Non-Profit Credit Counseling-Buyer Beware !

Credit repair provided by non profit consumer credit counseling may sound like a good idea, but many times it canturn into a nightmare. There are numerous unscrupulous "non profit" credit counselors out there who are out to cheat you. Just because someone is offering non profit credit counseling doesn't mean they are scammers. Still, many of these credit counseling organizations will give you signs that they are not trustworthy.

They promise that they can make it much easier for you to repay your debt, reduce your monthly payments by huge amount with very little risk or hardship. Like they old saying: If it sounds too good to be true, it probably is. Do not trust non profit debt counseling unless you are sure they are honest and are providing a worthwhile service. Choosing the wrong credit repair outfit could actually make your financial situation worse.

Most people have a high degree of trust of organizations with the non-profit label. The general images that come to mind for most people are that of a public service company coming to the aid of the little guy battling against the huge, heartless "credit machine." In reality, the situation can be completely different, to the detriment of the unsuspecting consumer. Unscrupulous non profit credit counseling is nonprofit in name only. They often take advantage of loopholes in the law to create a smokescreen which hides there true intent of simply taking peoples money. Many individuals get into credit problems in the first place because they do not understand economics well. These same people are likely to get duped by these scammers.

I wouldn't know so much about nonprofit credit counseling if it weren't so near and dear to my heart. You see, a good friend went into massive debt through a nonprofit credit counseling program. He actually had to declare bankruptcy. Before the non profit credit counseling, he was not in very good financial shape, but he was actually still staying above water. The counseling program changed all that. Soon, he was in massive debt to merciless loan sharks. Basically, instead of helping him out, they cleared out his entire savings. This is what nonprofit credit counseling did to him, and what it can do to you if you're not careful. Never judge an organization on its names alone. Find out what you are signing and research it as thoroughly as possible. Only then can you make a good, informed financial decision.