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Why Non-Profit Debt Relief Matters

no -profit debt relief

If you’re looking for non-profit debt relief, you may have noticed that there are a lot of companies and services competing for your attention. In the online space, there are many competitors offering debt relief options. Some of them are helpful and some could take advantage of you during a vulnerable time. So how do you know what to look for?

Why Chose Non-Profit Debt Relief

CESI believes that the best choice for consumers looking to get out of debt is a non-profit debt relief provider. Why does this matter?

When you work with a non-profit to get out of debt, you can be assured that the provider has a rigorous set of operating guidelines designed to protect the consumer.

In order to qualify as a non-profit debt relief company (also known as non-profit credit counseling), an agency is required to operate using a different set of standards. These standards mean a higher degree of accountability to maintain their status as a non-profit. Failure to follow these requirements can result in the loss of non-profit status. For-profit companies are not required to comply with these same non-profit standards.

Credit Counseling Offers Advantages

Non-profit agencies often charge lower fees, and when possible due to hardship grants, no fees for their services. Each state regulates the fees for non-profit debt relief providers in their state. This fee structure ensures that services are affordable and that agencies do not financially benefit from the financial hardship of consumers.

Non-profit agencies offer a no-obligation free credit counseling session that includes a workable budget, then offer solutions to help you eliminate your debt.

When you work with a non-profit credit counseling provider, some of the benefits may include:

  • Free credit counseling services to assess your unique financial situation
  • Reduce your interest rates on unsecured debt through a debt management plan for those who qualify
  • Eliminate debt more quickly (in most cases within 5 years) while consolidating unsecured debt into one easy monthly payment

Certified Credit Counseling

Many non-profit debt relief companies belong to the National Foundation for Credit Counseling (NFCC), the oldest and largest financial counseling organization in the U.S. In addition to federal and state guidelines, NFCC member agencies are required to comply with additional guidelines. All credit counseling services must be offered by certified credit counselors.

Additionally, every NFCC member must obtain accreditation from the Council on Accreditation (COA), an independent third-party organization that has reviewed more than 1,500 social service programs around the world.

Providers of certified credit counseling may also be accredited by the Financial Counseling Association of America (FCAA), a member-supported national association representing financial counseling companies that are not associated with the NFCC.

How to Identify Non-Profit Debt Relief

It can be confusing to tell the difference between a non-profit and a for-profit provider. Here are some simple guidelines to help you identify who is who:

  • Non-profit providers cannot charge up-front fees before offering a service. Be cautious of any provider that has high fees, will not disclose their fees or insists upon voluntary fees that you can’t afford.
  • Investigate the BBB (Better Business Bureau) rating of the provider. Numerous customer complaints or unresolved complaints can be a red flag.
  • Make sure the debt relief provider you chose is licensed in your state by checking with the state attorney general. They will also be able to notify you if there are ongoing investigations involving the company.
  • Non-profit debt relief providers should always offer you free initial financial analysis. Stay away from any company that offers their initial counseling service for a fee.
  • Don’t trust providers that offer promises that sound too good to be true, engage in aggressive sales pitches or promise quick fixes. Trusted debt relief takes time and effort, but it’s worth it!

Have questions or concerns about a credit counseling agency? You can contact the United States Department of Justice or file a complaint with the Consumer Finance Protection Bureau.

Whatever your reason for seeking debt relief, it’s important to know that there is reputable help available. Do your research when selecting a non-profit debt relief provider. There is legitimate help offered. Working with the right credit counseling agency can help you turn your financial situation around!

If you are experiencing financial difficulty and are looking for a solution, non-profit credit counseling can help you make sense of all your options. CESI has been offering non-profit debt relief for more than twenty years. Contact us today for a free financial assessment with one of our certified credit counselors.


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