Where to Find Non-Profit Debt Counseling

Are you looking for a non-profit organization that offers debt counseling and general help with financial planning? If so, you need to read this article.

I'm always amazed when I see companies offering debt counseling or "relief" and then charging a lot of money for it. This is a contradiction that makes no sense to me. How can you help somebody fix their debt problems by adding to the problem? That's why I usually recommend non-profit debt counseling services to the readers of this blog. To help you find such help, I've created a list of non-profit organizations that offer assistance in this area.

Our Recommendations for Debt Counseling

Both of the organizations listed below are non-profits, and both offer some form of debt counseling service for consumers in the U.S. Keep in mind, however, that even a non-profit organization may charge for its services (though many of their services are free).

National Foundation for Credit Counseling (NFCC)
As their full name suggests, the NFCC overs a variety of credit counseling services for consumers. They also provide debt advice and assistance. Headquartered in Silver Spring, Maryland, this non-profit organization has been around for many years. They offer counseling on debt management and many other areas. According to their website, the majority of their services are "provided at low or no cost to clients."
http://www.nfcc.org

Consumer Credit Counseling Services (CCCS)
This non-profit agency was created in 1999, and they also provide a wide range of counseling and help related to credit, debt management and similar topics. They counsel their clients in person, over the phone, and via the Internet, depending on the logistical circumstances. They can help you create a debt management plan, among other things.
http://www.creditcounseling.org

Springboard (Credit.org)
This non-profit has been around since 1974. They provide education and counseling designed to help people improve their credit. If you want to feel good about the legitimacy of this organization, I recommend visiting their "About" page and reviewing their long list of accreditation. They are affiliated with, or accredited by, the other non-profit agencies listed above.
http://www.credit.org

Will the Real Non-Profit Please Stand Up

When I was conducting research for this article, I did an Internet search for the phrase non profit debt help using Google. Within the "sponsored links" part of the results page, I saw a handful of listings from companies claiming to be non-profit. But when I clicked through to their websites (and did a bit of follow-up research), I found that many of these were regular companies without non-profit designation. In other words, they were using that key phrase as a bait-and-switch tactic, just to get me onto their websites.

There is a certain "Christian" debt consolidation company, for example, that runs Google ads depicting itself as a "non profit credit counseling" organization. But when I visited their website, I could find nothing that indicated they were a non-profit. So I emailed them and asked about it. I didn't hear back from them for several days, at which time they informed me that the debt counseling part of their business is non profit. Huh? What does that mean? You are either an accredited non-profit (IRS code 501c) or you're not. There is no half and half. There is no "sort of" non profit. So this company is pitching their organization as something it's not.

Is this unethical? Absolutely. They are tricking people with false advertising to get them in the "front door." But you should know that this kind of thing happens all the time.

Just because a company claims to be a non-profit debt counselor doesn't make it so. They must have 501(c) designation with the IRS to meet the official definition of a non-profit organization.

Bottom Line: Use one of the three organizations I've recommended above, and you'll be in good hands. There are many profit-driven companies who claim to be non-profits, just to lure you in. Now you know the truth.