TrustedCompanyReviews.com (TCR) has released the Top 10 Debt Relief Companies For 2020. TCR is one of the oldest review companies in the world, reviewing all types of businesses. TCR also shares insight into the most common complaints against debt relief companies and provides clarification on the biggest misconceptions that consumers have about debt relief programs.
San Diego, CA, March 04, 2020 –(PR.com)– TrustedCompanyReviews.com (TCR) announces the best debt relief companies in the nation for 2020. TCR’s reviewers conducted six-plus months of extensive industry research, checked each company’s licensing and accreditations, reviewed complaints on other review sites, compared time in business for each company, and spoke with clients to verify certain pieces of information.
This year’s top company was Golden Financial Services, one of the few companies on this list to offer multiple programs that include a money-back guarantee and credit repair, is certified and accredited and has over eighteen years in business.
#1 Debt Relief Company: Golden Financial Services (GFS)
GFS Debt Relief Pros:
-Over eighteen years in business
-Better Business Bureau (BBB) A+ Rating
-Offers multiple programs
-Programs can help with almost any type of unsecured debt, including credit card debt, medical bills, car repossessions, personal loans, private and federal student loans, PayPal debt, and finance company loans
-A money-back-guarantee included in the debt validation program. On the attorney-model debt settlement program, there’s an assurance of performance, which is similar to a guarantee
-Credit repair included with debt validation
-Certifications: Counselors are all Certified by the International Association of Professional Debt Arbitrators (IAPDA)
Golden Financial’s website at GoldenFS.org provides free financial education, national debt calculators, do-it-yourself debt relief free help guides, and lots of disclosures illustrating the downsides of each debt relief program.
Golden Financial Services offers a Free Consultation at (866) 332-3083 from an IAPDA Certified Counselor. To qualify for a program, consumers must owe $10,000 or more in debt.
#2 KC Credit Services
#3 AARP Foundation Tax-Aide Program
#4 Pacific Debt Inc.
#5 Care One Services, Inc. (Care One Debt Relief)
#6 First (1st) Choice Debt Relief
#7 Freedom Debt Relief
#8 National Debt Relief, LLC
#9 Fast Track Debt Relief
#10 Attorneys Tax Relief
See the pros and cons associated with each debt relief company at:
Paul J Paquin, the CEO at Golden Financial Services, was asked about his advice for consumers who are looking for a debt relief service. Paul explained: “Similar to the process of selecting a doctor for surgery and understanding how you’ll deal with potential complications if they were to occur, with debt relief programs, you’ll need to do your due diligence on the company and pay close attention to the potential downsides. For example, if on the rare occasion you receive a credit card summons, how will this get resolved? If your credit score goes down, what’s the game-plan to rebuild your credit score? Is the debt relief company explaining all of these details to you or hiding them?”
Summary of How Each Debt Relief Program Works
1. Debt settlement is when a debt gets negotiated down to around half of the balance and settled. Including debt settlement fees, consumers end up saving around 25%-30% with a debt settlement program. The reduced payoff is considered “payment in full.” $25,000 in credit card debt can get resolved with debt settlement in three years at a monthly payment of $475.07.
2. Debt validation disputes an unsecured debt collection account, rather than settling it. When proven to be legally uncollectible, the debt no longer needs to get paid and can’t legally remain on credit reports. $25,000 in credit card debt can get resolved with debt validation in three years at a monthly payment of $357.06.
3. Consumer credit counseling programs negotiate down the interest rates on credit cards and consolidates monthly payments into one. $25,000 in credit card debt can get resolved with consumer credit counseling in four in a half years at a monthly payment of $600. Credit scores won’t get negatively affected with this type of program.
4. Debt consolidation is a loan. $25,000 in credit card debt can get resolved with a debt consolidation loan in five to six years at a monthly payment of $650 (depending on their interest rate and credit score).
The Biggest Misconceptions Related to Debt Relief Programs and Clarification on Each
1. Consumers often Google “debt consolidation” but end up contacting a debt settlement company and signing up for a debt settlement program. A year later, the person still believes the debt settlement company is paying their creditors when that’s not the case. Pay attention to the details of what you’re signing up for, and make sure you understand the difference in each program.
2. Does debt settlement hurt a person’s credit score? A debt settlement program does not hurt a person’s credit score, what lowers their score is by not paying their creditors on time and in full every month.
3. A person’s monthly payments on a debt validation program don’t go to the creditors, but rather to the debt validation company’s fees.
Debt validation challenges the validity of a debt after it’s sold to a collection agency, where if the creditor can’t prove it’s valid, the debt becomes legally uncollectible, meaning, it does not have to get paid.
4. Not all debt relief programs result in tax consequences. When a debt becomes legally uncollectible with a debt validation program, the debt does not have to get paid, and there are no tax consequences.
Debt Relief Company Complaints
The most common complaint about a debt relief program is that:
“The company charged me fees, and I ended up with lawsuits and deeper in debt.”
How to protect yourself:
Only join a debt settlement program that complies with federal laws, charging fees only after a debt gets settled and resolved. If you join a debt validation program, make sure the company offers a money-back guarantee and is aligned with a law firm to refer you to if a lawsuit was to arise.
“I would say that roughly 90 percent of the credit card lawsuits are flawed and can’t prove the person owes the debt,” said Noach Dear, a state civil court judge in Brooklyn, who said he presides over as many as 100 such cases a day. Make sure the company offers lawsuit defense, as most credit card lawsuits can get either “settled for less than the full amount” or the debt can get dismissed by a reputable debt settlement attorney.
Published at Wed, 04 Mar 2020 08:00:00 +0000