Can Debt Relief Companies Really Help You Pay Your Debt?
Before hiring a debt relief company, it’s important to do a little research. You should look for a money-back guarantee and a website that doesn’t charge upfront fees. The company should also offer a free consultation to determine whether they can help you. The consultation will evaluate your debts and your financial situation, so you don’t have to pay anything until you’re ready. You can also check out the company’s reputation by checking independent third-party review sites. However, you should be wary of companies that cherry-pick their customer testimonials.
The main job of a debt relief company is to negotiate with creditors to reduce the balance of a client’s debt. This is different from filing for bankruptcy, which requires the debtor to repay only a portion of the amount owed. In addition, a debt relief company can help you pay your bills on time and deal with debt collectors.
Most leading debt relief companies will offer a free consultation. However, there is a catch: some companies do not disclose all fees upfront. The best companies will not charge a fee unless they successfully negotiate with a creditor on your behalf. A typical fee will be 15% to 25% of the total debt you enroll. In addition, some companies may charge an application fee, account setup fees, or administration fees. These fees can add up to quite a bit of money for debt relief.
There are many different types of debt relief services. Accredited Debt Relief, for example, provides debt settlement and credit counseling. If you have debt that’s more than $10,000, you’ll see the greatest benefit from this type of settlement. The company’s consultants will help you calculate a monthly payment that you can afford to make to the creditor. Once you have enough money in the escrow account, the company will begin the negotiation process.
Another popular debt relief company is Freedom Debt Relief. This company is based in California and has a reputation for helping consumers with unsecured debts. The company also offers a free debt consultation. During this consultation, a certified debt consultant will discuss your debts and your goals. They will then craft a customized debt settlement plan for you. In return, they ask you to save a certain amount of money for the settlement.
A debt relief company will also refer you to a nonprofit credit counselor. The purpose of a credit counselor is to give you financial education and help you manage your debts in a way that won’t harm your credit. This person will also negotiate with your creditors to get your debt obligations reduced. The credit counselor will negotiate with them to lower your interest rates.
Another debt relief company that offers debt settlement services is National Debt Relief. This organization was founded in 2009 and has helped thousands of consumers get out of debt. The company is transparent about its process and shares examples of past results. The company also offers free consultations with a debt counselor to discuss your debt settlement options. This service is available for most types of unsecured debt. The company works with all major credit card issuers and is accredited by the American Fair Credit Council. The company also offers services for business and collection debt.