How Does betterdebtsolutions.com Work?

betterdebtsolutions.com functions as a pipeline, connecting individuals burdened by unsecured debt, primarily credit card debt, with third-party debt relief companies.

Their operational model, as explicitly stated, is not to provide direct debt settlement or credit counseling services themselves, but rather to act as a referral agent.

The process is broken down into three main steps on their website: “Schedule a consultation session,” “Maximize your savings,” and “Settle your debt.” This structured approach aims to simplify what is often a complex and stressful journey for those in financial distress.

However, it’s critical to understand that each of these steps, particularly “Maximize your savings” and “Settle your debt,” involves interaction with or management of interest-bearing obligations, which directly conflicts with Islamic financial principles.

Step 1: Schedule a Consultation Session

The initial phase involves the prospective client completing an online form or calling the provided phone number to schedule a consultation.

During this call, betterdebtsolutions.com (or their immediate representative) aims to “evaluate your specific situation and find a custom solution.” This consultation serves as an intake process to understand the individual’s debt load, financial capacity, and suitability for various debt relief options.

It’s during this stage that the referral to one of their “trusted partners” likely occurs, once an initial assessment has been made.

The goal here is to gather enough information to match the client with a suitable debt relief provider from their network, rather than providing direct financial advice or a solution in-house.

Step 2: Maximize Your Savings (Through a Specialized Account)

Once a client is “enrolled with one of our trusted partners,” the next step involves regular deposits into a “specialized savings account.” This account is typically an escrow-like account managed by the debt settlement company the client has been referred to. Is betterdebtsolutions.com a Scam?

The intention is for the client to stop making direct payments to their creditors and instead save a predetermined amount each month into this account.

The website highlights that this reduces “your monthly commitments compared to existing credit card dues.” The money accumulated in this account is then used to make lump-sum settlement offers to creditors.

From an Islamic perspective, this step is particularly problematic.

The act of accumulating funds to settle interest-bearing debt, while perhaps reducing the overall payment, still deals with the inherent Riba in the original debt.

Furthermore, the debt may continue to accrue interest and late fees during this savings period, as explicitly warned in their disclaimers, which only compounds the issue of Riba. agilcv.com Trustpilot Reviews Overview

Step 3: Settle Your Debt (Negotiation and Resolution)

The final stage involves the referred debt relief company (one of betterdebtsolutions.com’s partners) taking over the negotiation process.

A “senior advisor” from the partner company will “tirelessly negotiate and reduce your debt” with your creditors.

The goal of debt settlement is to convince creditors to accept a lump sum payment that is less than the total amount owed, often significantly so (e.g., 40% to 60% savings before fees, as per their disclosures). Once an agreement is reached and the lump sum is paid from the client’s specialized savings account, the debt is considered settled.

This process typically takes “24 to 48 months,” as stated in their FAQs.

While the outcome (reduced debt) might seem beneficial, the entire mechanism is built around resolving interest-based loans. agilcv.com Review & First Look

This makes it an impermissible method for Muslims, who are commanded to avoid interest in all forms.

The negotiation process itself is about managing a transaction fundamentally rooted in Riba.

The Role of Performance-Based Fees

betterdebtsolutions.com also explains the fee structure of their partners: “In a performance-based debt settlement fee structure, the debt settlement company charges a fee based on a percentage of the amount of debt that they can settle for the client.” This means clients only pay if the company successfully negotiates a reduction.

While this model aligns the company’s success with the client’s savings, the fees themselves are integrated into the “one lower monthly payment.” This fee structure, while common in the debt settlement industry, adds another layer of financial commitment on top of the already problematic interest-based debt.

For Muslims, any fee or transaction linked directly to the reduction of interest (which should not have been incurred in the first place) or to a process that inherently deals with Riba remains an area of concern. How Does creditsage.com Work?