Bill consolidation should be more than the single act of obtaining a loan to pay off your debt. Without additional steps in the process, you are only treating the symptom, not the cause. Unless you have had major catastrophes, chances are your overwhelming debt is the result of poor budgeting, impulse purchases, and a general failure to defer your gratification by purchasing luxury items which you cannot afford. A good non-profit consolidator recognizes this and thus offers much more than the standard bill consolidation company.

For these following reasons, a non-profit consolidator should be considered:

1. You will receive complete analysis of your income, debt and spending habits. The consolidator will act as a counselor in this situation and develop a plan of specific actions and behaviors which will result in long-term financial health. If you are totally honest during this process, you will be able to see exactly how you got into financial distress and what changes need to be made in your spending. Further, if you faithfully follow the recommendations of your consolidator, you will live a much more secure and stress-free life.
2. The consolidator will assist you in establishing a budget within which you can comfortably live. This is a key factor in preventing recurrence of the problem. Most people who face the bill consolidation process have not had a defined budget to use as a framework for income and expenses.
3. A non-profit consolidator may have access to funds which can be loaned at a lower interest rate than traditional lenders. Fees may be lower as well. Thus, the overall process costs you less. It is important for you to shop around as you investigate bill consolidation, because rates and fees do vary significantly.
4. Often, a non-profit consolidator provides significant follow-up support and assistance. He/she will provide continued counseling in the areas of personal finance, and, if necessary, provide additional services. In extreme cases, I have known debtors who turn over their paychecks to consolidators. The consolidator then pays all bills and puts the individual on an "allowance" for personal expenses.
5. Most important, the non-profit bill consolidator looks at the total picture. His priority is not merely to solve the current issue but to provide long-term permanent prevention. The for-profit consolidator may not be as concerned with this crucial prevention phase.

If you know you are in trouble and you know you cannot solve your spending habits on your own, finding a person who is with you for the "long haul" is a must.

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