Frequently Asked Questions about Debt Relief

Here are the answers to some commonly asked questions about debt relief, debt consolidation, and debt settlement. If you have any questions not answered here, then please feel free to contact us.

Why should I consider debt relief? Isn't it just another debt?

If you are paying several creditors high interest rates, you are wasting time, effort, and money in doing so. Debt consolidation can give you debt relief by streamlining these debts into one manageable package. This means you will have taken on another debt, but you will have paid off all your other debts in the process. Thus, you will have only one debt left to pay off. Debt settlement operates on the same money-saving principle. The company advocates for you with your creditors to get the amount you owe reduced.

Which is right for me: debt consolidation or debt settlement?

Debt consolidation is best for those with many creditors charging high interest rates. Debt consolidation can save you money by combining these debts into one loan with a lower interest rate. This enables you to pay your debt off faster and more conveniently. If you have high levels of debt (over $10,000 in credit card debt), then debt settlement might be the better option for you. The debt settlement company will negotiate with your creditors to get the amount you owe reduced to a reasonable, affordable balance.

Will it hurt my credit?

Debt settlement does have a negative effect on your credit, but it is temporary. Once you complete the program, you will see your credit score improve and can re-establish your credit. This will be facilitated by the fact that you will be debt-free. Keep in mind that you are probably already hurting your credit with your out of control debt. You might even be on the road to bankruptcy, which would do irreparable damage to your credit. Debt relief can prevent long-term damage to your credit and get your debts paid off faster and cheaper.

Will I still have bills to pay after I pursue debt consolidation or debt settlement?

You will likely still have one bill or balance to pay off. Debt consolidation and debt settlement do not erase your debt, but they do reduce it dramatically. You will still have to make payments, though, in the case of debt consolidation. With debt settlement, you will make deposits into an account that will be used toward paying off the negotiated amount to your creditors. So, you will still need discipline in paying these balances, but the process will be a lot less expensive and a lot quicker than trying to pay off high-interest debts.

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