CreditAssociates

Information

Legal name

CreditAssociates, LLC

Short name

CreditAssociates, LLC

Legal address

5050 Quorum Dr., Suite 700, Dallas, TX 75254

About company

CreditAssociates is a reputable debt settlement company that has been helping consumers manage and pay off their unsecured debts since 2007. With operations in 43 states and Washington, D.C., the company has established itself as a reliable and trustworthy partner in debt relief.

The company specializes in helping consumers tackle credit card debt, medical debt, and business debt. By negotiating with creditors on behalf of their clients, CreditAssociates works to lower their clients' overall debt balances, making it easier for them to pay off their debts over time.

One notable aspect of CreditAssociates is that it is a member of the American Fair Credit Council (AFCC), an industry trade group that promotes ethical practices and transparency in the debt settlement industry. This affiliation highlights CreditAssociates' commitment to providing clients with fair and ethical services that are designed to help them get back on solid financial footing.

While CreditAssociates operates in the majority of the United States, it is important to note that the company does not work with clients in Colorado, Connecticut, Minnesota, Maryland, New Jersey, Vermont, and Wyoming.

CreditAssociates

Key Features

Established Company. Credit Associates has been in business since 2007 and operates in 44 states. This demonstrates the company's experience and credibility in the debt relief industry.
Short Program. Credit Associates offers an aggressive debt settlement program that typically lasts between 24-48 months. This accelerated timeline requires clients to make monthly payments so that the company can rapidly negotiate their debt.
Wide Variety of Unsecured Debt. Credit Associates specializes in credit card debt, medical/hospital bills, and business debt. The company has a minimum enrollment requirement of $10,000, and does not negotiate secured debt such as mortgages or auto loans.
Industry Accreditation. Credit Associates is an accredited member of the American Fair Credit Council (AFCC), which promotes ethical practices in the debt settlement industry. Additionally, the company features the International Association of Professional Debt Arbitrators (IAPDA) logo.
Free Consultation. Credit Associates offers a free debt consultation program to review your financial situation and determine if their program is a good fit for you.
No Upfront Fees. Like other reputable debt settlement companies, Credit Associates does not charge any upfront fees.
Competitive Fees and Results. While Credit Associates does not disclose their fees and savings information, their savings estimate calculator shows an example of 35% savings on the original debt. It's important to note that the results may vary depending on individual circumstances.

Pros and Cons

Pros

Money-Back Guarantee. Credit Associates offers a money-back guarantee to their clients. If the company cannot negotiate a debt settlement on behalf of their client, they will refund any fees paid to them.
Spanish-Speaking Reps Available. Credit Associates has Spanish-speaking representatives available to help Spanish-speaking clients navigate the debt settlement process. This can be helpful for clients who prefer to communicate in their native language.
AFCC Accredited Member. Credit Associates is an accredited member of the American Fair Credit Council (AFCC), a nonprofit organization that promotes ethical practices in the debt relief industry. This accreditation highlights Credit Associates' commitment to following industry standards and providing ethical services to their clients.

Cons

Not Available in All States. Credit Associates operates in 44 states, but they do not provide services in every state. If you live in a state where Credit Associates is not available, you will need to consider other debt relief options.
Not for Secured Debts. Credit Associates only negotiates unsecured debts such as credit card debt, medical bills, and business debt. If you have secured debts such as a mortgage or car loan, you will need to consider other options.

How Does Credit Associates Work?

Enrolling in the program. Once you enroll in the program, you stop making payments to your unsecured debts and instead pay a monthly amount into a special-purpose savings account through CreditAssociates. This account is what will give the company the ability to negotiate a lower debt bill and pay off the negotiated amount.
Negotiating with creditors. CreditAssociates' negotiation team will negotiate with your original balance in mind, helping you avoid any late fees during the process. The company aims to reduce the amount you owe by negotiating with your creditors to accept a lump sum payment that is less than the total amount owed.
Debt eligibility. Not all debts are eligible for enrollment in the program. Some creditors, such as Chase, Discover, American Express, and Macy's, may not always work with debt settlement companies directly. Some debts may require your active involvement.
Credit score impact. It is important to note that the debt settlement process can damage your credit score. Late or missed payments on your enrolled debts can negatively affect your credit score. However, once your debts are settled, your credit score can begin to recover.
Timeline. It can take several months to see your first debt negotiated and settled, with the process lasting on average from 24 to 48 months. CreditAssociates advises that it can take up to six months to see your first debt negotiated and settled.

How Much Does CreditAssociates Cost?

CreditAssociates does not charge any upfront fees, which is a positive aspect of their service. Instead, they charge a fee of 15% to 25% of the total debt that is settled through their debt settlement program. This fee is only charged once the debt has been successfully settled, and the amount settled will be less than the original amount owed due to the negotiation process.

It is important to note that any debts settled for over $600 will result in the issuance of a Form 1099-C by the creditor forgiving the debt. This means that the forgiven debt may be considered taxable income, and you may be required to pay taxes on the amount. Your tax preparer can advise you on how to include this in your taxes.

Types of Debt Addressed

CreditAssociates specializes in addressing unsecured debts such as credit card debts, medical bills, and business debts. These types of debts do not have any collateral attached to them, which means that they are not secured by any asset. CreditAssociates' debt settlement program is designed to help clients negotiate with creditors to lower their outstanding balances and work towards paying off their debts.

However, it is important to note that CreditAssociates does not work with secured debts such as mortgages and vehicle debts. Secured debts have collateral attached to them, which means that if the debtor defaults on the loan, the creditor can seize the collateral to cover the outstanding balance. CreditAssociates' debt settlement program is not designed to address this type of debt.

If you are considering CreditAssociates' debt settlement program, it is important to request a free debt consultation to determine if this is the right choice for you. According to CreditAssociates, clients who complete the program and pay off all of their debts save an average of 55% before fees and 30% after CreditAssociates' fees.

Risks of Debt Settlement Program

Credit Score Damage. When you stop making payments on your unsecured debt, your credit score will be negatively impacted. Debt settlement can also show up as a negative item on your credit report, which can hurt your credit score even further.
Tax Consequences. When a creditor forgives or cancels a portion of your debt, the IRS may consider that cancelled amount as taxable income. This could result in a large tax bill, which could be difficult to pay off.
Debt Collection Calls. While you are enrolled in the debt settlement program, creditors may continue to call you to collect on your debts. These calls can be stressful and annoying, but it is important to remember that they cannot harass or threaten you.
Uncertainty. There is no guarantee that CreditAssociates will be able to negotiate your debts successfully. Additionally, the amount that is settled may be higher than you were hoping for.
Fees. While CreditAssociates does not charge upfront fees, there is a fee of 15% to 25% of the debt settled. This can be a significant amount of money, especially if you have a large amount of debt.

Reliability

CreditAssociates is a legitimate and reliable company that is accredited by the American Fair Credit Council (AFCC), a professional organization that sets standards for debt settlement companies. The company also has a money-back guarantee, which demonstrates its commitment to customer satisfaction.

Additionally, CreditAssociates has a team of experienced debt counselors and negotiators who work with clients to develop customized plans and negotiate with creditors to reduce their debt balances and interest rates. The company has helped many clients successfully settle their debts and become debt-free.

However, as with any debt settlement program, there are risks involved, and not all debts may be eligible for settlement. It is important to carefully consider all options and potential risks before enrolling in a debt settlement program. Overall, CreditAssociates appears to be a reliable and legitimate company with a track record of helping clients successfully settle their debts.

Editoral Opinion

Credit Associates could be a suitable option for individuals who are facing financial hardship and struggling with unsecured debts such as credit card debts, medical bills, and business debts. The company provides a free consultation, customized plans, and negotiates with creditors on behalf of its clients to reduce their debt balances, interest rates, and eliminate late fees and other charges.

However, it is important to note that debt settlement programs like those offered by Credit Associates can have a negative impact on one's credit score. In addition, the company requires clients to be at least several months behind on payments, have the ability to make a monthly payment, and enroll a minimum debt of $10,000.