FAQs

Questions?  

Find answers to Settle My Credit’s most frequently asked questions regarding our “Debt Settlement Program”.  Don’t see your question here you can always call us at 1-866-257-1480 and would be happy to answer any questions you may have.

By joining our program, you will be on your way to reducing your debts. We are so confident in our service, that we do not charge a single penny until your debt is settled. And, if you are unsatisfied with our program you can cancel at anytime without any penalties or fees, other than fees you may have already incurred with respect to settled debts.

A debt settlement program is certainly not for everyone. Qualified candidates are those who have a legitimate financial hardship, which has caused them to fall behind on their payments to creditors, or will cause them to fall behind in the near future. We will not welcome anyone into the program that has the intentions of defrauding, deceiving, or swindling their creditors. We only represent consumers who are truly in need of our services and stand to significantly improve their financial situation.

Due to your financial hardship, you are able to participate in this debt savings program in order to help pay your debts. We are not here to advise you not to pay your debts, if you continue to make payments to your creditors, there may be less debt or possibly none left at all for us to settle. If you are able to save money in this program & make payments to your creditors at the same time, then you probably don’t actually have a legitimate financial hardship.

Bankruptcy should be a last resort option and if you need to protect assets. It will remain on your credit report for as long as 10 years & you can be denied employment, state licenses, insurance, as well as tenancy of an apartment. Most importantly, you may be denied virtually any type of credit with a bankruptcy on your report for several years. Since the bankruptcy laws have changed recently, it is even more difficult to qualify for Chapter 7, which would eliminate your debt. You will not be allowed to discharge alimony, child support, taxes, student loans, judgments, or any loan on the bankruptcy petition. Under Chapter 13 bankruptcy, you will still have to pay a percentage of your debts while you suffer the consequences of bankruptcy. Debt settlement may be the best option to avoid the credit implications from bankruptcy.

Your creditors will issue you a 1099-C “Cancellation of Debt” form for any debt forgiven over $600. The forgiven debt counts as income. But, if you are insolvent (you have more liabilities than assets) at the time we settle with your creditors, you may not have to pay any taxes on the forgiven debt.

You will need to speak with a CPA or tax professional for help in this matter.

No, you will not be able to use your credit cards that are enrolled in the program. Creditors will usually close your accounts after you have missed a few payments anyways. Your debt settlement specialist will help you decide the best plan of action based on your current financial situation.

It depends on how quickly you can build up your settlement funds and save for the settlement offers. The program length varies but in many cases is between 12-50 months, the faster you can save, the quicker you can get out of debt.

Absolutely, you can negotiate with your creditors directly and potentially save yourself some money. (Our fee is 15 -20% of the debt amount depending on the state you live in and the amount of debt you have.) We have been negotiating with thousands of creditors and we get to the bottom line quickly. Not everyone wants to talk to their creditors on a regular basis so they trust us to do it for them. Also, our negotiators utilize their knowledge in Federal & State consumer laws & exercise the Fair Credit Reporting Act, Fair Credit Billing Act, as well as the Fair Debt Collection Practices Act to add more leverage to settle your debt(s).

Debt settlement will negatively affect your credit score for a short period of time and it can be improved as you complete the program and you become debt free. The effects are typically not as severe as bankruptcy. If you are already behind on your bills, your credit score will already be lower so the effects of our program may not be as severe as you think.

There are no upfront fees and we only get paid when your debt is reduced. The cost for our services is 18% of the total debt enrolled. You will also be required to maintain a Dedicated/Third Party account with our preferred vendor Global Client Solutions..

A debt settlement program is certainly not for everyone. Qualified candidates are those who have a legitimate financial hardship, which has caused them to fall behind on their payments to creditors, or will cause them to fall behind in the near future. Settle My Credit will not welcome anyone into the program that has the intentions of defrauding, deceiving, or swindling their creditors. We only represent consumers who are truly in need of our services and stand to significantly improve their financial situation.

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