The debt reduction software listed here will help you to come up with a plan to pay down items like credit card and loans, and save on interest.
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. Kurt rosenwinkel rapidshare. 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. 2018 Debt Relief Reviews National Debt Relief is our top rated debt relief company. They are BBB Accredited, in business since 2009, and they've helped over 100,000 customers get out of debt. If your debt load is $7,500 or more, National Debt Relief is a great place to start. The experts at CuraDebt can offer a comprehensive solution to address your debt issues.
Their counselors are well-versed in debt settlement, debt consolidation, tax debt relief, and more. Specializing in individuals with $10,000 or more in unsecured debt, CuraDebt offers many options, from the start to the debt free end.
While LendingTree does not fund debt relief loans itself, it does connect borrowers with a wide range of potential lenders and allows customers to negotiate directly with those lenders if they wish. Many of those lenders work with people who have less-than-perfect credit, making LendingTree a great place for researching debt relief loans. CareOne Debt Relief Services SM offer professionally run, quality programs. If you have total unsecured debt from $2,500 and up, this is an excellent option to pursue. Lending Club provides personal loans in the amount of $1,000 to $40,000 and may offer more affordable lending rates than a traditional debt relief program. Lending Club is a leader in facilitating personal loans between borrowers and individual lenders. American Debt Enders educates as well as provides viable, upfront, solutions to reducing your debt.
Their free credit counseling service is informative even if you decide not to go with them. We liked the speed at which they work to negotiate your outstanding debt. Accredited Debt Relief is a referral service that is partnered with a large network of debt relief companies.
At the time of our review, they maintained an A+ rating with the Better Business Bureau and had an outstanding track record for customer satisfaction. We would have liked to see more information about the typical fees charged by their partners, as well as a list of states where Accredited Debt Relief is allowed to operate. OneMain brings to the table a long history of providing debt relief loans and a strong BBB rating. However, the website lacks important details and we found numerous accounts of expensive interest rates and fees. Savvy Money has a unique approach for improving your finances without damaging your credit. The online calculator is interesting to use, but the advice given is pretty simple.
Is it worth the monthly fee? At first glance Franklin Debt Relief looks like a professional option for your debt settlement needs. After looking closer we had concern with the lack of transparent information and their customer service team. Franklin didn't win us over with any aspect of their services or expertise. Debt Consolidation Care lacked the professionalism and training that we look for in companies that take over someone’s financial future. The website was out of date and very busy – void of the specifics of their services and attention to customer service. Fast Track Debt Relief offers one debt settlement service for both business and personal debt.
While the website was bright and attractive, it lacked the transparency we like to see related to fees and program specifics. We found several customer complaints related to Fast Tracks inability to successfully negotiate down debt but still taking fees, leaving the customer worse off than before. 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 right debt relief company, to work with in order to address your financial needs. 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:.
Solutions. Does the company only offer one debt relief solution? Or are they well-versed in a number of options? Having a variety of choices means they can find the right debt relief program that fits your specific needs. How does the debt relief company get paid? The best ones will earn their money from a percentage of what they save you; that way, they only get paid if you save money. Dependability.
There are many fly-by-night debt relief organizations out there. How long has the company been in business? Are they affiliated with the BBB (Better Business Bureau)? Is this a company you can trust? 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! What To Do When You Find Yourself Deeply in Debt 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.
Having trouble paying your bills? Getting dunning notices from creditors?
Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car? You’re not alone. Many people face a financial crisis at some point in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or overspending, it can seem overwhelming. But often, it can be overcome. Your financial situation doesn’t have to go from bad to worse.
If you or someone you know is in financial hot water, consider these options: self-help using realistic budgeting and other techniques; debt relief services, like credit counseling or debt settlement from a reputable organization; debt consolidation; or bankruptcy. How do you know which will work best for you? It depends on your level of debt, your level of discipline, and your prospects for the future. Self-Help Developing a Budget The first step toward taking control of your financial situation is to do a realistic assessment of how much money you take in and how much money you spend.
Start by listing your income from all sources. Then, list your 'fixed' expenses — those that are the same each month — like mortgage payments or rent, car payments, and insurance premiums.
Next, list the expenses that vary — like groceries, entertainment, and clothing. Writing down all your expenses, even those that seem insignificant, is a helpful way to track your spending patterns, identify necessary expenses, and prioritize the rest.
Credit Card Relief Video
The goal is to make sure you can make ends meet on the basics: housing, food, health care, insurance, and education. You can find and money management techniques online, at your public library, and in bookstores. Computer software programs can be useful tools for developing and maintaining a budget, balancing your checkbook, and creating plans to save money and pay down your debt. Contacting Your Creditors Contact your creditors immediately if you’re having trouble making ends meet. Tell them why it’s difficult for you, and try to work out a modified payment plan that reduces your payments to a more manageable level.
Don’t wait until your accounts have been turned over to a debt collector. At that point, your creditors have given up on you. Dealing with Debt Collectors dictates how and when a debt collector may contact you: not before 8 a.m., after 9 p.m., or while you’re at work if the collector knows that your employer doesn’t approve of the calls. Collectors may not harass you, lie, or use unfair practices when they try to collect a debt. And they must honor a written request from you to stop further contact. Managing Your Auto and Home Loans Your debts can be unsecured or secured. Secured debts usually are tied to an asset, like your car for a car loan, or your house for a mortgage.
If you stop making payments, lenders can repossess your car or foreclose on your house. Unsecured debts are not tied to any particular asset, and include most credit card debt, bills for medical care, and signature loans. Most automobile financing agreements allow a creditor to any time you’re in default. No notice is required.
If your car is repossessed, you may have to pay the balance due on the loan, as well as towing and storage costs, to get it back. If you can't do this, the creditor may sell the car. If you see default approaching, you may be better off selling the car yourself and paying off the debt: You'll avoid the added costs of repossession and a negative entry on your credit report., contact your lender immediately to avoid foreclosure. Most lenders are willing to work with you if they believe you're acting in good faith and the situation is temporary. Some lenders may reduce or suspend your payments for a short time.
When you resume regular payments, though, you may have to pay an additional amount toward the past due total. Other lenders may agree to change the terms of the mortgage by extending the repayment period to reduce the monthly debt. Ask whether additional fees would be assessed for these changes, and calculate how much they total in the long term. If you and your lender can’t work out a plan, contact a housing counseling agency.
Some agencies limit their counseling services to homeowners with FHA mortgages, but many offer free help to any homeowner who’s having trouble making mortgage payments. Call the local office of the Department of Housing and Urban Development or the housing authority in your state, city, or county for help in finding a legitimate housing counseling agency near you. Debt Relief Services If you’re, and can’t work out a repayment plan with your creditors on your own, consider contacting a debt relief service like credit counseling or debt settlement. Depending on the type of service, you might get advice on how to deal with your mounting bills or create a plan for repaying your creditors. Before you do business with any debt relief service, check it out with your and. They can tell you if any consumer complaints are on file about the firm you're considering doing business with.
Ask your state Attorney General if the company is required to be licensed to work in your state and, if so, whether it is. If you’re thinking about getting help to stabilize your financial situation, do some homework first.
Find out what services a business provides, how much it costs, and how long it may take to get the results they promised. Don’t rely on verbal promises. Get everything in writing, and read your contracts carefully. Credit Counseling Reputable can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in consumer credit, money and debt management, and budgeting. Counselors discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.
Most reputable credit counselors are non-profits and offer services through local offices, online, or on the phone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S.
Cooperative Extension Service operate non-profit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals. But be aware that “non-profit” status doesn’t guarantee that services are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high fees, which they may hide, or urge their clients to make 'voluntary' contributions that can cause more debt. Debt Management Plans If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan (DMP). A DMP alone is not credit counseling, and DMPs are not for everyone.
Don’t sign up for one of these plans unless and until a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money. Even if a DMP is appropriate for you, a reputable credit counseling organization still can help you create a budget and teach you money management skills. In a DMP, you deposit money each month with the credit counseling organization. It uses your deposits to pay your unsecured debts, like your credit card bills, student loans, and medical bills, according to a payment schedule the counselor develops with you and your creditors. Your creditors may agree to lower your interest rates or waive certain fees. But it’s a good idea to check with all your creditors to be sure they offer the concessions that a credit counseling organization describes to you.
A successful DMP requires you to make regular, timely payments; it could take 48 months or more to complete your DMP. Ask the credit counselor to estimate how long it will take for you to complete the plan.
You may have to agree not to apply for — or use — any additional credit while you’re participating in the plan. Debt Settlement Programs Debt settlement programs typically are offered by for-profit companies, and involve them negotiating with your creditors to allow you to pay a “settlement” to resolve your debt — a lump sum that is less than the full amount that you owe.
To make that lump sum payment, the program asks that you set aside a specific amount of money every month in savings. Debt settlement companies usually ask that you transfer this amount every month into an escrow-like account to accumulate enough savings to pay off any settlement that is eventually reached. Further, these programs often encourage or instruct their clients to stop making any monthly payments to their creditors. Debt Settlement Has Risks Although a debt settlement company may be able to settle one or more of your debts, there are risks associated with these programs to consider before enrolling: 1. These programs often require that you deposit money in a special savings account for 36 months or more before all your debts will be settled. Many people have trouble making these payments long enough to get all (or even some) of their debts settled, and end up dropping out the programs as a result.
Before you sign up for a debt settlement program, review your budget carefully to make sure you are financially capable of setting aside the required monthly amounts for the full length of the program. Your creditors have no obligation to agree to negotiate a settlement of the amount you owe. So there is a possibility that your debt settlement company will not be able to settle some of your debts — even if you set aside the monthly amounts required by the program. Also, debt settlement companies often try to negotiate smaller debts first, leaving interest and fees on large debts to continue to mount. Because debt settlement programs often ask or encourage you to stop sending payments directly to your creditors, they may have a negative impact on your credit report and other serious consequences. For example, your debts may continue to accrue late fees and penalties that can put you further in the hole.
You also may get calls from your creditors or debt collectors requesting repayment. You could even be sued for repayment. In some instances, when creditors win a lawsuit, they have the right to garnish your wages or put a lien on your home. Debt Settlement and Debt Elimination Scams Some companies offering debt settlement programs may not deliver on their promises, like their “guarantees” to settle all your credit card debts for 30 to 60 percent of the amount you owe. Other companies may try to collect their fees from you before they settle any of your debts. The FTC’s Telemarketing Sales Rule prohibits companies that sell debt settlement and other debt relief services on the phone from charging a fee before they settle or reduce your debt.
Some companies may not explain the risks associated with their programs, including that many (or most) of their clients drop out without settling their debts, that their clients’ credit reports may suffer, or that debt collectors may continue to call them. Before you enroll in a debt settlement program, do your homework. You’re making a big decision that involves spending a lot of your money that could go toward paying down your debt. Enter the name of the company name with the word 'complaints' into a search engine. Read what others have said about the companies you’re considering, including whether they are involved in a lawsuit with any state or federal regulators for engaging in deceptive or unfair practices. Fees If you do business with a debt settlement company, you may have to put money in a dedicated bank account, which will be administered by an independent third party.
The funds are yours and you are entitled to the interest that accrues. The account administrator may charge you a reasonable fee for account maintenance, and is responsible for transferring funds from your account to pay your creditors and the debt settlement company when settlements occur.
Disclosure Requirements Before you sign up for the service, the debt relief company must give you information about the program:. Price and terms. The company must explain its fees and any conditions on its services. The company must tell you how long it will take to get results — how many months or years before it will make an offer to each creditor for a settlement. The company must tell you how much money or what percentage of each outstanding debt you must save before it will make an offer to each creditor on your behalf.
Non-payment. If the company asks you to stop making payments to your creditors — or if the program relies on your not making payments — it must tell you about the possible negative consequences of your action. The debt relief company also must tell you:. that the funds are yours and you are entitled to the interest earned;.
the account administrator is not affiliated with the debt relief provider and doesn’t get referral fees; and. that you may withdraw your money at any time without penalty. Tax Consequences Depending on your financial condition, any savings you get from debt relief services can be considered income and taxable. Credit card companies and others may report settled debt to the IRS, which the IRS considers income, unless you are 'insolvent.' Insolvency is when your total debts are more than the fair market value of your total assets. Insolvency can be complex to determine. Talk to a tax professional if are not sure whether you qualify for this exception.