Debt Relief is more important now than ever before. Across the country, millions of people are finding it more and more difficult to meet their financial obligations. As mortgage interest rates rise, Adjustable Rate Mortgage (ARM) payments skyrocket. Credit card late fees continue to climb higher. Lenders keep offering credit to people who are in desperate need of help, but this only prolongs the problem, and often ends up simply increasing the total debt owed by a person.
Thankfully, there are a number of opportunities available if you find yourself in this situation. Debt Negotiation, Debt Settlement, Repayment plans, and Debt Consolidation are just some of the options you can pursue. However, not all debt relief companies and plans are the same. You need to find the right debt relief solution, and just as importantly, the best debt relief company, to work with in order to address your financial needs.
Sunday, August 1st
National Debt Relief specializes in creating custom financial solutions for customers with $7,500 or more in unsecured debt. They take a proven, thoughtful approach in developing their personalized debt relief plans, and have helped over 100,000 customers get out of debt since 2009.
The National Debt Relief website is clean and customer-friendly. To start, you simply fill out their online form or call their dedicated debt help line at (800) 300-9550. You'll discuss your financial situation with one of their certified debt counselors, who will walk you through a free debt analysis. Their staff is knowledgeable and friendly, and together you will create a plan to pay off your debts for less than you owe. Best of all, you can get started on your plan with no upfront fees.
The professionals at National Debt Relief are experts at debt settlement and debt negotiation. They have many debt settlement letters proving how they've saved their customers thousands of dollars. Of course, the amount of savings can vary from customer to customer based on a variety of factors. Once you create your custom debt relief plan with them, they'll be able to tell you how much you can expect to save in your situation.
One of the things we liked about National Debt Relief is that they've earned an "A+" rating as an accredited business with the BBB. Part of this rating is due to their 100% customer satisfaction guarantee. If you're not happy with their service, you can cancel at any time without penalties or fees. This is another strong feature that separates National Debt Relief from most other debt relief companies.
For people suffering under a large amount of debt, National Debt Relief is a fantastic option. Their knowledgeable, friendly approach has a proven track record of success, while their strong BBB rating and satisfaction guarantee confirms their focus on the customer. If you want to get out from under the debt load you're facing, National Debt Relief (800-300-9550) is a great place to start. They earn our highest rating.
Credit.org has a stellar reputation spanning more than 45 years in operation. Also known as Springboard Nonprofit Consumer Credit Management, this service offers non-profit financial coaching for a wide range of credit and debt concerns, including housing (foreclosure, reverse mortgage, pre-purchase), bankruptcy, student loans, and debt relief. The BBB rates credit.org as an "A+" accredited business across all of the services provided. Additionally, credit.org is accredited by the National Foundation for Credit Counseling (NFCC).
One of the most compelling reasons for considering credit.org is that many of their services are free of charge. For example, here's what you get when you choose to use their Debt and Credit Coaching:
Yes, you understood that correctly: you'll pay absolutely nothing to use credit.org's phone coaching for these services. Because this service is funded by donations and government grants, you are able to access a wealth of support at no cost to you.
Now, that's not to say that everything is free when you use credit.org for debt relief coaching. For example, if you're looking for a more traditional debt management plan - to help you pay off your debt faster, reduce your interest rates, create a realistic budget, consolidate payments, and/or stop collection calls - you may pay a small enrollment fee along with monthly service costs.
What are those fees? They vary according to a number of factors. After our investigation, we can tell you to anticipate an enrollment cost of around $35 and monthly fees up to $20. Your exact costs will depend on the state where you live, your personal situation, and whether you qualify for a reduction or waiver of your fees due to hardship. Unfortunately, we couldn't find specifics from credit.org about their eligibility requirements for those reductions/waivers.
We really appreciate that credit.org has so much to offer at no charge. And, for many consumers, some knowledgeable, friendly coaching may be all they need for debt relief - to identify the best steps to take next and the ideal resources to get them there. Plus, credit.org's fantastic reputation over nearly 5 decades is a huge advantage in an industry where it seems like some new financial or debt service is always popping up. For their wide range of services, including free coaching for consumers, credit.org earns very high marks and is worth your consideration.
Specializing in providing financial solutions for total unsecured (or tax debts) of $10,000 or greater, the founders of CuraDebt have been in business since 1996 providing financial advice along with creditor negotiations, settlement, and arbitration services to both individuals and small businesses. CuraDebt expanded nationally in 2000 through their web presence and has successfully helped thousands of people escape their debt issues.
On your initial free, confidential consultation, CuraDebt takes the time to understand your current financial situation, as well as your short-term and long-term goals. CuraDebt has access to the top A+ rated professionals and companies in the industry. Based on a thorough understanding of what you want to accomplish, CuraDebt will connect you with the right staff that can best help you reach your goals.
In addition to debt negotiation and debt settlement, CuraDebt counselors can help advise regarding debt consolidation plans, debt management plans, consumer credit counseling, tax debt relief, and more. Their skilled professionals are knowledgeable about each of these services, and can review the best options with you.
If you sign up with CuraDebt's online form, make sure you provide a valid phone number and email address. With your initial call, you'll be assigned a friendly, experienced financial counselor to help guide you through your financial options. This person develops a knowledge of your personal financial situation and works with you to create a comprehensive solution to meet your needs. They also stay in contact with you while you progress through your debt resolution plan, until you've reached your financial goals. This is a great benefit, since your goals may change and it's good to have a familiar, knowledgeable expert readily available to answer any questions you may have.
If you have unsecured or tax debts totaling $10,000 or more, CuraDebt is a terrific choice. They are experts in a wide variety of debt relief options and can provide you with a comprehensive solution that meets your needs. With knowledgeable counselors, extensive resources, and proven results, this dependable company earns an excellent rating.
Note: CuraDebt services are not available to residents in the following states: CT, GA, KS, ND, SC, VT, WA, WV, PA, PR, OR.
Upstart is a peer-to-peer lending platform founded by former Googlers. At first glance, the site is neat and includes finance-related images such as pie charts and percentage signs to emphasize their purpose, which is to help people achieve their financial goals. The fonts are large, allowing easy reading, very helpful since financial information can be overwhelming. The site allows one to process information while pacing the reader through use of space and letter size.
Professional in look, the site however does not hope to impress in graphics or photos of people enjoying newfound financial freedom. Instead, the site uses facts and figures to communicate a serious, all-business tone. The only downside to this setup is that if a customer is not familiar with loans or borrowing lingo, they might be lost until they scroll to the bottom of the Home page to click on "Contact Us".
For customers who aren't sure where to begin, Upstart has a "Get Started" icon which asks them what they want to do. Upstart offers help with loan consolidation, paying off credit cards, paying medical bills, buying a car or other big purchases. Such a wide range of services is comforting to those seeking financial advice. The site also provides education to help you prepare for future financial decisions.
With respect to personal loans, Upstart is efficient. You can apply online and find out your rate within a few minutes. You're asked simple questions about your income and education history. Upstart then presents you with loan terms and options for payment. Once a customer agrees to the terms of the loan, funds are issued - sometimes, by the next business day. If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.
Upstart's reputation is very solid - you'll quickly see links to articles on prominent sites like Fox, Bloomberg, and other news agencies, along with testimonials from satisfied clients. Their underwriting model uses machine learning and artificial intelligence techniques to underwrite borrowers based on many variables, including but not limited to credit score, income, education, and employment. Such details helped us gain more confidence in the success of this company's services.
We found the blog articles very helpful. With topics ranging from selecting health insurance to saving money on groceries, a person seeking financial security could benefit from the wisdom these articles offer. Unfortunately, this tool is found at the bottom of the Home page. The website would function more effectively if they included this option at the top of the page along with "Contact" and "Team" information because it is on these pages where we found answers to our initial questions.
While Upstart's website is good, it could use some enhancements to make it more user friendly. Still, Upstart earns high marks for their quick processing of loan applications and many helpful financial features.
SoFi, short for "Social Finance", bills itself as a modern personal finance company, and its clean, crisp, easy-to-use website definitely matches that description. And they're clearly making an impact in the lending industry. SoFi currently has a variety of products, including personal loans, mortgage loans and refinancing, student loan refinancing, and more.
SoFi's application process is straightforward: enter your personal information, such as your name and address, current employer and annual wages/salary, and post-secondary education information, and if SoFi is able to confirm your information you'll be able to see the loan and terms for which you qualify. If they are not able to confirm your data, you will be asked to enter your Social Security Number.
There is an easy-to-miss link at the bottom of the site called "Eligibility Criteria". We encourage potential borrowers to look through the information there, as several states are excluded from their personal loan program, and there are other state-specific details to be aware of. Also, it states that personal loan recipients must be US citizens or permanent resident aliens, be of the age of majority in their state of residence, and must be currently employed.
We love that SoFi publishes its personal loan rates and that there are no prepayment penalties or origination fees: "what you see is what you get". Their loan rates are consistently very competitive with other loan companies.
Loan terms from 2 to 7 years were available for both fixed and variable interest rate loans, in amounts ranging from $5,000 to $100,000.
SoFi also has several unique perks that we like, from referral bonuses for new members referred by current borrowers (both parties get a cash benefit), to unemployment protection that suspends payments required from borrowers - for up to 12 months over the course of the repayment term - who lose their job through no fault of their own. SoFi even provides help through its Career Strategy department to assist borrowers in their search for a new job!
If you're in the market for a personal loan, you'll definitely want to take a look at what SoFi has to offer. We give them a strong recommendation because of their low interest rates, transparency, and lack of loan fees.
LendingTree is one of the most recognized names in the personal loan market. They connect borrowers with a wide variety of lenders that can meet their debt relief needs with loans ranging from $1,000 to $50,000.
As a connection service rather than a direct debt relief lender, the loan products that LendingTree offers and their terms and conditions naturally vary with each individual lender. One advantage of using LendingTree is the ability to survey multiple lenders' debt relief offers without having to disclose one's personal information to those lenders. You only have to make yourself known when you've made the decision to apply for the loan that best fits your debt relief needs. Borrowers can also use offers obtained on LendingTree to negotiate directly with lenders; LendingTree provides customers with lenders' direct contact information for that very purpose.
If you choose to research debt loans using LendingTree, be aware that you will need to provide your credit score, which is used by lenders to determine if they would like to compete for your business. Even if you have a low credit score, you may still receive loan offers, because LendingTree works with such a large variety of lenders.
One thing to note is that LendingTree's main website takes you to the page for entering your information to get started in the loan process. Other than that, there is very little information on that page. We were able to determine that entering your personal information will not impact your credit report or your credit score, although we would have liked to see that fact clearly spelled out on LendingTree's landing page.
With a solid A+ rating from the Better Business Bureau, reliable history, and its ability to connect debt relief borrowers with a wide range of potential lenders, we give LendingTree good marks.
LendingClub has experienced some big changes over the last few years. Originally created as a peer-to-peer platform, where individual and business investors could choose to fund consumer loans (hence the name LendingClub), this source of debt relief loans now operates like a traditional financial institution. All funding is provided by LendingClub's own bank by the same name, making the loan application extremely streamlined when compared with platforms that refer you to multiple lenders at once.
No surprises in the application process
To get a debt relief loan through LendingClub, start by entering your desired loan amount (between $1,000 and $40,000) and selecting the loan's purpose in the dropdown box, then click on "Check Your Rate" . Indicate whether you're applying alone or with a co-applicant, your date of birth, and your total annual income. Finally, enter your first and last name, plus your address, and LendingClub will try to verify your credit report. If it can't do so based on the information provided, you'll be asked for your Social Security Number.
Expect origination fees and just-average interest rates
What can you anticipate if you are matched with a consolidation loan? That largely depends on your details: how much you're trying to borrow, your credit history, your income, and so forth. All debt relief loans funded through LendingClub have a minimum repayment term of at least three years, giving you ample time to repay it. Interest rates here are fairly average, with APRs ranging from 8.05% to 35.89%. You should also expect origination fees ranging from 3% to 6%, which may or may not be rolled into the total cost of the loan or deducted from the payout deposited to your bank account. LendingClub's fine print at the bottom of the loans page said that their average loan has an origination fee of 5% and an APR of 15.95%.
Still being re-evaluated by the BBB
How about LendingClub's reputation? It's not really an apples-to-apples comparison, given how drastically their business model has changed since our last evaluation. However, a few items stand out and are worth keeping in mind. The company used to have an "A" rating from the Better Business Bureau, but their listing during our most recent check with the BBB was simply "Not Rated" . That indicates that LendingClub's new structure is still under consideration. More reassuringly, their sole lender WebBank received both accreditation and an "A+" from the BBB: you shouldn't encounter any issues with fraud or other problems if you pursue a debt relief loan through the LendingClub website.
Plenty of recent, positive customer comments
We also followed the link on the LendingClub site to see some of the more than 57,000 independently-verified reviews posted there, so that we could see what their most recent comments indicated about the new-and-theoretically-improved service. Most of the clients gave LendingClub a rating of 4 or 5 stars, and we were happy to see that a decent number of those came from repeat customers.
Should be fine
LendingClub appears to be on the right track, having made quite a few changes to their service that have gotten lots of positive feedback from borrowers. Until the company has an actual rating from the BBB, we hesitate to give LendingClub a rating higher than "slightly above average" . Reputation matters, and while LendingClub seems to have fixed some of the issues that they had in the past, we'd like to see confirmation from the Better Business Bureau too. You should be fine if you choose a debt relief loan here, but we encourage you to consider several other options too.
CareOne Debt Relief Services is actually a single face for a group of debt relief providers. They work to match you up with the best debt relief option that fits your particular needs. Working with debt loads as low as $2,500, CareOne providers offer an array of debt-fighting solutions.
To become a CareOne provider, companies must meet rigorous professional standards, such as provide access to account information 24 x 7; provide monthly statements to customers where appropriate, and meet high customer service expectations.
Filling out the online application at the CareOne website is a simple exercise. You enter some personal information about yourself (name, address, phone), and then some information about your current outstanding debt. There is no commitment on your part for filling out the form; it simply gives CareOne providers the information they need to find an appropriate debt program to assist you. After reviewing your free debt analysis, you may elect to enroll in a debt relief plan online or call to speak with an associate.
Enrolling online at the CareOne website gives you access to the following:
The CareOne website is TrustE certified. This helps ensure safe online business practices and privacy considerations. The website is also very professional and easy to navigate. If you have a total debt load from $2,500 and up, CareOne providers are an excellent choice.
American Debt Enders is a New York based company that started in 2007. They offer free, no obligation, credit counseling to identify the best way to improve your financial situation. Some of their specific services include debt settlement, debt consolidation, and credit repair. The American Debt Enders website offers easy-to-read information that educates you about your options, including the pros and cons of each program they offer.
If it's identified during the free credit counseling session that debt settlement is the best route for you, they require at least $10,000 in unsecured debt. The American Debt Enders debt settlement program is FTC compliant. You will enjoy full attorney representation should you get sued by any creditors prior to settlement - at no additional cost. A quick settlement process usually occurs because creditors want to reach an agreement for cash.
For those with debts totaling $5,000 or more, the debt consolidation program at American Debt Enders may be an option. Debt consolidation services negotiate lower interest rates and payments for each unsecured loan to have your credit cards paid off in approximately 5 years.
American Debt Enders is a no-nonsense company that does a good job of both educating the consumer and identifying viable solutions to assist those that have accumulated too much debt. We appreciated the informative website and the helpful nature of the credit counselors we spoke with. If you're struggling with unmanageable debt, American Debt Enders offers programs that are worth considering.
Accredited Debt Relief is a reputable company that helps customers reduce their debt obligations by matching them with partner services. Just by looking at their "Proven Results" page, it's easy to see the advantages of working with ADR. For example, their customers with debts owed to Bank of America were able to reach settlements that saved them anywhere from 52-80% of the original amounts owed. Similar results are listed for clients of HSBC, The Home Depot, Sears, and many other businesses. According to the fine print at the bottom of the page, Accredited Debt Relief tells clients to expect to pay up to 75% of their enrolled debt balance, which includes any fees charged by ADR's debt relief partners, over the course of two to four years.
To get started with Accredited Debt Relief, you'll need to enter your first and last name, email address, state of residence, phone number, and the amount of debt you're looking to manage (from $1 to over $100,000). You'll receive a call from one of ADR's representatives, and you are asked to have a recent copy of your credit scores and credit reports on hand to prepare for the discussion. You can get that information for free on the page after you enter the information described above, by clicking on the "Get My Free Credit Scores Now" button. During the phone call, the debt specialist will go through your credit profile, to get a feel for your situation and help you to understand the available options.
We were impressed by the overwhelming number of customer reviews that described Accredited Debt Relief's representatives as kind, knowledgeable, and patient. Although they do eventually wind up handing you over to a partner company at some point during the process, since ADR is not a relief company in itself, it's good to know that people are in good hands from the start. Their A+ rating with the Better Business Bureau is further evidence that they deliver what they promise.
Our main reason for not giving Accredited Debt Relief a score higher than 3.5 stars was a lack of information on their website. Most of their higher-ranked competitors provide details as to the average fees charged - either by themselves or by the debt relief companies with which they partner - so that prospective clients can get an idea of those rates before making that first contact. Also, the ADR site says in multiple places that they operate in "most states", but that their service is "not available in all states and [their] fees may vary from state to state". It would save customers time if they knew in advance that their state is not one of those covered by Accredited Debt Relief's services.
Overall, Accredited Debt Relief demonstrates a great track record for quality customer service as they connect people with debt relief services.
OneMain Financial is a big name in the consumer loan market and has been business since 1920. They offer debt relief loans and mortgages to consumers and have earned an A+ rating from the Better Business Bureau.
OneMain earns high marks for their reliable history and their current BBB rating, but they miss the mark with website friendliness. Their current interest rates and respective fees are difficult to find within their website, making it hard to identify if OneMain is worth your consideration. Customers must speak to a customer service representatives at OneMain to identify the basic information that most companies are willing to provide on their website.
Customer feedback of experiences at OneMain frequently reported high interest rates, hidden fees, and mandatory loan insurance. Some customers identified a 25%-38% loan rate before additiional fees were added in.
For those looking for a debt relief loan, OneMain will lend money to those with lower credit ratings and no collateral. However, the cost seems to be a high interest rate and spotty customer service. This company appears strong and solvent, so it is a legitimate lending source. Our concerns cenetered around the cost associated with borrowing money from OneMain, and whether that would ultimately help or hinder customers efforts to improve their financial situation.
Savvy Money is unlike most debt relief companies. After asking some simple questions it determines online what direction you need to take to pay off your debt.
The process of assisting customers at Savvy Money is pretty simple. You identify your current payment history, and whether you can afford to pay more, the minimum, or less. You identify how much you owe in credit card debt, car loans, mortgage payments, and more. Almost instantly a plan is "built" for you. The plan shows you how much interest you'll save, your total monthly payments and when your debt will be paid off. If you're currently unable to make your minimum payment, the website will direct you to a debt settlement company called Freedom Debt Relief.
For those that can afford the minimum monthly payment, Savvy Money promises a no-nonsense online program that guides you on how much, when, and where to make your monthly payments. Essentially, you pay off the highest interest rate cards first.
When we entered some test information, they lumped in our mortgage payments and we were a little surprised to see that we wouldn't be debt free for another 18 years. However, with credit card debt being our biggest concern, we recalculated by removing our mortgage information to give us more of a feel of when we could anticipate being free of credit card payments.
The charge for the program is $14.95 per month and includes online access to a colorful, easy to read payment guide to help you with getting on top of your outstanding debt.
Savvy Money has a different approach than the standard debt settlement option for improving your finances without damaging your credit. The online calculator was interesting to use but ultimately the advice it gave was pretty simple. Is it worth $14.95 per month? It may be worthwhile to check out and see what their suggestions are. If you do sign up for their service, you can cancel within 7 days.
Debt Consolidation Care has a lot of debt relief information to share but unfortunately does so in a disorganized and unprofessional and outdated manner. After much research we found that Debt Consolidation Care is a Nevada based company in business since 2004. They specialize in debt settlement and debt consolidation.
Debt Consolidation Care says they work to lower your monthly payments, reduce interest rates, waive late fees, reduce collection calls, help customers and avoid bankruptcy. The website discusses the background of the owner as someone enrolled in law school to better understand laws pertaining to debt relief. This was a bit unsettling as we would prefer to work with those that are experts and have completed the necessary education to avoid potential lawsuits.
Debt Consolidation Care also offers forums and poor quality videos to help consumers become more informed about their debt relief options. We found the videos to be unprofessional.
To start the process with Debt Consolidation Care you must provide your name, phone number, email, and unsecured debt number. Once submitted you can anticipate a phone call from someone to discuss the actual program available at Debt Consolidation. At the time of our review we attempted to get assistance via the Live Chat but no operators were available to assist. We also noted that the BBB provides an A rating for this company but doesn't list it as a debt settlement provider. We thought this was a bit strange and along with the lack of a transparent pricing structure, minimum debt requirement and the states Debt Consolidation Care survives proved to be disappointing.
We couldn't find any reason to work with Debt Consolidation Care. We were disappointed with their busy website, the expertise of the owner, cost disclosures, and program highlights. We would recommend you choose a higher ranked company that is more educational and informative.
Fast Track has been in business since 1998 and offers a single service, for business or personal debt, known as their debt settlement service. This Florida based company offers a bright attractive website but we had trouble finding the nuts and bolts of what they actually provide and what fees we could expect to pay.
Fast Track Debt Relief says they work to settle unsecured debt within 36 months. Our first concern was the length of time that may mean creditors would be harassing us while payment were not being made. Most of the program details are provided through a debt expert that will call to discuss your personal situation. To get started you must provide your name, phone numbers, email, amount of debt, location and whether you own a home or not. After waiting up to 24 hours you will receive a phone call - which may or may not be at a time that is convenient for you to discuss your situation and their program.
Similar to other programs, Fast Track asks that you stop making payments and direct those funds each month to an account with them where your funds will build for settlement negotiations and also to pay their expenses. We found numerous counts of Fast Track unsuccessfully being able to negotiate down debts but still taking thousands of dollars in fees. We would have liked to have seen more of a guarantee or customer satisfaction policy. We also found several results of customer service staff that weren't helpful at Fast Track, and were unable to answer pressing questions.
Overall, the single service offering at Fast Track Debt Relief will most likely not fit everyone's needs. They unfortunately lack the forthcoming information we like to see with debt relief companies where a lot of trust in placed in making positive efforts toward improving someone's finances.
With all the debt-related offerings available, it can sometimes be confusing when examining the different debt relief programs and companies. When comparing your debt relief options, there are a number of important features you should consider. Some of these include:
TopConsumerReviews.com has reviewed and ranked the best debt relief programs available today. We hope these reviews help you in your quest to become debt-free!
If debt is mounting and you continually find yourself struggling every month, it may be time to seek debt relief. An important part of selecting the best way to eliminate your debt is to realize when it's time to ask for help. Debt consolidation and debt settlement programs are both very popular ways to help consumers get out of debt in a short period of time, but are they right for you? Neither of these programs are available for people who are simply tired of paying their bills, but they are available to those who are already late with payments, have bills in collections or have had a sudden change in their income.
There are a number of non-profit organizations currently offering debt management services, which include both debt consolidation and debt settlement. Some companies may offer both, while others may specialize in one or the other. In order to be eligible for either of these programs, you must be able to show that there is not sufficient income to pay your bills as they currently require. If this sounds like your situation, debt relief may be just a phone call away.
If you are receiving calls from your creditor's collections department, speak with them openly and honestly regarding your situation. Once you have signed up with a debt management company specializing in either debt consolidation or debt settlement, inform your creditor(s) of the name and telephone number of the company. In most cases, this will stop the collection calls while the creditor verifies the information that you provided. By explaining the fact that you are working with a company who will be submitting a proposal on your behalf, most creditors will accept this information as your good faith desire to repay your debts. As the telephone begins to stop ringing, you will gain some much needed relief from the stress associated with being constantly reminded of your financial woes.
When a debt management company sends your proposed new monthly payments, interest rates and/or debt settlement offers, the creditor(s) will either accept or deny the offer. Within weeks, you will be informed of their decision and will have the ability to call the debt management agency to remain updated with creditor's responses. After 1-3 months of consecutive payments made through a debt relief agency, most creditors will begin to list your account as current with credit reporting agencies.
It is recommended that consumers check their credit report periodically in order to maintain the accuracy of the content and to prevent them from being a victim of identity theft. Each year, you are entitled to receive a free copy of your credit report from each of the three credit reporting agencies, including Equifax, TransUnion and Experian. If you enroll in a debt consolidation or debt settlement program, it's a good idea to check your credit report prior to enrollment and then again after six months. When you compare the two timeframes, you will likely see a great improvement as creditors begin to receive their payments and update your credit reports accordingly. If any of the information is inaccurate, you can file a dispute with the credit reporting agency and get the corrected version updated in a short amount of time.
Dealing with debt is not an easy task. In fact, it can be a very exhausting experience. Once you have faced your finances and made an important step toward eliminating your debt, your life will begin to improve right along with your credit score.
"Drowning in debt? Give us a call today and we'll get those creditors off your back for good!"
We've all heard the claims from debt-consolidation companies. The catchy television and radio commercials - promising to remove debt and make the endless phone calls from creditors stop - can be enticing for those who truly are drowning in debt. Desperate people can and do fall for these pitches every day, and end up with worse financial troubles than those with which they started.
The Better Business Bureau warns consumers against debt consolidation companies which make the following claims:
For every bogus debt consolidation company out there, a legitimate service exists that truly can help consumers who are overwhelmed with debt. But how do consumers tell the difference between a valid company and one that is just out to scam them?
To answer that question, a consumer must first understand what debt consolidation is and what it is not.
The way true debt consolidation is supposed to work is to take multiple sources of debt - such as from credit cards, mortgages, utilities and loans - and combines them into one manageable monthly payment. Properly combining debt can allow the consumer to still meet their financial obligations without draining their bank account each month.
True debt consolidation also should provide certain key benefits to clients who use a debt consolidation service.
One of the biggest benefits to debt consolidation is the reduction of interest rates on loans and credit cards. A big reason consumers get behind on payments and are unable to ever truly pay off debt is because they often are saddled with high interest rates. Even if they make the minimum payment each month, they may never realistically pay off the full amount due to compounding interest rates from month to month.
A quality debt consolidation service will make it a top priority to combine all debt and reduce the overall interest rate being applied to the monthly repayment process. If the company you have chosen does not offer this tactic, then they are not a company with which it is worth doing business.
Debt consolidators also should be able to combine all sources of debt into one monthly payment, and reduce or eliminate all late penalties and fees for their clients.
Select any 2 Debt Relief Companies to compare them head to head
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