Debt Relief Of America Review

Today Americans are facing huge amounts a debt issues.  In fact consumer debt is more than corporate and even government debt combined.

So today I want to spend some time talking about a company that is helping American get out of debt called, Debt Relief of America.  In this article I’m going give you the good and bad about this company and show you how this company could possibly help you get out of debt for good.

What Is Debt Relief Of America

Debt Relief of America is a debt negotiation company which specializes in helping people cut down and pay off their debt.  However, not just any debt will qualify, only unsecured debt like credit cards, personal loan, and even unpaid medical bills.  The reason secured debts are not excepted into the program is because if you would happen to fall delinquent on your loan as a result of being in the program the lender would likely take your asset.

For example, if you owned a house and slipped behind on payment from being in a debt negation program the lender would probably take your home.  That’s why they only accept unsecured debts.  With unsecured debts the lender or the bank has no right over taking any of your assets from you if you fail to pay.

What Is Debt Negotiation

Before we can get into the good and the bad of this program that Debt Relief of America Inc offers we should have a good idea how debt negotiation works.

Debt negotiation is the process used to cut down your debt owed.  For example let’s say you have a lot of credit card debt.  What the debt negotiation company will do is call each company you have the debt with and negotiate a settlement.

This will vary with each company they call.  Some won’t budge an inch and force you to pay back 100% owed, and some will work a deal out were you only have to pay 30 cents on the dollar back for one debt, and the next debt they might only be able to cut it down to 70 cents on the dollar.

By doing this they are cutting down the amount you owe.  In fact Debt Relief of America claims they can eliminate 25% to 50% of the balances that you owe.  Once the deals have been made they will combine all of you payments into one payment that you will pay directly to DRA.

Lastly, in the beginning you can expect to still fall behind on some of the payments even though you are paying Debt Relief of America on time.  The reason for this is because they will be putting that money towards your smaller debts to pay them off first.  Over time this will happen less and less as you keep paying into the program.

What I Liked…

• Combines all payments into one payment. Having all of your payments combined into one payment makes things much simpler. I also allows you to keep you mind off all the bills and debts you have.
• They negotiate for you. DRA has a relationship with most lenders so it will be much easier for them to negotiate a deal on your behalf than if you were to do it yourself. Also, negotiation is very tough to do if you have no idea how to do. In most cases if you tried to do it yourself they will just string you along from on manager to another till you get tired of playing phone tag.
• Better than going through bankruptcy. First off, bankruptcy is much more expensive when you consider dealing will all the lawyers, and court fees. Second, bankruptcy will have a lasting effect of 7 to 10 years of bad credit. With DRA your credit will not be entirely ruined.

What I Didn’t Like…

• This can hurt your credit. Going thought debt negotiation is kind of like going through a mini bankruptcy. It may not ruin your credit like a full blown bankruptcy would but if you currently have good credit you could expect to hurt your credit score. How bad it will be, depends each individual’s situation.
• Doesn’t solve the entire problem. Once you are out of debt with this program, what’s to stop you from falling back into debt? Don’t get me wrong the program itself will get you debt free but it has to do more than that. For example if you have a bad habit of being a compulsive shopper nothing is stopping you from falling back into financial ruins. To get out of debt for good you need include other aspects like a strong savings plan, and changing spending habits. Without changing these things you are sure to fall back into debt.
• Doesn’t help pay off all debts. As I mentioned earlier in this article you can only include unsecured debts. While this will help with most debts it won’t help with all debts, like your mortgage, car loans, and student debt. However, once you do have your unsecured debts paid through debt relief of America why stop there. Start applying what you’ve saved from paying on those debts and use that money to pay off your mortgage and car loans.

Are You Qualified

So is Debt Relief of America for you?  In this section I am going to cover a few things you need to have in order to qualify with this program.

• 1. Do you have $7,500 in unsecured debt? Having this much debt for someone is usually not very tough but it does have to be unsecured debt. However, I should also mention that secured debt can become unsecured debt. For example let’s say you have a car loan but the bank repo’s the car and pays what they can off the loan. If the bank doesn’t have enough to cover the full amount they will establish a delinquency and this could be considered an unsecured debt you could include in the program.
• 2. Are you having a tough time making the minimum payments to all of your debts? Then this might be for you. If it seem that every month things are becoming harder and harder to pay for then you might want to consider this program as an option.
• 3. Are you willing to do what it takes? If you’re looking to get into this program and do what it takes to win to beat debt, you’re in the right place, but if it’s your idea is to get into the program and let them do all the heavy lifting this program isn’t meant for you. Being a team player with DRA will go a long way to getting you out of debt fast.
• 4. Are you facing a financial hardship? Financial hardships can be very hard to overcome. For example, maybe you have a family member very sick and have a lot medical bills piling up or maybe your spouse passed away and you had no life insurance. Both of these situations would be considered a financial hardship. If this sounds like you read on.

Take The Leap Of Faith

If you’ve made it this far in the article you might be ready to consider these debt relief options.  I call it that because you are doing something most are going to do. If you made it this far you are ready for what lies ahead and ready to face the challenges of getting out of debt forever.

Debt Relief of America will be with you every step of the way on your journey.  To get started, sign up for a free consultation.  DRA will sit down with you one on one free of charge and evaluate your situation to see if they can help you.  In my opinion I would just check it out and see what it’s all about.  It’s free and there’s nothing at risk at this point.

The only thing you have to lose is more money to debt you can’t afford to pay.

Chris