After incurring unanticipated expenditure, clearing any unsettled debt can be hard. Once life takes this turn, more people often consider filing for bankruptcy. However, before you choose to take such a direction, consider hiring a debt settlement company. Debt relief establishments negotiate with your lenders to cut your accrued debt. In this Superior Debt Relief reviews article, we will explain how the company works, as well as its pros and cons. This Superior Debt Relief reviews writing targets readers who wish to stop working by the age of 37.
What is Superior Debt Relief
Superior Debt Relief is a debt relief establishment that negotiates with its client’s creditors to reduce the amount of debt still owed. The company is well renowned across the United States, with good Superior Debt reviews from the Better Business Bureau reviewers.
- Accreditations: Better Business Bureau, USOBA, Bankruptcy filing
- Limitations: Not licensed to work across the whole country
- Free tools: Free debt relief calculator, budget planner worksheet
- Customer care: Phone call, email
- Consultation fees: None
- Types of debts that qualify: personal loans, medical bills, repossessions. Most secured loans are not accepted
How it Works
Superior debt relief executes a soft credit pull once the client initiates the application process so as to authenticate your total credit owed and verify the validity of your creditors. Soft credit pulls do not affect credit ratings.
Debt Settlement Process
Once you start working with Superior debt relief, you ought to open a savings account. Subsequently, you are required to deposit payment installments to this separate saving account as opposed to paying your lenders. Please note that once you stop paying your creditors, your credit score will plummet, you might become delinquent and you will accrue additional interests and fines for lateness.
Superior Debt Relief determines the monthly payment installments. In most cases, the installments are lower than the installments earlier on needed to clear the client’s credit. The effectiveness of this process is heavily dependent on the creditor’s commitment towards wiring payments to the separate savings account that was opened earlier.
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Superior debt relief, thereafter, negotiates with the lender on behalf of the client. The agency tries to convince the lenders to take a reduced amount than the total unsettled debt. Since you are not wiring payments to the lender, the creditor might be forced to consider settling for a reduced figure rather than getting nothing.
Once Superior Debt Relief and the client’s creditor agree, the lender is paid using funds deposited into the savings account. The creditor is paid depending on the agreement they had with Superior debt relief; it might either be a lump sum or through timely installments. According to other Superior debt relief reviews, the first payment is usually paid within two to six months.
Superior Debt Relief does not apply any upfront fees. Moreover, the company does not charge any additional fees until the client’s debt is settled accordingly. In 2010, the Federal Trade Commission passed a resolution to make upfront fees illegal. For this reason, Superior debt relief does not charge any upfront fees.
Benefits of Using Superior Debt Relief
- Money back guarantee
Once you are dissatisfied with the company’s ability to settle your debt, you can cancel the process without incurring heavy fines.
- Industry Experience
For over two decades now, Superior debt relief has been offering debt settlement and counseling services to clients who find themselves in tons of debt. This company is among the longest services establishments in the industry, which makes us believe that they know how to work with lenders and quickly clear debts
- Good Reviews
Superior Debt Relief reviews mention that the company has invested in informed and knowledgeable consultants. Almost every Superior debt relief review mentions the company’s ability to offer excellent customer service.
- Free Debt Analysis
Consider calling Superior debt relief to have a free consultation session via phone.
What are the Risks?
- Hurts your Overall Credit Score
Debt relief services ought to be used as a matter of last resort. This is because debt settlement is a serious matter that can severely reduce your credit score. Consider using debt consolidation to maintain a perfect credit score.
- Not all Debt Can Be Settled
This risk is common to all debt relief companies. Secured loans are not covered by debt relief companies because the creditor simply takes possession of the agreed collateral.
- Forgiven Debt Might be Taxable
IRS might consider forgiven debt above 600 US dollars to be taxable income. The creditors might send a 1099-C form to both the debtor and IRS via mail. However, if the debtor is insolvent by the time the relief company and the creditor reach an agreement, the debtor might be exempted from paying taxes.
- Additional Interest and Fees
Once you start working with a debt relief program, you will stop making payments to your lender. This will result in the creditor applying additional interests and fees on your net outstanding debt accordingly.
- No relief for Secured Loans
Superior debt relief does not help in settling secured loans. The company only offers suggestions and counseling on how to manage secured debts.
The settlement plan a client decides to follow will affect how fast they clear their outstanding debt.
Consider, for example, a loan that is charged 11 percent interest annually for five years. The client will have to make monthly payments of about 325 US dollars to clear it. The settlement includes the principal and the projected interest. The two figures range at about 15000 US dollars and 4500 US dollars respectively. In the long run, the client will have to pay close to 19500 US dollars.
Superior Debt Services was established in 1998. With over 20 years of industry experience, the company is committed to helping its clients reduce their debt while counseling them on how they can achieve healthy financial status.
The company works in the following areas: debt settlement, bankruptcy filing, and debt consolidation.
The company’s head offices are situated in 2625 Redwing Dr. Suite 140, 80526. Fort Collins, Colorado. Contact the head office via phone through their toll-free number: 8883663414.
LinkedIn: Superior Debt Relief Services
Debt relief can be hurtful to one’s credit rating. Consequently, engaging Superior Debt Relief might not be the best idea unless you have no intention of ever using credit funding again. However, in the event bankruptcy is the most likely option, Superior debt relief can be quite helpful in ensuring that you do not have to file for bankruptcy. According to Superior Debt Relief reviews, the company is legit and effective in its dealings.
Please share your Superior Debt Relief reviews, experiences, thoughts, and questions.