Non-profit debt consolidation companies can help you rebuild your
credit. By managing your payments and creditor relations, they can get you
out of debt sooner. They can also lower your rates on some types of
debt, such as credit card accounts. Not as detrimental to your credit score
as a bankruptcy or foreclosure, debt consolidation can get you on the
The Goal Of Non-Profit Debt Consolidation Companies
Non-profit debt consolidation companies are designed to help consumers
get a handle on their finances. That said, not all non-profit debt
consolidation companies are legit. One should research several companies
before signing any contract.
A genuine debt consolidation company will give you plenty of
information and be upfront about their costs. They will give you specific pay off
dates on each of your accounts. They will also explain how the process
How Your Credit Is Rebuilt Through Debt Consolidation
When you first start to work with a debt consolidation manager, it will
take a couple of months to make sure all your accounts are being
handled. Its important during this time to monitor your statements and keep
in regular contact with all parties.
Each month you will send in a payment to the debt consolidation
company. From this they will pay your creditors and deduct their fee if so
arranged. Some companies just charge a one time fee upfront.
Your credit score may see a temporary dip, but after one year you
should be able to qualify for new credit. As accounts are paid off, your
credit score will rise. Two years after the debt consolidation program is
complete and all accounts are paid off, it is possible to have an
excellent credit score.
The Limits Of Debt Consolidation
Debt consolidation will not save your credit overnight. It takes time
to reestablish your payment history and reduce your debt load. By
sticking to a debt consolidation program, you can expect to be out of short
term debt in five years or less. And by practicing good credit habits in
all areas, your credit score can dramatically improve in two years.
View our recommended online companies to help you with debt restructuring.
Also check out our recommended sources for a free instant online credit report, or
view our recommended lenders for debt consolidation mortgage refinance loans online.