Our reviewers evaluate products and services based on unbiased research. Top Consumer Reviews may earn money when you click on a link. Learn more about our process.
Wednesday, December 11th
If all you need to get relief from your debt is a loan to pay off what you owe, LendingTree is a good resource. For more than 25 years, they've connected consumers with trusted financial partners who offer competitive rates and terms. All it takes is one simple online form and you can compare offers from multiple financial institutions, while LendingTree does the legwork to show you plenty of background on each one (as well as ample reviews from previous clients). If you need a lot of personalized guidance on how to get out of debt (and stay out), this won't be the right option. However, LendingTree can be a good way to shop around for a loan if you just want to pay off your high-interest credit cards and consolidate your debt into one monthly payment.
SuperMoney is a contender when it comes to options for debt relief, connecting borrowers with trusted lenders and facilitating over $10 billion in financing requests. Offering to match you with personal loans ranging from $500 to $100,000, with competitive interest rates, SuperMoney can get you the money you need to pay off your creditors and consolidate what you owe into a single monthly payment. With praise from hundreds of clients on Trustpilot, SuperMoney's intuitive interface and seamless loan comparison process earn a solid rating, getting you the loan funding you need for debt relief.
It's safe to say that, in today's economy, Americans are drowning in debt. From credit cards (a $6,000 balance per household, on average) to mortgages, from student loans to car payments, even unpaid income taxes and beyond, we're all feeling the pinch of inflation, the ongoing after-effects of the pandemic, and a myriad of other stresses on our wallets.
Fortunately, there's a solution. Debt relief programs can be a valuable resource for individuals struggling with overwhelming debt, providing a structured pathway to regain financial stability. Whether you're dealing with job loss, unexpected medical expenses, or simply overspending (we've all been there!), debt relief is out there.
Let's consider some of the ways that debt relief programs can be structured, so that you'll have an idea of which one might be best suited for your particular situation. First up is debt consolidation. This involves combining multiple debts into a single, more manageable loan with lower interest rates. It simplifies payments and may reduce the overall interest paid. Consolidation is usually accomplished through a personal loan: interest rates may be on the higher side compared with other types of borrowing, but still lower than what you're likely paying on a typical credit card balance. This type of debt relief doesn't necessarily come with any hands-on help: you apply for the loan and use it to pay down your high-interest debt, but that's about it. It might not be the best fit if you need help restructuring your finances or want advice on how to not get in over your head again in the future.
Next, you may have the opportunity to enroll in a debt management plan, or DMP. Offered by credit counseling agencies, DMPs involve negotiating with creditors to lower interest rates or waive fees. Participants make consolidated payments to the agency, which then distributes them to creditors.
A similar debt relief strategy is debt settlement, which involves negotiating with creditors to settle debts for less than the full amount owed. While this can significantly reduce debt, it may negatively impact credit scores and involve tax implications. You can attempt to do this on your own, or you can work with a service that works on your behalf.
But, there are a few things to be aware of with debt relief. Unfortunately, the industry has its share of scams targeting vulnerable individuals. Be wary of companies promising quick fixes or asking for hefty upfront fees. Always research companies thoroughly and verify their credentials. Also, enrolling in certain debt relief programs may negatively affect your credit score initially, and debt settlement in particular can have both legal implications and tax consequences. You may need to get the input of a financial advisor or attorney to make sure you understand all of the possible ramifications before you commit.
But, don't let that scare you away from debt relief as a whole. The right program can get you on the road to financial recovery, and there are plenty of trustworthy ones out there too. Here are some tips to help you make an informed decision:
Debt relief programs can provide a lifeline if you're drowning in debt, offering strategies to regain control of your finances. However, it's crucial to approach them with caution, thoroughly researching options, watching out for red flags, and selecting reputable providers. The experts at Top Consumer Reviews have evaluated and ranked some of the most well-known options out there today, to help you embark on the journey towards a debt-free future.
Select any 2 Debt Relief Companies to compare them head to head