Credit Solutions of America Evaluation
Hi Bill- I want to know what your opinion is on Credit Solutions of America OR an agency with similar services?
Hi Bill- I want to know what your opinion is on Credit Solutions of America OR an agency with similar services.
Thanks for your question, and yes... there are a variety of firms out there offering debt settlement and other forms of debt consolidation. Bill is friends with the folks at Freedom Debt Relief. They are a good debt settlement organization and are fully compliant with the FTC rules that were put into place in late 2010 that were implemented to protect consumers.
It appears that Credit Solutions of America is not a member of the Better Business Bureau (and they have hundreds of complaints, but be sure to factor in how many clients they have when evaluating complaints) nor are they a member of the leading industry association, like the AFCC (The American Fair Credit Council).
If you are curious about all of your alternative solutions, I'll outline a few below. Since debt consolidation comes in many forms, it is important that each consumer reflects on what their needs and concerns and financial situation is before signing up for an online debt consolidation program. The four primary concerns for most consumers are: i) monthly payment, ii) time to debt freedom, iii) total cost, and iv) the credit rating impact of the consolidation program. Be sure to evaluate each program, relative to your prioritization of these factors.
Credit counseling, or signing up for a debt management plan, is a very common form of online debt consolidation. There are many companies offering online credit counseling, which is essentially a way to make one payment directly to the credit counseling agency, which then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts - but with lower monthly payments. On average, most online credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan DOES show up on your credit reportÂ… and, unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy - or using a third party to re-organize your debts.
Debt settlement, also called debt negotiation, is a form of online debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years. It is important to keep in mind, however, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution of online debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy. The trade-off here is a negative credit rating versus saving money.
Debt Consolidation Loan
Many people think first of a debt consolidation loan when seeking online debt consolidation. This option typically means a second home loan (or home equity line of credit) or refinancing your primary mortgage. In a debt consolidation loan, you exchange one loan for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt. It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation, if there is ever a chance that you cannot afford the new mortgage payment you are now putting yourself at risk of foreclosure! In the case of a debt consolidation loan, most mortgages are 30 year loan, which means that the total cost and the time to debt freedom could be very high… but the monthly payment will be lower than other options and there is no credit rating impact.
Net-net: while there are many forms of online debt consolidation, many people with good to perfect credit who own homes should look into debt consolidation loans, while consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation.
However, each consumer is different, so find the online debt consolidation option that fits for you.
As to Credit Solutions of America, it appears that they have many BBB complaints -- but I would do your own homework and get the best solution and the best company for your own needs.
Bills.com makes it easy for you to apply for debt relief with qualified providers of debt help.
I hope this information helps you Find. Learn. Save.