Home > What We Do > Debt Settlement FAQs

Debt Settlement FAQs

Frequently Asked Questions

What does "debt settlement" mean?

Answer:  The term "debt settlement" means negotiating with a creditor to reduce the amount of a delinquent debt to a lower amount you can afford to pay.  The primary benefit of this strategy is to help you become debt free sooner, pay your debts on terms structured to your specific budget, avoid bankruptcy, and pay less than you would by making the minimum monthly payments. Please note: Negotiating your interest rate alone can save you hundreds - even thousands - of dollars.

What types of debts will this program help me with?

Answer:  Our program will help you negotiate and settle unsecured debt.  “Unsecured debt” means credit cards, medical bills, and deficiency balances on certain types of lease agreements. This program will not help you settle debts that are secured by assets, such as mortgages, car loans, or purchase contracts, and it will not assist you in settling IRS debts/liens or government-backed student loans.

What will happen to my credit rating?

Answer:  In the short-term, your credit rating will reflect that you are not current on your payments. In most cases this will negatively affect your credit. The good news is that as your debts are settled and paid, the amount of your debt will decrease. This will have a positive impact on your credit rating. You will be on the road to recovery!  Soon you will be debt-free and all of the money you were paying in interest alone can now be dedicated to savings. At this point, you'll have the option and luxury of paying cash for the things you and your family need. You can then start to rebuild your credit again with small balance credit cards and department store lines of credit. Please note: Carrying more than 50% of your available credit limit reflects negatively on your credit report. Even if you are paying on time!

Debt collectors are calling me continuously; will your program stop these phone calls?

Answer:  Fortunately, consumer protection laws are very strong. Our program will give you all of the tools you’ll need to help stop those calls. In the event any creditor violates the law and continues contacting you, you can pursue them for damages and seek compensation for their violations as detailed in the Fair Debt Collection Practices Act. Please note: A copy of the FDCPA Regulations are included with your purchase of our program, along with helpful links to their website.

Why shouldn't I just file bankruptcy?

Answer:  Many people faced with financial hardships rush to bankruptcy as a method of resolving their debt concerns, even though their problems may have other solutions. We believe bankruptcy should ONLY be used as a LAST RESORT; pursued ONLY after all other debt relief options have been explored. A bankruptcy filing is a very detrimental entry on your credit history, and can remain on your credit report for 7 to 10 years after the bankruptcy filing has been discharged. Please note: Filing for chapter 7 may appear to be a perfect solution as the prospect of having your debt fully discharged, but there are other options. Bankruptcy is the best alternative when it is truly the only option. Living with a Chapter 7 on your credit report will be extremely difficult for you in the years ahead.

I want to get a loan instead. Should I?

Answer:  Borrowing more money is typically a short-term fix. If you are behind on your payments, you are in a high risk category and the higher the risk for the bank, the higher the interest rates are. Remember, you want to get out of debt, not create more debt. Additionally, if you are able to secure a loan, the lender will most likely want it to be secured by your home or other assets. If you default, you can lose whatever precious assets you have. Please note:  Most people who choose this option find themselves further in debt and in worse shape then when they started.

Call us today and see how soon we can help you get out of debt!
1-855-DEBT-SOS (1-855-332-8767)

No strings attached debt evaluation. If we can't get you out of debt, you don't pay a thing!