First Choice Debt Relief Reviews
First Choice Debt Relief offers a useful debt calculator to help you understand your debt. The company also offers a money-back guarantee.
First Choice Debt Relief offers a unique program to help its customers get out of debt quickly and save money in the process. Since 2008, they have been committed to being a positive light in the industry. First Choice’s team of experts continually puts the customer first and as their top priority. First Choice Debt Relief’s track record and reputation demonstrates this dedication, and customers benefit from that practice.
The Good
- Money-back guarantee
- Financial tools
- No up-front fees
Money-back Guarantee
The company’s services are backed by a money-back guarantee. First Choice Debt Relief stands behind its service, and includes a money-back guarantee with all of their debt relief programs. At the end of the program, if one has paid back the total amount to their creditors (including the service fee), and the total exceeds the original balance, First Choice will refund the difference. However, it is important to note that the guarantee doesn’t apply to customers enrolled in an attorney-based debt settlement program. Additionally, the money-back guarantee does not promise balances will be lessened by a specific balance or timeline.
Calculate Your Debt
Customers can enjoy a debt calculator that helps them understand how long it will take to pay off their credit card debt. One can see the difference in the totals from choosing to just pay the minimum payments, or using one of the debt relief programs. Customers can input their total unsecured debt, targeted months to pay the debt off, number of creditors, and average interest rate to discover the total cost and total time to pay off the debt. Totals can be seen for the following: First Choice Debt Relief consolidation, just paying the minimum payments, credit counseling, and other consolidations loans.
The Bad
- Lacking information
- Minimum requirements
Website Lacks Important Information
First Choice’s website lacks a lot of key information. Necessary information on fees is not elaborated on. While the company does not charge upfront fees, it is unclear whether or not First Choice charges late, or cancellation fees. The company also does not explain the specifics of its monthly fee. Additionally, the website does not clarify if the company has a minimum debt requirement.
Minimum Requirements
Customers must have at least $10,000 of credit card debt in order to receive help from First Choice, even though there are many customers who need help for a smaller amount of debt than that. This minimum debt requirement is quite high in the industry. This greatly limits the number of people who can use First Choice’s services.
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The Bottom Line
There is a very specific set of circumstances that a customer must have in order to get help from First Choice Debt Relief. The company will negotiate with creditors to reduce the principal amount owed. For those customers who have the right circumstances, this is a great option; however, it should be noted that this is not a true debt consolidation company. Customers seeking debt consolidation should seek another company.
About First Choice Debt Relief
The program of debt settlement that First Choice Debt Relief offers its customers is different than other companies because it reduces the overall amount owed instead of just the interest rate. This not only saves the customer money in an obvious way, (the principal amount they have to pay), but also because it generally means a shorter time period to pay off the debt. Customers who use First Choice often pay off their debt in 24 to 48 months.
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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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