Can nonprofit payday loan consolidation companies solve debt issues?

Nonprofit payday loan consolidation companies help consumers eliminate payday loan debt. They lower the overall monthly payments and the high rate of interest on the borrowed amount. These companies may guide you through creating a budget and consolidating your payday loans into a single monthly payment.

Let's check out some honest reviews about the top 5 nonprofit payday loan consolidation companies:

1. MoneyFit by DRS

Overview

MoneyFit is a subsidiary of Debt Reduction Services. It is a nonprofit company that helps people get out of debt and establish a more stable financial situation.

MoneyFit was founded in 1996 as a 501(c)(3) nonprofit credit counseling agency. The company assists clients in paying down debt, building credit, and improving financial literacy. They also offer 100% free debt relief services for veterans and others in the military service.

Credit counselors provide information and tools to their clients to make correct financial decisions in the future.

Services offered

• Debt management plans
• Budgeting
• Financial Education

Eligibility criteria

Money Fit offers help to families in financial distress. These may include singles, couples, college students, the elderly, and anybody else. But, it is often provided to individuals who have a consistent source of income. Apart from payday loans, they can also solve issues related to credit card interest rates, collection calls, or medical debts.

Coverage

Money Fit by DRS, Inc. is a nonprofit debt and credit counseling organization. It is accredited or authorized to serve citizens of all 50 states and the District of Columbia. They have offices in New York and Idaho. They offer counseling services in all locations via phone and online mediums.

They offer in-person consultations in regions where they operate and have a physical office.

Accreditations

• 2019 Outstanding Consumer Financial Information Award
• 2005 BBB Integrity Counts Nominee

2. Dmcccorp

Overview

DMCC corp provides services to consumers who have payday loan debt.

DMCC helps you combine multiple payday loan payments into a single one and disburse it to your lenders. DMCC has successfully structured 6-to-12 month repayment plans with different payday loan lenders. It allows consumers to make affordable monthly installments and avoid unwanted collection calls.

DMCC delivers financial education and teaches budgeting skills to individuals. They provide credit counseling to distressed individuals through educational programs and resources.

Services offered

• Payday loan consolidation
• Financial Education
• Bankruptcy Counseling and Education
• Personal Budget Counseling
• Housing Education & Counseling
• Community Services

They conduct seminars in high schools/community centers. It is a proprietary financial literacy program. They also offer free online/printed materials to people.

Eligibility criteria

DMCC corp does not maintain strict requirements to enroll clients. However, the client must be a US citizen. You need to fill out the application form to speak with a certified credit counselor and receive a free no-obligation quote. You may also call 1-866-618-3328 for their services.

Coverage

Debt Management Credit Counseling Corp. ("DMCC") is a nonprofit organization in Deerfield Beach, Florida. Its address is 1100 South Powerline Road, Suite 101.

Since September 1999, the IRS has designated DMCC as a 501(c)(3) public charity.

Certified credit counselors provide the company's consumer program services. Services may include financial education, counseling, and payday loan debt consolidation plans.

Accreditations

• HUD-approved Housing Counseling Agency
• US Trustee-Approved Bankruptcy Provider
• Bureau Veritas ISO 9001:2015-Certified
• BBB of Southeast Florida (A+ Rating)
• Financial Counseling Association of America
• National Association of Certified Credit Counselors
• National Industry Standards for Homeownership Education and Counseling

3. Federatedfinancial

Overview

Federated Financial is dedicated to teaching people how to manage payday loan debt and achieve financial stability. Their education program provides enough study materials to the clients. The credit counselors know recent credit reporting and collections laws. They are also proficient in disability, bankruptcies, and social security laws.

Federated Financial has delivered the local and online communities the best possible care and help.

Services offered

• Free community outreach programs. These may include public seminars, walk-in clinics, newsletters, and online resources.
• They work on unemployment issues and retirement plans.

Eligibility criteria

The criteria to enroll in a payday loan consolidation program might vary depending on the lender. The client should be a US citizen. Usually, the service is offered to individuals who have a regular source of income.

Coverage

They are listed as a 501(c)(3) nonprofit organization in the US. They manage lenders for their clients' payday loan repayment programs throughout the US.

Accreditations

The company has been accredited A+ by the Better Business Bureau since 1998.

All debt counselors working with clients are certified in credit counseling and have more than ten years of expertise. These people are certified by the National Institute for Financial Education.

4. Consolidatedcredit

Overview

Consolidated Credit was founded 28 years ago. They provide specialized credit counseling to consumers who struggle with payday loan debt. They also help consumers develop better financial plans and avoid debts in the future.

Services offered

• Free consultation through conferences and webinars each year.
• One-on-one sessions with clients during the initial meeting.
• Debt management programs.

Eligibility criteria

The criteria to enroll in a payday loan consolidation program might vary depending on the lender. The client should be a US citizen. Usually, the service is offered to individuals with a steady income source.

Coverage

Through client education programs and expert counseling, they are helping people across the United States.

Accreditations

The Better Business Bureau verifies Consolidated Credit Counseling Services, Inc.

Consolidated Credit's credit counselors have licensed debt management experts. They always follow a strict code of conduct.

5. DebtReductionServices

Overview

Debt Reduction Services has assisted thousands of individuals nationwide. They provide credit counseling, debt management, and credit and debt education programs. They help people in leading a better quality of life. Since 1996, they have provided debt management plans (DMPs) for approved individuals. The program includes repayment options that help to pay their unsecured debt quickly. Clients can save money on interest and eliminate late fees and over-limit fees by using the program.

Services offered

• Free budget plans and credit counseling.
• Low-cost debt consolidation programs and free community-wide educational activities.
• Bankruptcy counseling.
• Online Pre-and post-consultation.

Eligibility criteria

The clients must be US citizens. The criteria for a payday loan consolidation program may differ depending on the creditors. Usually, it is allowed to people with a steady income source.

Coverage

Typically based in Boise, Idaho, Debt Reduction Services has two offices and serves clients across the US.

Accreditations

Debt Reduction Services is certified and compliant with the ISO 9001:2015 Quality Management System Standard by BVQi NA, Inc. to provide the most excellent level of service to clients.

The Better Business Bureau (BBB) has given A+ rating to Debt Reduction Services. The company is also certified by the Financial Counseling Association of America (FCAA), a nationwide membership organization.

Honest comparison between Nonprofit payday loan consolidation companies and for-profit law firms

Payday lending businesses have a terrible reputation. They often do not follow legitimate collection techniques, and they use threats of arbitration, exploitative methods, high-interest rates, and aggressive collection efforts.

The success rate of nonprofit payday loan consolidation companies is not guaranteed, and they often fail to negotiate with the lender and can't provide a good consolidation service.

People with payday loan issues may also hire for-profit law firms. These law firms can guide you in understanding your rights and negotiate with the lender for a fair deal.

Expert payday loan lawyers are successful in litigation against payday lending companies, and that's why payday lenders are afraid of them. As a result, the lenders will likely offer better repayment terms to payday loan consolidation lawyers.

The below-given table can help you to understand how much a nonprofit payday loan consolidation company and a for-profit law firm are capable of providing payday loan debt relief to the consumers.

Conclusion

Look at these top 5 non-profit payday loan consolidation companies and learn how they work to help consumers to become debt-free. The above-given reviews and comparisons may help you to decide that “for-profit” law firms are always better than non-profit companies.

So, think wisely before choosing the best payday loan debt relief company.