Are you planning debt consolidation solution for your debts? Well, debt consolidation is one of the most sought-after debt management programs and the smarter rote here is to opt for the non profit debt consolidation companies. Why so? Well, the non-profit organizations are funded by donations and funding from creditors that enable them to offer the consolidation services at low or no cost. According to experts, these non-profit organizations tend to be more trustworthy given that their services are not centered on profit making- as is usual with regular debt consolidation companies. A true non-profit debt consolidation agency would generally uphold the client’s interest over their money-making goals.

It’s to stress here that the ideal non-profit organizations are IRS registered as the 501(c)3 organizations. It implies that they are allowed to receive tax-deductible donations & that they can’t take home the profits.

However, you have to be really careful while choosing a true non-profit debt consolidation organization as there are many companies that claim to be non-profits but in reality are actually interested in making profits in millions. Some of these dishonest firms abuse the “non-profit” tag to entice customers into wrongly assuming that they are concerned about the client’s best interests – while some of them use the non-profit status as a tool to violate the telemarketing laws which exempt the charitable organizations.

But not to worry as here are some expert tips that will help you to locate a reliable non-profit debt consolidation company.

Ask for non-profit status

First of all, you would have to go for comparative study on 5-6 potential non-profit debt consolidation companies around. Study their market reputation and testimonials left by clients. The one you take to should be able to offer you the proof of its non-profit status, which means registration as a 501(c)3 company. If it cannot provide a sound evidence of its non-profit status, do not hesitate to look elsewhere.

Low fees

The non-profit organizations are not no-fee always. But a credible non-profit debt consolidation company should assure a low set-up & monthly fee. There should not be any coercion in the name of voluntary fee from the part of the organization. If the company is not clear about the fee or asks for high fees, you should look elsewhere.

No impractical promises

Though often ignored yet this is one of the most important points to remember while looking for a reliable non-profit debt consolidation company. You should understand that it takes some time to get rid of debt. It’s not something that will happen within just a few months. So, if your debt consolidation agency is claiming to make you debt free with an unreasonably short time, it could be a fake promise.

Thorough counseling

A trusted nonprofit debt consolidation company will usually proceed through a thorough consultation with the client before preparing the contract. The consultation part will help the company to decide whether you are at all fir for the consolidation contract and if so how your loans would be consolidated.