bureau):
-Are the agency services confidential?
-Will they devise a plan tailored to fit your needs?
-Are the counselors certified?
-Are budget and credit education opportunities offered?
-Will your funds be protected? How?
-Is the agency accredited?
-Aside from BBB membership (www.bbb.org) the consumer should also check its affiliation with the National Foundation for Credit Counseling http://www.nfcc.org.
