Is ClearOne Advantage the Right Debt Solution for You?
Struggling to cope with overwhelming debt? You're not alone. Luckily, there's a lifeline in the form of debt settlement. Debt settlement offers many benefits, including lowering your monthly payment and reducing your credit card debt. Some debt relief providers may even have your creditors stop collection activities to end the harassing phone calls.
At IAPDA, we provide education and certification to debt advisors and debt settlement companies throughout North America. Let’s dive in on ClearOne Advantage to determine if their debt solution can help you achieve financial freedom.
What is ClearOne Advantage?
ClearOne Advantage is a debt settlement company that provides personalized solutions to help you get out of debt fast. They work with creditors to reduce or eliminate your unsecured debts so that you can get back on track financially.
With their services, you can make monthly payments toward future settlements and eventually become debt-free.
Accounts Eligible for Debt Settlement
Most debt settlement companies work with creditors on the following types of accounts. Enrollment criteria may vary from one company to the next, and some accounts may not qualify based on account status, balance, and other factors.
Credit card debt
Credit card debt is the key focus of most debt relief companies. After all, America has over $1 trillion in consumer credit card debt.
Unsecured personal loans
Unsecured personal loans are installment loans, which are typically more difficult to negotiate than revolving lines of credit like credit cards. Although they may have a higher final settlement result, they can be included in most debt negotiation companies' programs.
Payday loans
Payday loans are short-term and high-interest, making them especially hard on consumers who have trouble paying them back. Because the loans often have low balances and are difficult to negotiate, not all debt settlement companies will accept payday loans. However, many companies do offer negotiation support through payday loan settlements.
Medical bills
Medical debt is especially stressful because it often involves a large portion of your monthly budget. Credit bureaus may have stopped reporting medical debt under $500 to consumer credit reports, but that doesn't make the debt disappear.
Before considering debt settlement for medical debt, see if you qualify for charity care options to eliminate the debt completely. Remember, medical bills don't usually charge interest, so medical debt settlement doesn't often result in the savings you might see on a credit card or other interest-bearing accounts.
Private student loans
Most debt relief companies will decline to enroll any debt that is backed by the government. That includes parking tickets, child support, and the big one—federal student loans. Unlike the federal government, private lenders may be willing to negotiate settlements of private student loan debt. Not all companies will accept them, but private student loans may be accepted and negotiated through debt relief companies like ClearOne Advantage.
Business Debt
Not all debt relief companies will accept business debts. Terms and conditions are much different and business debt contracts often require business collateral to secure the loan. Because of the collateral, getting a creditor to agree to settle the account may be more difficult.
A debt settlement program may be the right place if you have one business debt mixed in with your consumer accounts. However, when business debt is the primary problem, business owners may be better served by an experienced lawyer or a company specializing in business debt resolution.
Account Types that Don't Qualify for Debt Settlement
Generally speaking, debt to friends and family, secured debt, and government-backed debt do not qualify for most debt negotiation programs.
How ClearOne Advantage Works
ClearOne Advantage promises a personalized approach to debt settlement. Their process typically begins with a no-cost phone consultation to discuss your situation, a savings plan to build funds for negotiations, and a negotiation phase where the debt is resolved.
First Steps with ClearOne Advantage
The first step when you begin speaking with any debt relief company is a free consultation to assess your financial situation. A debt consultant at ClearOne Advantage will likely ask about your financial hardship, help you analyze your financials, and share how their debt settlement program to become debt free quickly and affordably.
Creating a Savings Plan
This plan typically involves setting aside a specific amount of money each month. Monthly payments are allocated to a special savings account that is usually held by a third party. The money you save in the special purpose savings account will be used to pay off your debts once a settlement is reached.
Settle Your Debt
Once you have saved enough money to make a reasonable settlement offer, ClearOne Advantage goes to work negotiating with your creditors. Their goal is to get the creditor to accept an amount that is lower than what you currently owe. With this approach you don't just save on your interest rate, but the actual principal balance of the debt.
Benefits and Risks of Using ClearOne Advantage
Choosing ClearOne Advantage as your debt solution provider has advantages and potential pitfalls. It's crucial to understand these before deciding if debt settlement is right for you.
Benefits of Using ClearOne Advantage
Working with a company like ClearOne Advantage can provide several benefits:
- Debt Reduction: One of the most significant benefits of using a debt relief company like ClearOne Advantage is the potential for substantial debt reduction. They negotiate with your creditors to decrease the overall amount you owe, offering immediate financial relief.
- Avoidance of Bankruptcy: If successful, debt settlement can help you avoid the long-lasting effects of bankruptcy. Bankruptcy should always be a last resort as it can significantly impact your credit score and overall financial profile.
- Simplified Payments: ClearOne Advantage consolidates your various debts into a single monthly payment. This streamlining can make managing your debt less stressful and more manageable.
- Guidance and Support: The company provides professional guidance throughout the debt settlement process. The certified debt specialists at ClearOne Advantage are available to answer your questions and assist you along the way.
Risks of Using ClearOne Advantage
Using debt settlement services also comes with certain risks to be aware of.
- Credit Score Impact: The debt settlement process can hurt your credit score. This is because you are not paying your debt while saving up for the settlement.
- Tax Implications: The IRS may consider any forgiven debt as taxable income. This means you might owe taxes on the forgiven amount.
- Potential Legal Action: There is a risk that creditors might decide to take legal action against you to recover the debt. ClearOne Advantage cannot stop this from happening.
- Fees: ClearOne Advantage charges fees for their services. These fees are typically based on the amount of debt that they can settle for you.
- No Guarantee of Success: There is no guarantee that any debt relief company will negotiate a settlement for all of your debts successfully. Some creditors may simply refuse to negotiate or may decline reasonable offers.
- Long Process: The debt settlement process can take time, typically 24 to 48 months. This means that you'll need to be able to maintain your savings plan for the duration of this period.
By knowing and understanding these potential risks, you can make an informed decision on whether or not ClearOne Advantage is the right solution for your debt troubles. The disadvantages of debt settlement are real, but the benefits often outweigh the drawbacks. For more on this, check the Insiders Guide to Credit Scores and Debt Settlement.
VIDEO: Why Insist on IAPDA-Accredited Companies
Is ClearOne Advantage Legitimate?
With many different debt solutions available, it's important to ensure you work with a reputable company that will support you through crippling credit card debt.
Is ClearOne Advantage Legit? Here's what to look for as you choose a debt settlement company.
ClearOne Advantage' Accreditations
As of this writing, ClearOne Advantage is accredited by several well-known organizations, indicating that it operates with integrity and transparency.
International Association of Professional Debt Arbitrators (IAPDA)
IAPDA provides certifications and accreditations to debt relief companies, including ClearOne Advantage. This indicates that they have undergone rigorous training in the debt settlement process and adhere to high standards of ethical practices. Learn more about IAPDA and search the 'cert to find an IAPDA-certified debt advisor at ClearOne Advantage.
American Association of Debt Relief (AADR) (formerly American Fair Credit Council/AFCC)
The AADR provides accreditation and certification for debt relief companies that adhere to its standards of excellence and comply with federal laws. ClearOne Advantage is a member of the AADR and has agreed to abide by its Code of Conduct.
The American Fair Credit Council has rebranded to become the American Association of Debt Relief as of August 1, 2023.
Better Business Bureau (BBB)
ClearOne Advantage is not presently accredited by the BBB. The Better Business Bureau encourages companies to demonstrate a commitment to customer service and ethical practices.
ClearOne Advantage Alternatives
Making the Decision
When it comes to deciding whether or not ClearOne Advantage is right for you, consider your unique financial situation and goals. Researching debt relief companies, understanding their accreditations, and seeing customer reviews can help you make an informed decision. Only then can you determine if ClearOne Advantage is the right company to help you become debt-free.
VIDEO- Questions to Ask When Choosing a Debt Settlement Company
What to Ask Before Enrolling
When considering signing up with ClearOne Advantage for debt settlement services, it is important to ask the right questions. This will ensure that you understand the program and its potential risks. Make the most of your free consultation by being prepared with smart questions:
- Is there a free consultation?
- How long will the process take?
- Can I be sued during the program?
- What support do you offer if I am sued?
- Will I be required to pay any upfront fees?
- What is the average settlement with my creditors?
- Are customer reviews and testimonials available to read?
- What types of debts can be settled through their programs?
- Are there potential legal risks associated with debt settlement?
- How will my credit score be affected by the settlement process?
- What if I can't make payments while we're in the middle of a settlement?
Asking the right questions can ensure you have all the information you need to make an informed decision about ClearOne Advantage. When it comes to debt, it is important to know your options and understand the risks associated with each one.
If you choose to work with ClearOne Advantage, be sure to review all of the details of their program. Understand the fees they charge and any potential risks associated with the process.
Now that you know more about what to look for in a debt settlement company, you can take your next steps toward financial freedom.
Your Path to Financial Recovery Starts Here
Discuss your debt relief options with a trusted IAPDA Member Company.
