Debt Eraser Review: Does This Service Really Work?

Are you falling behind on mortgage payments, student loans, or credit cards? You might need professional help to manage your debt.

Late loan payments attract penalties, fees, and credit score damage. You also risk dealing with aggressive debt collectors.

Get a Debt Management Plan That Actually Works

Don't risk working with an unreliable company like Debt Eraser. Cambridge Credit Counseling creates affordable payment plans and negotiates lower interest rates with your creditors.

Reduce Your Payments

Debt Eraser claims to help you repay debt and repair your credit. The company markets considerable experience in debt management and financial freedom. However, their online reviews tell a different story.

Continue reading for our complete review of Debt Eraser.

Who Is Debt Eraser?

Debt Eraser is a South African financial service provider based in Durban. The company was established in 2001 to provide debt management solutions.

Debt Eraser employs a team of experts who analyze debtor accounts. They claim to provide the best advice to help you become debt-free.

The company promotes quick turnaround times. Once professionals receive your application, they promise immediate feedback.

Debt Eraser uses two primary methods to help customers manage debt:

Debt consolidation
Debt counseling

What You Should Know About Debt Consolidation

Debt consolidation combines multiple debts into one monthly payment. You pay off the combined amount using a new credit card or loan.

Debt Eraser professionals often suggest this method to simplify debt management. They roll your debts into one account with a single monthly payment.

The goal is to reduce interest rates to a more affordable level.

Example of Debt Consolidation

Debtor A has multiple credit card balances with separate monthly payments:

Credit card X: $3,500 at 24.90% APR
Credit card Y: $2,500 at 18.90% APR
Credit card Z: $1,500 at 12.00% APR

Debt Eraser experts consolidate the three balances into one loan. You make one payment per month instead of three separate payments.

The experts help you take out a new loan for $7,500. With a lower interest rate of 7% APR, monthly interest drops to $1,120.80.

By comparison, separate cards would cost you $5,440 more in interest. You’d also take up to 12 years to pay off the debt.

Pros of Debt Consolidation

Reduced interest rate
Lower overall monthly payments
Easier expense management

Cons of Debt Consolidation

Long repayment term
You might not qualify for a low interest rate
Additional fees may apply

How Debt Counseling Works

Terms like debt settlement, debt management, and debt consolidation confuse many debtors. Understanding what they mean is critical when choosing the right option.

Debt counseling allows counselors to explain all your options. They help you negotiate flexible debt repayment terms based on your situation.

If you work with our partner Cambridge Credit Counseling, counselors help you choose a suitable debt management alternative. They walk you through the negotiation process.

Terms may involve negotiating lower interest rates, postponing loan repayments, or extending loan terms.

Pros of Debt Counseling

Prevents creditors from taking legal action: Debt counseling determines whether you qualify for debt review. During this period, creditors can’t sue you or perform debt collection activities.
No permanent record on your credit report: Once you’re declared over-indebted, you qualify for debt review. Information is included on your credit report but removed once complete.
Debt repayment simplified: After counseling sessions and a repayment plan, you make one monthly payment. The agency distributes payments to creditors.

Cons of Debt Counseling

You can’t access new credit during the counseling process
You might not qualify for debt review after counseling
If a creditor already filed a lawsuit, that debt is excluded

Debt Eraser’s 5-Step Approach

The company claims its primary goal is providing the best debt management solution. It uses a five-step process:

1. Perform a Debt Assessment

A Debt Eraser counselor analyzes your debts. They help you choose the best debt management plan tailored to your needs.

The plan should match your income and credit score. You want to avoid defaulting on a payment.

2. Negotiate with Lenders to Pay Off Debt

The counselor negotiates with all your creditors on your behalf. They could agree to an extended payment period or reduced interest rate.

Lower monthly payments depend on your debt management plan.

3. Get a Court Order to Protect Your Assets

Some creditors obtain court orders to garnish wages or attach liens. Debt Eraser counselors help you receive a court order to enforce agreed payment terms.

The court order also protects your property and valuables from confiscation.

4. Follow Up to Review Your Budget Regularly

The financial service provider follows up with clients regularly. They educate you on the best financial planning practices.

Experts help you choose a suitable debt rehabilitation plan via consolidation or settlement. The rule of thumb is to choose a plan that allows reasonable living.

Counselors oversee your income management to ensure you meet obligations.

5. See How Payments Are Distributed With Transparency

If you consolidate debt, the provider illustrates how monthly payments are distributed. Debt Eraser provides this information during individual AfterCare Education Sessions.

Our Final Verdict on Debt Eraser

Debt Eraser promises many benefits to customers. Sadly, the majority of customers report the company is unreliable.

The main problem is the company’s inability to remit payments to creditors. Customers also report being listed without their consent.

On a scale of one to five, we’d give it a one. We don’t recommend using Debt Eraser for debt management services.

Better Alternatives to Debt Eraser

If you’re struggling with debt, you have better options available. Our partner Cambridge Credit Counseling offers reputable debt management services.

They work with you to create affordable payment plans. Cambridge negotiates with creditors to lower interest rates and reduce monthly payments.

You deserve a debt management partner you can trust. Choose a service with proven results and positive customer reviews.

Frequently Asked Questions

What is Debt Eraser and what services does it offer?

Debt Eraser is a South African financial service provider established in 2001. The company offers debt consolidation and debt counseling services to help customers manage debt and improve their financial situation. However, customer reviews indicate the company is unreliable.

How does debt consolidation work?

Debt consolidation combines multiple debts into one monthly payment using a new credit card or loan. The goal is to reduce interest rates and simplify payments. For example, if you have three credit cards with different rates, you could consolidate them into one loan with a lower rate, potentially saving thousands in interest.

What are the pros and cons of debt counseling?

Debt counseling helps negotiate flexible repayment terms and prevents creditors from taking legal action during the review period. You make one monthly payment instead of multiple payments. However, you can't access new credit during counseling, you might not qualify for debt review, and existing lawsuits are excluded from the process.

Is Debt Eraser a reliable debt management company?

No, most customers report that Debt Eraser is unreliable. The main complaints include the company's failure to remit payments to creditors and listing debtors without their consent. We give Debt Eraser a one out of five rating and recommend choosing a more reputable alternative.

What are better alternatives to Debt Eraser?

Cambridge Credit Counseling offers reputable debt management services with proven results. They create affordable payment plans and negotiate with creditors to lower interest rates and reduce monthly payments. Choosing a service with positive customer reviews and transparent practices is essential for successful debt management.