Texas Debt Relief

Struggling to pay off your debts? These debt relief companies can help you out if you live in Texas. Read on for your best options.

Texas has one of the highest credit card balances per borrower. The average credit card debt per borrower is $6,194.^[1]

It can be challenging enough to pay the minimum every month. It becomes more difficult if you have other debts like personal loans and student loans.

Solution: Texas debt relief companies. The following reputable companies offer debt relief in the Lone Star State to help you become one step closer to being debt-free.

Does Texas have a debt relief program?

Texas does not have a debt relief program. However, there are reputable debt relief companies that offer options for debt settlement and debt consolidation.

In general, here's how debt relief works:

1. Book a free consultation with a debt relief company.
   
2. Enroll in a program created for you.
   
3. Set up a dedicated account for your monthly deposits.
   
4. Representatives negotiate with your creditors.
   
5. Once a settlement is reached, use the accumulated amount in your account to pay off the new amount you approve of.

Move on to the next section to learn the best companies that can help you relieve debts.

Top Texas Debt Relief Companies

Be sure to note the company's minimum debt requirements, fees, and program length to find a suitable option for your needs.

National Debt Relief: Best Overall

Minimum debt to apply: $7,500^[2]
Fee: 15–25% of your total enrolled debt^[3]
Program length: 24–48 months^[4]

National Debt Relief is one of the most established debt relief companies. It's been in the industry since 2009. And it has helped over 550,000 clients by offering debt settlement and debt consolidation options.^[5]

Clients who have completed their program save around 46% before fees (25%, including National Debt Relief fees).^[6]

It also offers a wide network of partners for debt consolidation loans, bankruptcy referrals, and other debt relief services. This variety of services can help you find the best option for your debts.

Supported Debts:
National Debt Relief has a comprehensive list of its supported unsecured debts:^[7]

• Major credit cards
  
• Department store cards
  
• Unsecured personal loans
  
• Certain student debts
  
• Medical bills
  
• Business debts
  
• Gas cards
  
• Bank loans from prior banks
  
• Installment loans
  
• Finance companies
  
• Repossessions
  
• Qualified business debts
  
• Cell phones (not currently used)
  
• Veterinarian bills over $500
  
• Credit unions (members who are not federal or military employees)
  
• Abandoned timeshares with current statements
  
• Judgments older than 6 months
  
• Back rent (not a current resident)
  
• Bank, overdraft, and associated fees

Pros + Cons:

Imagine Living Life Without Debt

Find Out More

• Get a free savings estimate today
• See how quickly you can be debt free
• No upfront fees and no obligation

If your main priority is preparing for potential lawsuits, then you may be better off with this next option.

Freedom Debt Relief: for Legal Support

Minimum debt to apply: $7,500^[8]
Fee: 15–25% of your total enrolled debt^[9]
Program length: 24–48 months^[10]

Freedom Debt Relief offers debt settlement and negotiates with your creditors to decrease your debts. It has been in the industry since 2002 and resolves 31,000 accounts monthly (on average).^[11]

The company also proudly showcases a history of resolving over $15 billion in debt. And it has helped over 850,000 clients since it started.^[11]

In case of creditor lawsuits, Freedom Debt Relief partners with the Legal Partner Network. You have access to experienced attorneys who can further negotiate with your creditors who are suing you. Freedom Debt Relief will handle the attorney's fees.

Also, Freedom Debt Relief doesn't charge fees unless you approve the settlement offers. You are even entitled to a Program Guarantee where Freedom Debt Relief issues refunds (once you graduate) if the settlement and fees are more than your original debt.

But you do need to pay a one-time set-up fee of $9.95 to open your dedicated account. There's a (required) account service fee of $9.95/mo as well.^[12]

Supported Debts:
Freedom Debt Relief typically qualifies unsecured debts, such as:

• Credit card debt
  
• Personal loan
  
• Department store cards
  
• Medical debts
  
• Selected business debts (case-by-case basis)

Freedom Debt Relief offers a free consultation to discuss your debt relief options. You can use this session to consult about the various types of debts you owe.

Pros + Cons:

This next company has withstood the test of time. So it can be the best option when it comes to trustworthiness.

J.G. Wentworth: Most Experienced Company

Minimum debt to apply: $10,000^[13]
Fee: 18–25% of your total enrolled debt^[13]
Program length: 24–48 months^[14]

J.G. Wentworth is the most established debt relief company, offering debt relief since 1991. The Better Business Bureau has accredited J.G. Wentworth since 1996.

On average, clients of J.G. Wentworth save 51% on their debt (not including fees).^[13] However, service fees are higher than other debt relief companies. And you need more in unsecured debts to be eligible for enrollment.

J.G. Wentworth will negotiate with your creditors to reduce the debt you owe. Moreover, J.G. Wentworth has established relationships with some major creditors and may help you resolve your debts faster.

Supported Debts:
You can only enroll unsecured debts, such as credit cards or department store cards in your program.

Pros + Cons:

If time is an issue, then you can check out Americor for potentially resolving your debts quickly.

Americor: Shortest Debt Relief Program

Minimum debt to apply: $7,500^[15]
Fee: 14–29% of your total enrolled debt^[16]
Program length: 20–48 months^[17]

Americor is a debt relief company that's been in business since 2009 and has relieved over $2 billion in debt.^[18] It offers debt consolidation and debt settlement services.

You can get your first settlement in 4–7 months from the start of your program. However, you must save a minimum of 25% for each enrolled debt before an offer becomes available.^[19]

You can be debt-free in as fast as 20 months. Clients who finish their program save an average of 45% (before fees).^[16]

If you're qualified, Americor may also offer you a debt consolidation loan. You can borrow as much as $45,000 to pay off multiple debts.^[20]

Supported Debts:
Like National Debt Relief, Americor covers various unsecured debts for their debt relief services. Here are some of them:

• Credit cards
  
• Personal loans
  
• Lines of credit
  
• Medical bills
  
• Business debts
  
• Certain student loans

Pros + Cons:

If you're certain you want debt consolidation options, then Accredited Debt Relief can be your best bet.

Accredited Debt Relief: Debt Consolidation

Minimum debt to apply: $10,000
Fee: 15–25% of your total enrolled debt
Program length: 24–48 months

Accredited Debt Relief has been in the industry for over 12 years. It has helped 300,000+ clients resolve over $3 billion worth of debt via debt settlement.^[21] But the company may also refer you to its affiliates for debt consolidation loans.

With Accredited Debt Relief, you make one monthly deposit lower than your total monthly debt payments. Or if you choose the debt consolidation loan, you can pay off many debts immediately.

You can save as much as 55% off your total enrolled debts once you complete your program. Accredited Debt Relief can also negotiate to extend the terms of your debt.

Supported Debts:
You can enroll the following unsecured debts to Accredited Debt Relief's program:

• Credit Card Debt
  
• Personal Loan Debt
  
• Department Store Credit Debt
  
• Medical Debt

Pros + Cons:

To give you a general idea of how these debt relief companies help you relieve debts, here's how they work.

How Does Debt Relief Work?

Once you start your debt relief program, debt negotiations follow. These negotiations can last for months as your debt relief company and creditors go back and forth for new terms.

During this period, you won't make payments to your creditors (which may result in a negative impact on your credit). Instead, you'll make your monthly deposit in your dedicated account opened for your debt relief program.

If you're unsatisfied with the negotiated amount, your debt relief company can renegotiate for extended terms or a much lower amount. Remember, your creditors are not obliged to accept new terms. And some creditors may prefer lump sum payments instead.

Only when you're satisfied should you pay your negotiated debts. Debt relief companies can't charge you fees UNLESS you are satisfied with your new debt, approve the settlement, and pay it off using your funds.

Texas Laws On Debt Relief

In 2019, Texas made changes and provisions to existing laws regarding their Statute of Limitations (SOL) for debts. Texas wanted to take action regarding "zombie debt" that was very rampant in the state.

With zombie debt, the Texas SOL allowed debt collectors or debt buyers to constantly restart debts. After the changes, Texas now requires debt buyers to give written notice to debtors if they will revive debts past the SOL.

Also, Texas prohibits wage garnishments. Creditors cannot withhold your wage to pay for debts. Wage garnishments only apply to child/spousal support, student loans, and unpaid taxes.^[22]

Speaking of Texas SOL, here's what it means.

Texas Statute Of Limitations on Debts

The Statute of Limitation (SOL) for debts in Texas is 4 years.^[23] This means your creditors can't file a lawsuit against you 4 years after the date of your last payment or date of delinquency.

There are actions that trigger restarting the countdown timer for SOL. These include acknowledgment of the debt and partial repayment of owed amounts.^[24]

If you're not yet too familiar with various debt relief services, this next section can help you out.

Different Types of Debt Relief

Debt relief services are typically provided by debt relief companies. But you can also perform them yourself.

Here are some common debt relief methods:

• Debt settlement
  Debt relief companies negotiate with your creditors to reduce your debt and waive the fees associated with it.

  You may also request the company to negotiate for longer terms, so you have more time to settle the amount.

• Debt consolidation
  Debt consolidation combines all your debts so you can focus on making one monthly payment. This also gets rid of high-interest fees and other charges from individual debts.

• Debt Management Plan (DMP)
  A debt management plan is a structured plan that lasts 3–5 years. It also groups qualified debts so you can avoid high interest rates and other charges.

  DMPs are typically offered by credit counseling agencies.

  Let's say you have a lot of credit cards. Credit counseling agencies will negotiate with your banks to enroll them in a DMP that will last for 5 years. Your goal is to settle all your enrolled debts within this time frame.

• Credit counseling
  Credit counseling services are offered by credit counselors and cover a broader range of topics, including debt strategies, credit, and budgeting.

  You may be offered solutions or referrals to other services to help you manage your debts.

• Bankruptcy
  Bankruptcy is a legal process where you can discharge debts and pay them off using your assets. You may also be able to restructure your debts to a more reasonable payment plan.
  Bankruptcy can be complex. Most debt relief companies don't offer this service. Instead, you may be referred to a partner bankruptcy attorney so you can get the best outcome for your petition.

What debts are eligible for debt relief?

Most debt relief companies can only negotiate for unsecured debts, such as:

• Credit cards
  
• Personal loans
  
• Credit lines
  
• Store cards
  
• Repossessions
  
• Collection accounts
  
• Selected student loans
  
• Selected business loans

Companies may not qualify all your debts to a program. Make sure to inquire and explore your options during free consultations.

Secured debts such as home loans and auto loans aren't qualified for debt relief. Since secured debts are tied to an asset, lenders can still go for these assets if you default on your loans.

How To Choose A Debt Relief Company

Consider the following to assess if a debt relief option or debt relief company fits your needs:

• Debt relief services
  Debt relief companies may offer various services like debt settlement and debt consolidation.

• Fee structure and other charges
  Debt relief companies typically charge 15–25% of your enrolled debt amount. Always remember: Debt relief companies are not allowed to charge upfront fees.

• Repayment timelines
  Debt relief companies can negotiate with your creditors to extend repayment terms of your debts. This way, you have more time to repay your debts instead of paying upfront. Note that not all creditors may approve of this arrangement.

• Minimum or maximum debt amount
  Some debt relief companies require a minimum debt and set a cap for debt amounts.

• Locations
  Check for location availability since not all debt relief companies are available in Texas.

• Transparency
  Debt relief companies are highly regulated because of rampant unethical practices in the industry. Focus on companies that showcase transparency by providing legal regulatory details and practicing licenses in Texas.

• Certifications/accreditations
  Many established debt relief companies are members of associations like the American Association for Debt Resolution (AADR) and the International Association of Professional Debt Arbitrators (IAPDA).

Want to know how we chose companies in this list? Read on.

Methodology

We've assessed the 5 companies against the following criteria:

• Experience
  We choose companies that have demonstrated a strong track record in the industry. The companies on this list have been offering debt relief services for more than 10 years, helping hundreds of thousands of clients relieve their debts.

• Reviews and ratings
  We select companies that have many reviews and ratings online. This way, we read through the actual experiences of clients regarding their settlements, programs, fees paid, customer service, or complaints.

• AADR accreditation
  The companies in this list are members of the American Association for Debt Resolution (AADR). This ensures that companies are held to the highest standards and ethical practices.

  AADR conducts a robust audit of member companies every two years. We only pick companies that are accredited and fully compliant with AADR standards.

• IAPDA accreditation
  The International Association of Professional Debt Arbitrators (IAPDA) provides certifications, training, and accreditation to debt relief companies and professionals.

  Most companies on this list are accredited by the IAPDA. This means they've been validated for federal and state compliance.

  The professionals working in these companies have certified industry training in sales, customer service, and debt negotiation.

Bottom Line

It's not the end of the world if you're buried in debt. You have options that can help you deal with your dues.

Imagine Living Life Without Debt

• Get a free savings estimate today
• See how quickly you can be debt free
• No upfront fees and no obligation

Apply for Debt Relief

Read Review

The right Texas debt relief company will help you out. Just be sure to note the minimum debt requirement, supported debt types, fees, and program length that will suit your budget.

References