According to Northwestern Mutual’s 2018 Planning and Progress Study, over 75% of Americans are in debt. What’s more, on average, people in debt owe more than $38,000. That’s a large sum to try to climb out of. Accredited Debt Relief is a popular program that people turn to when they feel overwhelmed by their debts.
If you are struggling to get a handle on your debts, Accredited Debt Relief may be able to help you create a personalized debt relief program to get your finances back in order and send you on your way to financial freedom. Learn more about the potential benefits and risks through our Accredited Debt Relief review below.
What does accredited debt relief do?
Accredited Debt Relief (ADR) helps people get out of debt by creating personalized debt relief programs. ADR is essentially a form of debt consolidation without a loan. The service aims to help reduce what a person owes, avoid filing for bankruptcy, and finally overcome overwhelming debt.
Unlike other debt relief companies that focus on one type of product or debt relief program, ADR is a referral service. ADR’s representatives review each applicant’s individual situation and recommend other companies that will best manage or settle the applicant’s debt.
The company offers programs in 32 states and employs a team of professional debt negotiators that will act as the intermediary between you and your creditors.
ADR is an accredited member of the American Fair Credit Council (AFCC), which is a leading association of professional consumer credit advocates. Accredited Debt Relief is also accredited with the International Association of Personal Debt Arbitrators (IAPDA) and the San Diego Regional Chamber of Commerce.
Accredited Debt Relief has a minimum debt requirement of $10,000.
How does accredited debt relief work?
- First, you will fill out an online survey or call the company to tell them about your unique financial situation and all of your debts. You will be assigned a dedicated representative as your point of contact.
- Next, the company will take the information provided and create a custom debt relief program. They will then begin negotiations with your creditors.
- Finally, you will open a new bank account where Accredited will draw funds for your monthly payments, and you will start making your payments and paying off your debts faster than you would be able to on your own.
Is Accredited Debt Relief good?
After a thorough Accredited Debt Relief Review it becomes clear that ADR is one of the most trusted debt settlement companies, and it comes with a lot of benefits, including:
- ADR treats debt settlement with a personalized approach
- Customers get a dedicated representative to guide clients through the entire process
As with any debt relief program, there are some risks associated with ADR, including:
- Some options, like bankruptcy, can have a drastic negative impact on credit
- If a customer stops making their agreed-upon payments, they may find themselves being sued by the creditor or debt collector
- The fees associated with the program may extend the time it takes to repay the debt
- Accredited Debt Relief representatives are paid on commission and therefore have a financial incentive to get customers enrolled in a program
Accredited Debt Relief customer service
Accredited Debt Relief offers excellent customer service by providing custom plans and assigning each customer their own representative that will be with them through the entire process.
Accredited debt relief programs
ADR offers debt-relief options, including debt consolidation, debt management, debt settlement, and bankruptcy.
- Debt settlement: Debt settlement is a program that is available to borrowers with a legitimate financial hardship. These are people who cannot continue to pay their debts under the original terms. Unsecured loans, like credit card debt, is the only type of debt eligible for debt settlement. A common debt settlement technique is a lump sum payment, which ADR can help you negotiate. The lump-sum payment will be lower than your loan’s balance.
- Debt consolidation: If you find yourself struggling to even make the minimum payment on your credit card, loan, medical expenses, student loan, etc., consolidating all of your obligations into one monthly payment may be the best option for you. When you choose debt consolidation, you will free yourself from dealing with multiple creditors, reduce your monthly payment, lower your interest rates, and avoid delinquent payments.
- Debt management: Debt management plans typically don’t involve loans. Instead, they are part of a debt consolidation plan allowing you to pay off your loans faster while reducing interest rates and eliminating or minimizing calls from debt collectors. Accredited Debt Relief will review your individual financial situation and negotiate with your creditors to come up with a single monthly payment after deducting your basic living costs.
- Bankruptcy: When people find themselves buried in debt, filing bankruptcy may be the last resort. Bankruptcy allows all debt collection to stop and prevents wage garnishment, foreclosure, repossession, and legal action. There are two ways to file for bankruptcy:
- Chapter 7 Bankruptcy: People who cannot make minimum monthly payments and who earn below the average income for their site qualify for Chapter 7 Bankruptcy. You may discharge credit card debt, personal loans, medical debt, garnishments, and car accident judgments. You may not discharge child support debt, most student loan debt, and tax debt.
- Chapter 13 Bankruptcy: For people earning above the average income in their state, Chapter 13 is typically a better option than Chapter 7. Chapter 13 Bankruptcy restructures debts to come up with a more affordable and feasible payment schedule. However, debts in Chapter 13 are not completely discharged. Instead, you will make monthly payments to a court-appointed trustee. These payment terms range from three to five years. It’s important to note that filing for bankruptcy will impact your credit score drastically.
How long does it take for debt to be paid off with Accredited Debt Relief?
It varies from case to case, but, the average program lasts from two to four years. The length depends on how much money you deposit into your Dedicated Savings Account account each month and how much debt you are paying down.
Our final verdict is that Accredited Debt Relief is a highly reputable company for people looking to settle unsecured debt while avoiding bankruptcy and starting fresh with a clean credit slate.