The 10 Best Debt Relief Companies
Who Provides the Best 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.
Tuesday, October 15th
2024 Debt Relief Company Reviews
National Debt Relief
National Debt Relief is our favorite option for getting back on top of debts that are spiraling out of control. When you enroll your debt with NDR, they negotiate a reduced repayment with your creditors and charge you a small fee once you accept the proposal. That debt is then paid off with money you've previously deposited in an FDIC-insured account in your name, so you always know where your funds are. When it comes to debt relief, this is the best option: over 33,000 five-star reviews should convince you that National Debt Relief will have your back. We add our own 5-star rating and encourage you to take advantage of NDR's free consultation right away.
TurboDebt
TurboDebt, a debt consolidation option established in 2020, is the fastest-growing debt relief company in the nation, with over $15 billion in settled debt for 500,000+ clients. They offer a free initial consultation, where they work to understand your specific financial situation, and then refer you to the most appropriate debt relief company. They've earned an impressive "A-" rating from the BBB and have thousands of five-star reviews. Even though they're the new kid on the block, their high customer ratings and proven record earn this company very high marks.
Curadebt
CuraDebt offers a different approach to debt relief. Instead of giving you a new loan at a lower interest rate to cover what you owe, they talk directly to your creditors to try to lower the total amount you owe, sometimes by as much as 75%. Plus, there are no fees upfront or monthly charges. You only pay a small percentage (usually 20% or less) of the debt you had when you enrolled with CuraDebt, and that's only after they negotiate a deal with your creditors that you agree to. It's no wonder so many people have given this company great reviews in the over 20 years they've been around. If you'd rather not rely on taking out a loan to combine your debts, CuraDebt could be the debt relief alternative you're looking for.
Upstart
Are you trying to get a loan for debt relief but struggling due to your credit score? Upstart offers a solution. Their unique approach considers your educational background and future earning potential to connect you with trustworthy lenders offering loans for paying off high-interest debt. With over 40,000 glowing five-star reviews, Upstart delivers on its promises, making it our top choice for debt relief in the form of personal loans.
SoFi®
SoFi, with over two million members and $50 billion in loans, offers debt relief through personal loans ranging from $5,000 to $100,000. Repayment terms range from 2 to 7 years. Funds are typically available quickly, sometimes within a day. Signing up for autopay can lead to interest savings, and SoFi provides a unique job loss protection feature for extra peace of mind. Despite potential origination fees, SoFi's top-notch reputation, including an "A+" rating from the BBB and thousands of five-star ratings on Trustpilot, makes it a reliable choice for debt relief via loans that can be used to consolidate payments to creditors.
LendingClub
LendingClub is a lender you can trust if you need a loan to pay off high-interest debt. You can borrow up to $40,000 and either have it deposited into your bank account or sent directly to your creditors. These debt relief loans are available nationwide, and after a short application process you'll be shown several options that meet your desired criteria for loan repayment term, monthly payment amount, and total borrowed. LendingClub does a fantastic job of taking care of its customers, with many repeat borrowers among the thousands offering this company a perfect 5-star score. While you'll have to go elsewhere if you're looking for credit counseling or debt negotiation/settlement, LendingClub is a great choice if all you need is a loan to get your finances back on track.
Happy Money
For those needing relief from overwhelming credit card debt, Happy Money could serve as a valuable lifeline. Since 2009, they have collaborated with banks and credit unions to assist over 300,000 clients, facilitating more than $6 billion in debt consolidation loans. These loans range from $5,000 to $40,000 with origination fees ranging from 1.5% to 5.5%. To be eligible, applicants must have a credit score of 640 or higher, a clean recent payment history, and a credit history of at least 3 years. Additionally, factors such as debt-to-income ratio and credit utilization will be taken into consideration. Upon approval, funds can be deposited into your bank account within 3-6 business days, or Happy Money can direct the funds to your credit card accounts within 30 days. Given the positive feedback from satisfied customers, Happy Money is an excellent way to get debt relief through consolidating high-interest credit card payments into a single monthly payment with better terms.
SuperMoney
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.
LendingTree
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.
Accredited Debt Relief
Accredited Debt Relief offers help in two main ways: consolidation loans offered through affiliate lending partners and debt settlement through their own representatives. You'll feel a strong push towards the latter, even if such debt relief isn't the best option for your particular circumstances. People say that the free consultation is reassuring and that the reps are friendly, but we don't think that ADR goes far enough to explain how their primary service (debt settlement) can negatively impact clients' credit long-term when they're advised to stop making payments to creditors. Although Accredited Debt Relief has an "A+” from the Better Business Bureau, the company gets a low rating from us.
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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:
- Consultation. Many debt relief companies offer free consultations to assess your financial situation and recommend suitable solutions. Take advantage of these consultations to ask questions and clarify any doubts.
- Services offered. Which approach does the provider take to debt relief? Are you taking out a personal loan, getting step-by-step guidance and counseling, or having your outstanding debts negotiated on your behalf?
- Fees. Some companies may hide fees in the fine print or charge exorbitant rates for their services. Before signing any agreements, ensure you understand all fees involved and compare them across different providers.
- Reputation. Take the time to research various debt relief options, comparing their pros and cons, and look at the overall sentiment from previous and current clients. Look for reputable companies with positive reviews and accreditations from organizations like the Better Business Bureau.
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.
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