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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

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.

Chris

This post was recently featured in the Money Hacks Carnival by Mighty Bargain Hunter.

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

Debtmerica Relief Review

August 5, 2009 By Christopher 10 Comments

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.

All of the debt you include into this program must be unsecure as show above.
You must have at least $10,000 of unsecure debt to qualify for the program.
Each account must have a balance of at least $500 to qualify.
You have to stop adding debt to your to your accounts.
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

Filed Under: Reviews Tagged With: Debt Negotiation, Debtmerica, What is debtmerica