The Top 5 Companies for Your Credit Card Debt Relief

By Top10 Debt Consolidation StaffTop10 Debt Consolidation Staff

The average American has 2.6 credit cards, a figure that is likely to rise as we increasingly move toward a cashless society. Credit cards offer more convenience and flexibility than cash, but it can be easy to lose track of spending and fall into a spiral of debt, which in turn can cause a great deal of financial and emotional pain. Fortunately, the door to debt relief is always open

Credit Card Debt Relief

The Problems with Credit Card Debt

If you have multiple credit cards and fail to make payments on time, your debt can spin out of control quicker than you think. First, it can be hard to keep track of payments when you’re using several different cards to make purchases. Secondly, credit card providers charge compound interest, “or interest on interest.” Therefore, when you carry your balance over from one month to the following month, you carry the unpaid interest over with it and end up paying a higher APR than the one you agreed to in theory.

The other major problem with credit card debt is the effect it can have on your credit score. According to FICO, which sets the standards followed by the major credit agencies, the 2 main factors that go into calculating your score are payment history and amounts owed. Payment history, which accounts for 35% of your score, shows lenders whether you’ve paid credit accounts on time. Amounts owed accounts for 30% of your score, and shows a lender if you’re overextended on your payments.

Mounting credit card debt can damage your credit score and make it harder to get another loan such as a mortgage, personal loan, or auto loan.

How Can You Achieve Credit Card Debt Relief?

There are 3 major forms of credit card debt relief, each one suited to different circumstances and different levels of debt. The 3 types are debt management (also referred to as debt counseling), debt consolidation, and debt settlement.

  • Debt management involves bringing in a debt counseling service to help negotiate new payment terms with your credit card provider. Through these negotiations, your credit card company might agree to a lower interest rate or longer loan term—both of which would have the effect of reducing your monthly payments
  • Debt consolidation involves consolidating debts from multiple credit cards into anew loan with a lower interest rate and a single monthly payment. Debt consolidation loans offers 2 advantages: they reduce the size of monthly payments, and simplify them into one monthly payment, making it easier to track and pay off debts.
  • Debt settlement is the term for when a credit card provider agrees to forgive some of the borrower’s existing debt.

What is Credit Card Debt Settlement and Why Would Your Card Company Agree to it?

You may ask why a credit card provider would agree to waive some of your debt. The answer is that if the credit card provider is convinced the debtor can’t pay in full, they may consider it more practical to accept a partial repayment rather than go through a lawsuit in the hope of claiming money the debtor doesn’t have. Beware: debt settlement can damage your credit score in the near-term, although getting yourself out of debt is obviously good for your financial situation and credit score in the long term.

The Top 5 Companies for Relief from Credit Card Debt


Freedom Debt Relief

  • Debt settlement services
  • Free consultation with no upfront fees
  • Online dashboard lets you track progress

Freedom Debt Relief has been negotiating debt settlements for more than a decade, helping hundreds of thousands of customers settle more than $9 billion a month. Freedom has experience negotiating settlements with most of the nation’s large credit card providers, putting it in a position where it can push for bigger savings than its rivals. Freedom stand for transparency, and customers can stay up to date with their settlement through the online dashboard.

Visit Freedom Debt Relief


Accredited Debt Relief

  • Debt settlement services
  • Debt consolidation loans
  • Free consultation

Accredited Debt Relief is a large debt-relief company offering debt settlements and debt consolidation. It operates in 32 states, matching debtors with local debt-relief companies that aim to negotiate debt settlements within a timeframe of 2-4 years. It works with customers with a minimum $10,000 in unsecured credit card debt or other debts. To find out how Accredited can help you with settlements or consolidations, ask for a free phone consultation or complete the short online quiz.

​Visit Accredited Debt Relief


Pacific Debt

  • Debt settlement services
  • No upfront or monthly fees
  • Excellent educational resources

Pacific Debt Relief provides debt-settlement services, with a commitment to getting its customers completely free of debt within 4 years. After a free consultation, customers are assigned their own personal account manager to negotiate on their behalf and keep them updated. Pacific’s website provides free educational resources, including a useful debt calculator to help you figure out how much you’ll pay in principal and interest in different scenarios.

Visit Pacific Debt


Consumers Alliance Processing Corporation

  • Debt management programs
  • Free advice on other types of debt relief
  • Free financial education workbook, budget worksheets, and other financial
  • management resources

CAPC specializes in customized debt management programs, assisting debtors who wish to avoid a debt settlement. It connects customers with a dedicated counselor to help negotiate new payment terms with their credit card provider. It also offers free resources on other types of debt relief, helping customers to understand whether they’re suited to debt management, debt consolidation, or a debt settlement.

Visit CAPC


Monevo

  • Debt consolidation loans
  • Search over 30 top lenders for best rate
  • Get loan offers in 1-2 minutes

Monevo’s online loans platform lets users search and compare personal loans from more than 30 top lenders in just a couple of minutes. These personal loans can be used for debt consolidation or other purposes. Users fill out a short online form with some basic details about loan amount and the purpose of the loan (e.g. debt consolidation) and Monevo’s search engine displays the lenders with the best APRs and terms. Monevo’s service is free to use, and you can search for loans as many times as you like without your credit score beingg affected.

Visit Monevo


So, Which Debt Relief Company Should I Use?

Whether it’s debt settlement, debt management, or debt consolidation that offers the best way out of credit card debt, there are plenty of good companies that can assist you. The good news is, all of the top debt-relief companies listed above offer free consultations, so you can shop around and get a second and third opinion before deciding which debt-relief option is best for you.

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