When choosing a non-profit debt consolidator, research is key. Verify their non-profit status with a 501(c)(3) certificate and check their reputation with organizations like the Better Business Bureau. Ensure they won’t negatively impact credit and compare costs to find the best option.
When choosing the best non-profit debt consolidator, it is best to research potential organizations before making a final decision. Validating your organization’s nonprofit status is a good place to start. It is also important to be sure that using a non-profit debt consolidator will not negatively impact the individual’s credit report. Comparing the cost of different non-profit debt consolidators can help determine the lowest cost when consolidating debt.
A thorough investigation should provide adequate information about a non-profit debt consolidator. Investigating the validity of nonprofit status can be done simply by asking to see a 501(c)(3) certificate. This is a certificate that the government tax office issues to non-profit organizations, which must meet specific standards to be certified.
Checking with organizations such as the Better Business Bureau (BBB), which operates in the United States and Canada, can offer insight into the organization’s reputation and trustworthiness among consumers. Organizations such as the BBB offer reports on the reliability of a non-profit debt consolidator and also disclose any complaints filed about the organization through the BBB. Most government offices also offer some type of consumer affairs bureau which can be quite educational, especially when looking for financial services organizations. They can offer education to consumers, making it easier to spot fraudulent organizations.
Some debt consolidation organizations can actually have a negative impact on a person’s credit rating. To ensure that a debt consolidator does not appear on a credit report, people should obtain a written statement from the debt consolidator confirming that it will not. It’s also important to be aware that many credit card companies may place an account in collections despite debt consolidation efforts. This too can have a negative impact on your credit rating. It is best to negotiate a statement from each debt collector, through the non-profit debt consolidator, ensuring that the account does not report negatively to any credit bureaus.
Price comparison is important in choosing the best consolidator. Some debt consolidation services charge a percentage of the total monthly payment. Others simply charge a flat fee each month. To accurately compare service charges, it’s important to calculate the percentage and arrive at a final dollar amount that represents the service charge. Choosing the service with the lowest service fee will help lower your overall payments.
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