It’s quite stressful to owe what you can’t pay because you never know when your creditors will call and what actions they might take. The good news is that your creditors may forgive you a fraction of what you owe if you agree to make some lump sum payment. This is called debt settlement.
If you aren’t good at negotiations, you can choose Freedom Debt Relief or Credit Associates, the two top debt settlement companies in the US, to negotiate on your behalf. Here we are looking at Freedom Debt Relief vs. Credit Associates to help you make an informed decision on which to choose between the two. Remember, for the negotiations to succeed, you must have a good reason why you can’t settle the debts.
Freedom Debt Relief
Freedom Debt Relief is a debt settlement company based in California. It’s an accredited company that can help negotiate a debt settlement on your behalf. Once you contact the company, they’ll ask you to stop further payments because a delinquent account has higher chances of getting considered for settlement.
The company will charge you a fee only after your debt is settled. They normally charge anywhere between 15 – 25 percent of the settled debt. FRD has successfully served over 650,000 customers and has managed to solve cases worth over $10 billion since 2002.
Is Freedom Debt Relief the Best Option For You?
To qualify for Freedom Debt Relief services, you must owe not less than $7,500 and the debt must be unsecured (without collateral). FDR deals with unsecured loans such as medical bills, personal loans, and credit card loans. The company cannot help you with cases of secured loans, including mortgages, car loans, etc.
Some creditors prefer legal action to recover unpaid debts rather than debt settlement. FDR can help you with legal support for free in case your creditor takes the legal route. What you’ll have to pay are court fees and any other charges that might arise from the case.
It will usually take between two and four years to resolve your debt problem, depending on how much you have and how fast you can accrue the dollars you’ll need to fund settlement agreements. The company has a high success rate, which explains why many people like it.
How does credit associates work? The company’s main objective is to get lenders to agree to settle a debt for less money than what’s owed. Like Freedom Debt Relief, Credit Associates doesn’t charge an upfront fee (that’s what the law requires). You’ll only pay fees after the settlement.
Is Credit Associates the Best Option For You?
Credit Associates helps with unsecured loans and not car loans, home equity loans, or home mortgages. When you check the company’s website, you’ll notice that they don’t mention student loans, so you have to call them to find out if they can help with your student loans.
To qualify for its debt relief service, you must demonstrate you are facing financial difficulty, e.g. a death in your family, medical problems, recent divorce, and the likes. You must also owe not less than $7,500 for your case to be considered.
Credit Associates’ website doesn’t disclose the savings customers may experience after paying the fee, nor do they disclose the fees they charge their customers. Nonetheless, the company will resolve your debt problems within two to three years.
So, Which is Better?
When considering Freedom Debt Relief vs. Credit Associates, you can see their services are similar. The difference comes in the level of customer service and transparency. Freedom Debt Relief offers the best customer service and is more up front on all its charges. A good debt relief company is always going to be one that is clear about its charges and readily provides all other pertinent information a customer may need.