Choosing Between For Profit or Non Profit Debt Consolidation
Individuals who are over their heads in debt from high interest rate home loans, credit cards, and other personal loans has the option to file for bankruptcy or to find a solution that will help them get out of debt. More often than not that solution is a debt consolidation loan that will help them get a manageable payment on all of their loans in one easy to make monthly payment.
Of course once a borrower decides they want to seek further assistance with a debt consolidation program they will need to decide if they want to work with a non profit debt consolidation service or a for profit company. It may seem like a no-brainer that a non-profit company would be the way to go but it might actually surprise you to find there are benefits in the for profit company.
The non profit debt consolidation service is going to cost much less for the actual service of setting up your debt consolidation loan. Since they are not looking to make money off of the transaction they will be less expensive than a for profit service in getting the job done. A non profit is also more likely to ensure that you leave their offices with not only a debt consolidation loan you can afford but also a budget and the knowledge of just how important it is to stick to that budget. A non profit debt consolidation company does not want to see you in their offices ever again and hope to help you become better at managing your own money.
The for profit company does usually have a better working arrangement with most major creditors however and this gives them the edge in getting you the lowest interest rates possible on your debt consolidation loan. As a consumer this is a service and you should choose the company that will assist you in your debt consolidation carefully whether they are non profit or not.
