The Main Purpose

• An organization can only be called a nonprofit association if they offer extensive counseling and advice programs to manage budgets and debt. These programs are given to groups or as individual meetings, depending on the organization that you are working with.
  
  These organizations will work with you to educate you about using credit cards; they will teach you about budgeting your income better and being able to put money away to either pay off your debt or accrue some savings; and they will offer you some options on how to settle your credit card debt. Many times these services can also be done by phone or through the Internet if it is more convenient for you that way.
  
  

Debt Repayment Options

• Aside from the counseling and advice that these organizations offer you, they also have some debt repayment options that you can take advantage of including debt settlement, loan consolidation and bankruptcy.
  
  If you choose debt settlement, they will contact all of the people that you owe money to, and negotiate with them to have the debts reduced. They will then have you pay monthly installments to them and your bills will get paid through them. With loan consolidation, your debts may not be reduced, but all of the bills are gathered into one loan through them and paid off, while each month you pay a set amount to them towards the loan. Bankruptcy, which should be the last resort, is when all of the debt is wiped out but so is your credit. In some cases, when the debt is too high, this is necessary. They will guide you through this if it is your only feasible option.
  
  

Scam Alerts

• Of course with all of the organizations who truly want to help you, there are those who have gotten aboard with the trend but with ulterior motives. They offer the counseling services, but instead of helping you, they will hinder your progress instead.
  
  Basically what these people do is guide you towards some sort of option such as loan consolidation that will actually not create a savings for you, but will instead have you spending more money or at least, gaining them some profit. It is wise to do your research on any company that you decide to deal with in these matters.