It is important to know that non profit does not always mean free. Most non profit debt consolidation programs ask a fee for their services. This is not a bad deal as long as you have a clear understanding of how much you will be paying to them over the amount you will need to pay on your debt.

When you first contact the non profit debt consolidation company, you will be speaking to a Certified Credit Counselor. The counselor will ask a few questions about your outstanding debt and your monthly income. Once you have given the information, the counselor will suggest various plans with you for debt consolidation. Both of you will decide on the best plan to suit your individual situation.

A simple agreement will be drawn up and sent to you. If you fell the terms of the agreement are correct, you will sign it and return it to the non profit debt consolidation company. You will then be enrolled in a non profit debt consolidation program. The credit counselor will work with your creditors to negotiate lowering or eliminating your late and overlimit fees. They will also work to reduce the amount of your debt by 50 to 80%.

You will pay one fee to the non profit debt consolidation program and they will disburse payments to your creditors. Your creditors will be paid by the date agreed upon and you will see your debts melt away month by month. You will still receive monthly statements from your creditors, and a monthly statement from the debt consolidation company outlining the payments made that month.

Before you send any money to a non profit debt consolidation program, make sure you are working with a reputable company. Just like every other business out there it is possible to find some bad eggs. You need to be clear on the exact amount they will charge you to perform this service. You also need to be sure they will have your payments in to the creditor in time. You are trying to repair your credit, not make it worse.

Your monthly payment will stay the same throughout the course of your non profit consolidation program. When a debt is paid in full the extra money will go on another debt so that you will realize a much quicker payoff.

Most non profit debt consolidation programs have educational materials to help you learn:

- How to set, plan and achieve your goals.

- How to develop a plan you can live with.

- How to Get more out of every dollar by increasing your spending power.

- How to save more of your hard earned money.

- How to organize your financial records.

They have educational topics like these and many more. For the most part if you find yourself deep in debt and need help it would pay for you to get in touch with a reputable non profit debt consolidation company and get your finances in shape.