Is it a good idea to use Accredited Debt Relief? (2024)

Is it a good idea to use Accredited Debt Relief?

Yes, Accredited Debt Relief is a legitimate debt relief company. It's been in business for more than a decade, is accredited by the Better Business Bureau and American Association for Debt Resolution, and has overwhelmingly positive reviews from past clients.

Does accredited debt relief really help?

Accredited Debt Relief says it has helped thousands of people reduce their debt by up to 40% or more, but fees could cost you up to 25% of the total amount of debt you enroll in the program. Also, services aren't available in many states.

Is debt relief program a good idea?

Debt relief can help make your monthly payments more manageable through debt renegotiation or replacing your debt with a new loan with different terms, including a lower interest rate, waived fees, an extended loan term or reduced balance.

Do you have to close your credit cards with accredited debt relief?

Debt relief through a debt management plan

Your credit card accounts will be closed and, in most cases, you'll have to live without credit cards until you complete the plan. (Many people do not complete them.)

Does debt relief hurt your credit?

Debt relief services may have a negative impact on your credit score, but that impact may not be as big as you think — and in some cases, it can help your credit. How these services impact your credit depends on the debt relief option you choose.

What is the best program to get out of debt?

How long does debt relief stay on your record?

Similar to Chapter 7 bankruptcy, debt settlement can stay on your credit report for up to seven years. While this may seem like a long time, the impact of this event on your credit report will lessen over time.

What is the downside to debt relief?

Cons of debt settlement

Creditors are not legally required to settle for less than you owe. Stopping payments on your bills (as most debt relief companies suggest) will damage your credit score. Debt settlement companies can charge fees. If over $600 is settled, the IRS will view this debt as a taxable income.

Can I buy a house after debt settlement?

Yes, you can buy a home after debt settlement. You'll just have to meet the lender's requirements to qualify for a mortgage. Unfortunately, that could be harder after you settle debt.

What are the cons of using national debt relief?

Can you open a credit card while on debt relief program?

You can't make any new charges on your existing accounts or get new credit cards until you complete the program. But you can get out of debt faster with total payments that are up to 50 percent less. It's also important to note that your credit counselors will help you set up a new budget when you enroll.

How to get out of $10,000 credit card debt?

Is credit card debt forgiveness a thing?

In fact, if you receive a solicitation that touts a government program to get you out of debt, you may want to think twice about working with that company. But the good news is that credit card debt forgiveness does exist — it's just not government-sponsored.

Can I buy a car after debt settlement?

Yes, auto loan lenders don't exclude those who have gone through bankruptcy. However, you'll pay higher interest rates if you finance the vehicle after receiving a bankruptcy discharge.

How much does debt relief drop your credit score?

Debt settlement can cause your credit score to fall by more than 100 points, and it stays on your credit report for seven years. If your creditors close accounts as part of the settlement process, this can cause your credit utilization to increase, which also negatively affects your credit score.

How can I get rid of my credit card debt without paying?

Bankruptcy is your best option for getting rid of debt without paying.

How to get rid of $30,000 in debt?

What is the most reliable debt relief company?

How to get out of $10,000 debt fast?

Debt Snowball Method – With this method you'll list your debts from smallest balance to largest balance and work on paying off the smallest balance while making minimum payments on everything else. Once the smallest balance is paid off you move on to the next smallest while still meeting all other minimum payments.

Is Freedom Debt Relief worth it?

The majority of reviews are largely positive, though a few people have registered complaints about the fees Freedom Debt Relief charges. Freedom Debt Relief is accredited by the Better Business Bureau and has an A+ rating. according to the organization. Based on customer reviews, the company earns 4.3 out of 5 stars.

What happens a year after a debt relief order?

A DRO ends 12 months after the date it is approved. These 12 months are known as the 'moratorium'. You do not make any payments to the included debts in this time and the people you owe cannot ask you to.

Does debt relief need to be paid back?

And, depending on the program, you may be able to get your interest rate lowered or have certain fees waived. Under the terms of a debt management plan, while you may receive more favorable interest rates or relief from fees, you still repay the entire principal amount owed.

Is debt settlement better than not paying?

Is it better to settle debt or pay in full? Paying debt in full is almost always the better option when possible. Research debt payment strategies — debt consolidation could be a good option — and consider getting financial counseling.

What are the benefits of debt relief?

Debt relief can take a number of forms, including reducing the debt, lowering the interest rate on it, or extending the period for repayment, among others. Creditors are often willing to consider debt-relief measures when the alternative is total default by the borrower.

How does freedom debt relief affect your credit?

According to data from Freedom Debt Relief, your credit score is likely to drop substantially during the first few months of your debt relief program. But after that first six months, credit scores trend higher.