If you find yourself anxious as a result of burdensome debts and loan payments? Debt settlement services like Debtmerica present themselves as the solution for consumers to escape high-interest debt. But are they really a wise choice to provide relief? Debtmerica Reviews.
Just imagine how it will feel to have one lower consolidated monthly payment instead of stressing over 5 different credit card bills each month. Or getting expert budgeting and credit advice from a compassionate counselor who wants to see you succeed. With Debtmerica reviews it has helped over 1 million people improve their financial lives and several other aspects.
While debt freedom takes time and commitment, Debtmerica provides the tools and support needed for you to gain control of your finances. Their debt management program clients save an average of 25% in interest costs and can become debt-free years faster than trying DIY repayment plans.
This Debtmerica review will uncover the cold, hard truth about their services, and reputation. You’ll get to understand better:
- How Debtmerica’s debt settlement process works and what it costs
- Troubling signs regarding their legitimacy and satisfaction rates
- The credit devastation that can occur
- Safer debt relief alternatives to consider first
This is an unbiased detail so you can decide if Debtmerica is the right choice for your situation or a potential mistake to avoid.
What Debt Settlement Services Does Debtmerica Offer?
Debtmerica is a debt settlement company founded in 2005 that offers to negotiate and settle unsecured debts like credit cards, medical bills, personal loans, and more for struggling consumers.
Their process works like this:
- You stop paying your creditors and instead make monthly payments into a dedicated savings account. This account is controlled by Debtmerica.
- Debtmerica contacts your creditors and seeks to negotiate a reduced lump sum settlement on your behalf. They take a hefty fee from your dedicated account for this service.
- If a satisfactory deal is reached, you pay the negotiated settlement amount to the creditor using the funds built up in your dedicated account.
- Debtmerica charges expensive upfront setup and ongoing monthly service fees from your dedicated account during the 2-4-year process. Their fees can total 20-25% of enrolled debts.
- The program continues until all your debts are hopefully settled or their 6-year contract period ends.
Debtmerica can operate in most states and claims to have resolved over $800 million in consumer debt accounts so far. But are customers actually satisfied?
Warning Signs Around Debtmerica’s Legitimacy and Success Rates
When assessing any debt settlement company, key indicators of legitimacy include:
- Debtmerica does comply with state licensing requirements where mandated.
- They currently have a disastrous F rating with over 100 complaints logged in the past 3 years.
- Online reviews contain significantly more negative feedback than positive regarding poor communication, high fees, and unsettled debts.
- Contract terms and fees are disclosed upfront. But success statistics are vague.
These alarming red flags suggest clients may not experience the negotiated debt relief and savings they expect from Debtmerica. Between the terrible BBB rating and abundance of bad reviews, individuals should proceed with extreme caution before enrolling.
The Credit Ruination Risks of Debt Settlement
Since Debtmerica instructs clients to stop paying creditors, using their services essentially guarantees credit score devastation:
- Missed monthly payments will cause scores to plummet rapidly at first.
- Accounts settled for less than full balance will be marked as negative marks by credit bureaus.
- Lawsuits, wage garnishment, and other collection efforts are real possibilities if creditors take legal action before any settlements.
- Long-term credit recovery is extremely challenging after a debt settlement’s damage.
Enrolling with Debtmerica means accepting your credit will be decimated, at least at first. Have a mitigation strategy, as the only way to start rebuilding credit is to stick to a debt repayment plan once enrolled.
Safer Debt Relief Alternatives to Consider
Debtmerica is far from the only option available to find debt relief while protecting your credit. Several alternatives to consider first include:
- Non-profit agencies that help negotiate lower interest rates and affordable monthly payments.
- Debt consolidation loans combine debts into one payment and can prevent missed payments that damage credit.
- DIY settlements Attempt to settle directly with each creditor yourself before considering any company’s fees.
Companies like National Debt Relief with far better reputations and customer satisfaction.
Every debt situation is different, but Debtmerica’s track record shows clients may benefit more from exploring other relief methods first. Thoroughly research reviews and alternatives to make the smartest choice.
Debtmerica is an established company that legally offers debt settlement services. However, their terrible BBB rating and ample negative client reviews raise serious doubts regarding satisfaction rates.
If exploring Debtmerica, proceed with extreme caution. Many customers report nightmarish experiences with disproportionate fees compared to debts settled, lack of transparency, damaged credit despite paying high costs, and more alarming issues.
Thoroughly research alternatives and seek options that best fit your unique financial situation. Getting out of debt safely while protecting your savings and credit score is possible with the right strategic repayment approach.
CHECK THESE OUT: