How Does Non Profit Debt Consolidation Work?

A non-profit debt consolidation organization works with individuals that are having a hard time financially. The people that most need this type of service are those struggling to pay their bills and who may be one-step away from bankruptcy. A good consolidation program can help individuals avoid such drastic measures and instead, assist them in putting their financial lives back on track. People looking for a more effective way to pay their bills and lower their monthly outlays might find that consolidation is the best way to do it. However, they may not have a firm grasp on what it is. Below, we will take a look at debt consolidation and how it might be helpful for someone that is having financial troubles.

Non profit debt consolidation programs are those administered by organizations that have been given non-profit status by the Internal Revenue Service (IRS).  It is important to note that these companies, though non-profit, might in fact charge a fee. Individuals will need to determine early on, before they agree to work with an organization, whether or not they will be charged for that program’s services.

Debt consolidation programs can help those with financial problems in a number of very important ways.  They may be able to negotiate lower interest rates with an individual’s creditors, get late fees waived and pay their client’s bills each month. Each of these things can either help lower the amount of money a person has to pay out or  make the process of bill paying much easier. 

One of the most valuable services a non profit debt consolidation program can provide is interest rate negotiation. They will work directly with their client’s creditors in an effort to convince them to lower their interest rates. This  is typically done when a person owes money to credit card companies. Many of the top companies are willing to negotiate their rates and offer lower ones to those who are working with a consolidation program. Negotiations of this type are much harder for personal or bank loans.

Aside from interest rate negotiation, a non profit debt consolidation program can also be helpful in getting late fees waived. Individuals that are not doing well financially, will often have trouble paying their bills on time. When they do, they might be charged a late fee by their creditors. Depending on whom they owe money to, these fees can be quite expensive. Whether they are expensive or minimal, they can add up pretty quickly. A non profit debt consolidation program may be able to convince the creditor to waive all late fees.

We help streamline the process of paying ones bills. Many organizations will actually  pay their client’s creditors for them. The client will send them enough money to cover all of their bills and the consolidation program will send out payments to each of their creditors. This can be very helpful for individuals who find it difficult to pay their bills on time and who could benefit from some type of organizational structure.

Non profit debt consolidation can be a great way for an individual to get back on track financially. A good program can help an individual secure lower interest rates on their debt, get late fees waived and streamline the bill paying process.


"Thank you guys for helping my family and I out. Your non profit services really helped us focus on getting out of debt."

- Jenny Gage, Vancouver WA