When you are looking for the chance to get out from under your debt, one of the things that you’re likely to look into is a non profit debt consolidation loan. However, before you make the choice to apply for a non profit debt consolidation loan, you may want to make an effort to explore some of the other options that will be available to you so that you can be sure that the choices you make really are in your best interest.

Here’s why:

  • Many people find that when they simply apply for a non profit debt consolidation loan they are just acquiring another unsecured debt. The loan that they take out in order to repay their other debts – while it may be at a better interest rate than the rates they are paying on their major credit cards, store credit cards and even medical bills – it will most likely be a secured debt, and you will be required to tie up your home as collateral for the debt, thus jeopardizing your home.
  • When you do take out a loan to repay your debts, you are not actually reducing the amount of money that you owe. On the other hand, when you are working with a credit card counseling service, you will find that you’re in a position to make smaller payments with a lower interest rate. This helps you to actually reduce your debts versus signing up for new debts.
  • If you simply use a non profit debt consolidation loan to repay your debt, you will also pay additional fees, closing costs, and appraisals in order to secure the loan, again increasing your overall debt. Similarly, you won’t receive the support that you need to learn to live within a set budget which is typically provided through a debt management program.

In other words, what you are going to find is this: taking out a loan in order to consolidate your debt only changes the way that your debt looks on the surface. On the other hand, if you look into credit counseling services in which a counselor will work with your creditors to get their needs met and work with you to make sure that you are able to stay on top of the process, you will be able to learn the skills that you need in order to reach your financial goals and to change the way that you think about money.

Ultimately, what you will find is that if you want to be sure that you are reaching your financial goals and establishing a secure future for yourself and your family, you are going to want to look beyond a non profit debt consolidation loan and, instead focus on those programs that will help you change the way that you approach spending and saving. By doing so, you will find that you are able to do more than just consolidate your debt; you are going to find that you are able to eliminate it.

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