Debtmerica Relief Review

What Is Debtmerica

Debtmerica is a debt negotiation company that helps individuals pay off their debt, and in most cases a lot faster than they thought possible.  Lately, I’ve been hearing about debt negotiation companies on the radio, but the real question is are they real or is their a Debtmerica Relief Scam?

I can’t speak for all of them but I can speak for Debtmerica.  Why, because I have worked with the company personally and in today’s article I am going to be giving you an in-depth review of Debtmerica.

I will be covering all the good and bad things about going through debt negotiation and help to give you a well rounded view of Debtmerica Relief.

How Debtmerica Works

Debtmerica is not like most debt companies.  What makes them different is that they work on your behalf to negotiate lower settlements for your debt.  I know what you’re thinking this kind of sounds like debt counseling but it’s not.  Debt counseling doesn’t usually negotiate your debt they merely help you pay off all of your debt.

What Debtmerica does is negotiates all of your unsecure debt to lower balances and then combines all of your unsecure debt into one simple payment.

However, there are limitations to these kinds of programs.  As great as this program sounds you still have to qualify in order to take part in it.  I will cover what you need to do to qualify later on in this article.

What Debt Qualifies

If you’re thinking of using a debt negotiation company like Debtmerica to get out of debt you first have to understand not all debt qualifies for this program.  Debtmerica only accepts unsecured debt not secure debt.

So what is unsecure debt?

Unsecure debt is debt that is not backed by an asset of any kind.  For example a mortgage is not an unsecure debt because it is back by the asset of the property itself.  On the other hand credit cards are unsecure debt because they are not backed by any assets.

So here are a few debts that wouldn’t qualify with Debtmerica.

• Auto Loans
• Payday Loans
• Military Accounts
• Public Utilities
• Student Loans
• Loans with Collateral Attached (Mortgages, HELOC’s)

So what kinds of debt qualify with Debtmerica?  Any of the following will qualify.

• Credit Cards
• Personal Loans
• Credit Unions
• Medical Bills
• Deficiency Balances
• Collection Accounts
• Past Due Bills

What I Like About Debtmerica

With Debtmerica there is one great advantage with them and that’s the cost.  If you were to go through a full fledged chapter 13 bankruptcy you will have to deal with attorney fees, court cost, and more.

With Debtmerica the fee is included right into the actual lump sum payment along with your other debt.  The fee they charge is only 15% of your total debt.  So if you have $10,000 of unsecure debt it cost you around $1500 broken down into periodic payments.   So if it would take you 3 years to pay off all of the debt you would pay right around $42 a month to Debtmerica for their cost.

An Example Of How The Program Works

Let’s say you have $25,000 of unsecure debt with a payment of $380.  What Debtmerica will do is contact all of your creditors and negotiate a deal with them.  Some will be willing to make a deal others will not.  Let’s say they were able to cut $10,000 off of your balance, this would bring your total balance to $15,000 and a payment of $140.

By going through the program you would be cutting off around $240 off of your payment but you also would have to factor Debtmerica’s cost in their as well.  Their cost would be 15% of $25,000 which would be $3750.  If you would spread the payments over a 4 year time span you would pay around $78 a month for Debtmerica and total payment of $218 each month.

Not bad.  Although this is just an example it will give you good idea of how the program works.

What I Don’t Like About Debtmerica

Up until this point I have talked about all the great things about this program and what it can really do but I haven’t yet to cover some of the negatives about Debtmerica.

First off, Debtmerica may sound like an easy alternative to bankruptcy or debt counseling but that doesn’t mean going through a debt negotiation program won’t leave any black marks on your credit report.

In fact, going through a debt negotiation program is kind of like filing for a mini bankruptcy.  Why does this happen you might ask?  Debt negotiation has one thing that is very similar to doing a bankruptcy and that is negotiating your debt.

Whenever you agree to pay a less amount on a debt the company that holds the debt will usually report that to the credit bureaus resulting in a nasty mark on your credit report.  I’m not sure how much this will affect your credit score but it defiantly won’t help it.

Second, you may also experience collections calls in the beginning due to the fact that they may be withholding a few of the payments to build up the cash flow.  However as the program processes it should go away.

Who’s Right For Debtmerica

Not everyone is right for this program so take a look at some of the qualifying factors and see if this program is right for you.

1. All of the debt you include into this program must be unsecure as show above.
2. You must have at least $10,000 of unsecure debt to qualify for the program.
3. Each account must have a balance of at least $500 to qualify.
4. You have to stop adding debt to your to your accounts.
5. You should have a job.  Without a job you won’t be able to keep making payments towards the program.

How Do I Sign Up With Debtmerica

If you would like to give debt negotiation a shot and see if it is really for you checkout Debtmerica here. Here you will be able to either call their toll free 800 number and talk to someone directly or if you prefer fill in their simple questionnaire and get a free quote.

Being in debt isn’t fun so take some time check out the program and give it a shot.

Chris