Non Profit Consumer Credit Counseling
by Eric Morris
Non-profit consumer credit counseling is the counseling done by accredited counseling agencies that advise customers about how to manage their money, debt crisis counseling and budget counseling at a nominal fee. The objective is to charge the customer at minimal rate, just enough to cover the operational cost of providing the service.
Since such services are popular for taking people out of debt trap, the very first counseling is free of cost. If the customer is willing to pursue some more sessions on money management or debt counseling, then a nominal fee needs to be paid. The whole objective of the agency is not to earn profit but to help people in debt crisis and provide a better money management path. These services are popularly known as non-profit community services.
These non-profit agencies are members of well-established associations like Better Business Bureau, Association of Independent Consumer Credit Counseling Agencies (AICCCA) or National Foundation for Credit Counseling (NFCC). Their membership with such associations is assurance enough for the customer to be sure that there are no malpractices and the services will cost the customer the minimum amount. Further, these agencies make sure that even after coming out of the debt crisis, customers live a debt-free life thereafter by following certain guidelines on money management in the future.
The agencies, through the channel of counselors, take a complete financial assessment of customers, analyze the financial situation of the customer and develop a reasonable budgeting plan to put the financial condition of the customer in place. The customer then is able to keep a track of its financial spending, make appropriate investments and mange money for emergencies.
In debt crisis, the agency acts as intermediary by providing a debt consolidation loan to the customer with an objective of consolidating all debts of the customer into a single one. Here the customer makes the payments to the agency and the agency further disburses the payments to different creditors. The agency also helps the customer by negotiating a lower rate of interest from the creditors.
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