Is A NonProfit Debt Management Program Suitable For You?

Just how does a nonprofit debt management program work?

The US debt industry is made up of a few legitimate non-profit groups and many others that claim to be, but really are not. As with many things, this all come down to money.

Most nonprofit debt management program conditions involve the client (you) paying them a fee of between $5 and $20 per debt per month and the creditors paying a 'fair share disrtibution' which is usually a percentage (sometimes 10%). This may sound high to you (though it may not), but what needs to be done for a client probably couldn't be completed well for any less.

Many of the other firms will also charge a one-off, up-front fee / deposit / retainer equivalent to all the clients monthly debts. Sometimes, the real rogues will even include other household bills to really inflate this figure. They do this because many clients will never complete their program and so will not qualify for the refund initially promised.

In fact, some of the rogues offer such poor service that is is almost impossible to successfully complete their service and qualify for the refund of their 'retainer'. Many of these businesses are very busy and as such, keeping up with the paperwork and administration of current accounts becomes very difficult.

These things all point to the idea that a genuine, ethical, nonprofit debt management program will be a great choice for help for many people. However, as you will have seen from other pages on this site, it is my opinion that many, many people will be better served by dealing with their debt issues themselves and not outsourcing it to others.