FAQ

Am I eligible for a debt reduction service?

DebtReliefEmergency.com recommends that only consumers and small business with unsecured debt of at least $10,000 opt for a debt settlement company to negotiate a debt reduction. If you have less than $10,000 in unsecured debt and would still like debt help it would be wise to contact your creditors by yourself instead of using a debt settlement company.

What would a typical creditor of unsecured debt settle debt for?

A typical creditor of unsecured debt would settle for 30 – 60% of your balance although results vary considerably case by case. So if you have a credit card balance of $10,000, you could expect to settle for $4,000 – $7,000 on average with the help of a top performing debt reduction service but keep in mind that you must complete the entire program.

Will opting for debt help through a settlement affect your credit score?

The simple answer is yes. You credit score will temporarily be lowered while you complete the program. This is much better than bankruptcy however which typically lasts 7 years. However, if you are already behind on payments, or you might be shortly, your credit rating is already impaired because you have too much debt compared to your income. This is known as a high debt-to-income ratio. To increase your credit score you must drastically reduce or eliminate your debt, thereby reducing your debt-to-income ratio. So, while your credit score may be negatively affected in the beginning using a debt reduction service, it will become much better 1-2 years down the line after you opted for debt help and complete the program.

Why would creditors agree reduce your debt with a settlement?

The simple answer is that most creditors would rather have some of their money back than none at all. Credit card companies and other holders of unsecured debt agree to debt settlement arrangements when they believe it is in their best financial interest. Most of the time they are more willing to negotiate a debt settlement when they believe you might not pay back the balance. Professional debt reduction programs know how to gain leverage over your creditors and convince them that a debt settlement is in their best financial interest. The top programs provide legitimate debt help and are almost always a wise financial decision for consumers in over $10,000 in unsecured debt.

Why should you use a professional debt reduction service for debt help?

Debt reduction services are much better positioned to successfully negotiate consumer debt due to their established relationships with various creditors. Credit card companies and other holders of unsecured debt are very worried about collecting on their delinquent accounts. Debt reduction services employ skilled negotiators to negotiate a debt reduction with your creditors. They know exactly how far to push creditors to eliminate as much of your debt as possible. The best debt relief programs will also handle all the communication with your creditors so you do not have to deal with annoying collection calls. Basically, if you have over $10,000 in unsecured debt and behind on your payments it can make financial sense to employ a debt relief program especially in this market where the majority of creditors are in a weak financial position.