What is Debt Relief?
Debt relief helps individuals reduce or eliminate their debt through various methods, such as negotiation with creditors, debt settlement, or debt management programs. In a typical debt relief program, a company negotiates with creditors to lower the total amount owed or create a more affordable repayment plan.
You make monthly payments to the debt relief company, which then pays your creditors. This approach is for people struggling with large debts who can’t make their regular payments but want to avoid bankruptcy.
Who are the Top 3 Debt Relief Companies ?
Based on our research and analysis, we selected Pacific Debt Relief, ClearOne Advantage, and AmOne as our top 3 debt relief picks due to their diverse offerings and overall reputation in the industry.
Pacific Debt Relief, stands out for its strong customer service record, transparent fee structure, and high success rate in debt settlements. ClearOne Advantage offers a personalized approach to debt settlement with a satisfaction guarantee. AmOne, while not a direct debt relief provider, serves as a valuable loan marketplace connecting consumers with multiple lenders for debt consolidation options.
Each company offers unique strengths: Pacific Debt Relief for its proven track record, ClearOne for its customized programs, and AmOne for its ability to compare multiple lenders.
- BBB A+ Rating & Accredited
- Over $500 Mil Debt Settled
- $8,000 Minimum Debt
- 24 to 48 Month program
- BBB A+ Rating
- Ranked by INC Magazine 25th best Financial co in US
- $10,000 Minimum Debt
- 24 to 48 Month program
- BBB A+ Rating
- Top Rated Loan Network
- $10,000 Minimum Debt
- 24 to 48 Month program
Pacific Debt Relief: A Comprehensive Review
Pacific Debt Relief is a nationwide debt settlement company that has been operating since 2002, offering services to help consumers manage unmanageable debts. Here’s an in-depth look at what they offer and how they stack up:
Services and Eligibility
Pacific Debt Relief specializes in settling unsecured consumer debts, including credit card debt, personal loans, medical bills Payday loans, some student loan
Eligibility: $10,000 in debt
Coverage: The company operates in 49 states.
Customer Reviews
Better Business Bureau (BBB)
Accreditation: BBB Accredited Business
Rating: A+
Accredited Since: 12/1/2010
Years in Business: 22
Customer Reviews: 4.93 out of 5 stars based on 1,904 customer reviews
Google Reviews
Trustpilot
4.8 out of 5 stars based on 1,838 reviews
Consumer Affairs
4.8 out of 5 stars based on 552 reviews
Fees and Costs
No upfront or monthly fees, Fees range from 15% to 25% of the total enrolled debt, Fees are only charged after a settlement is reached
Process and Timeline
The debt settlement process can take 24 to 48 months, Clients stop making payments to creditors during negotiations, on average, clients pay about 50% of their debt balance before fees
Pros & Cons
Pros: Free initial consultation, assigned personal account manager, payments based on your budget, A+ BBB rating and 4.93/5 stars average customer rating.
Cons: No app or online portal. No guarantee of settlement, does not operate in the State of Oregon
Customer Experience
Pacific Debt Relief has generally positive reviews: 4.8 out of 5 stars on Trustpilot, only 5 customer complaints submitted to the BBB in the past three years, named the most consumer-friendly debt relief company in 2022.
Expert Opinion
While Pacific Debt Relief appears to have a strong reputation for customer service, it’s important to note that debt settlement should be considered a last resort due to potential risks
Bottom Line
Pacific Debt Relief could be a viable option for those struggling with significant unsecured debt. However, potential clients should carefully consider the impact on their credit scores and explore all alternatives before committing to a debt settlement program.
As with any financial decision, it’s advisable to thoroughly research and possibly consult with a financial advisor before enrolling in such a program.
ClearOne Advantage: A Comprehensive Review
ClearOne Advantage is a debt settlement company based in Baltimore, Maryland, offering services to help consumers manage unsecured debts since 2008. Here’s an in-depth look at what they offer and how they stack up:
Services and Eligibility
ClearOne Advantage specializes in settling unsecured consumer debts, including credit card debt, debt consolidation, and medical bills.
Eligibility: Minimum debt amount not specified in search results
Coverage: The company operates in 47 states, excluding Connecticut, Georgia, and Kansas
Customer Reviews
Better Business Bureau (BBB)
Accreditation: n/a
Rating: A+
Accredited Since: n/a
Years in Business: 16
Customer Reviews: 4.03 out of 5 stars based on 543 customer reviews
Google Reviews
Trustpilot
4.7 out of 5 stars based on 8,864 reviews
Consumer Affairs
4.8 out of 5 stars based on 311 reviews
Fees and Costs
No upfront fees, Fees are only charged after a settlement is reached, Exact fee structure is not disclosed in the search results
Process and Timeline
The debt settlement process can take 24 to 48 months. Clients stop making payments to creditors during negotiations. ClearOne negotiates with creditors once sufficient funds are accumulated in the client’s account
Pros & Cons
Pros: Free initial consultation, 30-day satisfaction guarantee, 24/7 online client portal, accredited by IAPDA and AFCC
Cons: Potential negative impact on credit scores, some customers report confusion about the process, mixed customer reviews
Customer Experience
ClearOne Advantage has mixed reviews across different platforms:
3.73 out of 5 stars on BBB;
1.3 out of 5 stars on Yelp (based on 51 reviews); Some customers praise the professionalism of representatives;
Others report issues with communication.
Expert Opinion
While ClearOne Advantage offers debt settlement services that may help some consumers, the mixed reviews and potential risks associated with debt settlement should be carefully considered. The company’s accreditations and satisfaction guarantee are positive factors,
Bottom Line
ClearOne Advantage may be an option for those struggling with significant unsecured debt, but it’s crucial to fully understand the risks and potential impact on credit scores. Prospective clients should carefully review all terms and conditions, consider alternatives, and possibly consult with a financial advisor before enrolling in the program. The company’s effectiveness seems to vary greatly among individual experiences, so thorough research is essential.
AmOne: A Comprehensive Review
Sevices and Eligibility
Services and Eligibility
Customer Reviews
Better Business Bureau (BBB)
Accreditation: n/a
Rating: A+
Accredited Since: n/a
Years in Business: 25
Customer Reviews: 1.43 out of 5 stars based on 28 customer reviews
Google Reviews
Trustpilot
4.2 out of 5 stars based on 2,525 reviews
Consumer Affairs
n/a
Fees and Costs
Loan fees and interest rates vary by lender
Exact fee structures not disclosed in search results
Process and Timeline
Free online pre-qualification process
Matches borrowers with potential lenders based on their financial profile
Loan terms and timelines vary by lender
Pros & Cons
Pros: Free service, compares multiple lenders, offers educational resources on debt consolidation
Cons: Not a direct lender, rates and terms vary by lender, some users report receiving excessive marketing communications
Customer Experience
Limited customer review information available in search results
Some users report receiving numerous calls and emails after submitting information
Expert Opinion
AmOne can be a useful tool for comparing debt consolidation loan options from multiple lenders. However, it’s important to carefully review all terms and conditions from any recommended lenders, as AmOne is not responsible for the actual loans.
Bottom Line
AmOne may be a helpful starting point for those seeking debt consolidation loans, as it allows you to compare offers from multiple lenders. However, potential users should be prepared for possible marketing communications and should carefully evaluate any loan offers received. As with any financial decision, it’s advisable to thoroughly research all options and possibly consult with a financial advisor before committing to a debt consolidation loan.
See If You Qualify for Credit Card Relief
See how much you can save every month — plus get an estimate of time and total savings — with your very own personalized plan.
CALL FOR FREE ANALYSIS NOW
(833) 863-1140
Debt Relief Frequently Asked Questions
1. What is debt relief?
Debt relief is a process that helps individuals reduce or eliminate their debt through methods such as debt settlement, consolidation, or management plans. It’s often used by people who are struggling to pay off large debts.
2. How does debt relief affect my credit score?
Debt relief can impact your credit score, depending on the method used. Debt settlement may lower your score because you’re paying less than the full amount owed, while debt consolidation might improve your score over time by simplifying payments and reducing high-interest debts.
3. What’s the difference between debt settlement and debt consolidation?
Debt settlement involves negotiating with creditors to pay off a reduced amount, while debt consolidation combines multiple debts into one loan with a single monthly payment, usually at a lower interest rate.
4. Is debt relief the same as bankruptcy?
No. Debt relief aims to avoid bankruptcy by negotiating more manageable repayment terms or reducing the total debt. Bankruptcy, on the other hand, is a legal process that can eliminate or restructure your debts but has a more severe long-term impact on your credit.
5. Will I still owe taxes on forgiven debt?
Yes, in some cases. The IRS considers forgiven debt as taxable income. However, there are exceptions, especially if you’re insolvent at the time of the debt forgiveness. It’s best to consult a tax professional for guidance.
6. How long does debt relief take?
The length of time depends on the method. Debt consolidation or management plans can take 3-5 years, while debt settlement may take several months to a few years, depending on how much debt you have and how quickly settlements are reached.
7. Are there any upfront fees for debt relief services?
Some debt relief companies charge fees for their services. Be cautious of companies that ask for upfront payments before providing any help. Reputable companies typically charge fees only after they’ve successfully settled or reduced your debt.
8. Can I negotiate with creditors myself?
Yes, you can negotiate with creditors directly to settle your debts. However, many people choose to use debt relief companies for their experience and ability to negotiate better terms.