Reviews of the Top Debt Consolidation Companies
Debt consolidation is a term offered to a particular type of loan refinancing. It typically refers to a procedure where a particular loan is taken out to pay off other loans. These types of loans are normally offered to individuals who need to address high consumer debt. It attracts people due to the fact that companies commit one easy payment and a lower rate of interest.
Companies offering debt consolidation and their overviews
In order to make an assessment of the viewpoint of various companies offering these facilities, we need to compare the features of their offers.
Offers by National Debt Relief
The company attracts its customers with a promise of reducing their loan amount by 50%. But, the main stipulation is that the minimum loan amount should be $7,500. They can allure customers as the people doing marketing for them assure that the entire debt will be settled between 24 to 48 months. There is no upfront fee though there are final fees that lie anywhere between 18% and 25% of the entire enrolled debt amount.
Freedom Debt Relief
The minimum debt amount for this company is the same as earlier one, i.e. $7,500. The term of the settlement of the entire debt is also the same. It means that the total debt will come to zero within a period of 24 to 48 months. Moreover, the customer is allowed to check the progress of tracking via an online Client Dashboard which stays open 24×7. Their final fees are also lower than the previous one. It stays between 15% to 25% of the entire debt amount. They also offer risk-free debt-relief consultation.
This company works in the area of credit cards. The company promises a reduction of payments for credit cards by 30% to 50%. Three types of debt solutions are offered by them, one of which is debt consolidation. Besides, the company also offers free online financial education webinars. Individuals who have or are working in the military are especially benefited with the exclusive type of counseling offered for their families. Nothing is mentioned about any upfront fee and there is no declared minimum amount of debt.
Accredited Debt Relief
This company highlights the availability of various plans for debt settlement or reconciliation. The marketing people for this company pinpoint the feature that negates any payment of fees till reaching to the settlement. They promise a refund of money if they fail to fulfill the commitment. The normal sum of debt has been fixed at $7,500. The average tenure for completion of debt settlement is between 2 to 4 years as is promised by many of the other peers too.
Cambridge Credit Counseling Corporation
The company charges a nominal upfront fee to be paid during registration and the amount is $40. Three types of financial solutions are offered to customers. These include credit counseling, debt consolidation, and housing counseling. The company attracts its customers with a promise of interest rate reduction that can amount to 64% while monthly payment may be reduced by 25%. No minimum amount is kept as a bare minimum and they promise that the total repayment will be made within a period of 48 months.
Countrywide Debt relief
The company promises full debt reconciliation and depending on affordability, the entire loan is sure to be settled within a period of 12-60 months. There is no upfront fee and the company promises not to charge a penny until the settlement of debt. Only 18% of the entire amount of loan is charged as a fee. They have stipulated that the minimum amount of loan should be $10,000.
It is often argued that debt consolidation affects the credit score of a person. However, it is observed that consolidation of credit card debt with personal loan could put no effect on the credit score.