Debt Reduction Services Review: How Legit Is It?

Debt Reduction Services provide a different type of debt relief compared to other services. Instead of offering debt settlement, they provide debt management plans to help people negotiate more favorable payment and interest rates with their credit card bills and creditors. With a debt management plan, a person makes a single monthly payment to the agency they are working with. This payment is then distributed to the various creditors, helping to reduce the amount of debt the person has. This is a great way to get debt relief and take control of finances.

Once the plan to repay them is initiated, payments will be distributed to each creditor involved on a monthly basis. This approach helps to simplify clients’ finances by consolidating multiple payments into one, and ensures clients stay focused and avoid feeling overwhelmed during the process. This efficient approach helps to keep clients on track and make sure they are able to pay back their debts in a timely manner.

Debt Reduction Services offer a wide range of services and assistance for those with any amount of debt. Their credit counseling services are free of charge and with the help of a certified debt counselor, you can create a budget tailored to your lifestyle that will help you reach your debt reduction goals. Joining a Debt Management Plan (DMP) is possible no matter your credit score, and even has the potential to improve it as you reduce your debt. So if you’re in need of a credit counseling organizations and assistance with reducing your debt, Debt Reduction Services is a great option.

Debt Reduction Services Pros And Cons

Pros

• Debt Reduction Services provides an online client portal that simplifies the process of monitoring your progress toward paying off your debts in real time. With this dashboard, you can easily keep track of your plan’s details online.
• Compared to debt settlement, debt management plans (DMPs) usually don’t have a negative impact on your credit rating. In fact, enrolling in a DMP may even enhance your credit rating significantly. As you start following your plan, making timely payments to your creditors can gradually improve your score.
• A debt management plan (DMP) can lower your payments by as much as 50% and reduce interest rates by up to 75%. Although DMPs won’t allow you to settle debts for less than the amount owed, they can help you decrease fees and interest, enabling you to become debt-free more quickly.
• Debt Reduction Services offers free assistance with budget planning and credit counseling, even if you’re not interested in participating in a debt management plan (DMP).

Cons

• DMPs are unsuitable for merging secured debts such as auto loans or mortgages. Consolidating such debts through a DMP is not possible.
• The fees associated with debt management plans (DMPs) are not revealed in advance. You will be required to pay a setup fee and additional plan fees, which will not be disclosed to you.
• Debt Reduction Services provides its clients with an online portal, but it does not offer a mobile application.

Bundled types of debt

Debt Reduction Services provides credit counseling to help individuals and families manage their debt. Their debt management plans (DMPs) are designed to help with specific types of debt, including unsecured loans, credit cards, medical bills, payday loans, and other types of consumer debt. These plans are not effective for secured debt such as mortgages, car payments, rent, or student loans. Debt Reduction Services can also assist with creating a budget and provide information on credit repair, debt and consolidation loans, and bankruptcy if needed. With the help of these services, individuals and families can take control of their finances and work towards a debt-free future.

Payday Loans

Debt Reduction Services is a credit counselor capable of providing aid for payday loans that usually have exaggerated interest rates of up to 500%. By obtaining their guidance, you can put an end to the expensive pattern of relying on payday loans to manage your day-to-day expenditures and bills.

Credit Cards

One of the frequently included debts in debt management plans is credit card debt. To make this debt more manageable, Debt Reduction Services can assist in reducing your loan, interest rate and monthly payments.

Medical Debt

Debt management plans (DMP) can also handle medical bills. Companies like Debt Reduction Services will collaborate with hospitals, doctors, and other medical providers to create a payment plan that is agreeable to you.

How Does It Work

Debt Reduction Services offers complimentary credit counseling and budgeting services with no financial obligations. The process begins with a free consultation with a certified debt specialist, where you can discuss your current financial situation and debts. The specialist will then work with you to develop a personalized plan to help you reduce your debt and manage your budget. Debt Reduction Services also offers support from experienced credit counselors who can provide advice and encouragement as you work to reach your financial goals. With their help, you can become debt-free and achieve financial security.

If you are considering a debt management plan (DMP) to help you get out of debt faster, your debt specialist will provide you with all the necessary details, including the fees you’ll need to pay. It is recommended that you manage any unsecured debts of $100 or less yourself, as there is no minimum debt amount required to enter a DMP. Credit counseling is also an incredibly helpful service, as it can help you make more informed decisions about your finances, develop a budget, and more. Don’t hesitate to take advantage of this complimentary service, as it can be the key to becoming debt-free.

Support For Clients

Debt Reduction Services offers personalized financial assistance to people all over the world, even though they only have physical offices located in Boise, Idaho, and Bohemia, New York. If you are close to either of these offices, you can book an appointment and receive face-to-face help. Regardless of your location, you can contact their customer service department by calling 1-866-688-3328 and get professional help with your debt. Unfortunately, the company does not provide any specific information about their hours of operation.

The company provides an online client portal to help you easily monitor your debt repayment progress. With the portal, you have the ability to generate reports, communicate securely with your debt advocates, access information about payments made to creditors, and perform other tasks. This portal is available to you 24/7, so you can check in on your progress at any time and stay updated with the latest information regarding your debt repayment account. With features like these, the company is dedicated to ensuring you have clear and consistent communication throughout the debt repayment process.

Company reputation

It is absolutely essential to do your research and make sure that you are approaching a trustworthy debt relief company. A great way to assess the credibility of a top debt relief services company is to verify if they are associated with organizations such as the Financial Counseling Association of America (FCAA) or the American Fair Credit Council (AFCC). As an example, Debt Reduction Services has been a part of the FCAA since its inception and is not involved in any legal actions initiated by the FTC. Doing your due diligence and researching a company before signing up can help you make the best decision possible when it comes to finding a reliable debt relief service.

If you are not satisfied with the services provided by a the debt collector or relief company, you have the option to file a grievance with the FTC.

Debt Reduction Services offers a range of services to help customers reduce their debt. They can reduce interest rates up to 75%, and reduce monthly payments by up to 50%. Furthermore, they can eliminate late fees and over-the-limit fees. The duration of their debt relief options and management plans vary, depending on the amount of debt the customer has, their monthly payment capacity, and other variable factors. Customers can expect to be in the program for 2 to 4 years on average, though there is no fixed timeline for repayment.

How Much Does Their Services Cost?

According to Debt Reduction Services, a fee must be paid to commence your debt management plan (DMP), but this fee is not consistent and is dependent on the state of your residence. In addition, they do not reveal the continuing fees that will be incurred all your debts as the DMP advances.

The Bottom Line

Debt Reduction Services is a financial services company that offers assistance to individuals and families who are struggling with heavy debt loads. They offer a variety of services, from debt counseling and budgeting advice to debt settlement. People have reported mixed experiences with the company, with some lauding their helpful guidance and assistance, and others expressing frustration with their fees and lack of communication. It is important to research and compares Debt Reduction Services to other debt settlement companies already in the industry before taking the plunge and engaging their services.