Is DebtBlue the Right Debt Solution for You?

Is DebtBlue the Right Debt Solution for You?

If you're dealing with large amounts of debt, it can be difficult to determine which debt relief solution is best for your situation. A debt settlement service offered by DebtBlue may be an option that could help you resolve your financial challenges and get out of debt quickly. But before embarking on this path, it’s important to understand the pros and cons so that you can make an informed decision.

At IAPDA, we provide education and certification to debt advisors and debt settlement companies throughout North America. We've gathered all there is to know about DebtBlue to help you determine if it is the right debt solution for you. 

What is DebtBlue?

DebtBlue 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 towards a lump-sum settlement 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, Americans have racked up 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 DebtBlue.

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.

Accounts that Aren’t Eligible 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 DebtBlue Works

DebtBlue 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 DebtBlue

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 DebtBlue 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, DebtBlue 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 DebtBlue

Choosing DebtBlue as your debt solution provider has advantages and potential pitfalls. It's crucial to understand these before making a decision.

Benefits of Using DebtBlue

Working with a company like DebtBlue can provide several benefits:

• Debt Reduction: One of the most significant benefits of using a debt relief company like DebtBlue is the potential for substantial debt reduction. They negotiate with your creditors to decrease the overall amount you owe, offering immediate financial relief.

• Avoid Bankruptcy: 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: DebtBlue 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 DebtBlue are available to answer your questions and assist you along the way.

Risks of Using DebtBlue

Using debt settlement services also comes with certain risks that you need to be aware of.

• Credit Score Impact: The process of debt settlement can have a negative impact on your credit score. This is because you are not making payments on your debt while you are saving up for the settlement.

• Tax Implications: The IRS may consider any debt that is forgiven 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. DebtBlue cannot stop this from happening.

• Fees: DebtBlue charges fees for their services. These fees are typically based on the amount of debt that they are able to 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 process of debt settlement 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 DebtBlue is the right solution for your debt troubles.

VIDEO: Why Insist on IAPDA-Accredited Companies

Is DebtBlue 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 DebtBlue Legit? Here's what to look for as you choose a debt settlement company.

DebtBlue' Accreditations

As of this writing, DebtBlue 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 DebtBlue. 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 a certified debt advisor.

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. DebtBlue is a member of the AADR and abides 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)

DebtBlue has been accredited by the BBB since August 2023. The bureau's rating system requires that companies demonstrate a commitment to customer service and ethical practices. DebtBlue presently has an A+ rating from the BBB.

DebtBlue Alternatives

Is ClearOne Advantage Legit?

Is JG Wentworth Legit?

Is GRT Financial Legit?

Is Pacific Debt Legit?

Making the Decision

When it comes to deciding whether or not DebtBlue 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 DebtBlue is the right company to help you become debt free.

VIDEO- Questions to Ask When Choosing a Debt Settlement Company

Questions to Ask Before Enrolling

When considering signing up with DebtBlue 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:

·    

• Can I be sued?

• Is there a free consultation?

• How long will the process take?

• 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 DebtBlue. When it comes to debt, it is important to know your options and understand the risks associated with each one.

If you do decide to work with DebtBlue, be sure to review all of the details of their program. Understand the fees they charge and any potential risks associated with the process. While debt settlement can provide a great opportunity for debt relief, there is no guarantee that it will work in your favor. It is important to remember that debt settlement should always be a last resort.

Now that you know more about DebtBlue and what to look for, you can take your next steps toward financial freedom. Good luck!