How Does Non-Profit Debt Consolidation Work?

0:00Detmanagement. This is a money minute from InCharge Education Foundation and MilitaryMoney.com. Detmanagement is a service offered by Consumer Credit Counseling Centers. Many credit counseling centers are nonprofit and charge you a nominal fee to help you develop a manageable plan to pay off your debts. They negotiate on your behalf with your creditors to reduce your interest rates, fees, and payment amounts. With the help of a credit counselor, your creditors will collect the entire debt owed, which means there are no negative tax consequences for you. Beware of debts settlement firms, which often force you to stop paying your bills thereby ruining your credit scores. Detmanagement firms offer quick fixes, but with no real promise that they will ever truly reach a settlement with your creditors. If you are facing mounting debts that you are having trouble paying, a good first step is to contact a nonprofit Consumer Credit Counseling Service near you. This money minute is made possible by InCharge debt solutions. Visit us online at www.incharge.org.