Non-profit Versus For-profit – Do not be fooled by a company claiming that it is non-profit, therefore it is legit. The only thing separating non-profit and for-profit statuses is their tax forms. This is not to say that all non-profit companies are fraudulent, many of them contact your creditors and pay them a lump sum in order to significantly lower the fees passed onto you. These legitimate companies will work with people with poor credit ratings and help[ to substantially lower their debt.
For-profit companies that are true to their advertisements lean toward customers who still maintain a good/fair credit rating, but find themselves consumed by their current financial status. Both non-profit and for-profit companies that are legitimate facilitate a reduction in interest rates, ease of monthly payments, and provide similar service rates to the consumer.
For people with a good credit rating, but who are still struggling with their bill payments there are many legitimate for-profit debt consolidation companies, which charge comparable rates. Just like the common non-profit companies, these companies will help to reduce the interest rates charged on your unsecured loan relieving you the payment burden.
Every agency that goes to a single creditor should come up with a similar interest rate on the balance, with small variances. Any quite that varies far from the others, up or down should be a red flag.
While you’re communicating with all these companies, don’t stop at just getting quotes. You’ll also want to look into all the different services they have available. The process of debt consolidation is complex and requires a great deal of communication between various entities for the alteration of rates and account closures. Companies that are vague and don’t tell you exactly what they’re doing aren’t worth wasting your time on. Any good deby consolidation company will be transparent about its practices.
Bankruptcy hurts your credit. Any agency that offers to help facilitate a bankruptcy claim or a debt settlement, is not doing their job, they are abusing your trust. Ultimately, the amount of research you do in securing a legitimate company to work with does pay off. You get the services that you need, and avoid the scams that you do not.
Susan Reynolds is a content coordinator a leading South African Debt Consolidation Portal. For more information visit: http://www.debtconsolidation123.co.za/
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