Accredited Debt Relief vs. National Debt Relief (2024 Guide)
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Summary:
National Debt Relief and Accredited Debt Relief are two reputable companies that provide debt relief services. While both aim to reduce debt and offer pathways to financial freedom, they differ in their service offerings and approach. This article will delve into the features these firms offer and the pros and cons of opting for debt relief.
Accredited Debt Relief and National Debt Relief are prominent names in the debt relief industry, both renowned for their commitment to helping individuals overcome financial challenges. Understanding the nuances of each company’s services and offerings is crucial to selecting the most suitable option for your debt situation. Before we dive into the services offered by these debt relief companies, let’s take a quick look at what debt relief means and why you may want to consider it.
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What is debt relief?
Debt relief is a service provided by companies dedicated to helping consumers get out from under their debts. Sean Fox, President of Debt Resolution at Achieve, points out that “debt relief” is more of a catch-all term that encompasses many options for paying off your debts.
“[D]ebt relief (which I’ll refer to as debt resolution) involves negotiating directly with creditors to reduce the amount of principal owed on unsecured debt. That includes credit card debt, medical debt that resides with providers or collectors, personal loan debt, some private student-loan debt, and some types of business debts,” says Fox, who emphasizes that debt resolution does not cover all types of debts.
Who can benefit from debt resolution?
While a debt relief firm can help to reduce the total amount you owe, it isn’t always the best option for everyone. For example, if you’re living paycheck to paycheck but you haven’t missed any payments and have good credit, you should consider other means of paying off your debts.
However, if you’ve missed credit card payments, have high medical bills, and think you may be headed toward bankruptcy, a debt settlement program may be your best bet. Bankruptcy should be avoided if at all possible because the consequences can be lengthy, says Natalia Brown, chief compliance and consumer affairs officer at National Debt Relief.
“Generally, bankruptcy is seen as the last resort. This is because while bankruptcy can help pay off unmanageable debts, it can also come with lasting consequences. For example, bankruptcy can have a very drastic effect on an individual’s credit report and history for up to 10 years. It may also make their chances of getting financial assistance in the future more challenging, such as when it comes to purchasing a home or a car.”
Accredited Debt Relief vs. National Debt Relief
No matter which debt relief company you choose, always do your research to ensure you’re aware of the services offered (or not offered) and the fee structure. Keep in mind that a reputable firm will not ask for any money upfront and should offer a free initial consultation to determine the best path for you to become debt-free.
National Debt Relief
National Debt Relief specializes in debt settlement services, catering to individuals with a minimum of $7,500 in unsecured debts. Through negotiations with creditors, National Debt Relief aims to reduce your total debt amount, which often results in substantial savings for clients. The following are some of the types of unsecured debts included in the company’s debt relief cases:
- Credit card debt
- Personal loans
- Lines of credit
- Medical bills
- Collections
- Certain business debts
- Some private student loans
After a free initial consultation, National Debt Relief will keep your monthly deposits in a dedicated savings account while negotiating with your creditors. Only after an agreement has been reached will you be charged any fees.
Accredited Debt Relief
Accredited Debt Relief offers a comprehensive range of debt relief solutions, including debt settlement and debt consolidation loans. With a focus on individuals with a minimum of $10,000 in unsecured debts, Accredited Debt Relief collaborates with creditors to negotiate favorable terms or offers debt consolidation options through affiliated lenders. This allows clients with differing needs to streamline their debt payments and potentially save on interest and fees.
Like National Debt Relief, Accredited Debt Relief offers a free, no-obligation consultation to find the best strategy for you. For convenience, consumers can call or fill out an online form. Once you’ve decided on a strategy, Accredited Debt Relief will work with you and your creditors to help lower your monthly payments and reduce your financial burden.
The firm states that debts are often resolved within 24 to 48 months, but the timeline varies based on the amount of your debts, as well as other factors.
Key factors to consider
When deciding between Accredited Debt Relief and National Debt Relief to clear up your unsecured debts, the following are some of the factors you’ll want to consider:
Types of debts covered
National Debt Relief covers a wide array of unsecured debts, including credit card bills, medical bills, and personal loans. By contrast, Accredited Debt Relief focuses primarily on unsecured debts but also provides debt consolidation options for individuals with multiple debts.
Service fees
While both companies charge fees based on the enrolled debts, the specific fee structures may vary. Individuals should carefully review the fee schedule of each company to understand the potential costs associated with their services. That said, you should expect to pay a fee between 15% and 25%, says Brown.
Customer satisfaction guarantees
National Debt Relief and Accredited Debt Relief both offer satisfaction guarantees, ensuring that clients only pay for services if they are satisfied with the results. These guarantees provide peace of mind and demonstrate the companies’ commitment to client satisfaction.
Pro Tip
“Just like any purchase one would make nowadays, we encourage individuals interested in debt relief to do their homework, read verified reviews, and research ratings on consumer advocacy organizations. Arming themselves with this knowledge will help them make the best decision for any service or product they are going to purchase.” — Natalia Brown, National Debt Relief
Accredited Debt Relief vs. National Debt Relief: Which is better?
The right choice between National Debt Relief and Accredited Debt Relief depends on factors such as the types of debt you owe, the company’s minimum debt requirements, and the services they offer.
For example, if you have more than $20,000 in debt and think a consolidation loan might be a good option for you, then Accredited Debt Relief may be the better choice. On the other hand, if you have less than $20,000 in unsecured debts and feel that debt settlement is your best alternative, you may want to get a quote from both National Debt Relief and Accredited to see which provides the best option for you.
It’s worth noting that because initial consultations are free, there is no harm in consulting with more than one debt relief company to find the one that best suits your needs.
Pros and cons of debt relief
Debt relief isn’t the right answer for everyone. The following are some of the advantages and disadvantages of using debt relief:
Alternatives to debt settlement
If a debt relief program isn’t suitable for you, here are some other methods you can use to pay off your debts:
Credit counseling
Sometimes your finances don’t need a drastic overhaul, though you still might benefit from some professional expertise. Credit counseling agencies, which are usually non-profits, can help you assess your finances, develop a budget you can live with, and come up with a debt management plan. Credit counseling usually comes with low fees, but be sure to research the agency to ensure you’re dealing with a reputable firm.
Consolidation loans
Another option if you’re struggling to pay off your debts is to look into consolidating your debts into a single loan, suggests Kyle Enright, president of Achieve Lending.
“Debt consolidation means combining debts “under one umbrella” at a beneficial interest rate for you. If you have multiple credit card accounts and are carrying debt on them with high interest rates, it can be an excellent idea to consolidate. It works by taking out a new loan — a personal loan — that has a lower interest rate than on your credit cards. With the proceeds from that new loan, you would pay off the balances on the higher-interest accounts. You are then left with just one monthly payment — at the lower rate.”
It’s important to note that to get the best interest rates on a consolidation loan, you’ll need to have good credit, which could be a stumbling block for some customers. Even with poor credit, you may still be able to get a loan, but the interest rates could be as high as (or even higher than) some credit cards. Before committing, be sure to research multiple lenders to find the best deal.
Pro Tip
“Depending on the individual, a home equity line of credit or home equity loan could potentially offer lower interest rates…only IF the person is a homeowner with enough equity in their house to qualify. (A caution to a home equity loan or line of credit is that they both use a home as collateral.)” — Kyle Enright, President of Achieve Lending
FAQ
Is National Debt Relief accredited?
Yes, National Debt Relief is accredited by the Better Business Bureau (BBB) with an A+ rating. It also holds accreditations from industry organizations such as the American Association for Debt Resolution (AADR) and the International Association of Professional Debt Arbitrators (IAPDA).
Can I trust Accredited Debt Relief?
Accredited Debt Relief is also accredited by the BBB and AADR and maintains a positive reputation on various review platforms. With a positive track record of resolving client complaints and offering reliable services, you can be sure Accredited Debt Relief instills trust among its clients.
Key takeaways
- Both National Debt Relief and Accredited Debt Relief offer effective solutions for reducing or eliminating debt.
- National Debt Relief specializes in debt settlement services, while Accredited Debt Relief provides options for debt settlement and debt consolidation loans.
- Before choosing an option, consider factors such as the types of debt you have, as well as the companies’ minimum debt requirements and service offerings.
- If debt settlement isn’t right for you, alternatives include credit counseling and debt consolidation loans.
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