Finding solutions to your growing debt is the first step you need to take to become financially stable. Well, how exactly does one do that? A method that has helped many people over the years is nonprofit counseling services. When compared to the potential problems of for-profit counseling, nonprofit debt counseling usually offers helpful advice without ulterior motives or outrageous charges for their services.
5 Things to Know about Nonprofit Debt Counseling
Many for-Profit Debt Counseling Services Are Scams
The best way you can tell if a counseling service is a scam or not is to listen to their promises. Are they setting realistic goals? Are they asking anything from you upfront and keeping their strategy vague? A scam will promise that it can eliminate unsecured debt: tell you to stop communicating with your debtors, or promise that using their system will not have a negative effect on your credit report. Beware of any non-profit debt counseling service that also makes the same promises. In these situations, it’s best to keep a skeptical mind.
You May Not be Charged
Keep in mind that there are quality nonprofit counseling services out there that will charge you a fee. You have to remember that they too have overhead, but their fees are usually very reasonable.
Offers a Variety of Services
A legitimate nonprofit counseling company may also offer several types of counsel or other services. This typically includes counseling for housing, renting, buying, reverse mortgage, preventing foreclosure, bankruptcy, and more.
It’s Considerably Less Expensive
If you use for-profit counseling for debt, some of these companies can be rather expensive. Sometimes all costs are not revealed up front either. Nonprofit Counseling services for your debt will most likely provide you with an itemized list of their fees.
It Won’t Hurt Your Credit
For-profit counseling services for debt may give you advice that will actually hurt your credit. They might advise risky moves that will end up costing you in the long run. This will damage your credit even more. Nonprofit counseling representatives take careful and thorough approaches with their advice that will get you the result you want over time.