Most Americans witnessed a really ugly economic downturn in the past decade. That downturn ended up causing major financial problems for many people. Personal debt has climbed to unprecedented numbers over the past few years and has left a lot of folks feeling stranded. One effective way to potentially streamline and lower your bills is through consolidation. Debt consolidation is a service that allows you to combine bills into one loan payment with more favorable terms including a lower interest rate and longer payout reducing the monthly payment overall.
If you are experiencing debt, then chances are you may need debt consolidation. Yet there are many questions you should ask or know the answers to before you even begin to ponder moving forward. For one, is debt consolidation right for you? Will debt consolidation help you or just drive you deeper into obligations? In addition to all of that, does debt consolidation really save interest? And if so, will you then end up making one smaller payment? To find out, it is important to choose a trusted, reputable debt consolidation firm and setup a consultation. Below, our expert team has reviewed the top debt consolidation loan services in 2017.
Freedom Debt Relief is one of the largest debt negotiators in the nation. They have been around since 2002 when the company was first created. They were founded by two Stanford Business School graduates named Bradford Stroh and Andrew Housser. Both of them noticed that back then, there was really no easy way for consumers to deal with personal debt. Their mission is to be able to help people get out of debt effectively through consolidating and minimizing fees. By combining all unsecured debts, they can help pay off those bills anywhere from 24 to 48 months. By doing this, you can avoid declaring for bankruptcy or falling deeper behind.
According to their statistics, Freedom Debt Relief (FDR) has helped clients resolved over $5 billion in debt. That number is larger than any other debt consolidation company in the nation. FDR has a program called “Fresh Start” which works in 5 steps. They begin by having one of their debt specialist evaluate your case and how much you owe. They then begin advising you on whether or not the company or program is right for you.
Once they have done this, they will then customize your debt program accordingly. FDR takes into account all of your needs, goals and other criteria. From here, they can determine about how much you will be able to pay each month. The next step involves you refraining from using your credit cards. Instead, you will begin to put away funds each month into a FDIC insured account. This account will be used to pay off your debts.
As the money in your FDIC account begins to accumulate, Freedom Debt Relief will then start to contact those you owe money to. During this process, they will begin to negotiate with them and make settlements on your behalf. Once all of your debts have been resolved, your FDR program will be successfully completed.
One of the first things to ask yourself or that you may wonder about a company you’re planning on using is if they are worth it. The first thing we did to find out if FDR was worth using was to check out their reputation. This involved complaints against them, lawsuits and testimonials. The very first thing which we found really impressive about Freedom was their high ratings from BBB (Better Business Bureau). They have an A+ rating which is not easy for a company to maintain after more than 10 years in business.
A company or online business having either positive or negative reviews about them is essential. That’s why the next step involved checking their online reputation based on complaints and reviews. According to sites such as Yelp.com, ConsummerAffairs.com, RipoffReport.com and several others, Freedom has a very high rating. Most of the reviews on Freedom Debt Relief were positive. In many of the testimonials, clients mentioned how much FDR helped each one of them reduce their debts. Considering how many customers they have worked with over the last decade, you can be assured that they have a very successful program.
When it came to complaints or charges against Freedom Debt Relief, most of them were about people complaining that it took too long for them to settle all debts. However, the length of the program is clearly stated on their website which is 24 to 48 months.
Even though there were a few minor complaints which have since been settled, Freedom Debt Relief has a lot to offer to help get of debt. Just keep in mind the length of the program before you sign up. In the end, if you are serious about clearing your debts, Freedom Debt Relief is a great program to help you to your goal of financial freedom.
For anyone out there who has $7,500 or more in unsecured debt, then National Debt Relief is a solid A+ rated business to work with. With a A+ BBB rating and hundreds of positive reviews of successfully getting out of debt from past clients, the National Debt Relief service is a top choice.
Based on extensive research, we found that National Debt Relief was a bit different than other peer companies. Even though they work to consolidate your debts, they also do much more. Through their counseling and resources, National’s objective is helping clients find financial footing. While working to successfully put an end to your debt, they also want you to learn responsible financials habits so you do not need their services again in the future. That is something to truly consider since it can be very easy for most consumers to fall back into debt later on. Their mission and ultimate goal is to help each client reach financial stability.
If there is one thing you can tell about any company by looking at their ratings, is whether or not they are both reputable and ethical. According to the Better Business Bureau (BBB), National Debt Relief has achieved a remarkable A+ rating. In fact, they have over 90% positive reviews. In addition to these ratings, they also have accumulated 4.87 out of 5 stars which is very impressive as well.
As with any company in business after a few years, there are bound to be complaints. One of the most common complaints we found with National Debt Relief was the amount of time it takes overall. Some of those complaining said that NDR took longer to pay off certain creditors than they expected. Others wanted more creditors paid off in lesser time. Overall though, there were only 1 out of every 10 clients which had something negative to say about them.
The vast majority of testimonials we found about National Debt Relief were very impressive. Hundreds of people praise the company for helping them finally resolve their debt problems. Others also happy with the counseling and other resources NDR used to help them stay debt free. While we did find a few complaints, those came from people who seemed frustrated with their situation. This tends to happen because debt consolidation is not easy and often takes longer to solve than most want. National Debt Relief appears to help the vast majority of those that sign up with them. Overall, their impressive BBB A+ rating, positive reviews and high ratings, make it easy to recommend using their service.
Before we begin to answer some of these questions or focus on the top debt consolidations companies offering help, let’s find out what debt consolidation is all about. Whenever debts are consolidated, what you are actually doing is combining all of your unsecure debts into one. Items such as medical bills, personal loans, credit cards, payday loans and so on, all fall into this category. The big difference of using debt consolidation is that instead of continuing to make multiple payments to different companies with high interest rates, you pay one single loan with lower interest rates. You only then have one monthly payment as opposed to sending out 4 to 8 different checks each month and save money overall with lower interest rates.
One of the most important things consolidating your debts into one does for you is save you money. Since you now only have one bill to send out instead of 5 to 10, things will change. For one, apart from less hassle of sending several payments each month, you only have one. Secondly, this helps to eliminate fees and penalties you may get for late payments. It is much more difficult to continually make several payments to various creditors. This is even more so if you are having problems making regular, on time payments already. Falling behind on just one payment, can result in costing you higher interest rates, fees and so on. Debt consolidation will eliminate the need for you to worry about each particular creditor. Instead, you can focus on only one.
When you take out a debt consolidation loan, all you are doing is moving all of the money you borrowed – or most of it – into the single loan. By doing so, you can then close out all the other accounts and clear your debts. There are a few things to keep in mind though.
For one, the majority of debt consolidation loans are unsecured. This means that if you cannot keep up with your payments, the lender won’t be able to lay claim to your home. But this still doesn’t mean you don’t have to pay them back. If you fail to do so, then the lender can take you to court or something else. When taking out a loan, be weary of secure loans. Using a secure loan means that if you fall behind on payments, your assets or property can be held against your debt. You can then end up losing your home or assets.
There are few pros and cons to debt consolidation loans you should be aware of before making any decision.
Being in debt can create a world of stress and problems for anyone facing it. In time, it will seem as if the walls are closing in and the roof is crashing down. However, there are options available to help you confront the debt you may be facing. Be certain you are ready to finally commit to being debt free before signing up with anyone. Once you have decided to do so, then you can let one of the these top rated debt consolidation relief businesses assist you. Everything starts one step at a time. Perhaps the end of your debts are only one step away from you using a great debt consolidation company such as one of these.