The best part of student life is that you can taste financial freedom but most students turn this blessing into a menace by misusing their freedom. While most students stay out-of-state for completing their college degree, their parents gift them credit cards but forget to teach them the exact credit card usage. When students start misusing their credit cards, they incur debt that can not only hurt their personal finance standing but also damage their credit score. If you’re a parent of a teenager, you should make sure that you teach them the exact way in which they should use their cards and if you’re a student who is reading the concerns of this article, you should know the ways in which you can delete your debt burden through debt consolidation non profit companies. Check out the benefits of such firms.
- Best option for people on fixed income: Students and retirees are the ones who are living on a fixed income level and still when you incur credit card debt due to misusing them, you should get help from the non-profit debt consolidation companies as this is the best way of saving your dollars, repairing your credit score and also repaying debt at the same time.
- The debt counselors will assess your state: Only when you get help from the non-profit debt consolidation companies, you’ll get debt counselors who will first assess your present financial state and then offer you good advice regarding your debts. You should cooperate with them regarding the income that you earn, the debt that you owe and the interest rates that you’re paying. After drawing a clear picture of your debt situation, they will offer you with the best financial advice.
- Counselors will negotiate with your creditors: The debt consultant of the company will then negotiate with your creditors and tell them about the economic condition that you’re going through. If they find it credible enough, they will lower the rates so as to revise the monthly payments.
- Single monthly payment: Instead of making multiple payments to multiple creditors, you have to make a single monthly payment to the non-profit debt consolidation company. They will simultaneously disburse off the money to the creditors so as to become debt free.
- Charge you low fees: Unlike the for-profit debt consolidation companies, the non-profit counterparts will charge you lower fees and service charges as they’re funded by the local credit unions and the business organizations. You can therefore save money.
Before you take resort to such non-profit debt consolidation companies, you should check on the possibility of consolidation. Verify if they have the 501(3) (c) certificate that has been awarded by the IRS.