Saturday, December 14th
2024 Debt Relief Company Reviews
Happy Money
- Debt relief via personal loans
- Loan amounts from $5,000 to $40,000
- Origination fees of 1.5%-5.5%
- Payback terms from 2-5 years
- Loans geared towards consolidating credit card debt
- Funds can be deposited to your bank account within 3-6 business days, or directly to your credit cards within 30 days
- "A+” rated and accredited by the BBB
- In business since 2009
- Has helped over 300,000 individuals with $6 billion in personal loans
Recently rebranded from its original identity as Payoff, Happy Money has been helping people get out of high-interest debt since 2009. They work with well-known financial institutions like Alliant and Veridian to offer debt relief through personal loans. More than 300,000 clients have used Happy Money to tackle over $6 billion in debt.
Strong focus on credit card consolidation
You'll notice right off the bat that Happy Money's bread-and-butter is debt relief through credit card consolidation. The service is designed such that the vast majority of their clients have sought loans specifically for that purpose, to the point where they can even send your loan proceeds directly to your credit card companies (just in case you don't want to be worried about spending it in some non-debt-relief way). You're still able to borrow money here to tackle other kinds of debt, but you may see a few extra steps in the application process.
Loans start at $5K
There's a lower borrowing threshold with Happy Money than with some of its rivals. Loans here can go as low as $5,000 or as high as $40,000. You'll have a repayment term between 2-5 years, with interest rates likely better than what you're currently paying in credit card interest. Those APRs do include origination fees of 1.5-5.5%, so be sure you request a loan amount that will be enough to cover your debts and the fees that will be deducted from the proceeds before the money goes to your accounts.
A few eligibility requirements
How about eligibility? When you complete your initial inquiry, Happy Money will look at your overall DTI (debt-to-income ratio) and credit utilization. You'll also need to have a credit history that spans at least three years with no current delinquencies, and a credit score of 640+. They'll double-check all of that by using the information you provide in the 2-minute questionnaire. Pro tip: don't check the box to receive offers from "related companies” if you'd rather not get spam!
Debts paid within a month
You'll then be shown several debt relief loan offers from the lending partners in the Happy Money network. When you choose the loan that's right for you, you'll complete the full application (which will involve a hard pull on your credit). Happy Money tells you to expect that your funds will deposit to your bank account in about 3-6 business days, or they'll show up as a credit on your credit card accounts within 30 days, depending on how you've designated your loan funds to be applied.
Maintains a good reputation
Reputation-wise, Happy Money is doing just fine. The Better Business Bureau gives the company an "A+” rating and accreditation, while client feedback on Trustpilot and in other places describes the overall experience here as positive and easy to manage. You may see some lower-than-average ratings too, but our research showed those to come from people in other countries who got scammed by individuals claiming to represent Happy Money (which, FYI, only does business within the US!).
Good way to consolidate credit card debt
If your main need for debt relief is related to high-interest credit cards, Happy Money's consolidation loans are a fantastic option. You'll definitely pay a lower interest rate compared with most credit cards, which will save you money in the long run. You'll also be at a lower risk for missing payments when you consolidate all of your different cards into a single loan (assuming you don't rack up new charges on your cards in the meanwhile!). Although there won't be any other debt relief strategies employed on your behalf here, like negotiation or credit counseling, Happy Money gives you a trustworthy, competitively-structured personal loan that can give you a fresh start on what you owe.
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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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