As the number of people taking help of the debt consolidation firms are rising in the US, there is a simultaneous rise in the scam artists who are deceiving the already distressed debtors. If you've just calculated your total debt burden and you feel that you immediately need to get help from a debt consolidation non profit company, you need to know the characteristic features of such companies. Though there's no such difference between the for-profit and the non-profit debt consolidation firms, yet there is a subtle difference in their quality of services and the fee structure. Before you choose a non-profit debt consolidation firm, make sure you consider some important facts about them and decrease the chance of being scammed. Read on to know about them.
Accreditation with the BBB: No matter what company you're getting help from; make sure that they're accredited with the BBB or the Better Business Bureau. The BBB registers all the trustworthy companies that are known for providing authentic service to their clients and so you should check whether or not the company that you're about to work with is accredited with the BBB.
The fee structure of the company: Before you take the decision of consolidating your debts with such a company, you should check the fee structure of that company. Since the company is a non-profit organization, it doesn't mean that they will offer you debt consolidation services free of cost. Such firms are usually funded by the local business firms or credit unions and therefore their charges are usually nominal when compared to their for-profit counterparts. Don't work with any company that demands advance fees from the debtor.
The non-profit certificate of the company: When you choose a non-profit debt consolidation company, you should ask the consultant to show you the non-profit certificate that has been rewarded to them by the IRS. It is called the 501 (3) (c) certificate and if you find the representative hesitating to show you this certificate, you can be sure that they're trying to scam you into accepting their offer.
The service of the debt consultant: Whenever you get help from a non-profit debt consolidation company, the debt consultant should initially assess your finances and check whether or not you can get back a grip on your finances through budgeting and personal finance management efforts. If they push you into entering into the program, you can be sure that they're not genuine ones.
Consolidating your credit card debts through a debt consolidation non-profitcompany is often one of the best choices that a debtor can make. Take the steps mentioned above and work with the best company.