A: I'm sorry to say, but a non profit debt consolidation loan does not exist. Is it possible that you are confusing "non profit debt consolidation" with a consolidation loan? If so, the two are quite different. Or perhaps you may be thinking of a loan from a "not-for-profit" credit union. If you are, keep in mind that these institutions are not charities and do not rely on donations.
People often inquire about "non-profit" agencies and institutions when they are searching for debt help, and there is nothing wrong with that. What is wrong is that many of these people equate the "non-profit" status of a company with trustworthiness and discounted costs. But the reality is that just because a company is non profit does not mean its services are offered cheaper, or it is inherently more "honest" than a for-profit company. Therefore, I can only assume that when people search for a non profit debt consolidation loan they envision receiving a less costly loan in terms of the interest. Unfortunately, there are no such mainstream charitable lenders.
As I mentioned above, perhaps you are confusing a non profit debt
consolidation loan with non profit debt consolidation (or debt
management as it is also known). I wouldn't be surprised, as many
are unaware that there is a difference. Debt consolidation does not
involve a loan of any kind. Instead, a debt consolidation company works
on your behalf to negotiate lower interest rates with your creditors,
and tailors your monthly debt obligations to fit within your budget.
Their purpose is to help people who are having trouble managing their
debts through financial counseling, budgeting assistance and
negotiating more favorable terms with creditors. What they do not do is
Debt consolidation and consolidation loans are just two out of several debt relief options that you may want to investigate. To see a complete list of these options along with a thorough explanation of each, see my article on getting out of debt - your options explained.