Tips for Choosing a Non-Profit Debt Management Solution

Finding a good debt management solution becomes paramount when your only alternatives are bankruptcy or missing payments. If you’re in this position currently, there is light at the end of the tunnel: a non-profit debt management program. This involves enlisting the help of an organization that helps consumers who have gotten into a situation where their debts exceed their incomes every month. Though there are private businesses that offer these services for a fee, a non-profit debt management solution is the better choice for those who don’t have a penny to spare because there are no costs involved. Here are some tips for finding the best non-profit debt management solution for your needs.

First, always make sure that the non-profit debt management solution you pick has been accredited by either (or both) the Association of Independent Consumer Credit Counseling Agencies or the National Foundation for Credit Counseling. Be sure that each service you check out has a current license from one of these groups since they issue accreditations for many for-profit and non-profit organizations that offer professional debt management solution services. Be sure to choose a debt management solution that is provided by a group with an up-to-date accreditation. This is in your best interest as some services (including non-profit organizations) get an initial certification, only to let it lapse or fail to qualify for re-certification.

Next, remember that the label “non-profit is not necessarily proof that an organization really is what it purports to be. When you contact a debt management solution service that claims to be non-profit, ask point-blank if their service is truly a ‘charitable organization.’ They are required by law to explain whether they are truly charitable or simply licensed as ‘non-profit’ for tax purposes while still charging clients fees for their services.

Finally, don’t be confused by the terms ‘debt management solution’ and ‘credit counseling,’ which are different practices. Debt management involves a third party (the non-profit organization in this example) working with your creditors to come up with lower payments and/or a reduction in the total amounts you owe each. A credit counseling service is meant simply to give you advice on how to better handle your own finances and work within a budget from month to month.