Operating out of Portland, Oregon, DebtAway Loan is a subsidiary of New Credit America. It was founded in 2006 and provides a unique approach to debt consolidation.
Through DebtAway Loan, consumers can receive the necessary funds to settle debts with their creditors. The company also offers negotiating services. It is accredited by the American Fair Credit Council (AFCC).
Unfortunately, DebtAway Loan has high fees and only services 26 states. Take a look at the top debt relief companies to find one that suits your needs at a fair price.
DebtAway Loan offers a unique approach to debt consolidation. Unlike many competitors, it offers a combination of a consolidation loan and debt settlement.
Qualified consumers are approved for a loan. Then, either the company or client negotiates with creditors, using the funds from the loan. After a settlement is reached the client repays the loan. This approach allows consumers to settle debts without first building up savings.
Customers have the option to negotiate their debt with their creditors. Though you may save money by not accepting the help of debt settlement and debt management companies like DebtAway Loan, you will most likely miss out on money-saving advice from debt experts.
Additionally, there are complicated legal aspects of debt negotiation about which most customers will have little-to-no knowledge. Customers who opt to negotiate with creditors themselves may find increased pushback from debt collectors.
The company allows customers to create a payment schedule based on their budget. Additionally, if clients struggle to make payments, they can call the company and adjust the payment schedule.
Many companies in the debt relief industry do not display pricing online. DebtAway Loan is upfront about pricing. If customers choose to use its debt negotiation services, the company charges a one-time fee of 25 percent of the enrolled balance.
The fixed APR on the loan is 29.7 percent. The company charges no upfront, pre-payment penalty, or origination fees.
New Credit America, DebtAway Loan's parent company, is a member of the AFCC. This organization provides standards and best practices for the debt relief industry.
DebtAway Loan charges a one-time fee of 25 percent of the enrolled debt for negotiating services. This is high for the debt relief industry since many competitors start fees at 15 or 18 percent.
Consumers pay an annual percentage, which is a fixed APR of 29.7 percent. Many competitors offer lower rates.
DebtAway Loan is only available in 26 states. Consumers living outside this area will need to seek other debt relief options.
The DebtAway Loan website offers very few customer resources. Although the company does provide an FAQ section, it only answers five questions. The company answers customer concerns about who they are, filling out a loan application, information required to apply, income verification, and personal information safety.
In response to these concerns, DebtAway Loan provides short answers. Customers won't be able to find much information about any personal loan or student loan forgiveness, credit card debt forgiveness, the program's effect on customer credit score, or the benefit of DebtAway Loan in comparison to other debt relief options (like bankruptcy or debt settlement).