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ClearOne Advantage is a debt settlement company that negotiates on behalf of consumers to lower how much debt they owe to their creditors.
In this review, I’m going to cover how the settlement process works with ClearOne Advantage, what pros and cons to consider and how to qualify.
But first I want to be clear: Debt settlement is risky. There’s no guarantee of success, and it can seriously damage your credit.
Debt settlement may be an option for those severely overwhelmed by debt. Before opting into a program, BW recommends exploring other ways to get out of debt, like enrolling in a debt management plan or applying for a debt consolidation loan.
ClearOne Advantage debt settlement at a glance
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Minimum debt required to enroll:
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$10,000.
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Types of debt eligible for enrollment:
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Unsecured debt, including credit cards, personal loans, private student loans, and unsecured lines of credit.
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Settlement fee:
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18% to 29% of the total debt enrolled.
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Account fees:
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$0 one-time setup fee.
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How long it may take:
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24 to 51 months, on average.
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How much you may save:
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25% to 30% of enrolled debt after fees.
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Availability:
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Not available in: Illinois and Oregon.
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How does ClearOne Advantage work?
When you sign up for debt settlement with ClearOne Advantage, you’ll stop making payments on your enrolled debts, if you haven’t already.
You’ll instead make a monthly payment into a dedicated “savings account.” This account is FDIC-insured, and you can monitor it 24/7 via an online portal. ClearOne will work with you to determine the payment amount that’s best for your budget.
As money accumulates in the savings account, ClearOne begins negotiating with your creditors to get them to accept a smaller amount. The idea is that by not paying your creditors at all, they’re more likely to accept some payment instead of risking no payment at all.
If a creditor agrees to the settlement offer proposed by ClearOne, you’ll pay the creditor from the funds in the savings account, and the debt is then considered settled. You repeat this process until all your enrolled debts are settled.
It takes 24 to 51 months, on average, for customers to complete the program, ClearOne says.
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Nerdy Tip
Debt settlement companies often list projected savings on their website. These percentages vary significantly and may not include fees, so take them with a grain of salt. ClearOne told BW that customers can expect to save up to 30% of their enrolled debt after fees. That means if your enrolled debt is $15,000, you could save up to $4,500. Projected savings are never a guarantee.
How much does ClearOne Advantage cost?
The biggest cost of debt settlement is the settlement fee. ClearOne Advantage’s settlement fee is 18% to 29% of the total enrolled debt. This percentage is based on multiple factors, including your state of residence.
Here’s how the settlement fee works: Let’s say you enroll with $20,000 in credit card debt, and you’re able to settle that debt for $9,000. You might pay a settlement fee of up to $5,800 (29% of $20,000). This is in addition to the $9,000 you pay to your creditors. Altogether you’d pay $14,800.
Other costs to using ClearOne Advantage include a recurring monthly fee of $17 for the savings account.
Is ClearOne Advantage legit?
ClearOne is accredited by the Better Business Bureau (BBB) with an A+ rating and holds an accreditation from the Association for Consumer Debt Relief (ACDR). If you do not adhere to the program until the end, or if the debt settlement company is unable to negotiate a settlement, you might end up with a higher overall balance. Creditors or debt collectors may still contact you during the process if they are not willing to work with the debt settlement company. Additionally, forgiven debt over $600 may be considered taxable income, except if you are insolvent at the time of settlement. It is important to be aware of these potential consequences before entering a debt settlement program.
Freedom Debt Relief and ClearOne Advantage are two prominent debt settlement companies that assist in negotiating with creditors. Freedom Debt Relief accepts smaller debts starting at $7,500 and charges a lower settlement fee compared to ClearOne Advantage. However, ClearOne’s program may lead to higher savings in the long run.
There are alternatives to hiring a debt settlement company, such as do-it-yourself debt settlement, debt management plans, debt consolidation loans, and bankruptcy. Each option has its own set of pros and cons, so it’s important to carefully consider which one aligns best with your financial situation.
It may be worth exploring other debt relief options before committing to a debt settlement program. Ultimately, the choice depends on your individual circumstances and financial goals. Upon logging into the WordPress platform, users will be greeted with a sleek and user-friendly interface that allows for easy navigation and customization. With a wide range of themes and plugins to choose from, users can personalize their websites to suit their unique style and needs. Whether you’re a blogger looking to share your thoughts with the world or a business owner wanting to showcase your products and services, WordPress provides the tools and resources to help you create a professional and polished website. Stay connected with your audience through integrated social media features and easily manage your content through the intuitive dashboard. With WordPress, the possibilities are endless for creating a dynamic and engaging online presence.