DebtGuru started in 1998 and is a nonprofit consumer credit counseling organization. Its debt management plan works with its free credit counseling services to help people consolidate their debt and receive debt relief without having to take out a consolidation loan or file for bankruptcy.
DebtGuru’s program is legal, approved by creditors, and has helped thousands of families achieve financial freedom. DebtGuru’s debt management program works with unsecured debt and does not require collateral. However, the company is not accredited with any consolidation organizations, aside from NIFE (National Institute of Financial Education).
- Educational resources
- Low interest rates
- ISO accredited
In order to achieve debt relief, DebtGuru works with a combination of free credit counseling and a debt management program. To start, customers can request a free, honest and accurate evaluation of one’s unique financial situation. The company provides advice, and claims to help assess one’s finances within 15 minutes. DebtGuru works with customers to devise a plan to achieve financial freedom.
Customers can enjoy a free credit counseling session with a non-profit, certified, credit counseling professional. DebtGuru professionals will go through one’s spending habits and dive into their financial situation. The session will let one know if DebtGuru’s debt management program is necessary, or if small changes in one’s financial habits can do the trick. DebtGuru’s debt management plan works with creditors to decrease interest rates, late fees, and over-limit fees. The credit counseling process can actually help save 10 to 15 percent of one’s income.
If DebtGuru’s debt management program fits one’s situation, it can reduce monthly debt payments, create a budget, and make sure payments are made on time. The company claims to help save their customers at least $10,000 in lower interest payments.
Benefits of the Program
Using online forms, customers can apply and get started with the debt management program the same day. Customers can consolidate debt through this program without having to take out a loan.
The debt management program can help reduce or eliminate interest rates, and reduce monthly payments by 25 to 50 percent. It can also help reduce or eliminate late and over-limit fees. With the program, customers can stop collection calls and creditor harassment.
Customers can choose how long they want to stay enrolled in the program, and can terminate the plan at any time. People get out of debt in half the time with this program, and 95 percent of clients significantly reduce their interest rates.
Relationship With Creditors
The company claims to have a great relationship with thousands of creditors. DebtGuru actually aims to work with creditors and not against them. Their positive relationship with creditors is what allows customers the ability to deduct interest rates, monthly payments, fees, and stop collection calls.
While it is not necessarily required to offer debt articles and educational resources, it is a helpful addition to companies. Customers who want to learn more about consolidation and debt relief can explore DebtGuru’s blog, and debt articles. DebtGuru provides free education.
- Lacks accreditations
- Lacks transparency
- Few consolidation tools
Does Not Offer a Specific Consolidation Program
While DebtGuru offers a debt management plan, it does not offer specific debt consolidation services, a debt consolidation program, or a consolidation loan. Debt consolidation, however, is achieved through its debt management plan. Most top companies in the industry will offer a separate program fully focused on debt consolidation.
Website Lacks Key Information
The website lacks key information on fees, costs and interest rates. DebtGuru does a good job of explaining the monthly fee—however, past that, the website really does not elaborate on potential fees included in the program. There is no information on if the company charges a cancellation fee, or any additional fees.
It is also unclear whether or not DebtGuru includes a money-back guarantee with its services, and if the debt management plan works in all states.
It does not appear the company is accredited by the top consolidation accreditation organizations, including the Financial Counseling Association of America (FCAA) and the National Foundation for Credit Counseling (NFCC).
No Consolidation Calculator or Examples
Though the website does provide debt articles and a financial blog, the company does not seem to offer a consolidation calculator of any kind. Additionally, the website does not provide any past consolidation examples—only past client testimonials.
Frequently Asked Questions
Consolidation or Personal Loan?
DebtGuru’s debt management program works to free clients from debt without taking out a loan, or filing for bankruptcy. While DebtGuru does not offer a specific consolidation program, the company’s debt management plan does consolidate debt. Consolidation loans are not available.
What Is The Monthly Fee?
DebtGuru has not disclosed its monthly fee.
Are There Any Upfront Fees?
DebtGuru does not provide any information on upfront fees.
What Is The Cancellation Policy?
Customers can terminate their program at any time for any reason. The website does not explain if there is a cancellation fee, or a money-back guarantee.
Can I Get a Free Consultation?
DebtGuru offers customers a free financial analysis with a certified counselor. In 15 minutes, one’s certified counselor can help assess their finances, provide advice, and help create a plan for debt relief. In the analysis, counselors will answer any questions.
As far as debt services go, DebtGuru only offers credit counseling and a debt management plan. The company does not offer specific consolidation services or a consolidation loan. Instead, debt is consolidated through its debt management plan. Customers who decide to go with DebtGuru’s plan can expect the company to call their creditors and negotiate reduced monthly fees, interest rates, late fees, and stop collection calls. The website does not provide any real debt consolidation or debt settlement examples.