Finding Nonprofit Credit Card Debt Relief

If you need help with your credit card debt and mounting debt issues, there are a number of nonprofit credit card debt relief agencies you can use. There are two major nonprofit credit card debt relief trade groups — the National Foundation for Credit Counseling (NFCA) and the Association of Independent Consumer Credit Counseling Agencies (AICCCA) that are good choices for you to associate with. However, just because an organization promises credit card debt relief and calls itself “nonprofit” doesn’t mean that you should trust it. Unfortunately, many so-called nonprofit companies advertising credit card debt relief are under investigation by the Internal Revenue Services, various states’ attorneys general, and consumer advocacy organizations for using unfair practices and making false claims. In order to avoid the illegitimate nonprofit credit card debt relief agencies, be sure that you ask a lot of questions and get the facts before you go with your credit counseling.

Facts about Credit Counseling

You might be surprised to learn that many of the available nonprofit credit card debt relief agencies are underwritten by banks and credit card companies. One thing that companies look for are ways that they can help people to pay their debt back so they are interested in helping these groups. Since the debt from credit cards is unsecured, card companies know that they are the least likely to receive money from a bankruptcy. They encourage consumers to enter into a DMP and get credit counseling. You can find that credit companies enjoy when customers use a nonprofit credit card debt relief agency because the benefits are great like the “re-aged” payments and removed late payments from the credit report and the collection calls will stop.

Debt Problems

Most DMPs are five-year programs. After five years of good payments, your debt will be cleaned up and your credit report is good again. If you don’t do the program and still have the debt, you will have the record of the uncompleted program noted on your credit report. Be sure you ask about fees for the program and get a written schedule of fees that you can compare with other competitors. Ask for references from consumers who have completed that particular program, and also inquire about the exact nature of the credit and financial counseling the firm offers. You can avoid the bad nonprofit credit card debt relief organizations by doing this.

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To Your Financial Success
~Suze Fulton

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