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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.

Drowning in debt? SoloSuit can help.

Summary: If you feel like you're drowning in debt, SoloSuit can help you find resources that will help you reduce your debt and come out on top.

If you're currently swimming in debt and don't want to drown, pursuing a debt reduction service may be the way to go. These companies provide services that allow you to pay off your debt, typically for a reduced amount.

They handle the legwork of working with your creditors for you so that you don't have to do it yourself. In some cases, they can significantly reduce the overall debt you owe by thousands of dollars.

Before deciding to use a debt reduction service, realize that it may impact your credit score negatively. Settlement agencies require you to stop making payments to your creditors while they are negotiating settlements on your behalf.

You may not be able to qualify for a loan for some time until the debt is settled. It's also possible that you may owe taxes on the forgiven amount.

Below, we explore the top 5 best debt reduction services for 2022.

1. Freedom Debt Relief

With Freedom Debt Relief, you'll have access to a team of well-regarded debt settlement specialists who can help you settle your outstanding debts for less than what you owe.

Their program is designed to get you out of debt within 24 to 48 months. They charge no fees until a debt is settled, and their customer service team is known for helpful support.

Advantages of working with Freedom Debt Relief

Pros of working with Freedom Debt Relief include:

No debt is settled without your approval
Guided assistance throughout the program
Experienced team who have helped over 800,000 individuals
Negotiating power from a team that has worked with numerous creditors
Monthly payments designed to fit your budget
Client dashboard that allows you to view your debts

One of the best benefits of working with Freedom Debt Relief is its customer service agents. They truly believe in helping their clients, and you can reach out to them any day of the week.

Disadvantages of working with Freedom Debt Relief

Cons of using Freedom Debt Relief to eliminate your debt include:

A minimum debt of $7,500 is required to enroll in the program
Previously sued by the Consumer Financial Protection Bureau
No guarantee of what you'll save when enrolled in the program

Perhaps the most significant disadvantage of Freedom Debt Relief is that it settles debts for amounts that may be larger than those sought by other debt settlement agencies.

2. New Era Debt Solutions

New Era Debt Solutions is known for its excellent customer service and Better Business Bureau rating of A+. The company offers an online chat service, bilingual consultants, and the ability to set up appointments with their counselors after hours.

In addition to experienced debt counselors, they have a host of attorneys available to ensure that their practices comply with federal and state laws.

Advantages of working with New Era Debt Solutions

Pros of working with New Era Debt Solutions include:

Excellent customer service
Numerous educational tools to help you make better future financial decisions
Support for Spanish speakers
No payment until debts are settled

Perhaps the best benefit of working with New Era Debt Solutions is their easy-to-use website that provides insight into the debt settlement progress during the length of your program.

Disadvantages of working with New Era Debt Solutions

Cons of working with New Era Debt Solutions include:

No stated minimum debt to work with the program
Online customer support only during weekends
Recent legal action taken against them in Oregon

They have ceased providing their services within Oregon pending litigation.

3. National Debt Relief

Unlike most other debt settlement agencies, National Debt Relief provides actual testimonials of people who have used their services to pay off their debts, as well as the amounts they saved.

The testimonials indicate various debt situations and amounts owed — some over $60,000. On average, the company can reduce the amount owed by 23% to 25%.

Advantages of working with National Debt Relief

The benefits of working with National Debt Relief include:

They negotiate credit cards, personal loans, and medical debt
Lots of beneficial educational materials
A+ rating with the Better Business Bureau
Plans generally last between 24 to 48 months
Monthly payments tailored to your budget

National Debt Relief is much more transparent about the amount of debt they can eradicate. Clients who appreciate clarity will appreciate this benefit.

Disadvantages of working with National Debt Relief

As with any debt relief agency, there are a few cons to working with National Debt Relief:

Must have a minimum debt of $7,500
You may need to prove financial hardship
Cannot help with past-due taxes

Despite the drawbacks, many people choose to work with the company.

4. Accredited Debt Relief

Accredited Debt Relief advertises itself as a debt consolidation company without the loan. It is best for those who have a little more leeway, as their solutions may pay off your debt in as little as 12 months. They offer examples of savings on their website, showing that they can save their clients up to 55% of the total amount owed.

Advantages of working with Accredited Debt Relief

There are several advantages to using Accredited Debt Relief:

A+ Better Business Bureau rating
Shorter time to complete debt relief
Cancel at any time without penalty
Customer support any day of the week
Average fees of 15% to 25% for services
Save as much as 55% off the original debt owed

Perhaps the biggest benefit of working with Accredited Debt Relief is their short program lengths. Rather than committing to a program that may take 3 to 4 years, you can potentially settle your debts in 12 months using their program. You may also save more than with other debt settlement programs.

Disadvantages of working with Accredited Debt Relief

Drawbacks of working with Accredited Debt Relief include:

Higher monthly payments, sometimes as much as 3% of the outstanding balance
May require a minimum debt of $10,000
May need to prove financial hardship

The main disadvantage of working with Accredited Debt Relief is their higher program payments. However, buckling down for a year is often better than drawing out the process for three to four years. In addition, your credit score will generally bounce back much quicker.

5. CuraDebt

Our final recommended solution is CuraDebt. In addition to working with regular consumer debts, such as credit cards and medical bills, CuraDebt helps with back taxes and IRS debt. These types of debts are typically not supported by other debt settlement agencies.

Advantages of working with Curadebt

Benefits of working with CuraDebt include:

Variety of debt settlement support
Minimum debt required is only $5,000
Online chat services
Wider variety of solutions for complex debts

The main advantage of working with CuraDebt is its availability to help with unusual types of debt that other agencies don't support.

Disadvantages of working with Curadebt

The drawbacks of working with Curadebt include:

Limited website functionality
Lack of online resources and educational tools

For those with more complex debt situations (especially involving taxes), CuraDebt is the best solution.

Are you being sued for an overdue debt?

If you've been sued for debt, you probably received a court Summons and Complaint. The first step to winning your case is to file a written Answer in court. In your Answer, you should respond to each claim listed in the Complaint, assert your affirmative defenses, and send a copy of it to the plaintiff (or person/company suing you).

SoloSuit can help you draft and file an Answer in all 50 states.

Check out this video to learn more about how to respond to a debt lawsuit in 3 easy steps:

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

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