The first rule of economics is, “Nothing is for free.” There is always a cost attached to something. It doesn’t matter what it is, there is always something that must be given up in order to get something. It is not always money, it could be time, it could be choices, it could be just about anything, but you always must trade one thing to get another. So what is it about these claims for non-profit debt settlement groups? Are they legitimate? If they are non-profit, then how can they not be free?
These are all very good questions, and when people are desperate for debt relief, they do not always take the time to answer them. There are many non-profit groups offering to help you eliminate your debt. Their ads sound almost too good to be true, and they often are. They prey on people that do not do research for themselves. Spotting the frauds from the real offers can sometimes be difficult. The first cost you will encounter is the time spent researching the offers.
The person looking for debt solutions may not realize that some of these non-profit groups do not directly assist you in getting out of debt. They are simply information gathering services who then sell your information to profit oriented debt settlement groups. This is legal. They offer you free help in finding someone that can help you. These second agency groups sometimes charge fees to start a debt settlement program. Some of the non-profit organizations get more compensation for referring customers to a specific group, and the person assisting from the non-profit group may get bonuses for signing you up with them. These non-profit groups do not ask for money directly from the customer, they get their money from the debt relief group that you end up working with.
In some cases, these non-profit groups represent only charity and volunteer organizations. They do not have the money to directly settle the debt, but they do tend to work to come up with a solid debt management plan. They may not be able to settle your debt for you, but they can help come up with solid budgets and debt management plans for some. It is up to you to keep to the plan and work your way out of debt. These organizations may have more volunteers working as representatives; they may also get paid a minimal amount.
So the answer is no, there is nothing completely free. You can try to stop yourself from being the victim of fraudulent claims. Do your research on a company. Even if they say they are non-profit, it does not mean that you should automatically trust them. Look into how the organization works; research them on the internet and even with the Better Business Bureau. Do your best to make sure that the only cost you face is the time you spend researching the company’s offers.
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