People who wish to consolidate their debt have a choice. Should they go with a non-profit company or a for-profit company? For many, the choice is clear. A company without financial motivation has to be better, right?
They are doing this as a courtesy for no money. The actual truth is much different. Non-profit debt consolidation companies are no different from for-profit companies, except that by taking non-profit status they are scamming the consumer right off the bat.
The fact is that not-for-profit companies in this industry are no different from ordinary companies. They simply take on the non-profit title as a way to market their services to unsuspecting consumers. However, despite this small white lie on their part, a consumer can still get a lot of help to settle or consolidate his or her debt from a non-profit, or any such organization.
Debt consolidation really is the best way for one to go about getting rid of debt. Like an ordinary organization, a not-for-profit will give a consumer a loan that is then used to pay off all of one's outstanding debts, and enable one to close the accounts. This will immediately reduce the amount of money that one owes by terminating late fees on such accounts and preventing future accumulation.
Furthermore, one is highly likely to get a lower rate of interest from a consolidation company, whether non-profit or for-profit, than one would receive from a bank or other lending institution. This, too, can help reduce an ocean of red ink.
Finally, both non and for profit debt consolidation companies give a large amount of emotional support, which is important in this situtions. They are far more understanding of a person's financial situation than a bank, due to dealing with people in poor financial situations frequently, and are less likely to report one to a credit bureau for making a late payment.
This will greatly help pay off debts. If one wishes to settle his or her debts in addition to consolidate them, it is also likely that such an organization will offer that service.
The fact is that there is very little difference between for and not for profit organizations in this market. While the not-for-profit tag may sound attractive, there is no reason to trust one of these companies over a for-profit one just for that reason.
One should still make this decision very carefully and analyze the alternatives before deciding.
NOTE: By researching and comparing the best debt consolidation companies in the market, you will determine the one that meets your very specific financial situation.
Hector Milla runs the Best Debt Consolidation Services website - where you can see his best rated debt consolidation service. Visit for further information.
Article Source: http://EzineArticles.com/?expert=Hector_Milla
By Hector Milla
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