Debtmerica LLC is a debt resolution firm based in Orange County, California. It was founded in 2006 by Jesse Stockwell and Harry Langenberg, both graduates of the Wharton Business School at the University of Pennsylvania.
The firm is an accredited member of the American Fair Credit Council (AFCC), and all its consultants are certified by the International Association of Professional Debt Arbitrators, IAPDA. It has a BBB rating of A+, the highest rating possible. Since it was established, Debtmerica has helped over 20,000 clients resolve their debt problems.
Debtmerica provides debt settlement and debt negotiation services for unsecured loans, such as credit cards, personal loans, business loans, collection accounts, and medical debt. In certain cases, Debtmerica will also accept private student loans.
First, debtors voluntarily stop making monthly payments to their creditors. Instead, they deposit monthly payments to an FDIC-insured savings account controlled solely by the client. These payments are determined by what the client can realistically afford and are usually much lower than minimum payments customers made before joining Debtmerica’s debt negotiation program.
For example, a typical Debtmerica client will owe around $30,000 in unsecured debt. This amounts to minimum payments ranging from $900 to $1,200 a month. Once they join Debtmerica’s debt settlement program, monthly payments will likely be reduced to $500 to $700.
Debtmerica’s debt consultants then use the money in the savings account to negotiate a settlement with the creditors. This process applies to every account in the program until each one is settled in full. Clients usually resolve their debt accounts within 24 to 48 months.
Debtmerica’s programs are performance based; in other words, no fees are collected until a settlement occurs. There are no upfront fees and all costs are included in the monthly program payment. Fees vary from 20% to 24% of the enrolled debt depending on the amount of enrolled debt provided. When calculated over the course of a three to four-year program, this works out to an annual fee of 6% to 8% of the debt balance.
Debtmerica only charges clients for its services when a case is settled. Clients generally obtain a 45% to 60% reduction of their enrolled debt.
To illustrate, if you owe $30,000, and Debtmerica reduces your debt by 50%, you will pay your creditors $15,000 and Debtmerica $6,300 (average fee of 21%). A total saving of $8,700.
Debtmerica will generally only consider customers with $10,000 or more in debts. Although in some cases, clients with as little as $7,500 in debt are accepted.
Debtmerica provides the following advantages:
- It is accredited by the American Fair Credit Council (AFCC)
- All its debt consultants are certified by the International Association of Professional Debt Arbitrators, IAPDA.
- BBB A+ Rating (Highest rating possible)
- Has helped over 20,000 clients since it was founded in 2006
- It offers debt negotiation and resolution services for most types of unsecured debt
- New customers receive a free initial consultation.
- Debtmerica doesn’t charge any fees until it has settled your account.
On the other hand:
- Debtmerica does not accept customers with less than $7,500 in debt.