Are you sinking deeper into debt each month? What about the credit card debt you have right now – is it time to contact a non profit credit card debt consolidation company? If you are more than 30 days past due on any payments, then you are already in trouble. Rather than going the route of bankruptcy, non profit credit card consolidation may be an option for you.
Bankruptcy can affect your credit rating for up to seven years. Even if you pay your bills on time after an assignment into bankruptcy, you still must declare that you claimed bankruptcy at one point in time. This can prevent you from getting a mortgage or getting the credit that you need, and it may even affect your chances of getting a job. The best way to avoid this is to work with a credit counselor and pay off your debt in a managed budget and debt reduction plan.
Choosing a Non Profit Credit Card Debt Consolidation Company
The first thing that you will need to do is find a good and reliable company that can help you with not-for-profit debt consolidation. Check carefully into the background of the company to ensure it is legitimate. Some unscrupulous companies will take your money and bill you for contacting your credit card companies and nothing more.
A starting point is to contact your local Better Business Bureau and find out if the not-for-profit credit card consolidation company that you are considering has a good and solid reputation. Once you find a company that you can work with, the real work begins.
What Does a Credit Counselor Do for You?
A credit counselor will work with you to create a budget that fits within your income. They will also counsel you to help you understand how to manage debt. A credit counselor will teach you to manage credit in a responsible way and to avoid getting into the same debt you are currently in. Most non profit debt consolidation companies are willing to meet with potential clients for a free initial assessment.
What you need to do is make the first phone call and set up an appointment. Gather together all of your bills and bring your most recent pay stubs to your appointment. The credit counselor will let you know what else they require at the time you set an appointment.
How to Pay off Debt with a Non Profit Credit Card Debt Consolidation Company
At your meeting with a credit counselor you will determine what your monthly expenses are and how much income you have to meet those expenses. Part of your expense includes debt payments and it can be challenging to reduce debt that includes compound interest. A credit counselor will negotiate with all of your creditors to do the following:
- Waive late fees;
- Reduce or eliminate the compounding interest;
- Reduce the outstanding balance
Most credit card companies are willing to work with credit counselors because they know that this is one way they will receive some of what they are owed. If a credit card company will not negotiate with their debtors, then a debtor’s only choice is to claim bankruptcy in many cases.
The non-profit Credit Card Debt Consolidation company will take a single payment from you each month. With that payment, they will pay down the debt that you currently have. During this time you will receive a monthly statement from the company that shows how your payment was distributed. You will still continue to receive monthly statements from the credit card companies until the balance has been paid in full.
Once a credit card has been completely paid off, you must contact the credit card company, cancel the account and have it closed. The fewer credit cards that you have at your disposal, the better. While you are paying off your cards, you must usually sign a waiver stating that you will not open new accounts and run up more credit card debt.
Take the First Step
Don’t wait until you are too far behind in payments to recover. Contact a credit counselor and get on the path to being debt free as soon as possible. No one wants to admit that they are in trouble, but once you realize that you need help, the next step is to ask for it. There is no need for you to risk it all and lose your credit, your home, your family and your pride. A non-profit credit card debt consolidation company is your best chance to avoid bankruptcy and foreclosure.