DebtGuru
DebtGuru holds industry accreditations such as ISO. However, services are not available in all states.
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DebtGuru is an Internet domain for American Credit Foundation, and this foundation has been helping people with debt management since 1998. Based in Utah, the nonprofit organization helps those who need a little assistance with their creditors. Not only do they work with creditors, DebtGuru will also help educate you about the financial industry and how you can empower yourself. They are a third party administrator that disburses funds that are held in an FDIC account to many different financial institutions across the country.
The Good
- Free consultation with certified counselor
- Personalized service
- Educational resources
Free Consultation
Over the years the credit card purchases, high interest rates, and maybe even a few late fees have gotten in the way of those well meaning financial goals. That’s exactly what DebtGuru.com is known for. They can make the collection calls stop, they can keep wage garnishments at bay, and can even reduce or eliminate late and over limit fees.
An initial consultation is encouraged to help determine what path is most feasible for the potential client’s circumstances. During the consultation, consumers may be advised to participate in their free, no-obligation credit counseling service to determine the best plan of action. Once enrolled, clients may find their interest rates reduced to as little as zero percent with the average client showing a creditor interest rate at about 4.1 percent.
Personalized Service
One factor we appreciate about DebtGuru’s services is their ability to provide personalized customer care. They set clients up with a team of two representatives who are each fully accredited and certified with the NIFCE, and they remain with these individuals throughout the duration of the program. Upon request, they will also provide one-on-one client care with an Account Manager.
Educational Resources
Their website displays an array of debt and financial related articles for consumers to absorb when trying to dig their way out of the dark hole of debt, along with customer testimonials exemplifying the excellence portrayed by this company. If DebtGuru.com isn’t certain that a consolidation plan is the best plan of action, those services will not be offered. Their objective is to not waste anyone’s time or money. The company is ISO certified to ensure high quality services are provided to consumers under strict regulation.
The Bad
- Lack of control
Lack of Control
Another potential drawback is the escrow account. Your monthly payment will already include the interest rate and is made straight to an escrow account for DebtGuru to divide among your creditors. Some people report feeling helpless or out of control when someone has to make their payments for them. Adding to the out-of-control feeling is the lack of online support. It seems an industry standard for this day and age is to incorporate an online client portal, enabling clients to manage their accounts and to view progress. This company does not provide that option.
The Bottom Line
DebtGuru can be a great resource for knowledge in terms of total account management. They offer an informative blog for customers, and free debt counseling to get your finances in order. DebtGuru offers debt consolidation plans to further support debt relief goals. With every counselor certified by the NIFCE, a 15 minute phone call is certainly worth the time to find out how their innovative debt management programs can be tailored to meet your financial needs. However, their lack of information is concerning. We recommend researching this company further before making a final decision to work with them.
About DebtGuru
As a non-profit credit counseling organization, DebtGuru provides certified counselors to assist consumers with credit and debt management counseling. DebtGuru provides an authentic debt consolidation for consumers through its debt management program. DebtGuru’s debt management program allows consumers to consolidate all of their unsecured debt payments into one monthly payment, while also lowering the interest rate on those debts. It also offer a variety of free debt management articles on its debt management blog.
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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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