The number of companies out there that can help you with your financial troubles is endless. If you have multiple accounts with balances and you’re looking for a consolidation, you need to pick the right company. While companies value you as customers and want to help you with your problem, many of them are doing it for a profit. If you really want to save some money and prevent the debt cycle from recurring, you might want to check out a non-profit organization for your bill consolidation.
A consolidation loan will consist of the balances of any unsecured loans you have. Most often, your unsecured debt will be from credit cards, but you can also consolidate medical bills, student loans, and any unsecured personal loan into one account. Instead of a million different numbers to keep track of, you will have one monthly payment and one interest rate to remember.
Non-profit organizations are, obviously, not doing business for the money. They are doing it to help those who need assistance. To make sure the company you’re doing business with is truly a non-profit organization, ask to see its 501(c)(3) certificate. If a company is listed as 501(c)(3), this means it receives a substantial amount of its income from donations by the general public or from government grants. A 501(c)(3) company that helps people with financial troubles is set up for educational purposes. One cool aspect about this type of organization is that donations to a 501(c)(3) company is tax-deductible, so if the company helps you out, you can be rewarded if you return the favor. Some companies out there actually lie about their status, so make sure of its non-profit nature by asking to see the 501(c)(3) certificate, or you could be paying too much.
The other thing about a non-profit organization is that services are not entirely free. Granted, it is much cheaper than a company in it for profit, but there are very few companies out there who charge absolutely nothing. (It would take quite a lot of donations to be able to work for free!) A credit counselor will evaluate your debts and give an estimate on how much you will save if you consolidate your debts. That part will be free, and it should be free, as nothing should be charged until a final plan is agreed upon, printed, and signed. But, since you are making each monthly payment of the consolidated plan to the non-profit company, there may be a monthly handling fee.
If there are some fees while receiving services from a non-profit organization, they should be much less than getting help from a commercial institution. Be sure to look around to see which company will help you out the best before you sign or pay for anything.
He played clarinet for the Marching Tar Heels in 2005 and 2006. He also volunteered for STV, the student-run television station at UNC-Chapel Hill, in the spring of 2010. He shot video, wrote scripts, and acted for “Off the Cuff,” UNC’s longest running sketch comedy show. He has the rare distinction of having lived in a dorm all four years of his undergraduate college career. He was also on Franklin Street on the night of April 4, 2009. His future plans are to pursue a master’s degree in journalism and to one day work for the media as a sports journalist or broadcaster.
Being one of eight children, David realizes finance is an important topic to everyone, regardless of his/her knowledge of the subject. His interests are in personal finance, budgeting, and savings.
In his spare time, David enjoys watching sports and standup comedy, as well as doing crossword puzzles and writing in the first person. He also thoroughly enjoys trivia and, one day, hopes to participate on the game show Jeopardy!, where he will try to break Ken Jennings’ 74-game win streak.