This article is for informational purposes only and should not be construed as legal or financial advice.
Have you received a mailer from Debthunch offering a pre-approved 5.25% APR consolidation loan and want to know what the reviews say? Let's see what we can find regarding Debthunch and their services!
Who is Debthunch?
According to their website, Debthunch is a family-owned company with over 20 years of experience in providing debt consolidation solutions. They aim to assist clients manage and repay various debts, including: credit cards, personal loans, medical bills, lines of credit, business loans, and private student loans.
Source: https://www.debthunch.com/
Debthunch Reviews
Let's take a look at their reviews across a few platforms!
TrustPilot
On TrustPilot, Debthunch currently has a 4.6 rating out of 5 stars, based on over 350 reviews.
Many of their reviews are positive, but you'll notice that most of them are from clients who are happy with their customer service experience. But what about those who have actually gotten farther along in the program?
The reviews below highlight concerns about feeling misled, long delays, worsening financial situations, and significant hits to their credit scores. We'll discuss debt settlement in more detail later in the article, but unfortunately, experiences like these are all too common.
Google
On Google, Debthunch has a 4.6 rating out of 5-stars, based on over 600 reviews.
As mentioned in the TrustPilot reviews above, they also have many positive reviews on Google. But again, the majority of clients leaving reviews only mention being happy with their customer service team rather than the program's results.
However, not all debt settlement program stories are bad. Things seemed to work out for this reviewer, though they do mention it being tough at first.
But let's take a look at the possible downsides below.
This reviewer explains that after enrolling, their credit score dropped significantly, and they struggled with ongoing debt collection calls, late fees, and legal issues. They believed Debthunch would help, but after months of inaction, their case was transferred to a law firm that required additional fees. They feel misled and ultimately regret not choosing to pay off their debts directly instead. They warn others that the process took much longer than expected and only damaged their financial situation rather than improving it.
This next reviewer received a mailer advertising a low-interest rate and called Debthunch. While the representative was friendly, they requested the reviewer’s Social Security Number, which raised concerns. When they questioned this, the rep assured them that Debthunch had an A+ rating with the Better Business Bureau (BBB). However after looking into this, the reviewer found that the company had no BBB rating as of February 1, 2024, and its profile was listed as "being updated" with no reviews or comments.
Better Business Bureau
Sadly at the time I'm writing this (March 21st, 2025), their BBB page is still being updated, as mentioned in the above Google review. But we'll keep this article up to date once that changes!
This is especially interesting since on Debthunch's website, they also claim to have an A+ rating, but there currently isn't a way to confirm that as seen in the screenshot above.
Based on this Reddit post, it sounds like Debthunch operates as a connection service that matches clients with debt consolidation providers (such as lenders and debt relief companies). But how does CrediCare fit into this?
CrediCare
We plan to write a more in-depth article on CrediCare soon, but at a glance: CrediCare, officially known as Credit Care Solutions LLC, is a debt relief referral company.
Source: https://www.credicare.com/
As mentioned in the fine print of their website, they themselves do not provide debt settlement, debt consolidation, or credit counseling. Instead they also specialize in connecting clients with various debt management companies to help assist in debt relief. So the first connection company (Debthunch) then sends you to another connection company (CrediCare).
CrediCare does not have many negative reviews, but I was able to find a few on Yelp that mention feeling deceived and disappointed by their services.
What is Debt Settlement?
Debt settlement is a process where a third party negotiates with your creditors to reduce the total debt amount you owe. The goal is to lower your debt - for example, reducing a $20,000 balance to $10,000 - to help provide financial relief.
To start, you'll be advised by the debt settlement company to stop making payments to your creditors immediately. Instead of paying your creditors directly, you would set up a separate savings account, and make monthly deposits. The amount you contribute monthly would depend on the total debt amount you owe, along with the agreement you establish with the debt settlement company.
Your accounts will become delinquent as you stop making payments to your creditors, leading to late fees and additional interest charges. Once you fall significantly behind, creditors may be more open to negotiating a reduced payoff amount - especially if they believe you might be considering bankruptcy, which could ultimately result in them receiving nothing.
The debt settlement company will then negotiate with your creditors on your behalf. Once they reach an agreement on a reduced balance, and you approve the settlement, you’ll make the agreed-upon payment to resolve the debt.
However, many companies are not as transparent about these details with their customers, which leads them to feel misled.
How Do Debt Settlement Companies Earn Money?
Debt settlement companies earn money by charging their clients a percentage of the debt they successfully reduce - otherwise known as a fee. Let's say you owe a creditor $20,000 and the company negotiates it down to $10,000 - technically that means you would save $10,000. However, the debt settlement company will typically charge a fee ranging from 10% to 25% of that forgiven amount. This means you could owe them between $1,000 and $2,500 in addition to the $10,000 you still need to pay your creditor. While you would still save at least $7,500-$9,000 overall, the fees reduce the total savings you receive.
Debt Consolidation Loans vs. Programs
Some debt relief companies send unsolicited loan offers in the mail that may actually lead to debt settlement programs, rather than actual loans. It's crucial to verify that the offer aligns with your expectations and that there are no hidden fees or terms.
Check out the video below for a detailed breakdown regarding Debt Consolidation to better understand the key differences between consolidation loans and consolidation programs, as they are not the same:
Looking for a Debt Consolidation Loan?
If you're interested in a debt consolidation loan, you're welcome to take our free debt consolidation loan calculator below! Absolutely no personal information is required unless you want to provide it.
You'll find three different debt consolidation loan options using this calculator, it will even provide an estimated cost for alternative debt consolidation methods, like non-profit credit counseling (which helps lower interest rates through an agency).
What is Non-Profit Counseling?
Non-profit credit counseling can be especially helpful if you don't qualify for a debt consolidation loan. Non-profit counseling is a free or low-cost option where you're paired with a credit counselor to help you understand your debt and create a plan to help you lower your payments and interest rates. (This is one of the options mentioned in the calculator above as well.)
Check out this video for more details:
Closing Thoughts
Debt consolidation loans can be helpful if they offer a lower interest rate than credit cards and don’t have hidden fees. However, many mail offers can be misleading about terms and may come from third-party lenders, rather than established banks. If you're considering debt settlement, definitely prioritize weighing the pros and cons before deciding if it's the right financial solution for you.
At Ascend, we recommend exploring your options as soon as possible, as taking early action gives you more flexibility and peace of mind. Whether you're considering debt settlement, bankruptcy, or consolidation, understanding your choices is essential for making an informed decision and moving toward freeing yourself from the burden of debt. You deserve to work with a company that prioritizes your best interests. Debt can feel overwhelming, but you don’t have to navigate it alone.
Ready to get out of debt sooner than later? You're welcome to give us a call us today at 833.272.3631 and we'll help set you on the path to financial freedom.
