What Is Accredited Debt Relief, and Is It a Scam?

For many people, hearing the words debt and relief put together makes their Spidey senses tingle. There’s a good reason for this. There are a lot of people out there who want to take advantage of others’ misfortunes. One way to do this is scamming people just looking for a way to get out of debt. Those shopping around for debt relief companies might be wondering, is Accredited Debt Relief a scam?

What Is Accredited Debt Relief, and Is It a Scam?

Anyone who has been there knows the feeling: When you’re deep in debt, any glimmer of hope can seem worth pursuing. The problem is, there are people who make their living looking for individuals just desperate enough to fall into a trap. This is why it’s essential for those shopping around for debt relief to understand some of the warning signs of fraud. These things should be a red flag when looking at debt settlement companies:

• They ask you to pay fees before setting your debts. While you’ll have to send the debt relief company funds to set aside for negotiations, legitimate organizations won’t charge you for services until debt has been successfully settled.
• They make you a guarantee. There’s no such thing in the world of debt relief, other than the fact there are no guarantees.
• They won’t give you information unless you send personal information. This could be a sign of a potential identify theft scheme.
• It’s difficult to find consumer reviews online. It’s even worse if you find a substantial amount of content warning you against working with the group.

If you don’t already know, Accredited Debt Relief is an organization that specializes in debt settlement. People wondering is Accredited Debt Relief a scam can breathe a sigh of relief, as it’s a totally legitimate business. These are a few features of the company that let you know it’s operating with integrity:

• They offer free debt consultations for consumers.
• They are accredited with the American Fair Credit Council (AFCC).
• They have an abundance of information available to anyone who needs it.
• They have great reviews from satisfied customers.

All of these elements should help people have some peace of mind in knowing they’re working with a totally legitimate debt relief company. From here, it’s time to think about whether or not Accredited Debt Relief makes sense for you.

What Should Consumers Know about Accredited Debt Relief?

If you need assistance with your debt, working with a debt relief company might be your best bet for finally getting back on track. This is especially true for those who aren’t eligible for debt consolidation or bankruptcy.

The first thing you need to know about Accredited Debt Relief is that they operate through debt settlement. This is also sometimes referred to as debt negotiation. Understanding this is key because debt settlement has a few essential points that can affect you in crucial ways.

With debt settlement, you actually stop paying your lenders directly and instead send money to the debt relief agency. This money you send is then used to negotiate a single payment that’s lower than the amount you owe. The obvious positive here is that successfully settled debts are much less costly than they would be otherwise. But there are also a couple drawbacks you need to know about before signing up for anything.

Since you’re not paying your lenders leading up to the negotiation, it’s likely to negatively affect your credit. This can make it harder to obtain debt in the future; and if you do, it will likely come with unattractive interest terms. Furthermore, settled debts are often considered income for tax purposes. This is something you’ll need to keep in mind when preparing for tax season.

You need to consider the pros and cons of debt settlement before determining wither it’s the right move for you. Fortunately, you can at least know Accredited Debt Relief is not a scam.

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