What You Need To Know About Accredited Debt Relief
People unable to repay their debts but also ineligible for bankruptcy, or wishing to avoid such drastic measures, may consider debt settlement as a solution. A settlement occurs when a creditor agrees to take an agreed percentage of the original balance. This process usually occurs after a consumer becomes late in paying their bills due to financial hardship, making them appear to the creditor as a person at high risk of total default.
While some Americans are trying to settle down on their own, others sign up for a structured program that guides them through the steps and leaves the actual negotiations to the professionals. One of these programs available to Americans is accredited debt relief.
If you’re currently considering your debt settlement options, here’s what you need to know at a glance about approved debt relief.
A Snapshot of Accredited Debt Relief
Debt settlement has certainly helped thousands of Americans escape debt for less than they should have, but it’s not the right solution for everyone. In addition, each company in the industry has different registration requirements and terms of service.
Accredited debt relief only works with unsecured debt, such as payday loans, medical bills, credit card accounts, and some private student loans. The minimum amount to register is $ 10,000. This means that less indebted borrowers who wish to settle will have to explore other options.
Although the time to settlement can vary widely, this company cites 12 to 48 months as the “average” time it takes. The reason debt settlement requires a commitment to at least a year is because it takes time to save enough money through monthly deposits to start negotiating with creditors. After all, negotiations carry more weight if you are able to produce the settlement funds quickly. Small debts can be ready to pay in a matter of months, while larger debts can take years to process.
What is the cost of using accredited debt relief? According to American News and World Report, participants can expect to pay between 14 and 25 percent of their total debt listed as a fee. It is important to note that these fees are only applied after an account is terminated, not immediately when you enter the program. It is illegal for settlement companies to charge a fee before performing a service.
What accredited debt relief reviews say
An important thing to know about accredited debt relief is that it is accredited by the American Fair Credit Council. The AFCC acts as an industry ‘watchdog’, forcing its member organizations to uphold high standards of consumer protection. Choosing an AFCC member organization helps consumers avoid scams and unscrupulous companies breaking the law to make quick money.
Investopedia gives this company 4.4 out of 5 stars, citing its generally positive reputation as evidenced by customer reviews. However, there are also a few potential challenges to be aware of, such as:
- Some debt settlement companies give clients access to a convenient online portal that they can visit at any time to see their progress; Accredited Debt Relief only offers customer service by phone and email.
- Accredited debt relief currently works in just over 30 states, which means many Americans are not eligible.
- While resolution can take as little as a year, many clients take longer, such as two to four years, to see results.
The more you know about Approved Debt Relief before enrolling, the better you will be able to navigate the program requirements while avoiding unpleasant surprises. Knowledge is power when it comes to achieving desired results throughout the debt settlement process.
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