DebtGuru is an Internet domain for American Credit Foundation, and this foundation has been helping people with debt management since 1994. Based in Utah, the nonprofit organization helps those who need a little assistance with their creditors. Not only existing to 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.
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 garnishment at bay, and they can even reduce or totally eliminate late and over limit fees.
An initial consultation is encouraged to help determine what path is most feasible for the debt saddled consumer to step foot upon. During the consultation, consumers may be advised to participate in their free no-obligation credit counseling service to determine the best plan of action, which may include a Debt Management Plan (DMP).Once enrolled into the DMP, clients may find their interest rates reduced to as little as zero percent with the average client showing a creditor interest rate at about 6.9 percent.
Enrollment fees are some of the best in the industry at $10 per creditor account and capping those charges at $39, which is also what their monthly service fees are capped at.
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.
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. Bankruptcy is no longer the only choice for those who have gotten themselves buried –financial options are still available and financial freedom is one of those options.
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 not waste anyone’s time or money.
The company holds accreditation with the BBB and is also ISO certified to ensure high quality services are provided to consumers under strict regulation.
Highlights to DebtGuru include:
- Free credit counseling
- A+ BBB review
- Accreditations like ISO and FCAA
- Trusted, non-profit company
- Personalized attention and client care
- Reduce the interest that you pay to creditors
- Reduce your monthly payments
- Achieve a set payment every month with no surprise
- Reduce or eliminate over the limit and late fees on credit cards
No debt consolidation company is perfect and DebtGuru ensures their program will be beneficial to their clients otherwise, they will not offer their services. These factors can only be determined during the screening call with a financial counselor. If selected based on the initial 15 minute phone screening and decide to sign up for the program, there is an upfront cost. This cost depends largely on the amount of unsecured debt and the types of debt acquired. This cost has to be paid in order to secure your spot in the debt consolidation program. Someone with student loans, credit cards, mortgage and unsecured loans will pay more upfront than someone who only has credit cards to worry about. Additionally, no lines of credit may be kept open once an account is enrolled into program, and this is for any company handling consolidation.
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.com 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.
Here are other concerns we have about DebtGuru:
- Interest rates are not eliminated
- There’s no guarantee you qualify
- You have no say in which debt gets paid off first
- Services are not available in all states
- The counselor makes most important decisions
- When one debt is paid off, your payment will not decrease
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