Frequently Asked Questions

If you enroll in a debt relief program such as one offered by Settle That Debt, it could affect your credit negatively. During the debt settlement process, clients stop making regular payments on their debts. This allows the client to accumulate funds for settlements, and it provides the debt settlement company an opportunity to negotiate with creditors. The missed payments that result from this process can lead to delinquent accounts that creditors report to the credit agencies. Thus, your credit rating can decrease during this process. However, most of our clients find that by the time they graduate, their score has returned to the same level if not higher than when they started.

It’s important to note that debt settlement won’t “ruin” your credit. In most cases, your credit will improve after you begin settling your outstanding debts with your creditors. In fact, many of our clients find that by the time they complete one of Settle That Deb’s programs, their credit score has returned to the same level if not higher than when they started. However, if you’re concerned about the impact that debt settlement could have on your credit rating, you have other options. For example, you could consider a debt consolidation loan, as doing so would allow you to combine all your debts into a new loan with a lower interest rate. This new loan would enable you to address your outstanding debts, and you wouldn’t have a significant impact on your credit. Given that you have high enough credit score to get approved for a low interest loan.

When it comes to debt relief, Settle That Debt offers professional services and our A+ business rating with the BBB speaks to our determination to offer quality service to our clients. Our debt arbitrators are accredited through the International Association of Professional Debt Arbitrators (IAPDA). To further assist you, Our certified debt specialists will analyze your finances to determine your fit for the program. If it is determined that an alternative option may be more beneficial, they will work to assist you. We work hard to assist every customer we meet.

You should always work to get rid of debt legally. If you’d like to get on the path to becoming debt-free, you have several options. First, you could ramp up your current efforts to pay down the debts you have. However, if this isn’t feasible based upon your current financial situation, debt consolidation is another option. One way to consider debt consolidation would be to see if you qualify for a debt consolidation loan. However, many people facing high levels of debt won’t qualify due to poor credit. On the bright side, debt settlement is a viable option for most people, no matter their financial situation. With debt settlement, you or a company working on your behalf will work with your creditors to settle all your debts. A drastic option, which will leave a near-permanent black mark on your finances, is bankruptcy.

While debt settlement isn’t for everyone, Settle That Debt’s program may be a viable option for people with high levels of debt who are struggling due to financial hardship such as the loss of a job or a divorce. If you’re barely keeping up with your minimum payments and balances on your accounts keep growing, then you may be a good candidate for debt settlement. In fact, if your income doesn’t accommodate paying down debts, and your credit rating makes it impossible to obtain a debt consolidation loan, then the Settle That Debt program may provide you with a chance to address your debts and avoid bankruptcy.

Typically, you can complete a debt relief program in 24 to 60 months, though the length of time it takes to complete a debt relief program can vary by debt relief company. Settle That Debt can customize your debt relief program length based on your goals and budget, although some companies only offer set program lengths to choose from.

No. Settle That Debt program can only help with unsecured debts—like credit card debt, personal loan debt, medical debt, some private student loan debt, and some business debt— that you enroll into Settle That Debt program. It can’t help with federal student loans, a mortgage, auto loans, or any other type of collateralized debt you may have. Settle That Debt program won’t resolve any debt you take on after you have enrolled in the program, either. If you commit to Settle That Debt program and complete it successfully, all the debts you enrolled in the program will be behind you.

Forgiven debt can be considered income by the IRS, so it’s possible you could owe taxes on the amount you saved on each debt we negotiate for you. However, if you are insolvent (have more liabilities than assets) at the time you settle debts with your creditors, the requirement to pay tax on the forgiven debt may be waived. IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness may exempt you from this tax, but we recommend you consult with a tax expert for more information on this.