How does American Financial Solutions work? (2024)

How does American Financial Solutions work?

American Financial Solutions is a non-profit credit counseling, financial education, and debt consolidation agency. And we're here to help you get out of debt for good. We understand what you're going through, and our certified counselors are here to listen to you and empower you to get your finances under control.

Is American Financial Solutions legitimate?

To back up their industry experience, American Financial is accredited by the NFCC, ensuring that the company's credit counselors implement best industry practices. AFS also holds accreditation with COA.

How does the American Debt Relief Program work?

American Debt Relief uses a process known as debt settlement to help consumers erase debt after paying a fraction of what they owe. After talking with a debt consultant during a free debt assessment, customers are asked to begin saving a set amount of money in a dedicated savings account each month.

Is American debt relief good?

As one of the top debt relief companies in the country, we've helped thousands of customers settle over $1 billion in debt—at a fraction of what they owed.

How does Alleviate Financial Solutions work?

Alleviate Financial Solutions negotiates debt settlement programs to help clients as we negotiate with your creditors on your behalf so that you can pay less on the current amount you owe and in less time. Examples of how we help include: Advocating for interest, fees, and penalty charges to be significantly reduced.

Does accredited debt consolidation hurt your credit?

Accredited Debt Relief helps clients settle their debt for a lower amount than they owe. Debt relief isn't right for everyone, as it requires stopping payments on your debt and is likely to negatively impact your credit score.

Does American Finance report to credit?

Q: Does American First Finance report to credit bureaus? A: Yes, we send updates to credit bureaus once a month.

What is the downside to debt relief?

Cons of debt settlement

Creditors are not legally required to settle for less than you owe. Stopping payments on your bills (as most debt relief companies suggest) will damage your credit score. Debt settlement companies can charge fees. If over $600 is settled, the IRS will view this debt as a taxable income.

Can I still use my credit card after debt settlement?

Can I still use my credit card after debt consolidation? Certain types of debt consolidation will automatically close your credit cards, while other options, like a balance transfer credit card or HELOC, will not. If the account remains open and in good standing, you can use your credit cards after consolidation.

How can I get rid of my credit card debt without paying?

Bankruptcy is your best option for getting rid of debt without paying.

Are there any legit debt relief programs?

Americor Debt Relief

Americor offers debt relief options for those with more than $7,500 of unsecured debt. It's been in business for over 15 years and also offers debt consolidation options. It's been accredited by the American Association for Debt Resolution and the BBB.

What is the best debt relief program out there?

Best for large debts: National Debt Relief

They earned an impressive 4.7-star Trustpilot rating (as of February 15, 2024) and an A+ with the BBB. National Debt Relief offers different plans tailored to your situation and the firm claims you can regain your financial footing within 24 to 48 months.

Is debt hardship relief legit?

This scam works precisely as its name implies. Scammers contact individuals struggling with debt and offer aid from a government agency named the Financial Hardship Department. The aim is to extract protected information like your driver's license or Social Security Number and steal your identity.

Does settling loan hurt your credit?

In contrast, loan settlement is when you negotiate with the lender to pay a reduced amount than the total outstanding due to financial constraints. So, does settlement affect CIBIL Score? Yes, it does, as it indicates that the loan was not fully repaid, which can negatively impact your CIBIL Score.

How long do debt relief programs take?

It is not unusual for the entire debt settlement process to take three to four years. Your attorney or debt settlement company will need time to negotiate with your creditors. The more creditors you have, the more time it will take.

Is it hard to get approved for debt consolidation?

Debt consolidation loans for bad credit are hard to come by. Lenders like to see a credit score of at least 670 for a debt consolidation loan, but probably closer to 700 just to be safe.

Do you need a high credit score for debt consolidation?

Bottom line. Consolidating debt may be a difficult task if your credit score isn't perfect. Luckily, it's still possible to qualify for a debt consolidation loan even with a low score.

Do you need a good credit score for debt consolidation?

However, it's likely lenders will require a minimum score between 580 and 680.

Does American First Finance require a down payment?

Q: Am I required to make a down payment? A: In some cases, a down payment may be required at signing. Any down payments you make will be applied to the amount being financed. You have the option to make a down payment, even if not required, if you want to lower your financed amount.

What is the minimum credit score for Finance of America?

But typically, you'll need a minimum credit score of: 620 for a conventional loan.

Is American First Finance a hard pull?

Does American First Finance check credit? Yes, unless you have already applied through American First Finance within the past 30 days. When you apply for a product, American First Finance may check your credit using a hard credit inquiry (also known as a “hard credit pull”), which may influence your credit score.

Why should you avoid debt settlement companies?

Debt settlement companies often charge expensive fees. Debt settlement companies typically encourage you to stop paying your credit card bills. If you stop paying your bills, you will usually incur late fees, penalty interest and other charges, and creditors will likely step up their collection efforts against you.

What is the debt relief program 2023?

In addition, to protect the most vulnerable borrowers from the worst consequences of missed payments following the payment restart, the Department is instituting a 12-month “on-ramp” to repayment, running from October 1, 2023 to September 30, 2024, so that financially vulnerable borrowers who miss monthly payments ...

What is the forgiveness of debt?

Cancellation of debt is the forgiveness of debt obligations by a creditor. Debt relief can be achieved through direct negotiations, debt relief programs, or bankruptcy. Canceled debt is generally considered taxable income that must be reported, but there are many exceptions.

Can I buy a house after debt settlement?

Yes, you can buy a home after debt settlement. You'll just have to meet the lender's requirements to qualify for a mortgage. Unfortunately, that could be harder after you settle debt.