Day: June 6, 2018
California Debt Consolidation, Settlement and Debt Relief Programs range from debt settlement to debt consolidation to debt validation. Here’s the difference between three debt relief programs.
consumer credit counseling (AKA: debt consolidation)
- Consolidates credit cards into a smaller interest rate. You then pay the credit counseling company.
- The credit counseling company pays your creditors. It’s that simple.
- Credit card companies are willing to work with consumer credit counseling companies because by working with these companies the creditors can continue to get paid.
Debt Settlement California
Debt settlement programs are the complete opposite. Debt settlement companies don’t work for the creditors and are not affiliated with the creditors in any way whatsoever.
With debt settlement, clients stop paying their creditors altogether. The debt settlement company will then call your creditors and work out a deal to settle the debt for around half the balance, which the creditors will offer to their clients anyway, minus the fees.
In California, debt relief, settlement and consolidation companies like Golden Financial Services, Freedom Debt Relief, and Debt Wave Consumer Credit Counseling, are amongst the top companies in the state. How do we know this? Anyone can check at the Better Business Bureau, just go to https://BBB.org, and search for any of these three companies. You will see a few things in common:
- They are all A+ rated at the Better Business Bureau
- They all have over 8 years in business
- None of these companies have any unresolved complaints
Compare California’s Freedom Debt Relief Vs. Golden Financial Services Vs. Debt Wave
Freedom Debt Relief offers debt settlement services. Their fees are in excess of about 20% of the total debt enrolled, so in the end, you end up paying only around 70% of your debt. They have a high success rate, which is why they are amongst the three best California debt relief companies, but your credit report will get trashed because you don’t pay your creditors with this type of program and there isn’t any type of credit repair that comes with the plan. So basically, you’ll get out of debt in around three years, if you’re amongst the 60% of clients that are fortunate to make it through the entire plan, but prepare to have lots of late and collection marks on your credit report preventing you from getting any future credit for 5+ years on average. Another reason Freedom Debt Relief made the top three for California’s best debt relief companies is that on this plan you only pay around 70%-80% of your total debt, versus paying your entire debt back with debt consolidation and consumer credit counseling in California.
Debt Wave credit counseling is one of the best credit counseling companies in the nation. Your creditors do get paid when enrolled on this type of program, but you will end up paying a significant amount more than with Freedom Debt Relief’s plan. Your interest rates get reduced and your payments stay around the same as when paying minimum payments, but you do become debt free in 4.5 years with consumer credit counseling, versus 7-10 years when paying minimum monthly payments on high-interest accounts. This company is a licensed and nonprofit company that is strictly regulated, so you can count on getting a reputable service and the success rate is high – 90% retention, right around what Golden Financial Services sits at.
Golden Financial Services offers debt validation, as a first option. The company does have an attorney debt settlement, but only about 10% of folks will enter into this type of plan because debt validation allows you to pay around half of your balance with fees, versus 70% of your balance on a debt settlement plan like with Freedom Debt Relief. Clients get faster results with validation because all creditors get disputed from the get go, after accounts turn into third-party debt collection accounts. Meaning, all collection activity stops, all phone calls sotp, and your creditors can no longer come after you until the debt is validated. From our research at California Debt Consolidation Help, the creditors can’t ever validate the debt, so Golden Financial Services clients have close to a perfect success rate besides for the 2% or less that end up getting a credit card summon – then needing to get the debt settled (a backup plan).
Every debt relief program has a downside, the key is to weigh your options and go with the safer and more practical option. The best part about Golden Financial’s plan, is that it comes with a money back guarantee and free credit repair. Credit repair starts on month #1, anything negative on your credit report gets disputed, and then once all of your debt gets resolved a second credit repair program disputes the remaining negative collections so that by the time clients finish the plan their debt is all resolved and most of the negativity gets cleared from the client’s credit report.
Review: Freedom Debt Relief Vs. Golden Financial Services
Why is Golden Financial Services #1 Rated?
- Golden Financial Services offers a plan that comes with free credit repair. Freedom Debt Relief offers no credit repair.
- Golden Financial Services clients pay a total of around 50% of their balance with fees included. Freedom Debt Relief clients pay around 70%-80% of their debt including fees.
- Golden Financial Services debt relief programs come with a money back guarantee. Freedom Debt Relief clients get no type of written guarantee
- Golden Financial Services has about a 90% retention rate of success, versus Freedom Debt Relief’s 60% retention ratio of success
- Golden Financial Services had 1 resolved BBB complaint in 15 years, versus Freedom Debt Relief’s 300+ Better Business Bureau complaints