Frequently Asked Questions

Find answers here to frequently asked questions about debt settlement.

How much does debt settlement cost?

The amount charged for a debt settlement by a qualified company depends on the amount of debt you owe, the number of lenders you owe the debt to, and any complexities in your personal case that will have to be managed. You can compare offers between multiple debt settlement companies just by speaking to them.

Can I still use my credit cards after debt settlement?

Usually a credit card company will close down a credit card if it has entered into negotiations to settle the debt with you. The reason for this is that the terms for the credit card usage have changed and, as a result, your usage of the card would be improper. Also, the need for settling the debt indicates that the credit card represents financial hardship to you at some level, so continuing to use it would not be in your best interests.

Can I get help with debt consolidation?

Yes. If you are considering consolidation, you can receive consultation on the various methods of doing that and which method may be best for you.

What other methods are available to get a consolidation loan?

Debt consolidation loans come in three primary types: either as a personal loan from a bank, credit union or other lender, as a new credit card account with a sufficient maximum limit to carry your other debts, or if you are a home owner, you can get a home equity loan or home equity line of credit, putting the equity in your home to work for you to help pay down your debt. A professional debt management consultant can help you determine which method is best for you, make recommendations for lenders and help you apply for your debt consolidation loan.

How long does debt settlement take?

The process of debt settlement can take a good amount of time depending on the number of lenders that you have to work with and their general level of stubbornness in releasing part of or modifying the terms of your indebtedness to them. There is no law that says that a lender or credit card company has to agree to a settlement at all, and a few are adamantly against it. Most lenders, however, are more easily persuaded by a professional debt settlement company that is acting your behalf and will offer you terms to help you manage your debt burden.