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Non Profit Credit Counseling – Is It Free?

The answer depends on what services they provide you with. Non profit credit counseling companies do offer free debt advice but they get paid when they enroll you into a debt management plan. So essentially, one of the services that non profit credit counseling companies provide is debt management plans for consumers with mounting debt problems. These plans help thousands of people every week consolidate debt into a single payment, lower interest rates, reduce their stress, and help them become educated on important family financial budgeting matters.

So What’s Non Profit About It?

The federal government grants non profit status to companies that provide a service that serves the public in a highly beneficial way (including free services), and in exchange they do not have to pay corporate income taxes on their profits.

However, the government enforces restrictions on the amounts they can charge for their paid services, primarily debt management plans.

This is one case where the IRS is on your side (imagine that!). Every credit counseling company’s fee structure is somewhat different, but trust me – reputable companies are very reasonable and helpful for those in need.