What is Curadebt?
CuraDebt is a debt relief company that offers debt settlement and tax debt relief services. They’ve been around since 2000 and are accredited by the Better Business Bureau with an A+ rating, available in all states except HI, ID, IL, KS, LA, ME, NH, OR, SC, TN, UT, VT and WV.
CuraDebt negotiates with your creditors to reduce the total amount of debt you owe. CuraDebt can also help you resolve tax debt issues with the IRS and state tax agencies by negotiating payment plans or an offer in compromise.
What types of debt does Curadebt help settle?
CuraDebt settles the following types of debt.
- Credit cards
- Personal loans and lines of credit
- Medical bills
- Collections and repossessions
- IRS debt and back taxes
- Business debts
- Certain secured debts in special cases
How CuraDebt Works?
1. Eligibility and Consultation: You need at least $5,000 in eligible unsecured debt (credit cards, medical bills, etc.) to qualify. CuraDebt offers a free consultation to assess your situation and determine if debt settlement is the right option for you.
2. Enrollment and Savings Plan: If you decide to move forward, you’ll make monthly deposits into a dedicated savings account managed by CuraDebt. This money will be used to settle your debts with creditors later.
3. Debt Negotiation: CuraDebt’s team will negotiate with your creditors to reduce the total amount you owe. They aim to settle your debts for a significantly lower amount than the original balance. CuraDebt has a team of negotiators experienced in dealing with various creditors.
4. Settlement Offers and Approval: CuraDebt will present you with settlement offers from your creditors. You have the final say in accepting or rejecting any offer.
5. Debt Settlement: Once you accept a settlement offer, CuraDebt will use the funds accumulated in your dedicated account to pay off the creditor. They will continue to negotiate and settle each of your enrolled debts one by one. The process can take 24 to 48 months to complete.
Cons of Using Curadebt
CuraDebt has a team of experienced negotiators who work to secure the best possible settlements with creditors but there are major drawbacks:
- Credit Score Impact: Debt settlement will likely negatively impact your credit score, potentially making it difficult to obtain credit in the future.
- Tax Implications: Forgiven debt may be considered taxable income, which could result in a hefty tax bill.
- No Guarantee of Success: There’s no guarantee that creditors will agree to settle, and some may refuse to work with debt settlement companies.
- Lawsuits: Creditors may sue you during the debt settlement process. CuraDebt offers legal assistance options for such situations.
Debt settlement should be well thought out because you don’t want to create additional debt issues.
How Does Debt Relief Affect Credit Scores
Debt settlement can negatively affect your credit score, as it involves settling debts for less than the full amount owed. There may be an opportunity to negotiate your credit rating, like with a goodwill letter, but there’s not guarantee creditors will agree.
Is CuraDebt legitimate?
Yes. Curadebt is a legitimate debt relief company so don’t be deterred from the 90’s looking website.
Does CuraDebt have fees?
Yes. Curadebt has fees that are due and payable only when they successfully negotiate a debt, and you accept the settlement. The fee is typically a percentage of the enrolled debt, and the average is around 20% of the settlement amount.
Final takeaway
Curadebt can be a viable option for those struggling with significant unsecured debt and seeking to avoid bankruptcy. However, it’s crucial to weigh the potential benefits against the impact on your credit score and the possibility of tax consequences.
