Many companies offer to help erase your credit card debt, but many of these businesses charge high fees to try to settle your bills with your creditors and offer no guarantee that it will work. However, some nonprofit credit counselors can look over your financial situation and help you determine a smart course of action. These nonprofit helpers typically offer resources that not only help you get out of debt but teach you how to stay out of debt.
Finding Legitimate Nonprofit Debt Help
Some agencies that advertise as being nonprofit might charge hidden fees, which can make you get deeper into debt. When searching for a legitimate nonprofit credit counselor, ensure that they are government approved and are willing to send you free information about the services they offer. Check the agency out with the Better Business Bureau and always get a formal written contract before you agree to send money. Find out whether they have set-up fees or monthly maintenance charges and whether they will waive them if you aren't able to pay. If they aren't willing to remove any fees, look elsewhere.
Helpful Advice
Reputable nonprofit credit counselors will take time to go over your financial condition and advise you on how to manage your money. They will offer budgeting tips and provide free educational materials to help you succeed. Your credit file will be analyzed with your permission and they should be able to help you determine whether your debt can be resolved with a simple budget or if you are beyond that and need other options, such as a debt management program.
Debt Management Programs
Debt management programs are offered through many nonprofit credit counseling agencies. This program consists of a credit counselor working with your creditors to lower your interest rates while you are placed on a program to pay off your bills. You send a monthly payment into the credit counseling service and they disburse the payment to each creditor in the program. By making all of the payments in the plan that creditors and counselors have created, your debt should be gone in a reasonable amount of time.
Bankruptcy - Free Initial Consultation
Nonprofit credit counseling services should be able to help you learn how to budget, provide you with free educational credit and debt management materials as well as offer a debt management program if you can afford the payments. When your financial situation is not resolved with these nonprofit services, you might need to talk with a lawyer to discuss bankruptcy options. Many lawyers offer a free consultation to determine whether you qualify for bankruptcy. If you do wish to go ahead with bankruptcy, court filing fees as well as lawyer fees should be expected.
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