Debt Management: Nonprofit Debt Management
While you may imagine that nonprofit debt management firms would be the most decent and reliable–after all, they are not in it for themselves, right?–the truth of the matter is entirely different. Sadly, it is often precisely those firms that purport to offer nonprofit solutions which should be most carefully avoided. In fact, signing up with nonprofit debt management services can actually do more harm than good.
To begin, those companies that label themselves nonprofit often ask for exceptionally high voluntary fees. While you might imagine that the voluntary nature of the fees renders them harmless, a shocking number of well-meaning consumers have been bullied and pressured into paying them with regularity. Of course, high fees would not be entirely inappropriate if the level of service offered by these firms was accordingly top-notch.
The Dangers of Nonprofit Debt Management Companies
Unfortunately, nonprofit debt management companies are not only not the best resource for debtors in trouble, but they are also often a reliable way to damage your credit further. Why? Because when you sign up for credit counseling, your ability to obtain credit is automatically reduced further than it currently is. In addition, many so-called nonprofits have been reported to take clients money and keep it for themselves, rather than pay it to their clients creditors, as promised.
Put simply, nonprofit debt counselors routinely give other industries nonprofit firms a bad name. I encourage you to avoid this pitfall at all costs. Even a minimal amount of research can help point you towards far more reliable solutions.