Table of Contents Hide
- What Are the Best Debt Relief Companies?
- Best Debt Relief Companies in 2022
- Best Debt Relief Companies BBB
- Best Debt Relief Companies for Bad Credit
- Final Thought
- Best Debt Relief Companies FAQs
- Do debt relief companies also take care of bad credit?
- Which is better, paying off debt in full or debt settlement?
- Do banks help people with consolidation loans?
- Related Articles
Struggling with credit card debt, IRS debt, medical debt, or any type of unsecured debt? Debt relief companies are saviors who’d gladly help you settle your debt in record time. They design different types of programs to help you clear your debt and get your finances back on track. The best debt relief companies help you bypass your debt, leaving you with a lower debt to clear. In most cases, it is usually below the exact amount you owe. Therefore, they can be invaluable when maximized. If you have a whole load of bad credit piled up, then check out our top 2022 best debt relief companies with BBB ratings. They are debt experts who desire to see you rise and take charge of your finances.
What Are the Best Debt Relief Companies?
We simply can’t talk about the best debt relief companies without first explaining what a debt relief company is, right? Well, it doesn’t make sense. It’ll appear as if it’s the missing piece of something congruent. So what is a debt relief company?
No one wants a huge debt tied to their name. Aside from giving you a poor credit score rating, it also gives you a poor financial reputation. So, a debt relief company exists to help individuals stuck with debt settle their debt in record time. A debt relief company is a business that helps people who struggle with paying back their debt to clear their debt. They do this by assessing the total debt, and the income of the debtor and then renegotiating with creditors to decrease, cancel, or settle debts. Some also provide debt consolidation and debt management plans to individuals
How Do Debt Relief Agencies Work?
When a debtor contacts a debt relief company, there will be a consultation. Most debt relief companies offer this consultation without a fee. After the consultation, the client is advised to stop paying debts during the debt settlement period. At the same time, the debt settlement company will set up a savings account into which you will put money for a predetermined period. This is usually between 12 and 24 months. The company will then utilize this account to initiate negotiations with your creditors, possibly leading to a debt reduction and then settlement.
Why Do I Need to Stop My Debt Repayment?
Keeping up with debt monthly payments and still setting aside a designated amount would be almost impossible. That is why you will have to stop the premium payment and then begin to set aside the amount for some time. Secondly, debt relief companies usually persuade your lenders that you will be unable to repay the loan. As a result, your creditors assume obtaining money from your savings account is preferable to receiving no money at all if you file for bankruptcy.
Wouldn’t This Affect My Credit Score?
Sure, it will. Putting a stop to your monthly payment will result in significant damage to your credit score. But then, paying off your debt is also important. So debt relief companies always tell clients that the negative impact on their credit is just temporary and that paying off their debts will help them improve their credit score in the future.
How Much Do Debt Relief Companies Charge?
Debt relief companies in the United States charge 15-30% of the client’s enrolled fee. Fortunately, this includes every expense and fee that will possibly arise in the future.
Best Debt Relief Companies in 2022
What are the best debt relief companies? Several companies out there claim to help people with debt settlement, but which among these is the best in 2022? Well, we took the pain to run a background check on these companies and present you with a list of our top 5 best debt relief companies in 2022.
#1. National Debt Relief
National Debt Relief is at the top of our list of the best debt relief companies in 2022. This is the best overall in debt settlement. The national debt relief company does have a watchword, which is “Get Your Financial Stability, and Your Life Back”. Irrespective of how much debt you owe, there’s always a way out of it with National Debt Relief.
In 2009, National Debt Relief was established in New York City. In its first 10 years, the company successfully settled over $1 billion in debt within the United States. Why is it the best among other debt relief companies? National Debt Relief is one of the companies that has received accreditation from the American Fair Credit Council and the International Association of Professional Debt Arbitrators, as well as an exceptional A+ rating from the BBB, but that is not all. The National Best Debt Relief Company has grown into one of the largest and most reputable debt settlement companies in the country.
In addition to this, they have a track record of helping people deal with their debt in record time. Their money-back guarantee is proof of their expertise.
The company does have a mission, and that is to help individuals with simple approaches to dealing with their debt and becoming financially stable once again.
Their website enables them to create a dashboard through which they monitor their progress.
Generally, their services include the following;
- Credit cards,
- Personal loans
- Medical bills
- Business debt
- Student loans excluding taxes and mortgage loans.
Signing Up for a Debt Relief Program With National Debt Relief
It’s simple to sign up for any of the national debt relief programs. All you have to do is send them an e-mail or reach out to them over the phone. As soon as you contact them, your consultation will be booked. One amazing thing about their consultation is that it is free. Their team of experts takes things up from here, assessing your debt and coming up with the best strategy on how to clear the debt. Most often, it will demand that they re-negotiate your debt with your creditors. You will also put aside a set amount each month that will be used to clear your debt.
How Much Do They Charge?
Hey, calm down. There are no qualms or anything to fizzle out about. National debt relief will charge about 15 to 25% of your total debt. However, the charge will only come after you have reached a consensus with your entire debt. This is usually between 24-48 months.
To be eligible to enroll with National Debt Relief, you must have a minimum debt of $7500 unsecured debt. Another eligibility criterion is that you must also be behind by a good number of months.
Does It Operate in Every State?
No. There are about eight states in the United States where the national debt relief doesn’t function, and these are as follows;
- New Hampshire
- South Carolina
- West Virginia
#2. New Era Debt Solutions
Established in 1999, New Era Debt Solutions has settled over $250 million of debt within a record time. Like the first on our list of best debt relief companies, it also has an A+ rating from the BBB and a 4.9 out of 5-star rating on Trustpilot. Trust me, getting credit from these platforms is proof of expertise. It’s also their high level of customer satisfaction. You already know that the Trustpilot rating is based on satisfaction.
Unlike the first on our list of best debt relief companies, it doesn’t have a dashboard for clients. But you can get through to them via phone call, e-mail, or their online chat. However, you will get a free consultation with them. Generally, New Era Debt Solution will not re-negotiate with your creditors until the set amount for debt clearance has been paid consecutively for at least 6 months.
Is New Era Debt Solution Available In Every State?
The answer is no. Within the United States, Era Debt Solutions is not found in the following states:
How Much Does New Era Debt Solution Charge for Debt Settlement?
According to Investopedia, they charge 23% of the entire debt.
Benefits of Using New Era Debt Solutions
The following are the benefits of choosing the New Era Debt Solution for your debt settlement;
- Live chat is available.
- It is AFCC accredited;
- Fast response
- High level of customer satisfaction
Disadvantages of Using New Era Debt Solution
The following are some of the disadvantages of choosing the New Era Debt Solution for your debt settlement;
- The minimal amount of eligible debt to enroll is not disclosed
- It does not reveal fees on its website;
- It does not have a client portal.
- It doesn’t work in every part of the States.
- Support is only available Monday through Friday for current clients
#3. Accredited Debt Relief
Accredited Debt Relief is another debt settlement company that made it to our list of best debt relief companies in 2022. Since its inception in 2011, it has helped a lot of people to clear their debts. The various testimonies on their website are proof of their expertise. They are also AFCC-approved and focus on debt settlement.
Like the first two, Accredited Debt Relief also offers a free consultation to customers. Their team of experts helps clients with assessing and analyzing their debt. Why did Accredited Debt Relief make it to our 2022 list of Best Debt Relief Companies? because they help clients deal with bad debt and credit reports. They help clients with debt consolidation, debt management, bankruptcy, as well as debt settlement.
How Does It Work?
Accredited Debt Relief, as one of the best debt relief companies, assesses clients and then designs a set amount that should cover their debt or bad credit over time. The set amount is paid into another account and this is then used to pay off creditors after re-negotiating the debt with them. They also have a money-back guarantee, like the first in our list of best debt relief companies in 2022. This also attests to their professionalism and expertise.
Benefits of Choosing Accredited Debt Relief
The following are some of the advantages of choosing an Accredited Debt relief company to settle your debt;
- A proven track record of results
- A Certified Debt Specialist will provide you with a free consultation.
- You can save up to 50% on your monthly payments.
Disadvantages of Choosing Accredited Debt Relief
The following are some of the disadvantages of choosing an Accredited Debt relief company to settle your debt:
- There is a lack of pricing transparency.
The fourth company on our list of the best debt relief companies is CuraDebt. Established in 2000, this debt settlement company also helps people deal with debt consolidation and tax debt. Re-negotiating tax debt with state and federal governments? It is indeed a force to reckon with, which is little wonder why its website is filled with the testimonies of satisfied clients.
Additionally, the company charges no monthly administration fee and their cost is only about 20% of the total debt enrolled. They, like the other best debt relief companies, also received an A+ BBB rating for their transparent processes and great customer service, in addition to accreditation from the American Fair Credit Council and the International Association of Professional Debt Arbitrators. They also offer a free consultation during which you and a professional will come up with a solution, such as an offer in compromise, an installment plan, or a unique choice.
If you want CuraDebt to help manage your debt, you must owe at least $5,000 in debt.
Benefits Of CuraDebt Relief Company
The following are the benefits of using Curadebt to settle your debt.
- Their programs help with debt settlement and back taxes
- Free consultation with debt experts
- Settles tax debt
- Debt management solutions come in a variety of shapes and sizes.
- Fees are low and cheap.
Disadvantages of CuraDebt Relief Company
- Consultations are only accessible in person in Hollywood, Florida.
- There is no mobile app available.
- Debt management plans are not available in every state
- There isn’t a live chat option for customer service.
#5. Freedom Debt Relief
Established in 2002, Freedom Debt Relief has cleared over $10 million for its clients. Records show they have helped more than 650 clients settle their debt. If Freedom debt relief company will handle your debt, you must owe at least $7500 debt. Also, they charge 15%-25% of the total enrolled debt just like other best debt relief companies. They also offer a free consultation for clients. One amazing feature they have is that clients can monitor their progress via their website.
Benefits Of Freedom Debt Relief Company
The following are some of the benefits of using Freedom Debt Relief Company to pay off your debt.
- Customer service ratings are overwhelmingly positive.
- It provides access to a customer portal.
- Customer service is available 24 hours a day, 7 days a week.
Freedom Debt Relief Company Disadvantages
The following are some of the disadvantages of using Freedom Debt Relief Company to pay off your debt:
- Lack of transparency and illegal charges that result in lawsuits
- Does not reveal the states in which it operates.
- Results reporting is less transparent.
- To be eligible, you must have at least $7,500 in unsecured debt.
- There is no live chat available.
BEST DEBT RELIEF COMPANIES: Tips On Choosing a Debt Relief Company
Well, we all know there are several debt relief companies out there. How do I tell if a debt settlement company is authentic? What are the things to also look out for before choosing a company to help settle my debt? The following will be helpful.
#1. Contact a Credit Counseling Service
The first thing you should do when stuck with debt is to reach out to a credit counseling agency. Don’t worry, it is a nonprofit organization. So you wouldn’t be getting an exuberant charge for counseling. Unfortunately, they will only guide you but will not help out with your debt settlement.
#2. Inquire About Fees Right Away
Everyone knows that National Debt Relief charges about 15%–25% of the total debt. But there are debt settlement companies that hide that exact charge. So, before you settle for anyone, do ensure you get their charges before entering into a deal with them.
#3. Research On Your Own
Do not just choose a company because they claim to be among the top debt relief companies in 2022. Make sure you do a little check on them.
BEST DEBT RELIEF COMPANIES: Other Ways to Relieve Your Debt
Aside from striking a deal with any of the best debt relief companies, there are other alternatives that you can harness to relieve yourself of debt in 2022. Here’s a quick rundown of four debt-relief options for customers to explore.
#1. Contact your Creditors And Re-negotiate Your Debt
If you are choked up with debt and creditors are threatening you with a lawsuit, you can choose to take charge of your debt. First, contact your creditors and re-negotiate your debt with them. Tell them you are struggling to pay your debt and would love a more convenient means of clearing it. Trust me, they want their money back as much as you want to be free from debt, so they will accept.
#2. Get A Separate Account For Debt
Generally, a debt settlement company will ask you to pay a set amount into a separate account. Then this money is used to clear your debt. You can also decide to create a separate account for your debt and then use it to pay off your debt over time.
#3. Design A Debt Management Plan
Since you want to manage your debt yourself, rather than get debt relief companies to do it for you, you need a functional strategy. For instance, a relief company will ask you to set aside a separate amount. Then payment is made to your various creditors through this account. If you intend to manage your debt yourself, then you need a plan.
#4. Consolidation Loan
If your credit score still has a good record, then you can get a consolidation loan. Generally, the loans come with a minimum interest rate. This means you can pay off your creditors and then gradually pay off your consolidated loan. But then, keep an eye on the fees, you do not want an extra debt piling up in your name.
Best Debt Relief Companies BBB
BBB is an acronym for Better Business Bureau. Before we dive straight into debt relief companies that are BBB accredited, let’s take a brief peck at what the BBB is all about.
Best Debt Relief Companies BBB: Overview
BBB is an acronym for “Better Business Bureau.” BBB is a private, nonprofit organization that was established in 1912. It has a council under the umbrella body of the Better Business Bureau (BBB) system in the United States and Canada. What led to the birth of this organization? Deception. Before this came into being, some advertisers used deceptive activities to discredit advertising. In order to curb this, some executives organized a National Vigilance Committee to oversee businesses with local affiliates, and this gave birth to the present-day Better Business Bureaus groups.
To date, Better Business Bureau investigates and sets standards for business activities including debt relief companies. They also review complaints of any improper practices and undertake educational programs to alert the public to deception and fraud in advertising and selling.
Best Debt Relief Companies with BBB Accreditation
The following are some of the debt relief companies in the state with BBB accreditation and rating;
- DMB Financial Debt Relief
- CuraDebt Relief
- Freedom Debt Relief
- National Debt Relief
- Century Support Service Debt Relief
- Citizen Debt Relief
- New Era Solutions Debt Relief
- Pacific Debt Inc
Best Debt Relief Companies for Bad Credit
Bad credit simply means someone’s credit score is poor and this will make him struggle or be unable to pay his debt in the future. It is the result of defaulting loan repayment over time. Both individuals and companies can have a bad credit report on their credit scores. Anyone with bad credit will find it very difficult to access loans in the future, however, this can be taken off someone’s record.
Best Debt Relief Companies for Bad Credit: Is There a Solution?
There is. You can opt to use a consolidation loan to offset your debt. A debt consolidation loan might help you simplify your monthly debt payments and get out of debt faster. It is usually a loan that comes with low-interest rates. While you use the loan to clear your debt, you can then gradually repay the loan. Several debt relief companies offer consolidation loans too that you can use to offset your credit.
Examples of Companies That Offer Consolidation Loans
The following are some of the best companies that offer consolidation loans to someone with bad credit;
- Universal Credit and so on.
Are There Alternatives To Debt Settlement?
Businessyield will always advise people to make debt settlement the last option when other means of dealing with debt are overruled. The following are the other the alternative you can opt to use if you do not want to use debt settlement;
#1. File for Bankruptcy
You can decide to file for bankruptcy but this will also affect your credit score negatively.
#2. Consolidate Debt
Debt consolidation is the credit process of consolidating various debts into a single monthly payment.
#3. Debt Management Plan DMP
This is a program that helps a debtor to restructure his debt. When you enroll for a DMP, you will pay a set amount to your DMP account. Then money will be disbursed to your creditors from the account.
#4. Credit Counseling
When you opt to meet a credit counselor, they will assess your debt and then help you come up with strategies on how to manage them effectively. Debt
Debt relief companies do not just help you settle your debt, they help deal with the anxiety of accruing debt. But then, settling debt usually affect your credit score negatively. That’s why Businessyield advises everyone struggling with debt not to make it their first choice. Although debt relief companies will always say it’s a temporal effect, it may make it difficult for you to borrow in the future. So if you can’t make your present debt payments due to a life event such as a job loss or sickness, and you don’t want to file for bankruptcy, debt settlement should be your final option for getting your finances in order.
Best Debt Relief Companies FAQs
Do debt relief companies also take care of bad credit?
Yes, they do. There are debt relief companies that offer consolidated loans to take care of bad credit.
Which is better, paying off debt in full or debt settlement?
Paying off your loan in full is always a better option. Debt settlement usually harms your credit score, and this will affect your borrowing power.
Do banks help people with consolidation loans?
Yes, they do. There are banks that offer consolidation loans to help people deal with their bad credit.
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