Is it better to go with a For-Profit or a Non-Profit company?
There are pro’s and con’s to each. A Non-Profit typically offers a DMP or Debt Management Program. The credit card companies have pre-set deals you will receive the monthly payment you will make. The Non-Profit company receives part of their payments from the Credit Card Companies called fair share. A positive to joining this program is that is does not typically have an impact to your credit, however these programs can be very strict and if you miss a payment you could be removed from the program and any deal you made would have been forfeited. That means if a flat tire next month could cause you to miss a payment, this program might not be the program for you.
For-Profit companies typically are Debt Settlement programs. They do not get paid from the credit card companies nor do they allow the credit card companies to structure the deal so they are able to greatly reduce the amount you owe to the credit card companies.
Another really strong positive to Debt Settlement companies is that some of them are actual law groups, so starting day one you are represented by a lawyer. This is important to prevent harassing calls, wage garnishments or legal action against you.
Both For-Profit and Non-Profit include all of your fees into the monthly payment and both try to keep the program within 36 to 48 months - shorter if possible but sometimes it will extend longer all depending on the monthly payment you can afford and total debt enrolled into the program.