Thursday, 19 September 2019

CuraDebt Debt Relief Review

CuraDebt Debt Relief Review
24 Jan
2:09

CuraDebt Debt Relief launched in 2000 in Irvine, Calif., offering debt relief services to individuals and small businesses across the country. The company states it immediately got to work creating strong relationships with major creditors to better help its clients negotiate relief from their debt. CuraDebt believes in offering a solution to consumer debt, but also working to help connect customers with other professional services, such as tax assistance, or local attorneys to provide guidance through the debt relief process.

CuraDebt manages all its debt relief clients in-house, claiming that it provides the best communication and ensures the best possible results. CuraDebt has over 200 settlement letters, with about 50 currently viewable online, showing savings of between 49% and 100% of the debt amount enrolled. It has over 150 five-star customer reviews on Shopper Approved, as well as five stars on Customer Lobby.

It is a member of the Online Business Bureau, U.S. Chamber of Commerce, International Association of Professional Debt Arbitrators (IAPDA) and the American Fair Credit Council (AFCC). It has been in the top 2 rankings of “Best Debt Relief Company” by TopConsumerReviews.com for over nine years.

Breakdown of CuraDebt

CuraDebt offers a range of debt relief services, helping customers gain the best possible service.

Services offered

  • Debt relief

  • Tax debt relief

  • Debt settlement

  • Debt negotiation

Minimum debt required

$5,000

Credit check

Not specified

Debt settlement timeline

Not specified

Consultation fees

Free consultation/quote

Cancellation fees

Not specified

Service fees

Average of 20% of the total debt amount enrolled

Types of debt accepted

  • Credit cards

  • Personal loans and lines of credit

  • Medical bills

  • Collections and repossessions

  • Certain business debts

  • Certain secured debts

  • IRS debt and back taxes

Accreditations

  • Online Business Bureau

  • HONESTe Online

  • U.S. Chamber of Commerce

  • International Association of Professional Debt Arbitrators certified company

  • American Fair Credit Council

Ratings

  • 5 stars from Better Business Bureau

  • Over 150 five-star ratings on Shopper Approved

Service limitations

Doesn’t help with:

  • Lawsuits

  • Utility bills

  • Auto, student or government loans

  • Mortgage or home loans

  • Other secured debts

Free tools and resources

Free savings estimate calculator

Customer service

877-850-3328
[email protected]
9 a.m.-8 p.m. ET Monday-Friday
10 a.m.-3 p.m. ET Saturday

Who’s eligible?

Individuals who are working to pay down these types of debts are eligible to work with CuraDebt:

  • Credit cards
  • Personal loans and lines of credit
  • Medical bills
  • Collections and repossessions
  • Business debts
  • Certain secured debts
  • IRS debt and back taxes

CuraDebt offers a variety of debt relief programs, including debt relief, debt settlement, tax debt relief, debt negotiation and debt consolidation. CuraDebt claims it’s often a better alternative than bankruptcy for individuals experiencing severe amounts of debt that they’re unable to repay or who are behind in their payment schedule.

What are the benefits and risks of CuraDebt?

Benefits

Risks

Quick debt relief: Working with CuraDebt means taking action to pay down or settle debt. Enlisting its help could result in debt relief that’s faster than continuing to struggle or declaring bankruptcy.

High cost: CuraDebt takes, on average, 20% of the total enrolled amount of debt as a fee.

Save money: CuraDebt negotiates with creditors for lower rates and lower payments or to settle the debt completely.

Can damage credit score: Working with debt relief or debt settlement organizations can damage credit scores.

Simplified process: Chasing down creditors can be emotionally exhausting. Working with CuraDebt can relieve the pressure and simplify the process of negotiating with creditors.

No guarantee: There’s no guarantee that CuraDebt can negotiate debt settlements.

Consolidate debt: Making one, easy monthly payment to CuraDebt is easier than servicing multiple debt payments each month.

Timeline is unclear: CuraDebt claims to help you become debt-free “as quickly as possible.” But there is no clear timeline for resolving your debt.

How much does CuraDebt cost?

All counseling and consultation sessions with CuraDebt are free. When CuraDebt is engaged in debt relief or debt settlement services, the fee is typically 20% of the total enrolled debt. CuraDebt also indicates a minimum debt of $5,000 is required from customers to initiate an engagement. Beyond that, CuraDebt outlines that its fees are calculated by:

  • Creditors you owe
  • Credit balances
  • Ability to contribute monthly dedicated account payments into the program
  • The amount that can be negotiated from your balance
  • How quickly your balance is negotiated
  • The fees the creditor charges

How long does the program take?

CuraDebt’s goal is to negotiate your debt repayment or to settle your debt entirely as quickly as possible.

Is CuraDebt safe to use?

CuraDebt has largely positive reviews on a variety of online consumer review sources, including the Better Business Bureau and the U.S. Chamber of Commerce. It is affiliated with the American Fair Credit Council and has over 200 settlement letters dating to 1998 highlighting savings between 49% and 100%. About 50 of those settlement letters are currently available to view online.

How do I sign up for CuraDebt?

To begin an engagement with CuraDebt, start by signing up for a free consultation. It can provide a free savings estimate on its website. From there, one of its representatives may be in contact, or you can contact the company directly by requesting a free consultation online, via email or via phone at 866-268-0424.

What to expect after signing up for CuraDebt

CuraDebt will begin to reach out to creditors after a session with a CuraDebt counselor. But it can’t help customers with:

  • Lawsuits
  • Utility bills
  • Auto, student or government loans
  • Mortgage or home loans
  • Other secured debts

It works to negotiate or settle your debt as quickly as possible. In some cases, having a lump sum to start paying toward your debts can help speed the process along.

4 alternative methods to pay down debt

If you’re looking to tackle debt repayment on your own, there are several different options you have available to you. Depending on the type of debt you’re facing, you can look toward consolidation, a debt management plan, a DIY debt settlement or filing for bankruptcy if your case is beyond repair.

Debt consolidation

Debt consolidation is a loan that’s used to pay off all existing debts, which allows you to make a single payment rather than tracking multiple outstanding debts and payment schedules. Debt consolidation can sometimes offer lower interest rates, extended terms or lower monthly payments.

Pros

  • Helps to keep you organized
  • Simplifies repayment with one repayment schedule to track
  • Can offer a lower interest rate or better terms

Cons

  • Doesn’t erase debt
  • Doesn’t reduce the total amount of debt principal
  • Can damage your credit score if you close other debts when you pay them off with your consolidation loan
LendingTree
APR

5.99%
To
35.99%

Credit Req.

Minimum 500 FICO

Minimum Credit Score

Terms

24 to 60

months

Origination Fee

Varies

LendingTree is our parent company. LendingTree is unique in that you may be able to compare up to five personal loan offers within minutes. Everything is done online and you may be pre-qualified by lenders without impacting your credit score. LendingTree is not a lender.

Debt management plan

A debt management plan is administered by a credit counseling agency. It helps you to organize your debt, meet with a credit counselor who will offer you guidance, negotiate with creditors and create a plan to avoid debt in the future.

Pros

  • Can reduce total debt amount if the credit counseling agency negotiates debt for you
  • Can offer sound guidance for getting out (and staying out) of debt
  • Helps you to create an organized repayment strategy

Cons

  • Debt management plans often cost money; there is usually a monthly fee
  • Only works for some kinds of debts
  • Requires a commitment to want to pay down your debt — and to stay out of debt

Bankruptcy

Bankruptcy is a federal protection program that allows businesses or individuals to eliminate debt and recover financially. There are two kinds of bankruptcy for individuals: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is often called “liquidation” bankruptcy. In Chapter 7, borrowers may have to give up their assets to pay down part of their debt. The government may sell these assets to settle debts. Other debt may be settled or discharged. Chapter 13 involves approving a repayment plan that is negotiated between the borrower and creditors over a set period.
Pros

  • Gives you an opportunity to start over with a clean slate
  • You can have your debts negotiated by the government
  • The process is relatively quick — often taking six months at most

Cons

  • Bankruptcy stays on your credit report for seven to 10 years
  • You may lose your assets in the process
  • You may still have to repay your debts if you file for Chapter 13 bankruptcy

DIY debt settlement

Working to negotiate, and potentially settle, your debt with your creditors can be an arduous and intimidating task. But if you can negotiate effectively, it could reduce your monthly payment, provide more flexible terms or even give you a lower amount to repay.
Pros

  • Repay less than you owe
  • You may be able to earn more flexible repayment terms
  • You’re showing your creditor that you’re working toward paying down your debt

Cons

  • You may have to pay tax on the forgiven difference; the IRS counts any forgiven debt as income, and it’s taxed accordingly
  • There’s no guarantee that creditors will be open to negotiation or a settlement
  • You may still owe a significant portion of your debt, even if it’s less than before you began the negotiation process

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Dave Grant

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Source: https://www.magnifymoney.com/blog/pay-down-my-debt/curadebt-debt-relief-review/

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