Getting into debt is easy. In fact, sometimes it's even enjoyable. It's paying off your debts that is very hard -- and not a pleasant thing to do. For this reason, some people choose extreme measures -- including bankruptcy -- to ease their financial worries. Before you seriously consider doing something this drastic, consider all your options.

Non-Profit Credit Card Debt Consolidation Agencies

These companies offer free help to anyone who has an unusual amount of credit card debt. And although their services are free, you do get a lot of value in return for working with them. In short, you can reduce and eliminate your debts while restoring your credit rating.

Why Consolidate Debts?

You gain several things when you consolidate your debts:

* Lower payments

* Reduced balances

* Lower interest rates

* One payment per month instead of many

* No more phone calls at home

How it works

Unlike when you secure a home mortgage refinancing, a home equity loan and/or a personal loan, debt consolidation agencies will not give you any money in return for collateral. Instead, the agency will negotiate on your behalf with creditors for lower interest rates, payments, and/or balances on your debt. For this reason alone, these agencies are a good option for non-homeowners.

Benefits of Using a Non-Profit Debt Consolidation Agency

In general, non-profit debt consolidation agencies will not charge you any kind of enrollment fee upfront. They may charge you a monthly service fee but it is usually pretty small. They can do this because they do not have to show a fat bottom line to their shareholders. In fact there are no shareholders -- that is what is meant by "non-profit." As a result, they pass the savings on to you, their client.

This means that all (or nearly all) the money you give them goes toward paying off your credit card balances as quickly as possible. On average, repayment plans for debt consolidation last two to seven years. However, larger debt amounts may require a longer payoff period.

How Do You Choose a Debt Consolidation Agency?

There are lots of different kinds of agencies. So do your research before contacting them. Each non-profit debt consolidation agency has its own requirements. For example, some prefer clients with larger debts, whereas others will accept persons with debts under $2,000.

The best way to make an informed decision is to talk to a counselor, either on the phone or in person. You'll be asked to provide the agency with accurate information about your income, expenses and the level of your debt. After that, a credit counselor will work up a realistic and affordable payment plan.

Conclusion

Don't wait until your debts are handed over to a collection agency. Once that happens you have very few options. Instead, contact a non-profit credit card debt consolidation agency today. You'll be glad you did.

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