Credit.org Review for March 2023 | Best Debt Consolidation Companies

Item: Credit.org Review
Rating: 4.5
Author: Top Consumer Reviews

Tuesday, March 21st

2023 Debt Consolidation Company Reviews

Credit.org

Most services are free
Nominal fee for some credit counseling services
"A+" rated and accredited by the BBB
In operation for nearly 50 years

Credit.org is one of the longest-standing resources for financial education and debt solutions, including consolidation. Founded in 1974 and approved by many organizations and agencies, including the US Department of Housing and Urban Development (HUD) and the National Foundation for Credit Counseling (NFCC), this is an excellent resource if you need help taking control of your finances.

Over five million coaching sessions logged

Credit.org has completed more than five million coaching sessions, with a team of more than 50 professionals offering help and advice. You can get started either by calling Credit.org's toll-free number or by filling out your information online. If you go the online route, you'll be taken to a page with several resources you can use before you speak with a counselor. These include a debt journal and other tools to analyze your situation.

Free debt analysis

Your call with a coach will involve a debt analysis, to get a picture of what you owe and your current budget. At the end of that analysis, the financial coach will talk with you about all of the debt resolution options that apply to your situation, which may include consolidation. If there's a strategy that appeals to you, you can enroll with a Credit.org partner and get started on your journey to financial freedom.

Low fees for some services

Know what you'll love about Credit.org? Most of their credit coaching is free! Yes, you read that right: you can get financial education, budgeting and counseling sessions, pre-purchase advice, foreclosure prevention counseling, and default rental counseling at no charge. All other fees depend on the service you use and the state you live in, but even those fees can be reduced or waived due to financial hardship. Still, it's nice to have even a ballpark estimate, so we poked around and found that some clients pay $35 as an enrollment fee and $20 in monthly costs when enrolled in an ongoing debt consolidation plan or other strategy for managing their finances.

Great reputation

Clients really appreciate everything that Credit.org has to offer. Financial topics can be sensitive and difficult to discuss, and people say that their coaches were friendly and knowledgeable with no pressure to choose any particular solution to their debt issues. The Better Business Bureau gives Credit.org an "A+" rating and accreditation, and there were zero complaints registered with the BBB in the year leading up to this review.

Long-standing, trustworthy help for most financial situations

They say you can't get something for nothing, but Credit.org proves that's not true. If you're looking for honest, objective advice about your financial situation - even if that doesn't wind up including debt consolidation - then this is a great option. Their fees are reasonable and their reputation for excellent service spans almost half a century. Credit.org is one of our preferred resources for debt resolution and other options for improving people's finances.

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The 12 Best Debt Consolidation Companies

Who is the Best Debt Consolidation Company?

Maybe you've gotten overwhelmed by credit card payments and overdue bills, and now you're wondering if there's any light at the end of the tunnel. Or, perhaps you're a financially-savvy consumer who wants to take advantage of lower interest rates, in order to pay off your mounting credit cards bills. Debt consolidation can be a smart strategy either way.

What, exactly, is debt consolidation? It's important to understand that companies offering it may mean different things. For some, debt consolidation is offered as a personal loan: you borrow funds that you use to pay off all of your outstanding debts. Your interest rate should be much lower than your credit cards, and now you've got a simplified, single payment to make each month. This can be a great way to boost your credit score by reducing the likelihood of making late payments (or none at all) and get on your feet again financially. On the other hand, you're in charge of using your loan money responsibly - and not to buy things you don't need!

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What are the best Debt Consolidation Companies

Debt Consolidation Company FAQ

What is debt consolidation?

Debt consolidation is a strategy used to help consumers get control over high-interest debt and simplify their monthly payments. Instead of having multiple credit card bills and other accounts to pay, often with extremely high interest rates, debt consolidation reduces those individual debts into a single payment each month.

Is debt consolidation something I should consider? Do I qualify?

You may need to have a certain amount of unsecured debt to be accepted into a debt consolidation program (for example, $7,500 or more). If you're struggling to keep up with the minimum payments on your credit cards and loans, you could be a great candidate for debt consolidation.

Isn't debt consolidation basically taking out a loan?

That depends on the service, but yes: most debt consolidation programs give you a loan to pay off all of your outstanding debts. These loans usually have much lower interest rates and can help you get on top of your financial situation again.

Are there alternatives to debt consolidation?

Sure! You could try getting a traditional loan from your bank or credit union, borrow money from friends or family to pay off debts, or work on your side hustle to make extra cash to pay down what you owe. But, chances are good that you've tried that already and still find yourself struggling financially. Debt consolidation could help you handle it once and for all.

Will using a debt consolidation service improve my credit history?

It should. One of the biggest black marks on your credit score is having late or missed payments, and consolidating all of your debt into one monthly payment makes it more likely you'll pay on time.

How much will a debt consolidation plan cost?

That varies. Some providers don't charge anything for their services, offering counseling and other tools to teach you how to manage your money and pay down your debts. Or, if you're taking out a loan to pay off higher-interest accounts, your fees will include your interest and any other charges associated with your application. Be sure to get your plan in writing before you make a commitment, so that you'll know what to expect.

Is there a satisfaction guarantee?

Most of the time, no. If you take out a debt consolidation loan, it's on you to understand all of the terms and conditions before you sign off. However, there are a few fee-based services that do offer a 100% satisfaction guarantee that allows you to cancel without penalty.

Is debt consolidation legitimate?

Absolutely. Thousands of people use debt consolidation programs every year to tackle their toughest credit problems. It's a good idea to check out the reputation of any program you're considering: find out what other clients say about their experiences, see if the BBB has rated the company, and determine for yourself if their debt consolidation services are worth your time and (possibly) money.

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Other providers of debt consolidation take a more hands-on approach, giving you credit counseling and even going to bat for you with your creditors. The services they provide may include negotiating a lower debt amount or getting your debt forgiven altogether! You might pay a monthly fee for this kind of debt consolidation, or it might be a flat fee based on how much money they saved you overall.

Either route you choose, there are a lot of options out there. How can you decide which one is right for you? Keep these points in mind as you weigh out the possibilities:

Approach. Is the debt consolidation accomplished by a personal loan that you have to pass along to your creditors, or is it a more involved strategy? Which one is more likely to leave you better off financially?
Education. What does the company offer to teach you how to make good financial decisions? Does the service make sure you understand what you're getting into with their approach?
Eligibility Requirements. Do you qualify for debt consolidation? Some programs require you to have $5,000 or more in unsecured debts. For consolidation via personal loans, you'll pay more in interest if you don't have a decent credit history already, or you may not be approved for a loan.
Fees. How much will you pay for your debt consolidation? If it's a loan, what's the interest rate and are there any origination fees? If it's a debt settlement strategy, what will your fees be and when will you have to pay them?
Reputation. What do clients say about the debt consolidation company? Did they get help that was appropriate for their situation from knowledgeable, friendly representatives? Has the Better Business Bureau rated the service? Do people report a significant improvement in their finances after (or preferably while) using the debt consolidation program?

TopConsumerReviews.com has evaluated and ranked the best debt consolidation options available today. We're confident that this information will help you choose a strategy to pay down your debts and get your finances in order!