CuraDebt is a debt relief company from Irvine, California, trustworthy and with a lot of accreditations. It has helped over 20,000 customers so far and it operates in 36 states.
CuraDebt takes pride on its members of the counseling team, who have solid and extensive backgrounds ranging from Certified or Professional Financial Planning to business administration, mortgage management and others.
Pacific Debt Inc. has some of the lowest fees on the market, but the average reductions after fees are not great. They don’t operate in all states, but they have good ratings from customers, all the major industry accreditations and over 14 years of experience in this business.
Even though Debtmerica is a transparent, trustworthy debt settlement company, with many accreditations and good ratings, its fees are above standard and the reduction percentage after fees is lower than the average. It also requires a minimum of $10,000 in unsecured debts in order to accept you in the program.
Freedom Debt Relief (FDR) is an American company founded in 2002, by two Stanford graduates. It is one of the largest firms of debt settlement services in the country and claims to have helped more than 250,000 customers and resolved more than $4 billion through debt settlement so far.
New Era Debt Solutions is one of the best choices on the market today. They’ve managed to win over their customers by putting a lot of emphasis on transparency, they have low fees and obtain debt reductions up to 37%, they don’t have any upfront taxes and they don’t require a minimum amount of debt. We give a big thumbs up to this company and we think it’s definitely worth taking into consideration.
One of the biggest strengths of Superior Debt Relief Services is the fact that they have very good customer ratings. The number of complaints they’ve received so far is among the lowest on the market, while the reduction rates are some of the highest we've seen. The company has many years of experience in this field and a praiseworthy staff.
National Debt Relief (NDR) is an American company that provides financial services, from debt consolidation, to debt settlement and debt negotiation. It is one of the largest firms in the US and it has some of the most affordable debt relief programs on the market.
Oak View Law Group is actually a law firm based in California, but the company offers debt relief services as well, since 2007. It claims to have an 84% client satisfaction rate. However, it is not a debt relief company per se and it doesn’t have the major industry accreditations.
Premier Debt Help comes with a lower than average fee, 100% money back guarantee and 50% savings off your debt (as claimed on their website). Their specialists are really personable and helpful. They could invest more into their website and display more useful information for their potential clients (their industry accreditations, terms of service, the list of states in which they operate and so on).
Accredited Debt Relief is one of the nation’s top rated debt consolidation companies on the market. It is an accredited member of the American Fair Credit Council (AFCC) and the International Association of Professional Debt Arbitrators (IAPDA) and has an A+ score from the Better Business Bureau (BBB).
The company also does charitable work (donations to several organizations such as the Salvation Army, St. Jude Children’s Research Hospital, Father Joe’s Villages and others).
Last updated December 2, 2024
Debt consolidation is the action of taking out a new loan in order to be able to pay off several other smaller debts. The smaller debts are usually unsecured, meaning that there is no collateral, they are not backed by any asset (your house, your car, etc). Credit card debts, utility bills, medical bills, student loans, personal loans, all fall in the category of unsecured debts.
Debtors choose this type of refinancing for different reasons:
There are other available options that can ease the burden of debtors. There are also debt settlements (you negotiate your debt to a lower interest rate) and debt reliefs (when your debt is partially or entirely forgiven).
Debt consolidation loans usually require a collateral, as a guarantee in case you can’t afford to pay the loan at some point. Banks and credit unions accept only guarantees that can easily be turned into money. The most popular ones are homes and new cars. Smaller objects such as TVs, electronic devices, tools and others, are not accepted. The better your collateral, the better your interest rate. A house will typically get you the best interest rate.
If you choose to go to another kind of finance company, they may accept household appliances or even an old car, but they will most likely offer you very high interest rates.
There are many types of debt consolidation. Here are some of them:
When you are looking for a consolidation loan you could therefore ask a bank or a credit union. Another way to go is to borrow the money from online lending sites. They usually lend you more money on better terms and the approval process is simpler and quicker: you don’t have to go to an office for a face to face meeting, you don’t have to fill in forms over forms, pages-long.
Although there are many cases in which is better to consolidate your debt into a single repayment, before doing so, you should nevertheless take into consideration some factors: make sure that you can afford to pay off the new payment, be aware of the duration of the new loan and of the fact that by taking another loan, you will end up paying back a larger amount of money and over a longer period and have in mind that debt consolidation companies usually ask you for a collateral, in order to secure a larger loan, so you may have to use your home.
You should also be careful because going for a debt consolidation loan might hurt you credit score, at least in the beginning. Longer-standing debts are usually better for higher scores and when you replace certain debts before the original contract, that will most likely have a negative impact on your score. Also, you can’t really afford to miss a payment on this type of loan because it will appear on your credit report.
There are many advantages to going with a debt consolidation loan. You can save more money if you get a lower interest rate, it is easier to administrate your debts because instead of paying multiple ones, you only have to pay one and you could have a lower monthly payment.
But before you sign up with any company, make sure you make the right choice.
Here are some guidelines to follow when looking for a debt consolidation service.
Now that you know what to look for in a company that deals with debt consolidation, here are a few tips on what to avoid. If the company you want to sign up with does one or more of the following things, you would be well advised to keep your distance and look elsewhere:
There are a lot of predatory companies out there that are just waiting for the next uninformed victim. A few creative marketing strategies, cunning reps and a naïve customer it’s all it takes. That’s why no matter how badly you want to consolidate your debt, take your time and do your homework before taking any decision. Don’t be afraid to ask all the questions you want, read everything there is about a potential company, make sure it is registered, accredited, it has a good history and good reviews. And choose a firm that is tailored for your specific needs, because what might prove to work for some people, may not be that useful for others.
Here are some of the most popular debt consolidation companies on the market right now: National Debt Relief, Accredited Debt Relief, New Era Debt Solutions, Oak View Law Group, Pacific Debt, Freedom Debt Relief, Debtmerica, CuraDebt.
