Debt Consolidation Non Profit

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What - Definition. Debt consolidation non profit refers to any service, entity or organization whose purpose is to make available free, or for a small charge, advice and guidance on personal debt and credit management.
Debt consolidation non profit - Does NOT mean free service. The term "Non Profit" refers to the provider's legal tax status - NOT the cost to you.

Features: A debt consolidation non profit organization can include both genuine community service and non profit consumer credit counseling agencies through to bogus and fraudulent operators who exploit their "non profit" status as a means to entice customers and charge high fees. At the outset, it is important to state that "non profit" does not imply good by default.

debt consolidation non profit organization



Debt consolidation non profit is synonymous with "Credit Counseling" - the starting point before considering ANY alternatives for Debt and Consolidation

Because a Loan alternative involves profit - Debt consolidation non profit in practice refers to these TWO distinct types of service:

  1. Credit Counseling - Free or low cost advice and guidance, the purpose of which is to decide on your best debt strategy.
  2. Debt Management Plan (DMP). A negligible charge service that helps by consolidating your payments - but NOT your debt OR the number of creditors that you owe.

Tip "Credit Counseling" is often used to describe a DMP. In reality these are separate services.

How - It Works

1. Debt consolidation non profit credit counseling

debt consolidation non profit organizationA counselor reviews your actual debt, income, expenditure and financial situation to determine what the best course of action or alternatives are. They will make a recommendation. Counseling helps you analyze and understand your personal finances and it is the first step before any action plan.



Who - Debt consolidation non profit counseling

  • Credit Counseling Agencies
  • Consumer Credit Counseling Services (CCCS). Also referred to as agencies.
  • Universities
  • Credit Unions
  • Housing Authorities
  • Local Agencies
  • Employee Assistance Programs
  • Community Services


2. A Debt Management Plan (DMP)

debt consolidation not for profitOne option for a debt problem. Your creditors are routinely paid for you - and you now make one payment to a provider.



Who - Debt consolidation non profit DMP

  • Credit Counseling Agencies
  • Consumer Credit Counseling Services (CCCS)

These debt consolidation non profit agencies often run a DMP as an additional service to the counseling that they provide. They may recommend a DMP run by themselves as your best alternative for dealing with debt.

When - To Consider

  • You have not yet sought or received any outside help.
  • You are advised that a DMP is a viable option.
  • You have learnt about non profit pitfalls


  • Genuine non profit entities typically offer a variety of free resources including self-help material, budgeting tools, seminars and networking, in addition to service types.
  • Debt consolidation non profit counseling is a way to receive the essential certified counselor input - for free or minimal charge. Professional private counselors and other companies must charge more to review your financial information before recommendation.
  • Legitimate debt consolidation non profit consumer credit agencies who run DMPs may be cheaper than private companies (and always cheaper than bogus debt consolidation non profit operators).

Who - Debt consolidation non profit providers

Members of these debt consolidation non profit trade organizations are required to satisfy strict standards of operation designed to safeguard consumer interests. Search for your local organization choice. Some potential service providers are members of both these trade groups.


Credit Counseling - Anyone can receive free or low cost counseling.

DMP - A counselor will qualify you after reviewing your information. Even in the case of a non profit plan, which may require less debt that a for profit equivalent, you will still need to have a few unsecured debt accounts for the option to be worthwhile.


Free or low cost from genuine debt consolidation non profit providers. Most options for dealing with debt do not involve a non profit situation, that is there will be a fee or charge involved.


Counseling to determine your financial position - one hour or more for initial review.
DMP (IF proposed). 3-5 years typically to successfully complete a debt consolidation non profit organization DMP.

Next we note some of the issues or problems surrounding debt consolidation non profit services:

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