Finding Nonprofit Credit Card Debt Reduction
Wednesday, June 10th, 2009 Subscribe To Our Feed
There are a number of credit card debt reduction agencies that can give you great advice and help with your mounting 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. Unfortunately, many so-called nonprofit companies advertising credit card debt relief are under investigation by the Internal Revenue Services, various states’ attorneys general, and consumer advocacy organizations for using unfair practices and making false claims. 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.
Facts about Credit Counseling
It’s true that many credit card debt reduction agencies are associated and underwritten by banks and other credit card companies. These agencies are ultimately helping the banks and credit companies so that’s why they are here to work with people to pay back their debt. The credit card companies are the last in line to receive money after a bankruptcy since their debt is unsecured. The companies therefore encourage credit counseling and want their customers to enter into a DMP. When a consumer uses a DMP, they get immediate benefits like stopping collection calls since they are associated with a nonprofit credit card debt relief agency and their customers will see a clean bill because their debt accounts will be “re-aged.”
Something to Think About:
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Debt Problems
Most DMPs are five-year programs. After five years of good payments, your debt will be cleaned up and your credit report is good again. If you don’t do the program and still have the debt, you will have the record of the uncompleted program noted 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. You should ask questions and then get some references from people who have completed the nonprofit credit card debt relief group. You can avoid getting involved with bad nonprofit credit card debt relief companies by doing these things.
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To Your Financial Success
-Suze Fulton
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