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Legit Debt Relief Programs

What To Expect From Our Maryland Debt Settlement Program

Beware of Debt Scam – Find Legitimate Debt Relief Companies | Freedom Debt Relief
  • Affordable monthly payments based on your budget
  • Resolve your situation in 2-4 years
  • No upfront fees with low monthly fees- fees vary from 15-25% of the total enrolled amount and state of registration.
  • Personal attention from your assigned Account Manager and Certified Debt Specialist
  • Repayment plan and possibly lower interest rates.
  • Excellent Customer Service & Support
  • We negotiate decreased balances and lower interest rates
  • We don’t lend money and your financial data is safe with us!

Will National Debt Relief Hurt My Credit

National Debt Relief only does a soft pull of your credit, which won’t lower your score, during the application process. However, using National Debt Relief or any debt settlement company will have a negative impact on your credit. This is because you will likely need to stop paying your creditors while National negotiates your debts. And once settlements have been reached, your credit score may be negatively impacted by closed accounts or accounts that are marked as not paid in full.

With that being said, National Debt Relief has resources on tips to help you rebuild your credit after debt settlement. You can also read our guide on building credit for more ways to boost your score.

How Debt Relief Companies Work

Debt relief companies negotiate with your creditors with the goal of getting them to accept partial payment on the debts you owe. Before they begin negotiation, debt relief companies typically tell you to stop paying your debts, and to make monthly deposits instead into a savings account they set up for you. After the account balance reaches a target amount, the debt relief company approaches your creditors and offers partial repayment, often with the implication that you may file for bankruptcy and leave the creditors with nothing.

If negotiations are successful, your creditors will typically allow you to set up a payment plan that lets you pay off a fraction of what you oweas little as 40% to 50% of your original debt, or as much as 80%. Debt settlement companies typically keep 15% to 25% of the total debt amount for each settled account as payment, so the total savings to you could be minimal. Debt relief companies may also charge fees for setting up and maintaining the savings account as you pay off settled debts, which could take many months, depending on negotiated terms.

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Need Help A Complete Guide To Debt Relief Programs

A little bit of debt isnt necessarily a bad thing. With easy access to credit cards and loans, its quite easy to incur debt over ones adult life. Left unchecked, however, debt can quickly spiral out of control. Once this happens, it can negatively impact a persons monthly cash flow, credit score and quality of life. Thats where debt relief programs come in.

Debt relief programs and other debt-relief services like consolidation are one of the best ways to handle existing debt and start paying it down. With a good debt relief program, its possible to cut down on debt and become debt-free.

How Does Debt Relief Affect Your Credit

National Debt Relief

Whether you choose to apply for a debt consolidation loan or balance transfer offer, participate in a debt management plan, or settle your debt for less than what you owe, your debt relief solution is likely to affect your credit at least temporarily.

While the prospect of a credit hit may feel overwhelming, remember that if you stick with your plan to pay down your debt, any negative impact will likely fade over time. As you reduce your debt and consistently make on-time payments as planned, your scores may improve.

The alternative to debt relief filing for bankruptcy can be more difficult to wrap your head around. While bankruptcy is a legal tool that might help you lift some of your debt obligations, its impact on your credit can last up to 10 years depending on the type of bankruptcy you file.

Also Check: Are Student Loans Dischargeable In Bankruptcy

Debt Settlement Scams Involve Exaggerated Promises

Scammers often make unrealistic promises to entice you to fall for their con. They know that many borrowers are desperate to get out from under their debt burden, so unrealistic claims can be easy to believe. For example, they might claim that they can make your debts disappear or that they can settle your debts for a few cents on the dollar. One thing to remember is that debt relief companies and scammers canât force creditors to do anything. As a result, they canât promise that a creditor will forgive or reduce a debt.

Best Debt Settlement Companies For Debt Relief In 2022

* This article does not provide financial advice. Please seek help from a financial advisor if you need financial assistance.

If you find yourself struggling to pay bills and unable to keep up with debt payments, working with the best debt settlement companies can offer a way out.

The best debt relief companies work with your creditors or lenders on your behalf to settle your debt for a fraction of what you owe. Whether you have credit card debt, medical bills, IRS debt, or other types of unsecured debts, there are a variety of debt relief programs that can help get your finances on the right track.

But when it comes to debt settlement companies, not all services are created equal. Its imperative that the debt relief company you choose has a positive reputation, a transparent process, and reasonable fees.

Weve reviewed the best debt relief companies to help you find a reliable company that is trustworthy and affordable. All of the companies below offer free consultations, a variety of debt settlement programs, and are BBB accredited.

If youre ready to settle your debt for a fraction of what you owe, here are the top debt settlement companies of 2022.

Also Check: What Happens To Your Car If You File Bankruptcy

Relief Through Debt Settlement

Debt settlement is a financial game of chicken, and usually a bad alternative to bankruptcy. We do not recommend debt settlement for the vast majority of people. Bankruptcy is almost always a better option debt settlement is a last resort for those who face overwhelming debt but cannot qualify for bankruptcy.

Debt settlement companies typically ask you to stop paying your creditors and instead put the money in an account they control. Each creditor is approached as the money accumulates in your account and you fall further and further behind on payments. Fear of getting nothing at all may motivate the creditor to accept a smaller lump-sum offer and agree not to pursue you for the rest.

Not paying your bills can result in collections calls, penalty fees and, potentially, legal action against you. Debt settlement stops none of that while you’re still negotiating. Expect at least four to six months before the settlement offers begin. Depending on how much you owe, the process could take years.

And the continued late payments further damage your credit score.

You may also face a bill for taxes on the forgiven amounts . Lawsuits can lead to wage garnishments and property liens.

You can attempt to settle a debt yourself, or you can hire a professional. The debt settlement business is riddled with bad actors, though the Consumer Financial Protection Bureau, the National Consumer Law Center and the Federal Trade Commission caution consumers in the strongest possible terms.

There Are Pros And Cons To Using National Debt Relief

Debt Relief Programs – Reviews & Testimonials | Freedom Debt Relief

The pros include:

  • The company has been in business for a long time and has a lot of experience helping people get out of debt.
  • They have a good track record, with a BBB rating of A+.
  • They have a satisfaction guarantee, which means you can cancel the program at any time if you are not satisfied.

The cons include:

  • It can take up to four years to complete the program.
  • Your credit score will be impacted negatively while you are in the program.
  • There is a fee to join the program.

It is important to weigh the pros and cons of working with National Debt Relief before deciding if they are the right option for you. If you are struggling with debt, they may be able to help you get relief from your debts.

However, there are some risks associated with using their services, so it is important to understand what those risks are before making a decision.

Recommended Reading: What Is A 341 Meeting In Bankruptcy

National Debt Relief Overview

So Is National Debt Relief a scam? No, it is not a scam. National Debt Relief is a legitimate debt relief company that can help you get out of debt.

The company has been in business since 2009 and is one of the largest debt relief companies in the United States. National Debt Relief charges a fee for the total enrolled debt.

The company is accredited by the Better Business Bureau and has an A+ rating with the BBB.

National Debt Relief offer services such as credit counseling, debt consolidation, and debt settlement.

Canadian Debt Relief Program: Options You Can Trust To Help You With Your Debt

A licensed insolvency trustee would have been a better choice for this debtor rather than this debt relief company. Most people with consumer debt problems fall into one of three categories. Using these three categories, I will show what I would have advised this debtor. It is sufficient to say that the earlier you seek the services of a licensed insolvency trustee and avoid the debt consultants and their unrealistic promises, the more options you will have.

Your finances could be better, and you would like some help.

When you realize that you can do things better and wish to avoid trouble, you fall into this category. You can get proper financial advice from a licensed insolvency trustee at this stage. It is likely that if this debtor had approached me at the first sign of trouble, he could have avoided filing for bankruptcy. Things I might have discussed with him include:

My advice would have cost him nothing, and he would be in a much better financial position than he is now. Most likely, he would have avoided the need for a consumer proposal or bankruptcy altogether.

Your finances are beginning to get out of control.

You are in serious financial trouble.

canadian debt relief program

Recommended Reading: Does Bankruptcy Stay On Credit Report

Best For Transparent Qualifications: National Debt Relief

National Debt Relief

  • Debt consultations unavailable on Sundays

  • Must be experiencing a financial hardship

  • No support for back taxes

National Debt Relief is more transparent about the types of debt eligible for its services and what it takes to qualify than much of the competition.

National Debt Relief was founded in 2009 and is accredited by both the AFCC and the IAPDA. It stands out from the competition because of the transparency of its qualifications. National Debt Reliefs website contains a detailed list of the debts it can and cannot negotiate, along with what it takes to qualify .

As with most debt settlement companies, National Debt Relief primarily works with unsecured consumer and business debts, but you might be able to get help with some unusual debts like veterinarian bills and abandoned timeshares. Some of the debts it cant work with include secured loans , lawsuits, and taxes, but these exclusions are typical. You can expect to pay industry-average fees ranging from 15% to 25% of the total enrolled debt.

Before enrolling, youll meet with a debt advisor to discuss your finances and relief options. Consultations take place by phone during the companys normal business operations every day of the week but Sunday and is free.

Option : Do A Credit Card Balance Transfer So You Can Pay Off The Debt Interest

5 Things Legit Debt Settlement Companies Should Be Doing

This option only works if you have good credit excellent credit is better. Balance transfer credit cards offer 0% APR on balance transfers when you open the account. An excellent credit score means you qualify for the longest 0% APR introductory period possible. Some cards have promotions that run up to 18 or 24 months. That gives you up to two years to pay off your debt interest-free.

Be Aware of Fees: Balance transfers always involve transfer fees, even when you have 0% APR. You pay a fee for every balance you transfer anywhere from $3 to 3 percent.

How It Works:

  • You open a balance transfer credit, qualifying for rates and terms based on your credit score
  • Then you transfer the balances from your existing accounts to the new account with fees added.
  • You have a set number of months to pay off your debt with no interest charges.

Make sure to calculate carefully to ensure you eliminate the balance before the clock runs out. If you can, this will give you the biggest cost savings, because there are no interest charges. Otherwise, the interest rate on your debt could be even higher than it was originally.

Recommended Reading: How Much Is It To File Bankruptcy

Compare Education Funding Sources

It can be difficult to determine how to best finance your education. While everyoneâs specific circumstances are different, there are some general rules of thumb to consider in choosing a suitable aid package.

  • FREE FIRST. Try to exhaust your sources of âfreeâ money that you do not need to repay â i.e. grants and scholarships, as well as work-study employment â before taking out any loans.
  • THEN FEDERAL. If you have to borrow to finance your education, consider the loan package that makes sense for you and for your family. As a general rule, most borrowers benefit from exhausting funding from federal loans before turning to private funding.
  • SUBSIDIZED IF YOU CAN: Take out the maximum amount of subsidized federal aid that you qualify for before turning to unsubsidized federal loans. The government pays the interest that accrues on subsidized loans while you are in school, and during any grace or deferment period.
  • PRIVATE LAST, IF YOU MUST. You should generally turn to private student loans as a last result.
  • Compared to private loans, federal loans offer:

    Not All Debt Relief Companies Have Your Best Interests At Heart

    Before you entrust your financial future to a debt relief company its extremely important to be confident that you will be working with a credible provider. In 2010, after a boom in the industry, some debt relief companies were not acting in their clients best interests, so the Federal Trade Commission stepped in to implement stronger regulations to protect consumers. Also during this time, the American Fair Credit Council formed as a trade association to ensure compliance and transparency.

    As a result of these changes, many less-credible companies left the industry. Yet, there are still some bad apples. Protect yourself by doing your research before hiring a debt settlement provider. If you have questions, any company should be open and happy to give you the answers you seek. If a company avoids answering your questions, consider that your first red flag.

    Read Also: Is It Better To File For Bankruptcy Or Debt Consolidation

    Canadian Debt Relief Program: Before You Sign Up For Debt Settlement

    A Canadian debt relief program: it may seem like a good idea. Missed payments on your credit cards, loans or other unsecured debt, can lead to collection calls and worsen your situation. Choosing a debt relief program is often the last resort for Canadians to escape the grip of their creditors.

    As a solution to consumer debt problems, debt relief companies offer debt settlement programs and debt relief programs. As a debt consultant, you do not need any special education or licensing to operate. Often, their actions are detrimental rather than beneficial.

    This Brandon Blog is about a case I recently consulted about that is sad but true. This story is about a Toronto man who decided to use a Canadian debt relief program provided by a debt relief company to settle his debt issues. As a result of using that Canadian debt relief program, he is still unable to pay his bills, and is in a much worse financial situation now than he was before he visited the debt settlement company. To make matters worse, the debt relief consultant then got a licensed insolvency trustee to almost go along with his cockamamy scheme. Unfortunately, the Trustee woke up too late, after all the damage was done.

    I will explain it all to you.

    National Debt Relief: Best For Debt Settlement

    How Does the Freedom Debt Relief Program Work? Watch and Learn | Freedom Debt Relief

    National Debt Relief is our top pick for the best debt relief service of 2022. National Debt Relief was founded in New York in 2009. Since then, it has become one of the largest and most respected debt settlement companies in the nation with accreditations from the American Fair Credit Council and the International Association of Professional Debt Arbitrators as well as an impressive A+ BBB rating.

    In line with its mission of helping clients reduce their unsecured debt, National Debt Relief has a track record for settling many clients debts for just 30% of their total debt. The company is also known for its overall transparency, outstanding customer service, and money-back guarantee.

    National Debt Relief provides a wide array of debt settlement services, including business debt, credit cards, lines of credit, medical bills, personal loans, and student debt. However, the company does not handle mortgage loans and back taxes.

    Enrolling in one of the National Debt Relief programs is easy you can sign up over the phone. Next, youll receive a free consultation with one of the companys debt counselors. After discussing your situation and determining a solution, youll set aside a specific amount of money in a dedicated account each month. You will use this money to settle your debt for less than what you owe.

    In the meantime, the company will help coordinate your efforts and negotiate with creditors on your behalf.


    Read Also: What Debts Are Not Covered By Bankruptcy


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