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Is Non Profit Really Non Profit?

There is a very big difference between a non profit debt counselor and a for profit debt consolidation lender. People often confuse the two. Debt counseling is often performed by non profit agencies such as Consumer Credit Counseling Service. Debt consolidation is the process of pooling all of your loans together ("consolidating them") into one source. This involves a lender and nearly all lenders are in business to profit.

Choosing a lender is a very important part of debt consolidation. Understanding the different options and knowing how each of these options work is very important but none of this matters at all if the homeowner is unable to find a lender who is willing to offer them the rates and terms they are seeking. Choosing a lender can be a long and difficult process but there are some ways to make it easier. One is to ask for advice from friends or family members who recently re-financed. Additionally, homeowners can do their own research to determine which lenders are able to offer them the best rate on a debt consolidation loan. Finally the homeowner should determine whether or not the finances should be the governing factor in choosing a lender. Surprisingly enough, in most cases it is not.

Friends and family members who recently refinanced can be your most valuable resource in the process of selecting a lender. These friends and family members are so valuable because they will most likely be willing to offer you a quite candid opinion of the lender they used. This opinion may be either positive or negative but in either case it will be genuine. If the opinion is negative you can remove this lender from your list of lenders to consider. Conversely, if the lender comes highly recommended, you may consider this lender more carefully in your search for the appropriate non profit debt consolidation loan. Again, lenders are for profit, debt counseling is often done by non profit organizations.

Homeowners who want to know which lender is offering them the best interest rate and financial terms should do a great deal of comparison shopping. You may even consider requesting quotes from each and every lender. This should make it perfectly clear which lenders are willing to offer more favorable rates. When comparing these quotes all of the factors should be considered to ensure the quotes are being compared fairly.

Consider More than Finances

Finally, while interest rates, loan terms and other financial matters are all certainly important, none of these are more important than being treated fairly by the non profit debt consolidation agency. For this reason, you should carefully consider each lender and should determine whether or not you feel as though the lender is responsive to your needs. For example, a lender who does not return calls in a timely fashion or answer questions truthfully and accurately may not be the ideal lender for you even if he is the lender who is offering the most favorable rates.

The most important factors to consider as you attempt a non profit debt consolidation are honesty, responsiveness, reputation, expertise, and genuine desire to help.

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