You are in the right place if you want to know does accredited debt relief hurt your credit. This question is quite common for people who want to settle their debt, but are afraid of other related factors.
Don’t worry, we’ve covered every detail about accredited debt relief. Fortunately, this debt relief works for you when you are drowning in debt situations.
To reduce your burden and give you financial security, the accredited debt relief firm is here. But, without knowing how it works and how they can help, you can’t get a perfect scenario about it. That’s why you need to read this guideline.
Accredited Debt Relief: What Is It?
Before you get the answer that does accredited debt relief hurt your credit or not, you must have a clear concept about the accredited debt relief company. Have you ever heard about debt relief companies? Accredited debt relief is a company that comes with different debt management policies.
From 2011, this company started to serve people whose debt became a burden and wanted some relief from it. With its solid presence, this company is doing its job successfully like counseling and personalized debt relief service under American Fair Credit Council (AFCC).
What Accredited Debt Relief Offers?
This highly ranked debt management company offers three types of services related to debt. These are
- Debt Settlement
- Debt Consolidation
- Credit Counseling
But they also work for the most types of unsecured debt that also includes:
- Credit card debt
- Payday loans
- Medical bills
- Personal loans
- Private student loans
- Repossession balances
How Does Accredited Debt Relief Work?
Most of the time people get help from the accredited debt relief through partners. The basic role of these partners is negotiating with creditors and making a final settlement.
They’ll do it on the behalf of their client and try to reduce the amount of debt. If the reach of the partner is limited, then they only work for the debt management program based on the location. But few facts work behind it.
- The client must have a minimum of $10,000 of debt (for a new client)
- No upfront costs
- The price averages 20% of client debt
- 24 to 48 months is the estimated timeframe for debt relief.
What Are The Advantages of Accredited Debt Relief?
Now come to the main point. Why is accredited debt relief good? There are many pros we’ve found but few of them are given below.
- The client doesn’t need to pay any upfront fees unless the debt is settled.
- It allows the client to work with only one debt settlement consultant.
- Easy to get personalized service based on the client’s situation.
- Give the client trustworthy service.
- Help to reduce client debt and keep negotiating unless it becomes successful.
- Every type of fee is reasonable compared to other competitors.
- Easy to pay the fees and it’s spread over the course.
- Includes money-back guarantee
Read More: Fig Loans
Disadvantages of Accredited Debt Relief:
Not everything about accredited debt relief is good. There are still some cons and these are.
- This service is not available in every state. It’s only available in 32 states.
- They should’ve come with many other options for their client.
- It doesn’t have any online portal for the client.
Does Accredited Debt Relief Hurt Your Credit?
If we simply say, the answer is yes. The debt relates to the credit score. When you enroll in a debt relief program, it must connect with your credit. Don’t worry, it’s not bad at all.
Most of the time, such debt relief can be profitable for your credit in the long run but how? When you’re paying off your debt, that means it will affect your debt-to-income ratio.
Remember, if you are going to get a debt relief program for the first time, then it has a significant negative impact on many things especially on your credit.
How To Get Started?
First, You need to follow some procedures to get the accredited debt. They have a website. Open it from the browser and you’ll get an option. This option is related to two short questions.
Based on your answer, a personalized result will show and give a guideline. This guideline allows you to find the path to debt relief. The site also asks you to inform them about the amount of the debt and other information like name, email, phone number, etc.
If they found everything you informed is right and matched with their criteria then you’ll get an invitation. This invitation is to give a schedule to talk with a consultant who can deal with such a program. When everything is ok, then the program takes a shape following these five steps:
- Consultation: There will be a debt specialist for you. Consult with him over the phone and it is free for you. Giving more information about your financial situation and planning how to overcome this situation as your budget is the main point of consulting with specialists.
- Monthly deposit: In the second step, you’ll get a designated savings account. Deposit money monthly on this account. This money will be distributed by the debt relief to your creditors.
- Stop using the credit card: If the debt settlement program includes your different credit card or loan, then stop using them immediately.
- Negotiation process: In the 4th step, your debt negotiator comes forward with a settlement plan. They’ll start negotiating with your creditors and end up with a manageable payment.
- Final settlement: After the agreement, it’s time to approve the amount by yourself for the final settlement. Now you’re no longer under debt.
Accredited comes with a fixed fee for debt relief. Almost 15 to 20 percent of your enrolled debt is the actual amount you’ll be charged.
Almost 20 to 30% of your enrolled debt could be saved by it.
Now you know why accredited debt relief is the best for your debt settlement. But does it hurt your credit or not was the main question for you.
Depending on your situation, it can affect your debt score, but this guideline helps you a lot with what you need to know and process for the debt settlement. Remember, it’s not just a complete process to free you from debt, but also help you to save more.
It will indeed take 12 to 48 months, but, surely, you can settle your debt for less than you owe on a certain day.
We feel confident that you won’t regret choosing accredited debt relief for your debt management.