Why Work with a Nonprofit for Your Debt Management | CCCS of Rochester
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Why Work with a Nonprofit for Your Debt Management


When you have debt, rising inflation and high credit card interest rates can only make paying that debt off harder. As of the end of March, inflation had risen to 3.5%, while credit card interest rates continued to be high at 24.66% as of April. But rising costs make paying off debt even more critical. Working with a nonprofit debt consolidation company can help you pay less monthly—and less over time. 


Here are five benefits of working with a nonprofit debt consolidation company:


1. Fixed monthly payments at a lower cost 


You’ll work with a certified credit counselor who can enroll you in a debt management program, allowing them to work with your credit card companies to consolidate your unsecured debt into a single, reduced monthly payment with lower interest rates. 


2. Repayment is for a set amount of time


Debt management plans are designed to help you pay off your debt in a fixed amount of time, typically three to five years. This way, you’re not spending years making payments and barely making a dent on high-interest loans.


3. Nonprofit credit counseling agencies only require a minimal fee


While debt settlement agencies charge high fees, often 15%–20% of your settled debt, nonprofit agencies charge a small fee, usually between $40–$75 a month, to cover the costs of managing your program.  


4. Your credit score will recover


Debt settlement agencies will advise you to stop paying on your debt, which incurs late penalties and fees, while filing for bankruptcy can stay on your credit report for up to 10 years. But a debt management program helps you pay down your debt more quickly, allowing your credit score to recover. 


5. Nonprofit credit counseling agencies are mission-oriented


Top nonprofit companies are a part of the National Foundation for Credit Counseling and are required to promote financial responsibility through financial education and counseling services. This means they provide budget and credit counseling free of charge. They must also be transparent about their financial and operating information and can lose their tax-exempt status if they violate state or federal guidelines. 



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