Armada Debt Solutions is a debt consolidation and credit repair service headquartered in Irvine, California. They have implemented a consolidation plan via settlement to help consumers saddled with unsecured debt find the financial relief they need. Potential customers can call for a free consultation to see of Armada’s services fit their needs. However, the company is lacking industry accreditations that we expect to see.
Pros
Free Consultation
Armada offers a free consultation that is encouraged to anyone experiencing unsecured financial hardship. A representative will begin with a complete financial analysis to evaluate the current financial situation of each consumer. Program dynamics are geared toward lowering finance charges, consolidate bills to a single payment, and settling debts by up to 50 percent of what is currently owed.
Low Minimum Debt Requirement
A minimum of $3,000 in unsecured debt must be enrolled into their program, which is lower than the industry standard at $7,500. Clients are required to have a bank account set up with a third-party FDIC insured bank called Global Client Solutions. It is here that funds will be drafted by Global Client Solutions from a personal bank account into the secured trust account. Keep in mind, fees are associated with holding an account at this third-party bank, and any fees charged will not be refunded. Because this company operates on a performance-based fee model, clients will pay Armada nothing unless a creditor debt has been successfully negotiated and settled to the satisfaction of their client.
Personalized Services
Once qualification is determined, each client will be assigned a personalized account manager to handle their case. This manager will be their main point of contact from start to finish. This method enables a strong, professional relationship to be built without the hassle of being bounced around from rep to rep stating the same details time and again.
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Cons
Lack of Transparency
We have a few concerns with the company as far as transparency is concerned. Their website lacks important information such as the basis of their programs and what to expect. Information is very limited, although consumer reviews have suggested they are open and up-front concerning all company aspects, including fees, during enrollment. However, we would like to see up-front fees, monthly fees, and average interest rates clearly on their website. It is difficult for potential customers to decide if a company is a right fit for their circumstances without this information. It is also difficult for our team to rank the company fairly without this information.
Debt Settlement
Another concern of ours is that it seems they provide settlement services, rather than a consolidation plan with credit counseling. Each page on the company website outlines how they can get debts settled, rather than providing a plan for consumers to repay 100 percent of their debt. Several debt consolidation companies aim at getting consumers financially fit through credit counseling sessions and this company lacks this feature because again, they appear to be a debt settlement company.
Lacking Accreditations
Although it’s not mandatory for these types of companies to provide financial education, it’s certainly an aspect consumers appreciate. We would like to see more educational materials, resources, and tools for consumers to take advantage of. We would also like to see more industry accreditations. Armada does not have any industry accreditations, which is a major drawback to their services.
Our Recommendation
Armada Debt Solutions offers personalized service, and have a low debt requirement. However, Armada Debt Solutions’ lack of credit counseling and accreditations causes us to suggest looking at other companies for your needs. We suggest using a specialized debt consolidation company for your needs. We recommend looking at our top-rated companies for your needs.
About Armada Debt Solutions
Armada Debt Solutions is a full-service debt consolidation and credit repair company that offers consolidation through debt settlement. Armada Debt Solutions does not offer a typical debt consolidation plan or debt consolidation loan. Instead, it offers customers the ability to have the company negotiate with creditors for a debt settlement. The settlement amount is typically lower than the actual amount a customer owes to the creditors. Armada Debt Solutions does not offer any financial education resources or credit counseling services.
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- Takes your existing debt and try to settle with your creditors for a lower amount. If you pay off the settled amount, your debt will be considered paid in full.
- Negotiates with your creditors on your behalf.
- Fee based on a percentage of your total starting debt or a percentage of the debt they save you.
- Most settlement companies have you create a separate "escrow" account where you will make monthly contributions over a certain amount of time to contribute to your settlement. Once there is a substantial amount of funds to show your creditors, the settlement company will try to negotiate a lower amount of debt.
- Combines all your debts and creditors into one monthly payment.
- Allows you to pay one monthly payment to the consolidation company, instead of multiple payments to different creditors.
- You no longer owe your original creditors; instead you pay one monthly payment to your consolidation company.
- Consolidation companies can help negotiate lower interest rates on your debts and help lower your total debt payment in the long run. A lower interest rate will lower the amount you owe in the end.
- Allows you to consolidate all your different debts into one personal loan that can be paid off over time.
- Can offer borrowers a lower interest rate with a longer payback term (compared to high-interest credit cards or medical bills). This will lower the amount of money required to pay off the loan over time.
- Personal loan debt consolidation can be an effective way to raise your credit score quickly (within 3-6 months).
- Borrowers can receive funds from their loan within only a few days.
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