Debthunch Review: Avoid Bait & Switch by This Company
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Our verdict
Debthunch can match you with debt settlement products, but it’s not a direct provider.
Debthunch is a connection service that matches clients with debt consolidation providers such as lenders and — more likely — debt relief companies. It advertises that it can reduce your debts by up to 50% of what you owe and get you debt-free within 48 months. Debthunch sends out marketing mailers that appear to be preapproved loan offers but seem more of a gimmick to get you to sign up for debt settlement.
Best for: People who are considering bankruptcy and aren’t sure how to find alternatives.
Pros
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Ability to compare multiple offers
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Reduce debts by up to 50%
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Potentially debt-free within four years
Cons
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Not a direct provider
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Uses deceptive marketing practices
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Potential for excessive spam
Is Debthunch legit?
It’s hard to say if Debthunch is legit or not. It used to advertise that it was BBB accredited with an A+ rating, but it has since taken down any mention of the Better Business Bureau (BBB) from its website. There isn’t much information on its BBB page either — it just says that Debthunch is not accredited and that “this business profile is being updated.”
It appears to connect customers with third-party servicers, but you might be better off eliminating the middle person and contacting lenders or debt relief companies directly.
Alternatives to Debthunch for debt consolidation
Where Debthunch falls short
Debthunch isn’t as up front about exactly what it does as we’d like to see. There seems to be a trend where debt settlement providers — or connection services like Debthunch — use language that implies they offer debt consolidation rather than settlement. These products are not the same thing, which feels misleading to consumers, if not flat-out predatory.
Debthunch also sends out mailers appearing to offer loans at low or 0% interest. When a potential client follows up on the offer, they’re invariably steered toward debt settlement providers. Debt settlement — aka, debt relief or debt resolution — has some negative connotations. If that’s the service you’re offering, why not just admit it up front?
What makes Debthunch shine?
There’s not a lot to recommend Debthunch. Sure, it can put you in touch with a bunch of providers that want you to pay for their debt settlement programs. But that means it sells your information and exposes you to excessive solicitation.
How much can I save?
You can potentially settle your enrolled debts for up to 50% of what you owe, according to the Debthunch website, but that doesn’t include fees. In reality, you’ll more likely save somewhere between 25% to 35%.
Still, there is no guarantee on how much you can save. Actual savings depend on factors such as your total debt, whether creditors are willing to settle and how much you can afford to pay into your settlement account.
How much does it cost?
Debt settlement partners that work with Debthunch typically charge between 15% and 25% of your enrolled debts. For example, if you owed $20,000, your fee could be anywhere from $3,000 to $5,000.
Some debt relief firms also charge account setup fees and monthly maintenance charges. Be sure to ask about any additional fees before you sign up because it adds to the cost of the service, especially if it takes a long time to settle your debts.
Will Debthunch hurt my credit?
If you sign up for debt settlement with one of Debthunch’s partners, your credit will take a hit. Part of the debt settlement process is to stop paying your creditors, because that’s basically the only way they’ll consider a lower settlement. As soon as you stop paying, your creditors report your missed payments to the credit bureaus, which immediately lowers your score.
If you already have a bad credit score, this may not have a huge impact. However, if your score is pretty good to this point, you’ll see a significant drop. Users who have gone through the process report having their scores go down by hundreds of points.
Debthunch details
| Free quote or consultation | Yes |
| Services | Debt settlement, debt consolidation loans |
| Minimum Debt | Varies by provider |
| Average turnaround | 12 to 48 months |
| Fees | 15% to 25% |
| Types of debt | Credit cards, personal loans, medical bills, lines of credit, collections, business loans, private student loans |
| Accreditations | None |
| Direct or third-party negotiations | Third-party |
| State availability | Varies by provider |
Before you sign up with a debt relief company
Debt relief companies typically charge a percentage of a customer’s debt or a monthly program fee for their services. And not all companies are transparent about these costs or drawbacks that can negatively affect your credit score. Depending on the company you work with, you might pay other fees for third-party settlement services or setting up new accounts, which can leave you in a worse situation than when you signed up.
Consider alternatives before signing up with a debt relief company:
- Payment extensions. Companies you owe may be willing to extend your payment due date or put you on a longer payment plan if you ask.
- Nonprofit credit counseling. Look for free debt-management help from nonprofit organizations like the National Foundation for Credit Counseling.
- Debt settlement. If you can manage to pay a portion of the bill, offer the collection agency a one-time payment as a settlement. Collection agencies are often willing to accept a lower payment on your debt to close the account.
Debthunch contact info
| Phone number | 800-299-3511 |
| Customer service hours | 24/7 |
| info@debthunch.com | |
| X, formerly Twitter | @debthunch |
| Debthunch |
How to qualify for Debthunch
Debthunch has multiple partners, so the exact requirements to qualify may vary, but here are the basics:
- Have at least $10,000 in debt (more or less)
- The debt must be unsecured
- Have the ability to make regular monthly payments
- Live in a state the company services
How the debt settlement process works
In general, the process goes like this:
- Get a free initial consultation to discuss your options.
- Choose a program and enroll your debts.
- Start making payments to a dedicated settlement account.
- Allow the debt relief company to negotiate and pay your debts on your behalf.
Debthunch reviews and complaints
The BBB page for Debthunch is being updated, so you can’t read any reviews or complaints. But it does say that Debthunch is not accredited.
There are a lot of positive reviews on Trustpilot with customers complimenting the customer service and how well they explained the process. Negative reviewers complain of high rates, feeling misled and the process taking too long. Others called it a scam and said it sold their information, which led to a lot of spam calls and texts.
What do people on Reddit say?
Risks of debt settlement
Consider the risks of debt settlement before signing up. Keep in mind that companies offering debt settlement tend to minimize the dangers of resolving your debts this way.
- Damage to credit. Your credit score will take a hit once you stop paying your creditors, and it could take years to recover.
- Increased debt. Once you stop making payments, you’ll accrue late fees and additional interest that increases your overall debt.
- No guarantees creditors will settle. Some creditors may refuse to negotiate your debts for lower amounts and could seek alternative ways of getting paid.
- Might get sued. Creditors that don’t get paid may take you to court.
- Tax implications. You might have to pay income tax on the money you “save.”
- Difficult to get new credit. It could take years for your credit score to recover enough to qualify for new loans or other financing.
Your reviews
Lacey Finder
Writer
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