Frequently Asked Questions

The ideal candidate for debt resolution is someone who is experiencing financial hardship that makes it difficult to make payments on their credit card debts. He or she is making minimum or low payments on their cards and sees little improvement in terms of reducing the total amount owed. The ideal candidate is looking to reduce their monthly payments and pay off their debts within a timeframe of 2-4 years as opposed to the 20-40 years that it will take by continuing to make monthly payments.

A Settlement is for individuals that still have a source of income and can make payments to creditors but need to change the arrangement of their payments. Settlement can change the length of payment (up to a maximum term of 4 years) and the overall amount the debtor is required to pay. Whereas a bankruptcy can be considered as the last resort when, as debts to unsecured creditors are typically forgiven. A bankruptcy lowers your credit rating to the lowest score while a consumer settlement has less impact on your rating.

It depends on how quickly you can build up your settlement funds and save for the settlement offers. The program length varies between 24-48 months, the faster you can save, the quicker you can get out of debt. If you only make the minimum payments on your credit cards, you could be in debt for the next 10-20 years and pay back 2x, 3x, or even 4 times as much as you originally borrowed.

Your funds will be held with a third-party escrow holder, which is an FDIC insured trust account. This account will be opened in your name with you having ultimate control over its funds. The monies collected in this account get disbursed only at the time a negotiation is reached with the creditor and you agree with the settlement offer.

Absolutely not. At Debt Relief Corporation you will not be charged a fee until we resolve a debt. Even, then, we will only collect the fee associated with each resolved account. This is our way of assuring you that our specialists will remain committed to your objectives, your satisfaction, and your future.

Once you have accumulated a sufficient amount in your program account we will begin negotiating settlements with your creditors. This amount will typically range from 40%-50% on the enrolled amount. Depending on the amount owed on each of your cards, the timeframe during which this will occur will vary. Our typical client usually sees his first settlement somewhere between his 5th and 7th month in the program.

No, your participating cards will be rendered inactive. We do recommend, however, that you set aside one card to be used for any emergency situations that might arise. Ideally, this should be a card with an available balance.

In all likelihood, your credit has already been impacted by the amount of debt you are currently carrying when compared to your income. Other factors that may be impacting your credit are the amount of your monthly payments compared to the amount you owe. Our program is designed to pay off your debts in a quick timeframe that will help you move on with your life. While your credit will likely be negatively impacted during the course of the program, you should be in a better position to build it back up for the long run once your debts are paid off.

Yes, it is possible. However, doing so can be compared to treating your own illnesses, fixing the plumbing in your home or installing a computer network. There may be a handful of people who can do the job right but most lack the experience and the patience required to do so. Furthermore, the bad outcomes that can result from doing the job wrong usually outweigh any benefits you may foresee from doing it yourself. At Debt Relief Corporation, our staff of professional strategists and negotiators have years of experience in dealing with creditors and negotiating the best settlements on behalf of our clients. When it comes to debt resolution, the difference between doing it yourself vs doing it with a professional can cost you thousands of dollars