Frequently Asked Questions 

Debt Relief Companies are sometimes referred to as debt settlement. A debt settlement company will negotiate with your debtors to reduce the amount you owe which could be up to 50%, often removing or reducing late charges and interest rates. This makes it possible for an individual to make affordable monthly payments and pay off their debts typically within in 36-48 months.

Debt in general can be a very stressful. If you’re having trouble making payments or maybe your interest rates are high and you just cannot reduce your overall balance, then Debt Settlement could be a good option for you. A reduced payment will put more money back into your pocket each month that could go towards household needs.

Initially your credit will be impacted by deciding to go into a program. Having too high of debt, late payments,or a high debt to income ratio can all negatively impact your credit. However, once you complete the program the debts in the program will show paid on your credit report and you can start working on building your credit again.

There are a few factors that determine what your monthly cost will be: How much debt you enroll into the program, how many months you choose and the type of program you choose. The goal of the program is to create a monthly fee you can afford and typically less than your current monthly payments.

There are pro’s and con’s to each. A Non-Profit typically offers a DMP or Debt Management Program. The credit card companies have pre-set deals you will receive the monthly payment you will make. The Non-Profit company receives part of their payments from the Credit Card Companies called fair share. A positive to joining this program is that is does not typically have an impact to your credit, however these programs can be very strict and if you miss a payment you could be removed from the program and any deal you made would have been forfeited. That means if a flat tire next month could cause you to miss a payment, this program might not be the program for you.
For-Profit companies typically are Debt Settlement programs. They do not get paid from the credit card companies nor do they allow the credit card companies to structure the deal so they are able to greatly reduce the amount you owe to the credit card companies.
Another really strong positive to Debt Settlement companies is that some of them are actual law groups, so starting day one you are represented by a lawyer. This is important to prevent harassing calls, wage garnishments or legal action against you.
Both For-Profit and Non-Profit include all of your fees into the monthly payment and both try to keep the program within 36 to 48 months – shorter if possible but sometimes it will extend longer all depending on the monthly payment you can afford and total debt enrolled into the program.