Debt consolidation is the action of having all one's debts payments lumped into one. Usually with a lesser monthly payment figure, to make it easier to manage those debts and offer a more predictable way to get out of debt. Various companies offer debt consolidation so the types of arrangement and costs can vary considerably.

NetDebt

NetDebt relies heavily on the online mode of communication. Although it is well versed in providing debt relief through more direct contact, it specifically provides a forum for consumers who consider their debt status unnerving and too awkward to discuss. These people are more inclined and comfortable to fill an online form and get help via the same route with less human contact. For this segment of consumers NetDebt is the helpline.

On approaching the netDebt website, the impression is that of a no-nonsense, organized and simple company. The monologue by a smart, smiling lady is very matter-of-fact. Along with her dialogue, key features pop up in written text which highlights what is fundamental to the NetDebt philosophy and what she is trying to sell. This approach is concise and friendly. Having experienced this welcome, we are ready to find out more.

Their initial debt analysis and consultation with regards to the individual problem is free. On further investigation into how NetDebt operates it is revealed that it is a referral service. They are not dealing directly with the client's credit problems. They refer their clients to professionals who are trained experts at debt negotiation. NetDebt relies on the expertise of attorneys. their philosophy being that the presence of a legal expert from the onset prevents unnecessary hassles later on in the program and also prevents huge legal fees that a client may have to pay outside the program.

NetDebt operates by allowing clients to fill out an online form. Once the client is on board, he stops paying his creditors on a monthly basis. These monthly payments are now being deposited to a trust account. Once the creditors realize that no payment is forthcoming, they become anxious and wiling to settle the debt. During this process the trust account is building. At this point the lawyers are able to negotiate and bring the dues down to nearly half of the total amount due. NetDebt does not guarantee any such negotiations, just a simple reduction. The accumulated trust account is now used to start paying off the negotiated amount. Since accounts are past due the credit scores are low. This phase is temporary, and as the accounts are settled, the credit scores reach normalcy.

NetDebt's fee structure entails 15% of the total debt, added to which is their monthly service fee of $55.00. As compared to other companies who procure their fee over a 15 month payment plan, taking majority during the first 3 months, NetDebt spreads out its fee evenly allowing it to be achieved easily and evenly over a period of 20 months. They deduct their fee from the client's monthly deposits, making sure that the fee is recovered early on in the program. While all companies have a similar practice, NetDebt is candid and upfront about this process.

NetDebt's legal framework uses a 40% assumption with all settlements. At the end of the program NetDebt will share with the client any extra settlement cost above 40%.This underlines netDebt's commitment to the client.

While all this information runs in their favor, there are issues unclear. General information about the company is lacking and specific services are not highlighted nor explained. There is no clarity over the fact that if things were to go wrong during the program, who would claim responsibility.

NetDebt rides high on their online option of debt elimination, and they do provide a toll free phone number, which comes in handy if and when the client chooses to talk to the representative. They also provide an email, and offer a live chat service, but that was apparently not available during testing. Their limited range of services is far from superior. Unlike other companies, who focus on educating the client, NetDebt offers no particular counseling. FAQ's and a savings calculator are available. The calculator is a great tool to calculate the total debt and also how much a client can save.

NetDebt's legitimacy and efficiency is to be further explored by each client. Information provided here are mere facts, not referrals. To avoid disappointments, an individual should further research their requirement before forming a final conclusion.

The USOBA (United States of Bankruptcy Association) gives NetDebt a thumbs up and consumersreview.com awards NetDebt with a 3 star rating.

The strong force of NetDebt resides mostly in its online approach to debt consolidation and settlement.

For more information on Debt Consolidation companys, go to Debt Consolidation.

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