Legal Expert, Paralegal
Melissa Lyken, BS

Melissa Lyken is a senior paralegal and legal-finance content writer with over eight years of professional legal and business experience and a bachelor’s degree in Sociology and Community Studies from the University of California, Santa Cruz.

Edited by Hannah Locklear

Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Can Debt Eraser really turn your financial past into history? Find out how debt consolidation and debt counseling works in this Debt Eraser review.

Are you falling behind on mortgage payments, student loans, or credit card debt? If so, It may be time to enlist a professional to help you manage your debt. We all know late loan payments attract penalties, fees, and a low credit score, but there's also a risk of having to deal with nagging debt collectors.

Debt Eraser is a financial service provider you need to help you repay your debt and repair your credit score. The company claims to have considerable experience in assisting customers in managing debt and regaining financial freedom; however, their online reviews should also be considered. Continue reading for our final review of the company.

Being sued by a debt collector? File a response with SoloSuit.

Who is Debt Eraser?

Debt Eraser is a South-African financial service provider based in Durban. The company was established in 2001 to provide debt management solutions to customers. Debt Eraser has a team of experts who claim to analyze debtors' accounts and give them the best advice to help them become debt-free.

This company appears to stand out because of its quick turnaround time. Once the professionals receive your application, they claim to provide feedback immediately. Debt Eraser claims to help customers manage debt using either of the following two methods:

Debt consolidation
Debt counseling

What You Should Know About Debt Consolidation

Debt consolidation is the combination of multiple debts into one monthly payment, which is then paid off using a new credit card or loan. Debt Eraser professionals often suggest this method to help debtors manage debt.

They aim to roll the debtor's debts into one account, leaving the debtor to make a single payment at the end of every month. The idea is to consolidate multiple debt payments into one and reduce the interest to a more affordable rate.

Example:

Debtor A has multiple credit card balances and small loans with separate monthly payments and interest rates:

Credit card X: $ 3,500, 24.90% APR
Credit card Y: $2,500, 18.90% APR
Credit card Z: $1,500, 12.00% APR

Debt Eraser experts attempt to consolidate the three balances into one loan that requires one payment per month instead of multiple individual balances. In this case, the experts can help you take out a new loan equal to the sum of the total debt ($7,500) with a lower interest rate, say approximately 7% APR. Depending on the lender and your credit score, the monthly interest is reduced to $1,120.80. By comparison, if 4% is charged on each separate card, you would pay $5,440 more in interest payments and take up to 12 years to pay off the debt.

Pros of debt consolidation:

Reduced interest rate
Reduced overall monthly payments
It makes it easy to manage expenses.

Cons of debt consolidation

Long repayment term
You might not qualify for a low-interest rate.

Respond to debt collection lawsuits in 15 minutes with SoloSuit.

How Debt Counseling Works

Terms like debt settlement, debt management, and debt consolidation can be confusing for many debtors. Understanding what they mean and their pros and cons is critical when choosing the right option.

Debt counseling is a process that allows counselors to explain all of your options and help you negotiate flexible debt repayment terms based on your situation. At Debt Eraser, the counselors should help you choose a suitable debt management alternative and walk you through the negotiation process. The terms may involve negotiating lower interest rates, postponing loan repayments, and extending loan terms.

Pros of debt counseling

Prevents creditors from taking legal action: Debt counseling determines whether you qualify for debt review. During this period, creditors can't sue you or perform any other debt collection activity until you've been deemed over-indebted.
No permanent record on your credit report: Once you're declared over-indebted, you qualify for a debt review. This information is included on your credit report but is removed once the review process is complete.
Debt repayment is simplified to one monthly payment: After the counseling sessions and a repayment plan has been set up, you only need to make one monthly payment to the agency that pays the creditors.

Cons of debt counseling

You can't access new credit during the counseling process.
You might not qualify for a debt review after the counseling session.
If a creditor has already filed a lawsuit, this debt is excluded from the review process.

Don't let debt collectors intimidate you. Respond with SoloSuit.

Debt Eraser's 5-Step Approach

The company claims that its primary goal is to provide the best debt management solution to its customers. It manages to do this via a five-step process:

1. Perform a Debt Assessment

One of Debt Eraser's counselors analyzes your debts and helps you choose the best debt management plan. The plan should be tailored to your needs, income, and credit score to avoid defaulting on a payment.

2. Negotiate with Lenders to Pay Off Debt

The counselor then proceeds to negotiate with all of your creditors on your behalf. They could agree to an extended payment period, reduce the interest rate, or a lower monthly payment depending on your debt management plan.

3. Get a Court Order to Protect Your Assets

Some creditors are notorious for obtaining court orders to garnish the debtor's wages or attach a lien to their property even after negotiating payment plans. Debt Eraser counselors will help you receive a court order to enforce the agreed payment terms to avoid this. The court order also protects your property and other valuable possessions from being confiscated to pay the debt.

4. Follow Up to Review Your Budget Regularly

The financial service provider then follows up with clients by educating them on the best financial planning practices, including weekly and monthly budget planning. The experts also help you choose a suitable debt rehabilitation plan via debt consolidation or debt settlement.

The rule-of-thumb is to choose a plan that helps you pay the debt while also allowing you to live a reasonable lifestyle. The counselors then oversee your income management to ensure you meet your agreed debt rehabilitation plan's obligations.

5. See How Payments Are Distributed With Transparency

If you have decided to consolidate debt, the financial provider will illustrate how the monthly payments are distributed to creditors. Debt Eraser provides this information to all its clients during the individual AfterCare Education Sessions.

Our Final Verdict on Debt Eraser

Debt Eraser promises many benefits to customers. Sadly, the majority of customers who have approached them report that the company is unreliable. The main problem is the company's inability to remit payments to creditors and listing debtors without their consent. On a scale of one to five, we'd give it a one.

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James

Get Started

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Debt collector guides

Are you being contacted by a debt collector? We’re making guides on how to resolve debt with each one.

Arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Bankruptcy

Bankruptcy is a great way to legally resolve debt, but it's usually best to consider it as a last resort. Here are some bankruptcy guides to help you decide which debt resolution option is best for you.

Check your case status

Don’t have time to go to your local courthouse to check the status of your case? We’ve created state guides on how to check the status of your case throughout the US, complete with online search tools and court directories.

Credit

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt, along with other credit-related resources.

Debt collection FAQs

Find answers to some of our the most commonly-asked questions about debt collection below.

Debt collection documents and templates

If you're dealing with debt, these documents and templates will help you respond, protect your rights, negotiate, and resolve your debts.

Debt relief

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt settlement

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created state guides on debt settlement. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

Eviction

Facing an eviction? The following guides will help you navigate your situation with confidence.

Federal debt collection laws

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Legal aid

Helping people find access to justice is at the heart of Solo's misison. If you're dealing with a legal debt issue, the following guides will help you through it.

Medical debt

Having a health challenge is stressful, but dealing with medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Personal finance

Learn how to manage your finances and overcome crushing debt. Check out our personal finance guides below.

State debt collection laws

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote guides on each state’s statutes and more.

Stop collection calls

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Wage garnishment

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in your state, plus other wage garnishment resources.

The Debt Hotline

Hosted by Team Solo, The Debt Hotline breaks down debt and personal finance topics with help from attorneys, financial experts, and industry pros. We respond to real questions to help you navigate debt with knowledge and courage.

Other debt resources

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.

"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather