About Us

How Much Does Debt Relief Cost?

Your debt relief analysis and savings projection is free. Should you choose to enroll in a debt relief program, any applicable fees must be clearly disclosed in advance – including any debt management fees or fees charged for debt settlement services. In addition, it is important to know that, effective October of 2010, no up-front fees may be charged for debt relief. Unless you have received debt relief services from an attorney and met face-to face, you cannot be charged a fee until at least one of your debts has been reduced or settled.

Protecting Yourself Against Debt Relief Scams

While the debt relief center provides information, resources and videos to help serve individuals and families in debt – it's important to recognize that there are debt relief companies that may seek to take advantage of people who are in debt. This video will provide several things to look for – 5 things to be aware of when it comes to getting debt relief.

Unless you are working with an attorney-based debt relief provider, meeting face to face – you cannot be charged any fees for debt relief before at least one of your debts has been successfully resolved or settled.

Before signing up for any debt program, make sure the program and all aspects of the debt relief program are clearly disclosed...you should clearly understand any applicable fees as well as how much money you could potentially save, the amount of time it is likely to take to get the results you're looking for...in addition, the debt relief provider should inform you of any negative consequences that could result from using debt services.

Be careful about companies that make debt relief claims that may be false or unsubstantiated – debt relief can and has been able to help people get out of debt and save money – but debt relief does not make debts magically go away. It is the consumers responsibility to have the monthly funds available to pay down debts in a debt management program or to set aside sufficient funds so that a successful settlement can be reached with a creditor

Debt relief specialists should take the time to listen and understand your current situation, answer any questions you might have then go over your debt relief options. A debt specialist should not be pushy, or try to pressure you in any way - and make sure. Before you enroll in any program, you are completely comfortable that the program can meet your needs.

Always research the debt relief service provider's BBB rating or debt industry credentials to ensure that you work with a solid company with a proven track record of helping individuals and families get out of debt.

7 Important Debt Relief Tips

1. Create a realistic spending plan – a personal or family budget
2. Set aside money each month to pay down your existing debt
3. Stick with your plan. Avoid unnecessary “impulse” purchases
4. Contact your creditors requesting lower interest rates or to settle debt
5. Pay down debts one-by-one, starting with highest-interest debt
6. Don't use credit cards! Use a debit card to stay on track
7. Avoid taking out additional loans that add to your debt

Tips on Debt Relief and Your Credit Score

First of all, it's important to note that your free debt relief analysis and savings estimate will not affect your credit – because any inquiry into your credit involves what is known as a “soft inquiry” and this will not affect your credit score. Now, should you choose to enroll in a debt relief program -- neither debt management or debt settlement has as serious impact on your credit as a bankruptcy – but both will have an impact on your credit. In the case of debt settlement – when people in a settlement program stop paying credit card companies in order to set aside money that can be used to make a settlement offer – credit scores will typically decline – because you aren't paying the credit card companies according to your agreement. In the case of debt consolidation through a debt management plan (or DMP) – while not necessarily harmful to your credit score – the notation that you are enrolled in a program may appear on your credit report. It's also important to note that, many people in a debt consolidation program find that – if they are able to stay on track and make their one consolidated payment each month and maintain on-time status month after month AND pay down their debts – credit scores can actually improve.

Why is this? Because two of the most important factors in determining credit scores are on time payment status AND the total amount of debt – so, again, by paying down your debts and staying on track with your consolidation plan you could actually improve your credit standing.

Understanding Debt Relief: No Upfront Fees

With few exceptions, debt relief service providers, unless they are attorney based and meeting face to face with consumers, may no longer charge any up-front fees from a customer before debts have been successfully resolved or settled. This is as a result of consumer protections put in place by the federal trade commission effective October of 2010. If a debt relief provider has re-negotiated a customer's debts one after the other, they can collect a fee for each debt that has been successfully renegotiated. Debt relief services can require customers to set money aside in a dedicated account for fees and payments to creditors, but new regulations place restrictions on those accounts to make sure customers are protected. But again, it's important to keep in mind that, unless you are using attorney-based debt relief services, and meeting-face-to face, you cannot be charged any up-front fees before debts have been resolved or settled.