How to Look for Christian Nonprofit Debt Consolidation

Consumers who have become overwhelmed by too much unsecured debt often seek help to regain control of their finances from credit counseling agencies. These agencies, which can be for-profit or nonprofit, can negotiate with each of a consumer's creditors to lower his interest rates or minimum payments due, deduct a lump sum from his bank account each month to cover all of his debts under the plan and distribute funds to his creditors until paid in full. There are no shortage of credit counseling or debt consolidation agencies, and many market their services specifically to those with Christian values. However, the Federal Trade Commission warns that many scams exist within this largely unregulated industry, and consumers should do their research before signing up with any debt consolidation plan.

Instructions

1

Ask family, friends or fellow church members and staff for recommendations. Churches often hold Dave Ramsey's Financial Peace University classes to help Christians get out of debt, and instructors or attendees might have knowledge of reputable Christian-oriented nonprofit debt-consolidation agencies. Question anyone who has used a debt management program to determine if it was a positive experience or not.

2

Call the National Foundation for Credit Counseling, or NFCC, at 800-388-2227 and ask for recommendations. Ask the organization's representative if any of those agencies cater to Christians and request a recommendation to one best-suited to your needs. The NFCC's website also offers information about reputable nonprofit debt-consolidation agencies in each state.

3

Do an online search for "Christian nonprofit credit counselors." Be careful of ripoff reports or scam alerts in the search results. Investigate each returned result by checking its rating with the Better Business Bureau or the state attorney general's office where the company resides. Call the BBB and the state attorney general to ask if any complaints have been entered against the company you're considering. You can also e-mail each agency and request its nonprofit licensing information. Be wary of those who don't respond or who attempt to sidestep the request.

4

Call and question a representative of the Christian debt consolidation agency before agreeing to sign up for any program. Ask about its complete services and if any fees are involved and verify that it's a nonprofit agency. Question how and why it claims to be a Christian agency, and make sure its values match your own. Ask for references to other clients who have successfully completed the debt consolidation program. Consider all information carefully before signing a contract with any agency.