Many people think that debt consolidation firms do not make any money and they are there just to help you out. But the fact is that although most of the debt consolidation companies claim to be non-profit, they do make a lot of money at the cost of their customer’s financial health.
The customers can be charged in many ways by these companies. Some companies deduct a percentage of the payments made to the lenders, whereas others keep the first one or two payments to cover for "administration costs". But this can really affect the customer’s credit report as it can lead to the customer being considered delinquent from the creditors’ point of view.
