Thursday, December 5th
2024 Debt Relief Company Reviews
Accredited Debt Relief
- Offers debt relief via consolidation loans and debt settlement
- Consolidation loans are offered through affiliate partners
- Debt settlement programs save customers an average of 25% after fees
- "A+” rated and accredited by the BBB
- In business since 2011
Accredited Debt Relief is a part of the Beyond Finance family, offering customized solutions for clients' most pressing financial struggles. In business since 2011, this company has helped clients pay off over $1 billion in debt, ranging from credit cards and personal loans to medical bills and beyond.
Offers both loans and settlements for debt relief
This company presents itself as a one-stop-shop for debt relief. Whether you need a consolidation loan to bundle everything you owe into a single monthly payment or you're looking for someone to try and settle your debts for a lower amount, you'll have a full spectrum of services on offer with Accredited Debt Relief.
You may not qualify if you start with the online inquiry form
Your experience here starts with a free debt consultation. You can reach out to Accredited Debt Relief via phone or fill out the initial inquiry form online. That form will ask you how much you owe, your name, address, email address, and phone number; be aware, however, that they don't tell you that the purpose of these questions is to verify your identity, and if they can't do that with what you enter (or if you have a typo in any part of what you provide), you'll be told that you don't qualify and that you should reach out to one of the providers they list on that page. That left a not-so-great taste in our mouth and felt like it was just their way of getting some referral credit.
You may be pressured to sign up for debt settlement plans
That's worth pointing out, because we have some concerns with a few other aspects of how this service provides debt relief. We found more than a few complaints that described how the representative on their consultation kept trying to push them towards a debt settlement arrangement, which included a recommendation to stop making payments to creditors. While that's not an unusual approach to debt relief, these particular prospective clients were sure that wasn't what they needed. But, when they tried to advocate for themselves, explaining that they were really looking for a consolidation loan instead, the Accredited Debt Relief rep seemed adamant that the caller should sign up for the debt settlement program. Given that such programs have the potential to result in damaged credit scores, increased collection efforts, and possible legal action, it's not encouraging to hear that some people are feeling pressured into them here.
Loans come from affiliate partners, settlement done in-house
Let's keep going. Accredited Debt Relief tells you a few things upfront, or at least in the fine print at the bottom of the site. They spell out that any consolidation loans will come via affiliate relationships, but they stop short of saying who those affiliates might be. (And that might be why those callers we mentioned were pushed towards what ADR provides on its own: namely, debt consolidation/settlement services.) Those partners offer loans from $1,000 to $100,000, including origination fees of 1%-6%. On the other hand, if you enroll your debt with their settlement service, you can expect to pay back "approximately” 55% of the debt you enroll, with fees that are "usually” 25%, and that program will last from 24-48 months.
May not be an option where you live
But, just like the last time we reviewed Accredited Debt Relief, their "services are not available in all states”. And, they still don't come out and say where, exactly, you have to live in order to qualify.
No shortage of compliments
It's true that this company has quite a lot of positive feedback. The Better Business Bureau gives it an "A+” and accreditation, and all 50 complaints over the last year have gotten appropriate responses. There are also thousands of 5-star reviews on Trustpilot, singing the praises of specific representatives and gushing about how Accredited Debt Relief is going to lift the burden off their shoulders.
Almost no feedback from long-term clients
So why do we only give ADR a lower rating? Besides all of the iffy things we've already described, the fact that almost every single glowing review comes from a person who's just barely had a phone call caught our attention. What about the people that have worked with them as a client for a while now? Those are noticeably absent from the thousands of ratings on Trustpilot. Even the nearly 1,000 5-star reviews on the BBB all say the same thing: "the phone call was great and the person was really nice”. Unfortunately, "great” and "nice” aren't enough to demonstrate that, in the long run, clients are better off financially after getting help from Accredited Debt Relief.
Best as a last resort
If you do decide to go for that free consultation with ADR, we'd advise you to be very careful with the information you provide. You could wind up getting some pushy calls even after you say you're not interested. And, overall, there are other debt relief options with much more transparency about how they operate, so we recommend you look a little higher on our list before reaching out to Accredited Debt Relief.
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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.
Debt Relief Company FAQ
Continued from above...
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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