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Amine Rahal

Amine is an entrepreneur, investor and financial writer that covers the US economy, inflation, alternative investments, cryptocurrencies and more. He has been involved in the space for over a decade.

Top 10 Best Gold Investment Companies – Reviews & Comparison (2024)

by | Oct 10, 2024 | gold

Reviewed by: Lauren Brown

Are you thinking of investing in gold and silver to diversify your portfolio against market uncertainty and geopolitical instability? We’ve got you covered. On this page, we will review ten top-rated gold investment companies in America. Now, we recommend speaking to a few different companies before making an investment decision, as they all have different strengths, weaknesses, and fees! Also, we encourage you to speak to your financial advisor prior to making an investment decision.

#1. Noble Gold Investments

Noble is one of the top-rated precious metal firms in America and has a wide selection of gold coins and bars. They also are the only firm to offer Texas-based secure storage for metals. Noble specializes in helping IRA and 401k owners diversify their portfolios with gold and silver. Colin Plume, the CEO, is a veteran in the precious metal industry and puts a special focus on client education.

To learn more about Noble:

#2. Augusta Precious Metals

Augusta Precious Metals is a selective gold investment company that has high-profile clients like NFL Hall of Famer Joe Montana. Augusta doesn’t believe that gold and silver are for everyone and can help you determine if the investment is suitable for you. They created a free report that goes over the most common gold dealer scams to watch out for. They also have a free gold and silver conference for new customers interested in learning more about whether gold and silver are right for them.

To learn more about Augusta:

#3. Birch Gold Group

  • www.birchgold.com
  • 1-877-749-7738
  • Iowa
  • Minimum investment: $10,000
  • CEO: Laith Alsarraf
  • Gold IRAs Approved? Yes

Birch Gold Group has secured the likes of Ben Shapiro and Ron Paul as their celebrity spokespeople. They offer a variety of storage options for those interested in investing in gold and silver through a retirement account.

To learn more about Birch Gold:

#4. American Hartford Gold Group

  • www.americanhartfordgold.com
  • 1-800-462-0071
  • California
  • Minimum investment: $5,000 (cash investment)
  • CEO: Sanford Mann
  • Gold IRAs Approved? Yes

American Hartford has an impressive 5-star rating on Google Reviews. Just like Augusta or GoldCo, American Hartford sells mainly premium coins, which command higher markups. They also offer standard bullion for IRA/401k account holders interested in the lowest premiums over the spot price.

To learn more about American Hartford:

#5. Advantage Gold

  • www.advantagegold.com
  • 1-888-501-9001
  • Texas
  • Minimum investment: $5,000
  • CEO: Kirill Zagalsky
  • Gold IRAs Approved? Yes

You have probably heard their commercial on Fox News. Adam Barratta, CEO of Advantage Gold, says he focuses on client education without paying any celebrities or spokespeople to back the brand. Advantage Gold does have great ratings across the board.

To learn more about Advantage Gold:

#6. Rosland Capital

  • www.roslandcapital.com
  • 1-866-942-2962
  • California
  • Minimum investment: $2,000
  • CEO: Marin Aleksov
  • Gold IRAs Approved? Yes

A veteran in the gold industry, Rosland Capital has helped thousands of investors purchase precious metals. Marin Aleksov founded the company back in 2008. Marin has been featured on several TV and radio programs as well as in publications such as TheStreet, CBS News, and the Los Angeles Times.

To learn more about Rosland Capital:

#7. American Bullion

  • www.americanbullion.com
  • 1-800-465-3472
  • California
  • Minimum investment: $10,000
  • CEO: Nevtan Akcora
  • Gold IRAs Approved? Yes

Another veteran in the industry, American Bullion is a well-known name in the world of gold IRAs. Former US Mint Director Rhett Jeppson became the company’s spokesperson in 2018.

To learn more about American Bullion:

#8. Gold Alliance

  • www.goldalliance.com
  • 1-888-642-3314
  • Nevada
  • Minimum investment: $20,000
  • CEO: Joseph Sherman
  • Gold IRAs Approved? Yes

Gold Alliance is one of those rare gold investment companies that is NOT located in California. Joseph Sherman, CEO of the company, told us that their main focus was to offer the best possible customer support experience.

To learn more about Gold Alliance:

#9. Monex

  • www.monex.com
  • 1-800-444-8317
  • California
  • Minimum investment: $10,000
  • CEO: Louis Carabini
  • Gold IRAs Approved? Yes

Monex is one of the oldest names in the gold industry. The company has been operating since the 1960s! Monex is mainly a gold coin dealer offering precious metal IRA investments.

To learn more about Monex:

#10. Goldco

  • www.goldco.com
  • 1-855-465-3472
  • California
  • Minimum investment: $10,000
  • CEO: Trevor Gerszt
  • Gold IRAs Approved? Yes

Celebrity spokesman Sean Hannity has been selected to represent GoldCo, replacing Chuck Norris who was the previous celebrity ambassador. This company offers all types of gold and silver coins for IRA and 401k account owners. Keep in mind that this company focuses on premium coins that come at a higher cost than standard bullion coins.

To learn more about Goldco:

Gold Investment Companies Comparison Table

We recommend that you contact 2-3 different companies before making an investment decision. Compare pricing, support, and other elements that you care about. Also, before you invest in gold, make sure you understand this asset class. Gold doesn’t pay dividends or interest. It’s also not as easy to liquidate as stocks or bonds. Inquire about the buyback program from the company you decide to invest with, as that’s likely the easiest way to liquidate/sell your gold. No matter what, we recommend speaking to a trusted financial advisor before you make any investment decision.

If you are looking for a gold IRA company that isn’t listed here, check out Gold IRA Guide’s Best Gold IRA Companies page to see a more extensive list of companies reviewed.

What to look for in a gold investment company?

  • Reviews and Ratings? You wouldn’t eat at a 2-star rated restaurant, so why would you work with a gold investment company that has a low rating? Reviews and ratings are a great indicator of the company’s professionalism and customer service.
  • Premiums and markups on coins/bars? Ask about the prices and fees associated with your gold investment. You’re obviously going to pay above the spot price, but how much above the spot rate? It’s worth knowing before making a purchase. Different coins come at different prices.
  • 401k and IRA account support? If you are plan to invest using a retirement plan, such as a 401k, IRA, TSP, 403b or other, you need to ask the gold company you plan to purchase from if they help facilititate this process for you and help when it comes to paperwork and storage. Some companies do while others don’t.
  • What types of coins and bars are available? What gold and silver coins and bars are for sale? If you’re an investor, you likely want the highest purity (99.99%+ pure) gold and silver coins or bars. Collectors care about things like shine, luster, rarity, year and other factors. If you’re an investor, make sure you are getting the highest purity first and foremost. You will be paying higher premiums for “rare” coins.
  • Sales experience and transparency. How are the salespeople? Are they pushy and aggressive? That’s a red flag. If they are suggesting you buy high-priced collectible coins without listening to your objectives, it’s also a red flag. It’s a good sign, though, if they are taking the time to answer your questions while explaining how the entire process works. Also, are they transparent about all fees and costs? You don’t want any surprises. You want to know upfront what all the fees will be.

Gold Investment FAQ

What is a gold investment company?

A gold investment company is a dealer that works directly with investors to help them allocate a portion of their investment portfolio to precious metals like gold and silver. Investment companies are different from local gold dealers because dealers have physical stores that cater to the general public. On the other hand, gold investment companies generally have a minimum investment amount and won’t work with a client that only wants to buy a couple of coins.

Are there fees or costs associated with gold investments?

The main costs and fees are the price of the gold and silver coins/bars you will be buying. What percent over spot are you paying for your gold bullion? That’s a question to ask the company you plan to work with. If you plan to store your gold in a secure vault, you also need to inquire about storage costs, which can be either a flat annual fee or a percent of the total value of gold.

What are the risks of investing in gold?

As with any other investment, investing in gold is not without risk. The asset comes with its own set of unique risks that any potential investor should consider.

The risks of investing in gold include:

  • Price volatility: Gold prices can be highly unpredictable. These prices are influenced by various factors, including changes in global economic conditions, interest rates, currency fluctuations, and geopolitical events. This volatility means that while gold can offer significant gains, it can also result in substantial losses, especially in the short term.
  • Opportunity cost: Unlike stocks or bonds, gold does not generate dividends or interest. By investing in gold, investors may miss out on returns they could have earned from other assets – assets that provide regular income. Gold is often considered a safe-haven asset, but its performance may lag during periods of strong economic growth when other investments are outperforming.
  • Storage and security: Physical gold, such as bars or coins, requires safe storage, which may involve additional costs for secure vaults or insurance. Storing gold at home poses security risks and could lead to theft or loss. Really! And you don’t need us to tell you that is not ideal.
  • Liquidity risk: While gold is generally easy to sell, there can be times when finding a buyer at a fair price becomes challenging. This is particularly true during periods of market stress.

Gold can act as a hedge against economic uncertainty. And, perhaps more importantly, inflation. While this is true, weighing these risks and diversifying investments is crucial to balance potential returns and risk exposure.

Is it better to invest in gold bars &/or gold coins?

This is up to each individual. Standard bullion coins like the American Gold Eagle or the Canadian Gold Maple Leaf are safe bets because they are recognized worldwide and have legal tender. However, generally speaking, gold bars command lower premiums since they are the closest thing to the raw material and require very minimal craftsmanship. Gold coins come with different designs and varying degrees of shine/luster/general quality. When you buy proof bullion coins, for instance, expect to pay much higher premiums than standard bullion coins. That’s because proof coins are stuck twice instead of once and have a higher degree of shine and luster.

What percent of my portfolio should be allocated to gold and silver?

This is a question only your financial advisor can help you answer. Some celebrity investors, like Kevin O’Leary, believe in a 5% gold allocation. Ray Dalio and Tony Robbins believe in an 8% gold allocation (as per their jointly designed All Seasons Portfolio). Each investor makes this decision based on their objectives and market outlook. Do your due diligence and your own research to determine what gold allocation is right for you. It’s important to remember that gold doesn’t pay any dividends or interest. Also, it comes with its own risks just like any other investment.

Should I store my gold at home or at a vault?

This question comes up often from our readers. Storing a large quantity of gold at home is generally risky. We always recommend storing your gold in a secure vault close to you. Offshore gold storage can also be an option if you want to store your gold in a different jurisdiction to minimize confiscation risk.

Should I use my IRA or 401k to invest in gold?

Using an existing retirement account such as an IRA or 401k might be a smarter way to invest in gold since you can avoid penalties. You can also invest in gold tax-free while working with a company that can handle the entire gold IRA rollover process for you. Those concerned about retirement account diversification should look into gold IRA companies to learn more.

Amine Rahal
Amine is an entrepreneur, investor and financial writer that covers the US economy, inflation, alternative investments, cryptocurrencies and more. He has been involved in the space for over a decade.

 

Lauren Brown
Lauren has over 13 years of experience in wealth management and financial planning. She is a CFA charterholder and holds a Bachelor’s degree in Finance. Lauren has worked with several asset management firms, offering wealth advisory and portfolio management services to high-net-worth clients.

 

Silver vs Gold: What’s a Better Investment in 2024?

Silver vs Gold: What’s a Better Investment in 2024?

by | Sep 13, 2024 | Definitions

If inflation is eating away at your portfolio, one investment you may have looked at is precious metals. Physical metals are known to be a good hedge against inflation and paper assets, but which precious metal should you invest in: gold or silver? In this article, we’ll cover the pros and cons of both to help you decide on your precious metal allocation. First, let’s look at this comparison table:

Factor Gold Silver
Market Value Higher price per ounce Much lower price per ounce
Volatility Lower volatility, more stable Higher volatility, more prone to price swings up or down
Liquidity Highly liquid, easier to buy and sell in large quantities Liquid but may have less demand in large quantities
Industrial Use Minimal industrial use Significant industrial demand (electronics, EV, solar energy)
Supply and Demand More stable due to its primary use as a store of value Fluctuates based on industrial demand and economic cycles
Hedge Against Inflation Strong hedge, typically rises during inflation Also a hedge, but more sensitive to its industrial demand and economic conditions
Investment Popularity Preferred by institutional investors and central banks More popular among smaller retail investors
Portfolio Diversification Considered a safer and more stable option for diversification More speculative, can add risk but also potential for higher gains
Historical Performance Steady long-term appreciation, especially in times of crisis More cyclical, with stronger price movements in both directions
Storage Costs & Space Required Requires less space due to higher value per ounce. One $80,000 gold bar can fit in your pocket. Silver requires more physical space for equivalent value. $80,000 worth of silver would occupy the equivalent of 2 shoeboxes.

For me, the highlight of this table is how easy it is to store gold. An $80k gold bar can fit in your pocket, which makes it very convenient, cheap and easy to store. This factor greatly contributes to the fact that gold is an amazing store of value. However, this also makes it very difficult to “spend”. In a scenario where the dollar is worth nothing and you want to use your precious metals as currency for everyday expenses, silver might be a better choice.

Gold: The Classic Choice

Gold investing goes back thousands of years. Virtually every holy book mentions it. Now, why should you consider gold? For the following reasons:

  • Stability: Almost every known civilization has valued gold for thousands of years, and even now, people often see it as a safe haven during economic uncertainty. Its price tends to be more stable over time.
  • Inflation Hedge: History has shown that when the cost of living rises, gold prices often increase too. This makes it a good option for preserving your purchasing power during high-inflation times.
  • Global Acceptance: Gold is recognized and valued worldwide. If you ever need to sell, it’s generally easy to find a buyer, especially if you have recognized bullion coins and bars like American gold eagles or Canadian maple leafs.
  • Less Volatility: Gold prices don’t fluctuate as wildly as some other investments, which can make it a calmer ride for investors.

Things to keep in mind:

  • Higher Cost: Gold is more expensive per ounce than silver. This means you’ll need more money upfront to invest. Also, each gold investment company has different fees, with some charging very high premiums. We encourage you to shop around. Look for a company with competitive prices for their gold coins and bars.
  • Slower Growth Potential: Because it’s more stable, you might see slower gains compared to more volatile investments.

Silver: The Dynamic Alternative

Silver is the most conductive metal on earth, which makes it needed in multiple industries, including Electric Vehicles, Electronics, Medicine and many more. Its various uses mean that its value goes beyond its investment potential. In a nutshell, you should consider investing in silver because:

  • Affordability: Silver is much cheaper than gold. Why is that helpful? It allows you to start investing with a smaller amount of money.
  • Industrial Demand: As we covered earlier, silver is used in many industries from electronics to EVs to solar panels. This can drive up demand and potentially its price.
  • Growth Potential: Silver prices can rise quickly, offering the chance for significant gains if the market moves in your favor. If being the key word.

Things to keep in mind:

  • Higher Volatility: Silver prices can swing more dramatically than gold. This means higher potential rewards but also higher risks.
  • Storage Space: Because silver is less valuable per ounce, you’ll need more physical space to store it compared to gold.
  • Market Liquidity: While silver is still easy to buy and sell, it might not be as readily accepted as gold in some markets. Especially in the east.

Making Your Decision

Before deciding on whether you should buy gold or silver as a hedge against inflation, consider your goals and comfort level:

  • Are you looking for stability and a long-term store of value? Gold might be the better choice for you.
  • Are you open to taking more risk for the chance of higher returns? Then silver could be more up your alley.
  • Do you have a smaller budget to start investing? Silver allows you to enter the market without needing a large sum of money.

Now, how about both?

  • Diversification: Investing in both gold and silver can help balance your portfolio. Really! Gold can provide stability. Silver offers growth potential.
  • Hedging Bets: Holding both metals means you’re not putting all your eggs in one basket.

Final Thoughts

Ultimately, the choice between investing in gold vs silver depends on your individual financial situation, investment goals, and how much risk you’re comfortable taking on. It also depends on your understanding of the pros and cons of both metals. Do you believe the pros of one outweigh the pros of the other? There is no single right answer. Our final thoughts are:

  • Do Your Research: Look into current market trends, historical price movements, and forecasts.
  • Consult a Professional: It might be helpful to talk to a financial advisor who can offer personalized advice.
  • Think Long-Term: Precious metals are generally considered long-term investments.

As always, we would like to remind you that investing always comes with risks, and there’s no guaranteed return. But with careful consideration and planning, you can make a choice that aligns with your financial goals. Always speak to your financial advisor before making any investment decision. Understand that past results don’t guarantee future returns. Invest wisely.

Also, given the inflation we had to endure in the last few years, make sure you analyze your financial situation fully to determine whether you should be investing in a new asset class like precious metals. You should NEVER use debt or credit to buy physical metals or invest in anything else. If you’re in high debt, we recommend looking at different debt relief options to see how you can alleviate your debt, before thinking about investing.

New Era Debt Solutions – Legit Debt Settlement Company? Read Our Review…

by | Sep 5, 2024 | Definitions

Reviewed by: Lauren Brown

New Era Debt Logo

Logo of New Era Debt Solutions (credit: neweradebtsolutions.com)

New Era Debt Solutions (https://neweradebtsolutions.com/) is a well-established, legitimate debt settlement company that’s been helping people get out of debt since 1999, which makes it one of the oldest debt settlement providers in America. Based in Camarillo, California, they operate nationwide (EXCEPT Maine, Oregon, and Iowa), and specialize in negotiating with creditors to settle unsecured debts, like credit card debt, personal loans and others for less than what you owe.

New Era Debt Company’s Snapshot

New Era Debt Solutions takes the #1 spot in our debt relief company rankings this year due to their combined score of 4.84/5 stars, as you can see below. This objective score takes into account their ratings on multiple third-party review sites.

  • Name: New Era Debt Solutions
  • Website: https://neweradebtsolutions.com/
  • Phone: 1 800-527-4421 (Open daily 7am-8pm EXCEPT Sunday)
  • BBB Rating: A+ (4.95/5 – 59 reviews)
  • Google: 4.9/5 (207 reviews)
  • TrustPilot: 4.8/5 (398 reviews)
  • Certifications: IAPDA
  • Combined Reviews: 664
  • Average Rating: 4.84/5
New Era Debt Google Reviews

New Era Debt Solutions has a good profile on Google reviews

What Services Does New Era Debt Offer?

New Era primarily offers debt settlement services, meaning they work with your creditors to reduce the total amount you owe. This service is specifically for unsecured debt (like credit cards, medical bills, personal loans and certain other types of debt). Their service cannot help for things like mortgages or student loans.

New Era Debt aims to create a plan that helps you become debt-free in as little as 24 to 48 months. One of the standout aspects of New Era is that they don’t charge any upfront fees. You only pay them when they’ve successfully settled your debt and you have agreed with their plan.

Reputation & Legitimacy Factors

In terms of reputation, New Era Debt Solutions has solid reviews across multiple platforms, as we covered earlier in the “company’s snapshot” section. They hold an A+ rating with the Better Business Bureau (BBB).

On Trustpilot, they’ve received mostly positive reviews, with customers praising them for professionalism and their ability to reduce large amounts of debt. Like any company, there are a few negative reviews, but those are often about the downsides of debt settlement itself (such as its impact on credit scores), rather than the company’s service.

Management Team

New Era’s CEO, Dan Smith, has a strong background in finance and a focus on ethical, transparent practices. The company is committed to not only helping clients get out of debt but also educating them on how to stay out of it in the future. They pride themselves on being a debt settlement company that actually does the work in-house—they do not outsource anything, so you’re always dealing with New Era directly.

Which States Do They Cover?

New Era Debt Solutions serves clients across the United States, except in the states of Maine, Oregon, and Iowa as we covered in the beginning of this article. This may change in the future, so it’s always a good idea to fill out their pre-qualification form to see if your address allows debt settlement and if New Era operates there.

What’s the Process Like?

When you sign up, you’ll first have a consultation to review your financial situation. After that, they’ll create a plan tailored to your debt and begin negotiating with your creditors. You’ll make monthly payments into an escrow account while New Era works to settle your debts for less than what you owe. It’s a fairly straightforward process, but as with any debt settlement plan, it’s important to know that your credit score will take a hit. While under negotiation, there are also risks like collection calls or lawsuits.

Is New Era Debt Solutions Right for You?

New Era Debt Solutions has been around for over 20 years, and their track record, coupled with strong reviews and no upfront fees, makes them a legitimate option if you’re considering debt settlement. They are especially appealing if you’re struggling with large amounts of unsecured debt and need an alternative to bankruptcy. That said, debt settlement isn’t for everyone—make sure to understand the pros and cons before diving in.

If you’re dealing with overwhelming debt due to this high-inflation economic landscape, and are looking for a company that can help you decrease and/or pay off your debt, and has a great reputation, New Era could be the right fit for you. Make sure you take advantage of their free consultation to ask which of their various debt relief options is best for you.

FAQ

Here’s a frequently asked questions (FAQ) section covering the most common questions new users have about New Era Debt Solutions:

1. How much does New Era Debt Solutions charge?

New Era charges between 14% and 23% of the initial enrolled debt amount. There are no upfront fees; they only get paid when they successfully negotiate a debt reduction. This is a contingency-based fee structure​.

2. What types of debt does New Era handle?

They handle unsecured debts like credit card debt, personal loans, private student loans, medical bills, and some types of business debts. They do not handle secured debts like mortgages or car loans​.

3. Will using New Era affect my credit score?

Yes, debt settlement, regardless of which company you choose to work with, will negatively impact your credit score. Settling a debt means paying less than the full amount owed, which creditors deem a negative event. However, the impact is less damaging than bankruptcy.  ​

4. Is New Era Debt Solutions accredited and reputable?

Yes, New Era has BBB accreditation and has an A+ rating. They have generally positive reviews from clients on platforms like TrustPilot and the BBB website​.

5. Where is New Era available?

New Era is accessible in 46 states as well as Washington D.C. and the Virgin Islands. They do NOT operate in Maine, Oregon, and Iowa.They collaborate with the Consumer First Legal Network to offer services in certain states where they may not directly operate​.

6. What happens if a creditor refuses to settle?

If a creditor refuses to negotiate, they could potentially take legal action, which might result in lawsuits or wage garnishments. However, most creditors prefer to negotiate rather than pursue costly legal action​.

7. How long does the debt settlement process take?

The typical debt settlement program with New Era takes around 28 months. The exact duration depends on the amount of debt, your monthly contributions, and how quickly creditors agree to settlements​.

8. Can I cancel my program with New Era Debt Solutions?

Yes, clients can cancel their program with New Era at any time. However, any funds put towards fees or those that are in the dedicated account may be subject to the terms of the cancellation agreement.

 

Amine Rahal
Amine is an entrepreneur, investor and financial writer that covers the US economy, inflation, alternative investments, cryptocurrencies and more. He has been involved in the space for over a decade.

 

Lauren Brown
Lauren has over 13 years of experience in wealth management and financial planning. She is a CFA charterholder and holds a Bachelor’s degree in Finance. Lauren has worked with several asset management firms, offering wealth advisory and portfolio management services to high-net-worth clients.

 

20 Best Debt Settlement Companies Ranked By Ratings & Reviews (2024)

by | Sep 1, 2024 | Debt Relief

Reviewed by: Lauren Brown

In these high-inflation times, people often ask us which company they should choose for debt settlement, negotiation or management. Now, since we couldn’t find a list of debt settlement companies in America ranked by their reviews and ratings on trusted third-party sites like the BBB, Google Reviews, TrustPilot and others, we decided to create one. If you are looking for the best rated debt settlement provider to help you with lowering your debt or better managing your payments, this list should help you):

Best For Over 10k Debt New Era Debt
Best For Under 10k Debt CuraDebt
Best Debt Lawyer Oak View Law

1) New Era Debt Solutions (4.9/5)

New Era Debt Logo

Logo of New Era Debt Solutions (credit: neweradebtsolutions.com)

New Era Overview & Reviews:

New Era Debt Solution is a debt settlement company headquartered in Camarillo, California. They focus on credit card debt relief and employ debt relief experts, financial professionals, attorneys and support staff. They offer debt settlement, debt negotiation and negotiation with creditors.

  • BBB: A+ (4.95/5 – 59 reviews)
  • Google: 4.9/5 (207 reviews)
  • TrustPilot: 4.8/5 (398 reviews)
  • Certifications: IAPDA
  • Combined Reviews: 664
  • Average Rating: 4.9/5

2) TurboDebt (4.9/5) 

TurboDebt Overview & Reviews:

TurboDebt is one of the most highly-rated debt settlement companies (as you can see below) that we have had a chance to review, combining a total of over 17,000 positive reviews. They can help you decrease and pay off several types of debt, including credit card, tax, personal loans, student loans, medical bills and more. Learn more by reading our TurboDebt review.

  • BBB: A+ (4.92/5 – 17,343 reviews)
  • Google: 4.8/5 (4,859 reviews)
  • TrustPilot: 4.9/5 (11,190 reviews)
  • Certifications: AADR, BBB
  • Consolidation Loans: No
  • Combined Reviews: 33,392
  • Average Rating: 4.9/5

3) National Debt Relief (4.72/5)

National Debt Relief Overview & Reviews:

National Debt Relief is similar to Turbo Debt. However, they do also offer loans, which isn’t necessarily a good thing if you’re in a tough financial situation, as you won’t qualify for a good rate. They also offer debt settlement, debt consolidation, credit counseling and more.

  • BBB: A+ (4.75/5 – 4,548 reviews)
  • Google: 4.6/5 (9,112 reviews)
  • TrustPilot: 4.8/5 (31,000 reviews)
  • Certifications: AADR, IAPDA
  • Combined Reviews: 44,660
  • Average Rating: 4.72/5

4) Freedom Debt Relief (4.59/5)

Freedom Debt Relief Overview & Reviews:

Freedom Debt Relief is a highly-rated debt counselling agency with a particular focus on credit card debt. They offer debt settlement, debt management plans and credit counseling.

  • BBB: A+ (4.47/5 – 1,917 reviews)
  • Google: 4.7/5 (509 reviews)
  • TrustPilot: 4.6/5 (42,334 reviews)
  • Certifications: AADR, IAPDA
  • Combined Reviews: 44,760
  • Average Rating: 4.59/5

5) Pacific Debt Relief (4.85/5)

Freedom Debt Relief Overview & Reviews:

Pacific Debt is a debt settlement company with the ability to handle many types of debt, including medical bills, overdue utility payments, credit cards, personal loans, tax debt, payday loans, bankruptcy, and certain contracts, like gym memberships. They also offer financial education.

  • BBB: A+ (4.93/5 – 1,930 reviews)
  • Google: 4.6/5 (259 reviews)
  • TrustPilot: 4.8/5 (1,853 reviews)
  • Certifications: CDRI, IAPDA
  • Combined Reviews: 4,042
  • Average Rating: 4.85/5

6) Accredited Debt Relief (4.86/5)

Accredited Debt Relief Overview & Reviews:

Accredited Debt Relief is a highly-rated debt consolidation company that heavily advertises the ability to help customers be debt-free in 24-48 months.  Unlike other agencies reviewed previously, Accredited Debt Relief does offer debt consolidation loans through their partners, and the APRs can be quite high, up to 35.99% for those with less desirable credit scores. 

  • BBB: A+ (4.89/5 – 2,080 reviews)
  • Google: 4.8/5 (7,148 reviews)
  • TrustPilot: 4.9/5 (7,190 reviews)
  • Certifications: N/A
  • Combined Reviews: 16,418
  • Average Rating: 4.86/5

7) Money Management International (4.76/5)

MMI Overview & Reviews:

Money Management International is one of the fastest-growing debt relief companies, and have acquired many other smaller debt relief providers, such as Debt Advisors of America. They provide debt settlement at a unique monthly fee structure that is different from most of the other companies we reviewed. 

  • BBB: A+ (4.89/5 – 339 reviews)
  • Google: 4.9/5 (502 reviews)
  • TrustPilot: 4.7/5 (1,828 reviews)
  • Certifications: FCAA, NFCC.
  • Combined Reviews: 2,669
  • Average Rating: 4.76/5

8) ClearOne Advantage (4.37/5)

ClearOne Overview & Reviews:

ClearOne Advantage is another popular and well-reviewed debt settlement company that offers free initial consultations to help you determine the best plan of attack to tackle your debt. 

  • BBB: A+ (4.0/5 – 544 reviews)
  • Google: 4.4/5 (3,182 reviews)
  • TrustPilot: 4.7/5 (8,784 reviews)
  • Certifications: IAPDA
  • Combined Reviews: 12,510
  • Average Rating: 4.37/5

9) Century Support Services (4.74/5)

Century Support Services Overview & Reviews:

This company was founded in 2008 and has been operating for over 15 years. They serve clients nationwide, although they exclude some states. Just like others reviewed in this list, they offer debt settlement, debt resolution, debt management plans and more.

  • BBB: A+  (3.65/5 – 97 reviews)
  • Google: 4.7/5 (898 reviews)
  • TrustPilot: 4.8/5 (2,591 reviews)
  • Certifications: AADR, IAPDA
  • Combined Reviews: 3,586
  • Average Rating: 4.74/5

10) Guardian Debt Relief (2.25/5)

Guardian Debt Relief Overview & Reviews:

Guardian Debt Relief doesn’t have the most flattering review profile, but we included them because they are a well-known brand when it comes to debt settlement. Based in New York, they offer debt settlement, debt management, financial counseling and more. 

  • BBB: (2.33/5 – 3 reviews)
  • Google: 3.0/5 (33 reviews)
  • TrustPilot: 1.7/5 (46 reviews)
  • Certifications: IAPDA, AFCC
  • Combined Reviews: 82
  • Average Rating: 2.25/5

11) GreenPath Financial Wellness (4.79/5)

GreenPath Financial Wellness Overview & Reviews:

GFW works nationwide and can help settle your debt with multiple creditors, including banks, credit unions, retailers, medical providers, auto finance agencies, and collection agencies.

  • BBB: A+ (4.8/5 – 345 reviews)
  • Google: N/A 
  • TrustPilot: 3.5/5 (2 reviews)
  • Certifications: NFCC
  • Combined Reviews: 347
  • Average Rating: 4.79/5

12) CreditAssociates (4.83/5)

CreditAssociates Overview & Reviews:

CreditAssociates is a Dallas-based debt settlement company that has some great reviews on TrustPilot, but not as good on the BBB. They have a similar setup as most other debt settlement providers on this page, charging 25% of your debt and no upfront fees for consultation. 

  • BBB: A+ (4.01/5 – 208 reviews) 
  • Google: 4.3/5 (2,165 reviews)
  • TrustPilot: 4.9/5 (17,658 reviews)
  • Certifications: AADR, IAPDA
  • Combined Reviews: 20,031
  • Average Rating: 4.83/5

13) DMB Financial (4.73/5)

DMB Financial Overview & Reviews:

DMB Financial is a Massachusetts-based debt settlement company. DMB Financial advertises the ability to help you consolidate all of your high-interest credit card balances into one lower, flat monthly program payment, which is similar to what most of the other companies on this page do. 

  • BBB: (4.86/5 – 226 reviews)
  • Google: 4.7/5 (933 reviews)
  • TrustPilot: N/A
  • Certifications: IAPDA
  • Combined Reviews: 1,159
  • Average Rating: 4.73/5

14) Trinity Debt Management (1.5/5)

TDM Overview & Reviews:

Based in Ohio, Trinity Debt Management is a Christian debt management company that offers credit counseling, budgeting help, financial education, debt settlement and more. They don’t advertise their minimums and their fees.

  • BBB: N/A (Currently updating profile)
  • Google: N/A
  • TrustPilot: 1.5/5 (180 reviews)
  • Certifications: N/A
  • Combined Reviews: 180
  • Average Rating: 1.5/5

15) Consolidated Credit Counseling Services (4.8/5)

Consolidated Credit Overview & Reviews:

Consolidated Credit has a flat monthly fee for its debt relief program. They charge a one-time setup fee ranging from $50 to $75, and their monthly service fee is about $30. They don’t advertise any minimum debt. 

  • BBB: A+ (2.18/5 – 11 reviews)
  • Google: 4.8/5 (1,808 reviews)
  • TrustPilot: 4.8/5 (9,083 reviews)
  • Certifications: NFCC, FCAA, CFC
  • Combined Reviews: 10,902
  • Average Rating: 4.8/5

16) InCharge Debt Solutions (4.66/5)

  • URL: www.incharge.org 
  • Minimum Debt: None
  • Fees: 15% to 25%
  • Combined Reviews: 2,326
  • Average Rating: 4.53/5

InCharge Overview & Reviews:

Incharge is a Florida-based debt management company that offers credit counseling, debt consolidation and more. Unlike many companies reviewed on this page which require a minimum 10k debt to work with you, InCharge advertises a “no minimums”. 

  • BBB: A+ (3.36/5 – 14 reviews)
  • Google: 4.0/5 (107 reviews)
  • TrustPilot: 4.7/5 (2,206 reviews)
  • Certifications: NFCC, FCAA, COA
  • Combined Reviews: 2,327
  • Average Rating: 4.66/5

17) CuraDebt (4.73/5)

CuraDebt Overview & Reviews:

Founded in 1996, CuraDebt (which we previously reviewed here) is probably the oldest debt settlement company reviewed in this list. What makes them stand out, aside from their longevity, is their low minimum. They are the only company that advertises low minimums of $5,000 and they will sometimes take clients with debt lower than that.

  • BBB: (4.7/5 – 23 reviews)
  • Google: 4.8/5 (271 reviews)
  • TrustPilot: 3.3/5 (12 reviews)
  • Certifications: IAPDA, AFCC
  • Combined Reviews: 306
  • Average Rating: 4.73/5

18) ACCC (4.99/5)

ACCC Overview & Reviews:

The ACCC is technically NOT a debt settlement company. They are a credit counseling agency that focuses on providing DMPs (aka Debt Management Plans) to help you better manage and repay your debt. The disadvantage is that DMPs don’t decrease your debt. 

  • BBB: A+ (4.98/5 – 1,054 reviews)
  • Google: 5/5 (1,068 reviews)
  • TrustPilot: N/A
  • Certifications: NFCC, COA
  • Combined Reviews: 2,122
  • Average Rating: 4.99/5

19) Navicore Solutions (4.36/5)

Navicore Overview & Reviews:

Founded in New Jersey, Navicore is a nonprofit that assists clients in terms of debt management plans, credit counseling, housing counseling and more. Similar to the ACCC, Navicore focuses strictly on providing advice and guidance. They don’t offer debt settlement, consolidation or any other debt relief program. 

  • BBB: (4.86/5 – 28 reviews)
  • Google: 4.2/5 (140 reviews)
  • TrustPilot: 4.4/5 (216 reviews)
  • Certifications: FCAA, NFCC, COA
  • Combined Reviews: 384
  • Average Rating: 4.36/5

20) DebtHelper (4.79/5)

DebtHelper Overview & Reviews:

DebtHelper is yet another Florida-based debt counseling agency. Based on our review of their website, they don’t seem to offer debt settlement or consolidation programs. Instead, they focus on counseling, DMP’s and financial education. They put a special emphasis on credit cards, housing and student debts. 

  • BBB: A+ (4.95/5 – 697 reviews)
  • Google: 4.1/5 (168 reviews)
  • TrustPilot: 4.8/5 (58 reviews)
  • Certifications: NFCC, FCAA
  • Combined Reviews: 923
  • Average Rating: 4.79/5

FAQ About Debt Settlement 

1. What is debt settlement? How does debt settlement work?

Debt settlement is a process where a company negotiates with your creditors to reduce the total amount of debt you owe. The goal is to settle your debts for less than the full balance, often through a lump-sum payment or structured payment plan (DMP). This can be an effective way to lower and better handle overwhelming debt, but it may impact your credit score. It also comes with fees charged by the debt settlement company.

2. How were the debt settlement companies ranked in this list?

The companies were ranked based on their average ratings and the total number of reviews across reputable platforms such as the Better Business Bureau (BBB), Google Reviews, and TrustPilot. We wanted this rating to be as objective as possible.

Top 5 Companies Based on their Ratings and Reviews:

  1. TurboDebt
    • Average Rating: 4.9/5
    • Combined Reviews: 33,392
  2. New Era Debt Solutions
    • Average Rating: 4.9/5
    • Combined Reviews: 664
  3. Accredited Debt Relief
    • Average Rating: 4.86/5
    • Combined Reviews: 16,418
  4. DMB Financial
    • Average Rating: 4.73/5
    • Combined Reviews: 1,159
  5. Pacific Debt Inc.
    • Average Rating: 4.85/5
    • Combined Reviews: 4,042

3. What services do these debt settlement companies offer?

Here, we are discussing debt settlement as the core service. Now, some of these companies also offer debt consolidation loans, credit counseling, DMPs and other services. Examples:

  • TurboDebt offers debt settlement services for various types of debt, including credit cards, personal loans, student loans, tax debts, and medical bills.
  • Accredited Debt Relief provides debt settlement and also offers debt consolidation loans through their partners.
  • Money Management International (MMI) focuses on debt management plans and credit counseling with a unique monthly fee structure.

4. What are the typical fees associated with debt settlement services?

As you probably have noticed, the fees for debt settlement services typically range between 15% to 25% of the enrolled debt amount. Some companies may have different fee structures, including setup fees and monthly service fees.

Fee Structure Examples:

  • TurboDebt: 15% to 25% of enrolled debt.
  • New Era Debt Solutions: 14% to 23% of enrolled debt.
  • Accredited Debt Relief: Flat 25% of enrolled debt.
  • Money Management International: $33 setup fee and $25 monthly fee. (Note: Not a settlement company)
  • Consolidated Credit Counseling Services: Up to 25% with additional setup and monthly fees.

Note about these fees: Fees are typically only charged after a successful settlement. It’s important to understand the fee structure before enrolling in any program.

5. What is the minimum debt requirement to work with these companies?

Minimum debt requirements vary by company. Most require a minimum of $10,000, while some companies have lower minimums of $5,000 or no minimum debt requirement at all if we’re talking about debt counseling and DMP’s.

Minimum Debt Examples:

  • CuraDebt: Minimum debt of $5,000. (Lowest in the debt settlement space!)
  • TurboDebt, National Debt Relief, and Freedom Debt Relief: Minimum debt of $10,000.
  • CreditAssociates and InCharge Debt Solutions: No minimum debt requirement.
  • Money Management International: No minimum debt requirement. (Note: Not a settlement company)

6. Do these companies offer debt consolidation loans?

Not all debt settlement companies offer debt consolidation loans. Some focus solely on negotiation and settlement, while others partner with lenders to provide consolidation options. We recommend that you be very careful and diligent if you plan to get a personal loan to pay your debt. Unless your credit score is high enough and you have sufficient income, you will likely get less than ideal terms and rates for your loan, which will sink you deeper into debt.

Companies Offering Debt Consolidation Loans:

  • Accredited Debt Relief: Offers consolidation loans through partners with APRs up to 35.99%.
  • National Debt Relief: Provides debt consolidation services along with settlement.
  • DMB Financial: Assists with consolidating high-interest credit card balances into lower monthly payments.

Companies Not Offering Loans:

  • TurboDebt
  • New Era Debt Solutions
  • Pacific Debt Inc.
  • Century Support Services

7. What certifications should a reputable debt settlement company have?

Certifications indicate adherence to industry standards and ethical practices. Reputable certifications for providers of debt relief services include:

  • American Fair Credit Council (AFCC)
  • International Association of Professional Debt Arbitrators (IAPDA)
  • Better Business Bureau (BBB) Accreditation
  • Financial Counseling Association of America (FCAA)
  • National Foundation for Credit Counseling (NFCC)

Examples:

  • TurboDebt: AADR, BBB accredited.
  • New Era Debt Solutions: IAPDA certified.
  • Consolidated Credit Counseling Services: NFCC, FCAA, CFC certified.
  • Money Management International: FCAA, NFCC certified.

Important Tip: Verify the company’s certifications to ensure they follow best practices and industry regulations.

8. How long does the debt settlement process typically take?

The duration of the debt settlement process varies depending on the amount of debt, speed of negotiations and the repayment plan you go with, generally ranging from 12 to 48 months.

Timeframe Examples:

  • Accredited Debt Relief: Advertises debt-free status in 24-48 months.
  • TurboDebt: Time frame depends on individual debt amounts and negotiation outcomes.
  • Freedom Debt Relief: Programs typically last between 24 to 60 months.

Factors Influencing Duration:

  • Debt Amount: Larger debts may take longer to settle.
  • Monthly Payments: Higher payments can shorten the settlement period.
  • Negotiation Speed: Efficiency of negotiations with creditors affects timeframe.

Advice: Discuss expected timelines with the company during the free consultation phase to see if it fits your needs and requirements.

9. How does enrolling in a debt settlement program affect credit scores?

This is an important question! Although the effect won’t be as bad as if you file for bankruptcy, enrolling in a debt settlement program can negatively impact your credit score, especially in the short term. Why? Because the process often involves ceasing direct payments to creditors, leading to reported delinquencies.

Credit Impact Details:

  • Short-Term Effects: Your credit score may drop due to missed payments and settled accounts, which negatively affects your credit report.
  • Long-Term Effects: Once you settle your debts and restore your financial stability, your credit score can get better again.
  • Alternatives: Debt management plans (DMPs) through organizations like ACCC may have a lesser impact on credit scores compared to settlement.

Recommendation: Weigh the immediate credit impact against the benefits of reducing and eliminating debt. Consult with a financial advisor or free credit counselor to understand the full implications.

10. How do I choose the right debt settlement company for my needs?

If you’re still hesitant and don’t know who to choose, consider the following factors when choosing a debt settlement company:

  1. Reputation and Reviews: Look for companies with high average ratings and numerous positive reviews across multiple platforms.
  2. Fees and Costs: Understand the fee structure and ensure it’s reasonable and transparent.
  3. Minimum Debt Requirements: Choose a company that accepts your level of debt.
  4. Certifications: Ensure the company holds relevant and reputable industry certifications.
  5. Service Offerings: Select a company that offers services tailored to your specific financial situation.
  6. Consultation Services: Consider companies that offer free initial consultations to assess your needs.
  7. Customer Support: Evaluate the quality and accessibility of their customer service.
  8. Transparency: The company should be clear about their processes, timelines, and potential impacts on your finances.

Also, whoever you choose to work with, make sure they are NOT part of this FTC database of companies that are NOT allowed to offer any debt relief services.

11. Are nonprofit debt counseling agencies a better option than for-profit debt settlement companies?

Not necessarily! Even nonprofits need to make money and will charge you at some point in the process. Nonprofit debt counseling agencies and for-profit debt settlement companies both offer similar services.

Amine Rahal
Amine is an entrepreneur, investor and financial writer that covers the US economy, inflation, alternative investments, cryptocurrencies and more. He has been involved in the space for over a decade.

 

Lauren Brown
Lauren has over 13 years of experience in wealth management and financial planning. She is a CFA charterholder and holds a Bachelor’s degree in Finance. Lauren has worked with several asset management firms, offering wealth advisory and portfolio management services to high-net-worth clients.

 

Understanding Predatory Lending & Interest Rate Caps in the U.S.

by | Aug 30, 2024 | Debt Relief

In the U.S., interest rate caps—especially when it comes to protecting consumers from predatory lending—are largely regulated at the state level. This means that the maximum interest rates lenders can charge vary depending on which state you live in and the type of loan we’re taking out. Let’s break down how this works across different states.

What Qualifies as a “Predatory Loan”?

First, let’s compare a traditional loan you would get from a bank versus a “predatory loan” you would get from an alternative lender:

Feature Traditional Bank Loan Predatory Loan
Interest Rate Low to moderate (typically 3% to 12% APR) Very high (can exceed 50% APR, sometimes 300%+)
Loan Terms Fixed terms (usually 1 to 30 years) Short terms (often 2 weeks to a few months)
Repayment Structure Monthly payments, often with amortization Lump-sum payment or frequent, high payments
Fees and Charges Transparent, disclosed upfront Hidden fees, high fees, or penalties
Borrower Qualification Strict requirements (credit score, income, etc.) Minimal qualification (often no credit check at all)
Regulatory Oversight Highly regulated by federal and state laws Often operates in regulatory gray areas
Purpose of Loan Typically for major purchases (homes, cars, education) Often for emergency or short-term needs
Impact on Credit Score Positive impact if paid on time, reported to credit bureaus Negative impact, often not reported positively to credit bureaus
Borrower Rights Strong consumer protections, recourse available Limited recourse, predatory practices common
Rollover/Renewal Generally not allowed or unnecessary Frequent rollovers, trapping borrowers in cycles
Lender’s Intent Long-term relationship, repayment is expected Profit from borrower’s inability to repay on time

Essentially, a predatory loan is a type of loan that takes advantage of borrowers in vulnerable and dire financial situations. These loans often come with excessively high interest rates, hidden fees, or deceptive terms that make it difficult for borrowers to repay the loan.

Federal Protections

Before diving into state specifics, it’s worth noting that there is a federal cap in place for certain groups. The Military Lending Act (MLA) caps interest rates at 36% APR for active-duty service members and their dependents on most consumer loans. This law provides a strong layer of protection, but it only applies to military members. You can learn more about the MLA on the Consumer Financial Protection Bureau (CFPB) website.

State-Level Interest Rate Caps

Interest rate caps for everyone else are set by state laws, and these can vary widely:

  1. California
    • Payday Loans: In California, payday lenders can charge up to $15 per $100 borrowed, which can equate to an APR of over 400% depending on the term of the loan.
    • Installment Loans: For loans over $2,500, there’s no cap on interest rates.
    • More Info: Check out California’s Department of Financial Protection and Innovation for detailed regulations.
  2. Colorado
  3. New York
    • All Loans: New York has a strict usury law that caps interest rates at 16% for most types of consumer loans. Charging above 25% is considered criminal usury.
    • More Info: For more on New York’s laws, the New York State Department of Financial Services is a good resource.
  4. South Dakota
    • Payday Loans: Like Colorado, South Dakota caps payday loan rates at 36% APR. This cap was set after a successful 2016 ballot initiative aimed at protecting consumers from predatory lending practices.
    • More Info: Learn more on the South Dakota Division of Banking website.
  5. Texas
    • Payday Loans: Texas doesn’t cap interest rates directly for payday loans, but it does regulate fees. This can still lead to APRs that exceed 400%, depending on the loan’s terms, which is extremely high.
    • More Info: The Texas Office of Consumer Credit Commissioner provides more information on lending laws in the state.
  6. Illinois
  7. Florida
  8. Utah
    • All Loans: Utah has no cap on interest rates, making it one of the most lender-friendly states in the U.S. This means payday lenders and other high-interest lenders can charge extremely high rates. Beware of Utah-based lenders.
    • More Info: For more, see the Utah Department of Financial Institutions.

Know Your Rights & Do Your Due Diligence

These state-specific laws are crucial because they determine how much protection you have against predatory lending practices. In states with strict caps like New York or Colorado, consumers are generally safer from exorbitant interest rates. But in states like Utah or Texas, the lack of caps means consumers need to be extra cautious when taking out loans.

Predatory loans have put many American consumers in dire financial situations, exacerbating their debt and pushing them into bankruptcies. If you are dealing with high debt and are struggling to pay your bills, consider debt settlement instead of requesting another loan which will most likely put you deeper into debt. 

Finding Out More

If you’re considering taking out a loan, it’s a good idea to first check what the interest rate caps are in your state. You can usually find this information through your state’s Department of Financial Services or a similar regulatory body. Additionally, the Consumer Financial Protection Bureau (CFPB) offers a wealth of resources on consumer rights and protections.

By understanding these caps, you can better protect yourself from predatory lending practices and make more informed financial decisions.