Grants For Non-Profit Organisations

Non-Profit Debt Relief Companies - Real Or Scam?

Debt reduction companies have gotten a lot of bad press in recent years. Stories about people who sign up with a non-profit debt relief company and get ripped off are all too common.

So, if you're losing sleep over credit card debt what should you do?
Do your homework. Because not all non-profit debt relief companies are scams and not all will rip you off. In fact, many of these companies are legitimate and do help people get out of debt.

But consumers are lured in by the word "non profit" and think that the service is free. Just because a company is "non profit" does not mean that it does not charge for their service.

The problem is when consumers are charged and do not receive service. That's where many consumers get ripped off. Payments from consumer are received by the debt relief company, and are not forwarded to their creditors.

Then consumers get hit with late fees, and their lack of payment goes on their credit report.

How can consumers with credit card debt protect themselves when hiring a non-profit debt relief company?

1) Compare the services and fees of several non-profit debt relief companies.

2) Ask lots of questions - if a company is not responsive to questions before you sign up, chances are they won't be responsive after you sign up.

3) Check the company's BBB report

4) Do an online search for the company's name and see what others have to say about the company.

5) Read the fine print BEFORE you sign on the dotted line!

In a perfect world, a non-profit company would be out to serve the best interests of the consumers it services. But in the world of credit card debt and non-profit debt relief, consumers need to be aware of the dangers they can face.

And if the steps are above are followed carefully, consumers will dramatically reduce the odds that they will get "ripped off" or fall victim to a non-profit debt relief scam. And increase the chances that they will receive the help they need to get out of debt and fix their financial problems!