Debtmerica Relief

3 Reasons Debtmerica Relief Is A Legit Company

January 6, 2011 By Christopher Leave a Comment

If you’ve reached this page your probably wondering if Debtmerica Relief is a scam or a real legit company. First off, I can tell you that their is no Debtmerica Relief Scam and in this article I’m going to show you why they are a legit company after all.

The Typical Credentials

When your considering a debt relief company you should look to see if they are D&B listed and TASC rated. D&B and The Association of Settlement Companies work to fulfill certain standards that must be met in order to listed with these organizations.

These are things like having good debt practices and treating customers fairly. If these things are not met and you don’t see the symbols to your right then stay away from these companies. If they don’t have these credentials theirs probably reason for that.

Contact Info

The next thing you need to look for is contact information, and I’m not just talking about a sign up form either. For example when you go to Debtmerica.com you will see their phone number is prominently displayed at the top of their website.

On top of that they also have a contact page displaying a contact form as well, but they also go one step further to give their address and complete business hours. If the debt company you are looking at does not have these things stay away. Here is their current contact info.

Phone: 1-800-470-8155

Mail: Debtmerica LLC, Attn: Customer Care, 3100 S. Habor Blvd., Suite 250, Santa Ana, CA 92704

Business Hours: 7 am to 7pm PST Monday to Friday and 9 am to 2 pm PST Saturday.

Industry Praise

Finally, you need to look for some sort of industry praise, meaning what is the media saying about this company. Now before I go any further know that a lot of debt relief sites will give testimonials and those are good but anybody can fake a bunch of testimonials. Instead look for media credibility.

For example, Debtmerica is listed in Inc. Magazine top 500 and as of 2010 currently rank 184th. On top of that they also rank as the 13th fastest growing company in financial services, with nearly $23 million in revenue in 2009. These are fairly prestigious awards and can not be faked.

What Could Make Debtmerica Better

Finally, to wrap things up I feel Debtmerica is a stable and legitimate company but I do feel they could still improve what they have. One suggestion I feel they could improve upon is if they offered some sort of a guarantee.

For example companies like Curadebt have a 100% money back guarantee if your not satisfied for any reason. I feel with something like this it would give people a sense of security if things didn’t work out as planned.

Thoughts or comments, share them below.

3 Things To Look For In A Good Debt Relief Company

January 5, 2011 By Christopher Leave a Comment

If you’ve been surfing the web for anytime looking for a debt relief program to help you get out of debt you may have realized that many if not most have been tagged as scams. The reality is some of them are scams, and some are not but tagged that way such as the Debtmerica Relief Scam. So in this article I thought I would take the time to share with you a few things you should look for in a good negotiation company.

The Qualifications

First off, when your considering a debt negotiation company you have to realize that their will be some qualifications involved. These qualifications are not their to detour you but rather protect you. The thing about debt negotiation is that it’s not simple and easy, in fact it’s usually hard and challenging.

Their are usually two big qualifications you need to meet in order to qualify. First you have to meet a certain debt level. With companies like Debtmerica and Curadebt you have to have a minimum of $10,000 of unsecured debt to even qualify.

Secondly, you will need to meet the hardship challenge. How do you know if you are facing a hardship? Think of it this way if your credit is completely in the gutter and you have no money to pay your current bills you may be able to qualify. If you don’t meet these two qualifications you would be much better off working with a debt counselor or even tackling the issue on your own.

The Discharge

The next thing you need to look for in a good debt relief company is how they discharge your debt. When you sign up for a debt negotiation program the first thing they will do is gather all of your debts, assuming you qualify, and contact your creditors to see if they can negotiate a lower balance for your debt.

However the problem with this is that most creditors will report this as a negative mark on your credit score, usually as pay for delete, or as paid as agreed. With a good debt negotiation company they will work to make sure that this doesn’t happen and get it reported as paid in full on your credit.

The Fees

Finally, the last thing you need to look at when considering a debt relief company is the fees. First off consider how much they are charging. Some companies will charge a separate fee upfront just to get started and then charge a back end fee along with your monthly payments. I suggest you stay away from companies who ask for payments up front and only pay when results are delivered.

The most common fee you will see with debt negotiation companies is a back end fee that is charged in association with you monthly debt payment. This fee can run around 15% to 17% of the total amount of debt placed in the program, any higher and it’s a rip off.

In the end follow the tips I’ve covered and you will save yourself a ton of time and money.

Questions? Leave a comment below.

Filed Under: Debt Managment Tagged With: CuraDebt, Debtmerica, Debtmerica Relief, Debtmerica Relief Scam, Good Debt Relief Company

Why Debtmerica Relief Only Deals With Unsecured Debt

January 4, 2011 By Christopher Leave a Comment

If you’ve been considering the idea of working with a debt relief company such as Debtmerica Relief you may have learned one important fact that Debtmerica and every other debt company out there will only work with unsecured debt only.

Secured Or Unsecured

So what is unsecured debt you might be wondering? Unsecured debts are debts that are not backed by an asset of any kind. For example, if you own a credit card this debt is not backed by an asset of any kind but rather by the good faith of your credit and that you will make the payments back on time.

On the other hand if you also have secured debts such as a mortgage or a car loan your debt is backed up by an asset of some kind. For example, with a mortgage your asset is your home or if you have an car loan the asset is the vehicle, and if you fail to make these payments the lender will take your home or car away. This is why debt relief companies only deal with unsecured debts.

The Other Secret Debt Companies Don’t Tell You

Now you might be saying as long as I have the money to pay my debts I will pay them, but their is one other secret you need to know about debt companies and that is that you’re not in charge of paying off your debts the debt relief company is.

That’s right when you join a debt relief program such as Debtmerica they will assume the responsibility of paying your creditors anyway they see fit. You will as a result end up paying the debt company a lump payment every month and they will then disburse the payments to you creditors but it doesn’t always work this way.

First off, most debt companies but not all will usually claim their fees up front with your monthly payment. For example if you owe $1700 in fees for the use of the debt relief program they will usually pay themselves upfront. The reason they do this is because of the high drop out rate with debt programs.

The second reason debt companies will not pay your creditors up front is because they want to strain the relationship between you and the creditor in order get a better deal. For example, if you go to your creditor and tell them you want to negotiate a debt settlement but you’ve made all payments on time they probably won’t do it, but if you’ve been struggling to make a payment for several months the debt company may be more willing to accept an offer since you can’t afford to pay in full.

Is this an ethical tactic for debt companies , no, but it’s not illegal either. This is why you may have seen people claiming their is a Debtmerica Relief Scam or other companies for that fact.

The Issue That Debt Companies Don’t Solve

In the end as I wrap up this article consider this. If debt relief companies only work with unsecured debt and not secured debts will it really solve all of your debt problems. Meaning if they can only clear up some of your debt and not all of it, is it really worth the time and effort of using a debt negotiation company such as Debtmerica?

Question? Feel free to leave a comment below.

Filed Under: Debt Managment Tagged With: Debtmerica, Debtmerica Relief, Debtmerica Relief Scam

Debtmerica Scam: Why It’s Not A Real Scam

January 3, 2011 By Christopher Leave a Comment

If you’re searching for a debt relief program around the Internet you my have come across debt company called Debtmerica Relief. However one of the big rumors going around the web is that these sites are being considered nothing more than a scam, such as the Debtmerica Relief scam.

However when your talking about debt relief companies I’m going show you why they are not a scam. Don’t get me wrong some debt companies are a scam but then their are some that a perfectly legit but then their are some that fall in that grey area and in this article I’m going to cover a few of those grey area tactics companies like Debtmerica may be using this way you don’t end up finding out the hard way.

The Hardship Rule

If you’re looking at using Debtmerica to help you get out of debt you need to understand that they will not accept you unless you are facing some sort of hardship. However some companies don’t abide by this rule and accept almost everyone.

The problem with accepting everyone is that if you are not facing a financial hardship you will more than likely have at minimum decent credit. When you enter a debt negotiation program such as Debtmerica Relief your credit will more than likely be ruined but if your facing a hardship and your credit is already to the point of no return than it doesn’t matter anyways.

The Unsecured Debt Rule

Another rule that Debtmerica enforces is that they will not deal with any other debt other than unsecured debt. This may seem like a scam since this will not in effect solve your entire debt problem.

For example if you have a home mortgage or a car loan or any debt backed by an asset of some sort these debts won’t be allowed in the program. The reason for this is that unsecured debts are only backed by the value of your credit, such as a credit card. However if you have a car loan and the debt negotiation company fails to make a payment on that loan for a period of time the lender could be forced to reposes the car.

The Fees And How They Charge Them

Finally, the last thing Debtmerica will do is charge a fee for the program. With Debtmerica Relief the normal fee is around 17% of the total amount of debt placed in the program. So if you have $10,000 of debt in the program they will charge a fee of $1700 for the program.

However this fee isn’t usually paid up front but instead is paid along with the installment payments that pay off your debt balance. However their is one big issue with this, when the debt company gets the payment a lot of times the first payments made will go towards paying he fee that is owed with the debt company and the debts that are owed toward your creditors my go on hold till fee paid up.

The reason for this is because their is a high drop out rate with these kinds of programs and these companies want to get their money first before this happens. In fact this process kind or works like a mortgage does. With a mortgage in most cases you will pay mostly interest and very little principle but over time you will pay less and less interest and more and more principle, however when a debt company does this it could end up costing you more because they are neglecting to pay your creditors which could ruin your credit.

So is their a Debtmerica Scam or not, share your thoughts below.

Filed Under: Scams Tagged With: Debtmerica, Debtmerica Relief, Debtmerica Relief Scam, Debtmerica Scam

The 5 Best Debt Relief Programs

April 24, 2010 By Christopher 7 Comments

Are you searching for a debt relief program? A lot of people are these days, in fact you may be spending a lot of time researching and comparing who really has the best debt relief program.

So in this article I hope to save you a ton of time and research and show you what the best debt relief programs are. Of course these are only my picks so if you have one that you believe is a better fit by all means share it with us in the comments below.

Fees: Debtmerica’s typical fees run 17% of the total amount of debt that is placed into the program.

Programs Offered: They offer one main program called the Debt Resolution Program. Debtmerica was founded in 2002 and is listed in Inc. Magazines Top 5000 business. Along with this program the typical candidate is someone who has at least $10,000 of unsecured debt or more. To be accepted into this program you must be facing some sort of financial hardship now or in the near future. If you would like to learn more about this company you can read my review here.

Debt Consolidation Care

Fees: Debt Consolidations Cares fees range from free do it yourself information. They also have partnered with several debt companies so fees will vary from a company to company basis.

Programs Offered: DCC offers everything from debt negotiation, debt counseling, bankruptcy help, to do it yourself options. Debt Consolidation Care has partnered with several different debt companies to help bring a wide selection of different options to you. They also rate and show which companies are the best. In fact one of their top rated companies is the Oak View Law Group. To learn more about this company you can read more here.

Care One Credit Counseling

Fees: Fees vary depending on the amount of debt you have and which program you decide to use.

Programs Offered: Care One Credit offers 3 different programs. The first is theDebt Management Program which works to help lower interest rates and reduce fees. The second is a settlement plan were your debts are negotiated for a lower balance. The third plan is a bankruptcy plan. With the three programs they offer they also have a huge community built up as well with blogs like The Debt Diva, forums so you can ask questions specific to your needs and even groups. They also have a wide array of money management tools and a great article library.

CuraDebt

Fees: Fees vary depending on the amount of debt you have and which program you decide to use.

Programs Offered: Curadebt offers two programs, the first is adebt settlement program and the second is a debt counseling program.
Along with the two programs they offer they also have a forum and contests were you can win a free debt consultation or debt settlement plan in the amount of $4500. To learn more about this company click here.

Freedom Debt Relief

Fees: Fees are combined into a monthly payment along with the debts and bills that are included into the program. The fee is paid over an 18 to 19 month period.

Programs Offered: Freedom Debt Relief offers a debt reduction plan, a debt counseling program and a bankruptcy program.

Freedom Debt Relief was founded in 2002 and currently employees 500 people. They have helped 30,000 clients since opening their doors.

Pick A Program

Of the five debt relief options I covered here I should mention that you before you consider any particular one that you should look into all of your options. My suggestion is to contact several differentcompanies and get quotes before you decide.

Chris

Filed Under: Debt Managment Tagged With: best debt relief programs, Care One Credit Counseling, CuraDebt, debt consolidation care, Debt Relief Of America, debt Relief programs, Debtmerica Relief, Freedom Debt Relief

Debtmerica Relief Scam: The Story That Nobody Tells You

March 8, 2010 By Christopher 9 Comments

Back last year I wrote a review about Debtmerica Relief, a debt negotiation company that helps people get out of debt, and one of the things I’ve been noticing was that a lot of people were claiming Debtmerica and all other debt negotiation companies are a scam.

While I can’t speak for all debt negotiation companies I can speak for Debtmerica Relief. So in this article I’m going to cover a lot of the misconceptions people are having with debt companies like Debtmerica and give you more in depth reasons why they do what they do.

Why Only Unsecured Debt

One of the big reasons people don’t understand about debt negotiation companies is why they only except unsecured debt like credit card debt and not secured debt like a mortgage, and the answer is very simple.

If you were to go 3 months without making a payment on a credit card what could the creditor take away from you? Nothing, because a credit card is not backed by an asset. When you look at a mortgage it is a secured debt and if you did fail to pay the bank would take you home away. However, some secured debts can become unsecured debts.

For example if your house went into foreclosure and the bank repossessed it and they didn’t earn enough money from the sheriffs sale to payback the full amount owed they still make you liable for the debt owed. However, now the debt is not secured because it is not back by an asset now.

Why You Pay One Payment

One of the big claims with Debtmerica and other debt negotiation companies is that the reason you pay them one lump sum payment is so they can disburse the funds accordingly. While this is true for the most part there is another side to it as well.

Think of it this way when you get a mortgage, who gets paid first, your principle payment or the bank through interest payments? If you’re not sure just go to any bank and ask them and they will tell you based on almost any normal amortization schedule that the bank always gets their money first.

Debtmerica and other debt negotiation companies are no different. They do this because they know a lot of people won’t stick with the plan and will probably quit before they complete the program. So what do they do, they pay themselves first.

Why You Still Get Calls From Debt Collectors

If you’re delinquent on any of your bills for more than a couple of month’s debt collectors will start calling you. However one of the big misconceptions is that once you start the program the calls will stop.

In reality though it just don’t work that way, in fact they may even call you the entire time you are in the debt negotiation process, or even after you have paid off the debts.

What Killed My Credit

Another thing many people don’t understand is the fact that debt negotiation will likely hurt your credit score. Think of debt negotiation like a mini bankruptcy, but not with as much of a damaging effect unlike its older brother.

There are two reasons for this, first debt negotiation companies always get paid first like I mentioned earlier and second they may be purposely not paying one debt so they can pay off another.

Missing a payment or two on a debt can be like the kiss of death to your credit report however it’s not as long lasting like bankruptcy were credit score will be totally trashed for the the next 7 years.

Why Am I Getting Taxed

One of the things a lot of people don’t consider is the tax issues you might face when you go through debt negotiation. For example, let’s say you have $30,000 of credit card debt and Debtmerica was able to cut $17,000 of your debt off and you only had to pay back $13,000 of your credit card debt.

The result would be that you would still have pay the taxes on the $17,000 of debt. However, if you want to know how your situation would be effected call you accountant before you get involved with Debtmerica Relief.

What Are The Fee’s

First off a lot of companies don’t usually disclose their fee’s upfront. With Debtmerica it’s somewhere between 15% to 17% of the total amount of debt applied to the program. For example, if you had $30,000 of debt in this program you could expect to pay them around $5000 in fees paid monthly.

Now you might be saying is that really worth it or not, and the truth is it all depends on everyone’s situation. If it saves you in paying $5000 or more in interest payments and get you out of debt sooner it could be very much worth it.

However, I suggest you investigate what all of your fees will be before you sign on the dotted line. There’s nothing like finding out after the fact that you got ripped off.

Can I Get Sued

The reality is that if you do become delinquent on a debt the creditor has the legal right to sue you for amount owed. Will it happen is another question though.

I’ve only heard of this happening in very rare instances, but know that it can happen. I also believe any reputable debt negotiation company like Debtmerica would not likely put you in that situation.

Do You Have A Question

I’ve covered a lot of the questions many people have about Debtmerica and debt negotiation companies but I’m sure I’ve missed something so give me a shout if have a question and I’ll do what I can to help you out.