About Us
About Debt Relief Reviews
Our team is composed of individuals who are committed to delivering the best customer experience when researching more information on debt companies.
Our customers trust Debt Relief Review to give them honest, insightful, in-depth reviews on debt consolidation, loans, and financial assistance.
Whether you are looking to consolidate large sums of debt or small monthly bills, you can feel confident that Debt Relief Reviews will provide you with the information you need.
Types of Debt Relief
Debt relief comes in many different forms. Whether you’re looking to consolidate your debt to one monthly payment or reduce your interest rate, there are options available.
Debt Consolidation
Debt consolidation is a term used to describe when you have multiple debts and consolidate them into one account. When this happens, there is only one monthly payment required to the new account, rather than keeping track of a handful of payments to multiple accounts. There are multiple programs and products available to help you consolidate debt. Some debt consolidation options include:
- Professional Debt Consolidation
- Debt Management Plans
- Personal Loans
Learn more about these options below.
Professional Debt Consolidation
Debt consolidation is when you negotiate with your creditors to pay less than what is actually owed on the account.
For example, if you owe $60,000 on your credit card accounts, you would make a deal with your credit card companies to accept $30,000 instead. The amount creditors will settle for varies based on a variety of factors.
Debt Management Plans
Debt Management Plans are debt relief programs that are exclusive to nonprofit credit counseling agencies.
You’ll work with a certified credit counselor to evaluate each of your accounts, your income, and your repayment opportunities. The agency will then negotiate with your creditors to reduce interest rates and fees associated with late repayment.
Debt Management Plans do not directly hurt your credit score.
Personal Loans
Personal loans are often used to consolidate other debts into one account. To do this, you apply for a personal loan, use the loan to pay off your existing debt, and then only pay the one monthly payment to your new personal loan.
This not only consolidates debt but can also reduce your interest rate and consequently, the amount you repay over time.
How do debt consolidation companies work?
Debt consolidation companies are available to coach you on your various debt relief options. During your initial consultation, the agent will ask you questions like:
- How much unsecured debt do you have?
- What is your income?
- Are you current on all of your accounts?
Then, the agent will do a soft pull on your credit to take a look at all your accounts and balances. This soft pull does not hurt your credit score.
Depending on the debt consolidation option that you’re eligible for, the agent will give you direction on your next steps to get started. Once you enroll, you may be subject to fees from the company. Fees vary based on the total debt you have and the company you’re planning on working with.
Check out our reviews for more information on the top debt consolidation companies.
Which Type of Debt Relief is Right for Me?
There are many types of debt relief available and it’s not always easy to know which option is right for you. If you have any questions about the above options, call a coach with our team. They’ll help you understand your financial situation and the options you have available. Here are a few guidelines to help you on your own:
- If you have over $7,500 in debt, professional debt consolidation could be the right option.
- If you have under $7,500 in debt, a Debt Management Plan could be right for you.
- If you have multiple high-interest debts and your goal is to reduce your interest rates and number of accounts, a personal loan is a quick and easy way to consolidate your debt.