2024 Accredited Debt Relief Review
Accredited Debt Relief is a top debt-settlement company in the U.S. that claims to reduce clients' payments by up to 45% and help them become debt-free in as little as two years. They have assisted over 300,000 clients in resolving over $3 billion in debt, but there is a fee, on average, of 25% of your total debt. Enrolling in debt settlement can have a significant impact on your credit and comes with other risks. Learn about ADR's process, costs, competition, and what you should consider before signing up.
Accredited Debt Relief pros and cons
Pros
- Free consultation
- You don't pay if there is no settlement offer
- Monthly payments reduced by as much as 45%
Cons
- Must have at least $10,000 in unsecured debt to qualify
- Fee is 25% of enrolled debt, not negotiated amount
- Not available in every state
How does Accredited Debt Relief work?
In 37 states and Washington, D.C., Accredited Debt Relief (ADR) is accessible. To be eligible, you must have at least $10,000 in unsecured debts, such as credit cards, personal loans, medical bills, or private student loans. Like most debt settlement companies, ADR does not collaborate with secured debt, including mortgages or car loans.
You must stop paying your creditors after selecting accounts to enroll in, and instead make deposits in an FDIC-insured savings account while Accredited Debt Relief works to reduce your balances.
The fee for ADR is calculated as a percentage of the original debt, not the settled amount. The company claims that you can reduce your monthly payments by up to 45% before the fee is deducted. Completing a settlement program can help you clear your debt in 24 to 48 months.
Accredited Debt Relief recommends Beyond Finance for debt consolidation loans of up to $100,000, although it is not a lender itself.
Be cautious when working with debt settlement companies, as they may require you to stop paying your creditors, which could result in penalties and interest, negatively impacting your credit score. You may also face legal action. Furthermore, any debt that is forgiven will be taxable.
How much does Accredited Debt Relief cost?
Accredited Debt Relief provides a complimentary consultation and does not require any initial payment. Instead, the company charges a fee only when a settlement is reached, which is typically 25% of the original debt.
If someone has $20,000 in credit card bills and comes to Accredited Debt Relief, they would pay approximately $5,000 to ADR when their debt is settled. However, some competitors may have a wider fee range, and you may be charged less.
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How Accredited Debt Relief compares
Here's how ADR stacks up against two major debt relief companies.
Accredited Debt Relief vs National Debt Relief
Both Accredited Debt Relief and National Debt Relief negotiate with creditors to lower unsecured debts. While Accredited Debt Relief charges an average fee of 25% of the enrolled debt, National Debt Relief's fees range between 15% and 25%. Accredited Debt Relief operates in only 37 states, while National Debt Relief is available in all states except Oregon, Vermont, and West Virginia.
Both companies collaborate with lending partners that provide debt consolidation loans of up to $100,000. While neither has a maximum amount of debt they'll work with, Accredited Debt Relief's minimum is $10,000, compared to $7,500 for National Debt Relief. If you have a smaller debt burden, National Debt Relief may be the better option. However, if you have at least $10,000 in unsecured debt and reside in a state where Accredited Debt Relief operates, a free consultation may be beneficial.
Accredited Debt Relief vs Americor
Americor is another leader in the debt settlement industry and works with clients carrying as little as $7,500 in unsecured debt. Unlike Accredited Debt Relief, Americor is available in more states (everywhere except Colorado) and its fee range is broader, averaging between 14% and 29% of the enrolled balance. Both Americor and Accredited Debt Relief work with partners that offer debt consolidation loans. Americor's partner, Credit9, has a $40,000 loan cap, which is less than half the $100,000 Beyond Finance makes available.
Is Accredited Debt Relief legit?
Since its inception in 2011, Accredited Debt Relief has helped over 300,000 clients repay more than $1 billion. This business has an A+ rating from the Better Business Bureau and is a member of several organizations, including the American Association for Debt Resolution, the International Association of Professional Debt Arbitrators, and the Consumer Debt Relief Initiative.
Does using Accredited Debt Relief hurt your credit?
Stopping payment to your creditors through any debt settlement company can negatively impact your credit score, as payment history makes up 35% of your credit score, the largest contributing factor.
You may face additional fees, collections, or legal action from creditors.
If Accredited Debt Relief can reduce the amount you owe, your credit score should improve as you make payments.
If you're only a payment or two late, you may want to consider other options, such as a debt consolidation loan or a debt management plan, which can make less of an impact on your credit and cost a lot less. These plans typically cost between $30 to $50 a month. The National Federation for Credit Counseling lists reputable agencies that offer debt management solutions.
How to sign up with Accredited Debt Relief
To work with Accredited Debt Relief, you must have at least $10,000 in unsecured debt and reside in a state where the company operates. On the Accredited Debt Relief website, you will be prompted to enter the amount of debt you owe, as well as your name, phone number, email address, and state of residence. You will receive an online quote that includes your new estimated monthly payment, the amount you will save, and the length of the program. A consolidation specialist will then contact you to discuss options.
You can contact the company by emailing [email protected] or calling 888-710-1253, Monday to Friday from 8 a.m. to 11 p.m. and on weekends from 8 a.m. to 10 p.m.
Is Accredited Debt Relief right for me?
With a strong reputation for customer satisfaction and broad availability, Accredited Debt Relief is a top debt settlement company. Although its fees are higher than some competitors, the company requires a minimum of $10,000 in unsecured debt to apply.
Before employing a debt settlement service, it is crucial to comprehend the financial and legal risks and explore other options, such as a debt consolidation loan or a debt management plan.
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Our goal at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each debt relief review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of the debt relief industry. At CNBC Select, we take pride in our journalistic standards and ethics, and we earn a commission from affiliate partners on many offers and links. However, our content is created independently, without any input from our commercial team or external third parties.
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