Non Profit Debt Reduction

Budget Planning

Most non-profit debt reduction counseling services offer budget training and planning to help you get a handle on your personal finances. They may provide a personal counselor to sit down with you and discuss your income and spending habits and help you make a solid spending plan that will begin reducing the amount of debt you have while leaving room in the budget for everyday necessities.

Some debt and credit counseling services offer negotiation with creditors as an advanced service. When you aren't able to keep up with your bills due to an unexpected life change or emergency, or you're unable to negotiate effectively with creditors yourself, the debt counseling service may offer to do this for you for an additional charge.

Depending on the type of debt and credit counseling service you choose to work with, they may have debt consolidation options available to help with your debt reduction plans. Debt consolidation normally means you'll get one loan that is large enough to pay off all of the other outstanding debts you owe. Then you'll make one payment, possibly reduced from the total of the multiple payments you were previously making, and possibly with a lower interest rate to help decrease your monthly budget expenses.

Some companies offer a debt management plan in which you deposit funds into a DMP account each month as if you had consolidated your debt and the company distributes payments to your creditors on your behalf. Others may offer to settle outstanding debt with your creditors. Some simply offer free education and training on how to handle creditors and debt yourself.