Debtmerica Relief’s founding partners met 12 years back at Wharton Business School at the University of Pennsylvania with the intent of starting a business that would help Americans struggling with debt find financial freedom. Offering a debt settlement program to individuals across the nation, Debtmerica was founded on the idea of helping people attain financial independence.
Debtmerica will work with a variety of unsecured debts such as credit cards, department store cards, medical bills, and other types of unsecured debts. Debtmerica is accredited by the AFCC and IAPDA and has fully certified negotiators on their team ready to help with creditors. Their program is considered to be a better alternative to bankruptcy because their relief plan is not made public.
Debtmerica does not have any upfront fees, as does any settlement company because of the law passed by the FTC in 2010. Customers can expect to pay 20 – 24 percent of the total amount of debt enrolled upon settlement on a debt. There is a free consultation available to those who want to know if they would qualify for the program at Debtmerica. Once it has been determined if they qualify for not, customers will be set up with an escrow account with a 3rd party bank where a predetermined amount of funds will be deposited on a monthly basis to build an amount which can be used to negotiate with the creditors. Debtmerica’s fee will be rolled into the monthly payment agreed to by the client's various creditors. Clients will be given the option to negotiate the amount and the funds will be transferred to the creditor by the client. In the case that the client is not satisfied with the amount negotiated, no charge will be made. The only charges a customer can expect to see is a monthly maintenance fee, which usually runs at about $9.95 and is non-refundable.
The program at Debtmerica projects debts to be resolved in 24 to 48 months, with the first account estimated to be settled in 4 – 6 months. The majority of settlement companies advertise debt forgiveness for pennies on the dollar. Debtmerica is more open and honest by pointing out that most settlements with debt relief usually fall in the range of 15 to 75 cents of the dollar. Information on the company's fees is easily accessible along with legal facts on litigation and bankruptcy. There is also an FAQ page that can be found on their website.
Pros for this company include:
- Vast resources including articles, blog posts, social media presence
- AFCC & IAPDA certified
- Almost a decade in business
The negatives with enrolling with any company involves tax liability and possible litigation in debts requiring longer than 48 months to negotiate and settle. Consumers who settle also risk taking hits on their credit score. Debtmerica, along with many other settlement companies, does not service the entire United States and their programs vary from state to state. Debtmerica services these following states: CO, CT, GA, KS, ME, VT, WA, WV and WI.
The Bottom Line
Debtmerica Relief works by negotiating outstanding balances with creditors to reduce debt on multiple unsecured accounts, and not just to manage payments on debts or to consolidate debts into one monthly charge. The cost of the program is rolled into the monthly payment made to the escrow account controlled by the consumer. Our team likes how transparent the company is about their settlement process, their fees, the risks of settling, and the fact that they do not hold any major industry accreditations with the AFCC and IAPDA. If settlement is the right path to take for you, we do recommend calling for the free consultation to help determine if their service, in particular, is the right one for you.