DEBT RELIEF PROGRAMS

Across the country, millions of people are finding it more and more difficult to meet their financial obligations. As mortgage interest rates rise, Adjustable Rate Mortgage (ARM) payments skyrocket. Credit card late fees continue to climb higher. Lenders keep offering credit to people who are in desperate need of help, but this only prolongs the problem, and often ends up simply increasing the total debt owed by a person.

Thankfully, there are a number of options available if you find yourself in this situation. Debt Negotiation, Debt Settlement, Repayment plans, and Debt Consolidation are just some of the opportunities you can pursue. Of course, you need to find the right solution, and just as importantly, the right company to work with to address your financial needs.

When looking at debt relief programs, there are a number of factors you should consider. Some of these include:

•  Solutions.  Does the company only offer one debt relief solution? Or are they well-versed in a number of options? Having a variety of choices means they can find the right debt relief program that fits your specific needs.

•  Cost.  How does the debt relief company get paid? The best ones will earn their money from a percentage of what they save you; that way, they only get paid if you save money.

•  Dependability.  There are many fly-by-night debt relief organizations out there. How long has the company been in business? Are they affiliated with the BBB (Better Business Bureau)? Is this a company you can trust?

TopConsumerReviews.com has reviewed and ranked the best debt relief programs that are available today. We hope you find these reviews helpful in your quest to become debt-free!

 

 

 

Cost:

Fees and commission are based on the settlement.

 

Specializing in handling total debts of $10,000 or greater, Curadebt has been in business since 1996 providing financial and creditor negotiations, settlement, and arbitration services to both individuals and small businesses. In September 2000 Curadebt partnered with a large consumer credit counseling agency, which resulted in huge growth and the ability to offer more financial related services to their now 10,000-plus annual client base.

Once involved, Curadebt immediately takes over your creditor calls. They negotiate the best payback terms and debt reduction that works in your favor. Curadebt has experience negotiating both payment plans and lump sum settlements. They capitalize on the good relationships they have with creditors, law firms, and collection agencies, and use these relationships on your behalf.

Because they have so many clients, they can negotiate better settlement deals through volume. In other words, they're not bargaining with creditors over "just" your $10,000 credit card account; they group your debt in with their other clients and negotiate $500,000 worth of debt. That gives them much greater leverage than most debt relief companies, and gives you a better deal.

Besides debt negotiation, Curadebt also offers debt consolidation plans, debt management plans, and consumer credit counseling, as well as other options. The website has many sample letters that have been written by companies that have agreed to accept the debt consolidation and debt settlement offers made by Curadebt on their clients behalf. Most personal debts have been reduced by 50%, and some up to 89%.

Curadebt assigns an experienced financial counselor to each person that signs up with their program. These skilled individuals are knowledgeable about the services that Curadebt provides and they work with you to deliver a comprehensive solution. They have access to a support team of lawyers, credit arbitration experts, lenders, and financial advisors.

One of the best features of Curadebt is how they get paid. They are a commission-based company, which means they earn a percentage of what they save you. Therefore it's in their best interest to get you the best deal possible; the better off you are, the more they get paid! We wish more companies were this honest with their customers.

Curadebt is a member in excellent standing with the San Diego Better Business Bureau (BBB) since November 2001. They are also a member of the San Diego Chamber of Commerce.

If you have debts totaling $10,000 or more, Curadebt is a wonderful option. With knowledgeable counselors, extensive resources, and proven results, this dependable company earns our highest mark.

 

 

 

Cost:

A set-up fee to cover the expense of the account activation and a monthly service fee. These fees are dependent the number of creditors brought into the program.

 

CareOne Credit is actually a single face for a group of credit counseling programs. They work to match you up with the best credit counseling company that fits your particular needs. Working with debt loads as low as $2,500, their member companies offer an array of debt-fighting solutions.

There are 5 credit counseling companies represented, including American Financial Solutions, Clarion Credit Management, and Debt Management Group. To become a member of Care One Credit, each company must meet certain professional standards, such as provide access to account information 24 x 7; provide monthly statements to customers where appropriate, and meet high customer service standards.

Filling out the online application with CareOne Credit is a simple exercise. You enter some personal information about yourself (name, address, phone), and then some information about your current outstanding debt. There is no commitment on your part for filling out the form; it simply gives CareOne Credit the information they need to find the best credit counselor that can assist you. Once complete, they contact you and discuss the services they can provide to best help your situation. You can then decide whether you want to proceed with their assistance or not.

Enrolling with CareOne Credit gives you access to the following services:

•  Debt Negotiation.  The credit counseling agency negotiates with your creditors for better repayment terms, lower interest rates, and waived late fees.

•  Debt Payment Plan.  They will help you create a manageable debt repayment plan, so you can be debt-free as soon as possible.

•  Debt Consolidation.  They can help to consolidate all your credit card and other debt payments into one, so you don't have to deal with multiple payments.

Through a combination of these programs, CareOne Credit can reduce your monthly payments by as much as 57%.

CareOne Credit is a member of the Better Business Bureau Online program (BBB Online). This helps ensure safe online business practices and privacy considerations.

The website is very professional and easy to navigate. If you have a total debt load between $2,500 and $10,000, CareOne Credit is an excellent choice.

 

 

 

Cost:

A service fee is charged based on your amount of debt as well as the total number of creditors you bring into the program. An exact fee is determined after your accounts have been reviewed.

 

The Debt Options website is a great resource for learning about various debt relief options. They do a very thorough job of explaining terms like unsecured debt versus secured debt, and debt settlement verses debt consolidation. They offer many examples and scenarios that can be helpful to potential customers. They also provide a comprehensive FAQ section on their website.

Debt Options provides a full set of debt relief strategies for their customers. They offer two main programs:

•  Debt Consolidation.  Reduce all your payments into one convenient lower monthly payment that you can afford. This not only satisfies all your unsecured debt obligations, but it can also reduce your payments by as much as 35%.

•  Debt Settlement.  Your outstanding debt is negotiated by professionals and reduced in order to obtain a more manageable monthly repayment amount. Not only does this reduce your monthly payments, it also lowers the total amount that you owe.

While this Fort Lauderdale company doesn't claim to be the cheapest debt relief service out there, they pride themselves in providing a superior level of service. Most of their clients are reportedly debt-free in 24-60 months.

Debt Options has a strict privacy policy and is a member in good standing with the Better Business Bureau (BBB) of Southeast Florida.

 

 

 

Cost:

15% of your outstanding debt plus monthly service fee (varies by account)

 

Net Debt serves as a referral service to locate professionals skilled in eliminating debt, hassle-free, from the privacy of your home computer. This allows you to avoid the lectures and embarrassing discussions found with some other debt settlement and credit counseling companies.

How does Net Debt work? Net Debt asks that once you enroll in their program you stop making your monthly payments to creditors. Instead, those payments are placed in a trust account and remain there during the process. Once your accounts become significantly past-due, your trust account builds and the creditors are more anxious and willing to settle your debt. Often times, the lawyers that Net Debt utilizes are able to negotiate down to nearly half the balance due. However, Net Debt doesn't guarantee any anticipated savings – that’s up to the lawyers on a case by case basis. The balance in the trust account is used to help pay off creditors after the negotiations.

Please note that while you’re redirecting payments to the trust account instead of the creditors, your credit score can (and most likely will) decline as a result of the accounts being in bad standing and significantly past due. After your accounts are settled and resolved, your credit score will naturally begin to rise back to good levels.

To join Net Debt, you must have at least $2,000 minimum in unsecured (credit card) debt. They charge a retainer fee that is equal to 15% of the debts that you include in the service, plus a monthly service fee that varies by account. The retainer fees are included in the monthly payments and not required up-front.

Net Debt provides a workable solution that can help many people get out of a bad debt situation.

 

 

 

Cost:

Varies by customer. Need to negotiate with them to get your best deal.

 

Credit Solutions is located in Richmond, Texas and was founded in 2003. Credit Solutions boosts some impressive statistics on their website but do they ring true? We found that Credit Solutions has a friendly site that is easy enough to maneuver and provides just enough positive energy that we got excited about a potentially decent debt relief company. However, when we kept looking we found that important details of their debt relief program are missing.

On the positive side, customer service reps are available 7 days a week, 24 hours a day at Credit Solutions. The company proudly advertises themselves as providing award winning debt relief service. However, many of their "specialty reps" are not available during off- -business hours, so if you have questions during the evening or on weekends your answers will have to wait until the next business day.

Credit Solutions states that they've settled over $800 million in debt relief, have serviced 200,000 clients and settle up to 50% of outstanding debt with credit card companies. This can allow you to allegedly get out of debt in as little as 12-36 months. But what’s it going to cost you? That’s the number one question we have.

Credit Solutions has you stop paying creditors and instead make a net payment to them. They in turn accumulate the cash and wait for the creditors to become anxious to settle your debt. In the mean time, interest and penalties occur on your outstanding debt, and Credit Solutions is takes their cut from your monthly payment. However, despite our best efforts we were unable to locate a standard set of fees or percentages that Credit Solutions charges. Instead of a standard amount, Credit Solutions seems to negotiate their fees with each individual customer on a case-by-case basis. This makes it difficult to determine whether the program is worth it or not. One thing is for sure though - you need to be prepared to negotiate with Credit Solutions about your fees if you sign up with their debt relief program.

Overall, we found the lack of information to be unsettling. The customer service reps, while polite, were vague in responding to our direct questions regarding charges. In response, we suggest you choose a company that is more upfront about all aspects of settling your debt.

 

 

 

Cost:

Free debt analysis. Fees determined by your specific situation.

 

Debt Consolidation America is a resource for people looking for a way to reduce their personal debt. They have been in business for over 10 years and have successfully helped thousands of people.

Debt Consolidation America is a credit counseling service. They consult with you, put together a financial plan that will best suit your needs, and then connect you with a non-profit agency that specializes in that type of debt. They deal with student loan debt consolidation, credit cards, signature loans, tax debts, medical bills, collection accounts and disconnected utilities. Like the other debt relief companies in our review, the only types of loans they are not able to work with are secured loans.

If you fill out the Debt Consolidation online form, you will be contacted by a representative who will review your financial situation. Soon after, you will receive a quote that describes the services they can perform to help consolidate your debt, along with the fees that would be charged.

They do not advertise any affiliation with any professional organizations such as the BBB. They also do not list any physical address or location. They provide an 800 number and an email address as a point of contact.

While the attraction of a free debt analysis is a powerful motivator, most of the companies in our review offered this same service. Debt Consolidation America suffers from a very limited debt relief offering. If you are serious about reducing your debt, there are better options available.

 

 

 

Cost:

Free to complete the form. Actual debt relief help comes at a cost, depending on the services you choose.

 

The Compete 4 Me website is extremely superficial. They boast about their "free" service, and make promises to eliminate debt without bankruptcy. They "have all the secrets that credit card companies don't want you to know" - but don't expect to find any details about their services without giving up your personal information.

How does the Compete 4 Me process work? The steps to enroll in their program consist of

1. Complete the form. This includes entering personal data such as your name, address, phone number, email address, and total amount of debt.

2. See results for debt relief solutions and find a qualified specialist. You are contacted with information regarding the companies that Compete 4 Me has matched you up with.

3. Receive a free consultation and choose your best option. The companies that you were matched up with will call you to find out more information about your debt situation, and try to sell you on their services.

It sounds easy enough. But the other sites in our review provide you with information about debt relief solutions and their services before they require any personal information from you. It would be helpful if Compete 4 Me provided information about the companies that they could match you up with, so you could determine whether you want to participate in their program. Instead, it seems that one of the chief goals of Compete 4 Me is to gain access to your personal information.

Before entering our information, we'd like to know more - a lot more. What companies does Compete 4 Me refer their clients to? What debt reduction options are offered? What are the typical fees incurred? What minimum qualifications does a debt relief company have to meet in order to be included in Compete 4 Me's program?

Compete 4 Me does not advertise any professional affiliations, nor do they invite potential customers to email or call them.

In short, we'd like to know a lot more about any debt relief organizations that we deal with, before we begin giving them confidential information about our finances. Unfortunately, you have no idea about the quality of companies that Compete 4 Me deals with - whether they provide reputable services, or will take your personal information and sell it to the highest bidder. Our advice: stick with one of the trusted, top-rated companies in our review.