CuraDebt Review: Can They Really Settle Your Debt?
CuraDebt offers debt settlement services with a unique focus on identifying creditor violations. While they claim high savings rates and provide tax debt relief, the company lacks BBB accreditation and has customer service complaints. You'll need at least $10,000 in unsecured debt to qualify, and the program typically takes three years to complete.
Get Lower PaymentsDrowning in debt and considering settlement options? CuraDebt promises to help you pay less than you owe.
But does CuraDebt deliver on its promises? You deserve the full picture before committing.
Better Than Settlement: Lower Your Payments Now
Debt settlement damages your credit for years. Credit counseling reduces payments without settlement risks. Get a free consultation with Cambridge Credit Counseling today.
Reduce My PaymentsHere’s everything you need to know about CuraDebt’s debt settlement services.
What CuraDebt Does for You
CuraDebt is a debt settlement company that negotiates with creditors on your behalf. The company aims to reduce what you owe significantly.
CuraDebt uses a two-pronged strategy to tackle your debt. First, they identify violations of the Fair Debt Collection Practices Act. These violations can lead to debt dismissals or cash rewards.
Second, CuraDebt negotiates settlement agreements with your creditors. The goal is getting creditors to accept less than the full amount.
CuraDebt claims they can slash debt by up to 50%. After fees, you’ll typically save between 30% and 80%.
Keep in mind that creditors aren’t required to accept settlements. They may refuse if they believe you can pay the full amount.
The CuraDebt Settlement Process
Step 1: Free Consultation
CuraDebt offers a free, confidential counseling session. An expert counselor assesses your financial situation.
They determine if you qualify for their debt negotiation program. You’re under no obligation to proceed.
Step 2: Understand Your Plan
If you qualify, your counselor explains the entire program. You’ll learn about fees, risks, timelines, and expected benefits.
The counselor ensures you understand everything before signing the agreement.
Step 3: Set Up Your Settlement Account
You open a dedicated account for saving settlement funds. You’ll make monthly deposits or save a lump sum.
You control this account, not CuraDebt.
Step 4: Find Creditor Violations
CuraDebt’s team searches for violations of federal debt collection laws. They look for infractions under TCPA, FDCPA, and other regulations.
Violations can result in reduced debts or complete dismissals. Our partner Solo can also help you identify violations if you’ve been sued.
Step 5: Negotiate Your Settlement
CuraDebt’s in-house team negotiates with each creditor. They aim for the lowest possible settlement amount.
When a creditor accepts the offer, CuraDebt charges 20% of the enrolled debt. The process repeats for each debt until completion.
The typical program lasts about three years.
CuraDebt Qualification Requirements
You need at least $10,000 in unsecured debt to qualify. The exact minimum varies by debt type and your state.
Only unsecured debts qualify for settlement programs. Secured debts like car loans and mortgages don’t qualify.
Eligible Debt Types
Credit Card Debt: Traditional cards from Visa, MasterCard, and other major issuers qualify. Store credit cards and private label cards are also eligible.
Medical Bills: Hospital bills and other medical expenses can be bundled into your settlement plan. Medical debt settlement helps those without health insurance coverage.
Personal Loans: Unsecured personal loans from banks qualify. Payday loans and unsecured lines of credit are also eligible.
Tax Debt: CuraDebt has federal tax experts to help with IRS debt. Tax relief requires separate qualification criteria.
Tax Relief Services from CuraDebt
CuraDebt offers specialized help for IRS tax debt. Tax debt grows quickly with monthly penalties and interest.
The IRS charges 0.5% of unpaid taxes every month. Interest compounds on top of penalties.
CuraDebt tax counselors negotiate several types of relief:
Installment Agreements
You pay your tax debt in smaller monthly installments. Payments become more manageable over time.
Offer in Compromise
The IRS may accept less than you owe as full payment. The IRS evaluates your income, expenses, and assets first.
You must prove you can’t pay the full amount.
Currently Not Collectible Status
CuraDebt can prove you’re experiencing economic hardship. The IRS may temporarily stop collection efforts.
Penalty Abatements
CuraDebt negotiates to reduce or eliminate penalties. Abatements work alongside installment agreements.
Lien Releases
The IRS may place liens on your property for unpaid taxes. CuraDebt negotiates to remove or prevent these liens.
CuraDebt Advantages
Free Initial Consultation: You get expert advice without paying upfront. The consultation helps you understand your options.
Significant Savings Potential: CuraDebt claims high success rates in reducing debt. Some clients see debts completely dismissed.
Legal Violation Review: CuraDebt examines creditor compliance with federal laws. Violations can lead to debt dismissals or cash settlements.
Tax Debt Expertise: Specialized counselors handle complex IRS negotiations. Tax relief requires different skills than credit card settlements.
CuraDebt Disadvantages
Not BBB Accredited: CuraDebt has an A+ BBB rating but isn’t accredited. Accreditation requires meeting additional BBB standards.
No Mobile App or Portal: Most modern debt relief companies offer digital tools. CuraDebt lacks online dashboards and mobile applications.
Customer Service Complaints: Multiple complaints mention poor communication. Response times can be slower than competitors.
Fees Add Up: The 20% commission applies to enrolled debt, not settled amounts. Factor fees into your savings calculations.
Alternatives to CuraDebt
Debt settlement isn’t your only option. Consider these alternatives:
Credit Counseling: Nonprofit counselors create debt management plans. Our partner Cambridge Credit Counseling can help you lower interest rates and consolidate payments.
Debt Consolidation: Combine multiple debts into one lower-interest loan. You’ll make a single monthly payment.
Bankruptcy: Chapter 7 or Chapter 13 can eliminate or restructure debts. Bankruptcy provides legal protection from creditors.
DIY Negotiation: You can negotiate directly with creditors. Save on settlement company fees by handling it yourself.
Is CuraDebt Right for You?
CuraDebt works best for specific situations. Consider CuraDebt if you have:
- At least $10,000 in unsecured debt
- Multiple credit cards or medical bills
- Difficulty making minimum payments
- Fear of bankruptcy consequences
- Tax debt with the IRS
CuraDebt may not be ideal if you:
- Can afford a debt management plan
- Need digital tools and mobile access
- Want BBB-accredited services
- Prefer direct creditor communication
Understanding Debt Settlement Risks
Debt settlement affects your credit score negatively. Settled accounts appear on your credit report for seven years.
Your credit score will drop during the settlement process. Missed payments damage your credit before settlements occur.
Creditors may sue you before accepting a settlement. You’ll need to respond to lawsuits appropriately.
Forgiven debt counts as taxable income. You may owe taxes on the settled amount.
Not all creditors accept settlement offers. Some prefer to pursue full payment through collections.
Making Your Decision
CuraDebt offers legitimate debt settlement services with some unique features. The violation review process sets them apart from competitors.
However, lack of BBB accreditation and customer service issues raise concerns. You should compare multiple companies before committing.
Get free consultations from several debt relief providers. Compare fees, timelines, and success rates carefully.
Consider all debt relief options before choosing settlement. Credit counseling or bankruptcy might serve you better.