Non Profit Debt Relief - Too Good to be True

by : Apurva Shree

How would you like to lower your monthly credit card and loan payments- guaranteed? It is an offer, irresistible for anyone knee deep in debts. You can incur different types of debts from basic loans, bonds, and mortgage. So if a Non Profit Debt Relief Company is a solution to consolidate your debt, you are in for an illusion.

Be Aware

There are many frauds run by con artists, who do not deliver their promises. These fraudulent companies make tall promises, no matter how high your debts are. They claim to reduce your debt by 30 to 50 %. They use attractive advertising and play on people's psychology. If you fall for their pitch and invest hundreds of dollars, you are in a worse financial shape.

Although rare, there are legitimate non profit debt relief companies. Always check on the company with a reliable institution to understand its authenticity.

With a legitimate credit counselor, they sit down with you; give you a free and objective assessment of your financial situation. Shop around. Compare a couple of services and get a feel of how they operate. They should spend good time with you to get a complete picture of your finances. Always check the names with Bureau or local consumer protection office.

How To Pay Off Credit Card Debt Judiciously

If you are suffering from excessive debt, try to find solutions to knock down your debt. Credit card companies now ask for 50 % or less as payment, if they feel that you are heading in the direction towards bankruptcy. It may be better to borrow from your family or friends to settle your debt.

If you are trying to find your way out of debt, pay off high interest cards first. By doing so, you will save a lot on the interest charges. Never buy the credit card insurance. These insurances are over-priced and never help you eliminate the debt, but only delay it.Be careful with consolidation loans. Never consolidate debt into home refinance, unless you have a plan to pay off your loan early.

If you are in severe debt and have a bad credit, you can regain your credit reputation again with bad credit card debt loan. You can negotiate for lower rate of interest and send them one payment every month. This will help manage your monthly payments regularly. These loans are abundantly available online.

The best alternative is to contact a non-profit debt relief agency, which will advise you on how to develop good credit habits and avoid future debt.