Debt Consolidation Non Profit – The Hidden Pitfalls
Financial troubles can be very stressful. Enrolling into a debt program is supposed to eliminate stress, not add to it. There are pros and cons to all of your relief options including Debt Consolidation Non Profit programs. This article should give you a good start in making a well informed decision.
The main points that all Debt Consolidation Non Profit programs try to sell you on is that they help keep you current on payments by lowering your interest rates, plus your credit score will generally remain intact.
Debt Consolidation Non Profit programs usually last five years in which you pay back all of your debt plus interest. Your monthly payments on the consolidation program may actually be higher than what you are paying out now due to the program fees and very little reduction in interest by some creditors. You should also know these non profit consolidation programs are controlled by the creditors so most everything is done in their best interest and there is very little margin for error for you throughout the five years.
Your credit score does generally stay intact with non profit consolidation. It's the stamp on your credit report that displays you are enrolled in a program such as this that can possibly put your lend ability into a tail spin. Many banks and lenders view these stamps on your credit report as the same risk level as a chapter 13 bankruptcy. If you are worried about your credit and lend ability, this program and all relief options available to you will have a negative impact on your credit.
You have two programs available to you. Debt Consolidation Non Profit and the other is Hardship Settlement. Hardship Settlement is a program in which your creditors would possibly forgive a large portion of your balances due to your situation. You would generally be debt free in 12-36 months with your monthly payments lowered as much as 50%.
To learn more about Debt Consolidation Non Profit and Hardship Settlement, I do recommend further research to determine which program will be right for you.