TrueDebt Senior Debt Analyst will contact you by email and phone.

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TrueDebt Senior Debt Analyst will contact you by email and phone.

TrueDebt Senior Debt Analyst will contact you by email and phone.

Call us or fill out form below!

TrueDebt Senior Debt Analyst will contact you both by email and phone.

Frequent Asked Questions:  Credit Card Debt | Debt Consolidation | Debt Settlement | Debt Solutions

Is debt consolidation the same as debt settlement?

NO. Debt consolidation vs debt settlement services is a completely different method of a debt solution program to get out of debt.

Debt consolidation is where the company works for your creditors to negotiate your interest rate and combine your minimum payment into one monthly payment.  The debt consolidation company is responsible to disburse the payment to your creditors known as company to consolidate debt. Using debt consolidation, you will be paying the principal balance plus a reduced interest rate. This program usually takes anywhere from 5-7 years to complete. This is 3rd-party intervention, and it can be viewed by other creditors as Chapter 13 bankruptcy. Debt consolidation will appear on your credit report to show you are enrolled in a debt management and/or Counsumer Credit Counseling Service (CCCS) and that your debt is being paid by a 3rd party. However, debt consolidation companies are under investigation with the Federal Trade Commission because they claim to be (501c) non-profit but some are allegedly collecting hidden fees to provide USA debt relief.

Debt settlement or debt reduction is when the principal balance is negotiated for a lesser amount for debt quick reduction.  This program establishes a monthly savings budget for you, and you will begin saving money in your own account for the purpose of paying off your debt in one lump sum at a reduced balance.  Typicaly, this program can take between 12 through 36 months to save this money, but if you can save more than the minimum amount suggested; you will complete the program in less time. Once, you have saved up enough money in your account you will notify the company to begin negotiating unsecured debt.  You will then make a payment to the creditor at the agreed debt settlement. Then, the creditor has 60/90 days to report your account as "Settled/Paid In-Full" with a zero balance.  Since, the three major credit bureaus report separately it is important to follow-up with each bureau to report accurate information.

How does this affect my credit?

30% of your credit score is your debt. If you reduce your debt you will improve your credit, but while you're in the program your account will be marked as late until TrueDebt does a FREE CREDIT REAPAIR.

Secondly, 35% of your credit score is your payment history.  By improving your cerdit history you'll improve you score by 35% for a total of 65%.  Our program is a complete debt negotiation program to help you get out of debt and imporve your FICO (Fair Issac Corporation).  Most importantly, what you need to look at is your debt and not your credit.  Once you pay your debt you'll see how your credit will improve 30 to 100 points within 90 days.  It takes time to imporve your credit score.  Remember that it wasn't over night that you got into debt so it's not over night that you 're going to get out.  Be patient!  We're 50% and your 50% of our success.

How Does Debt Settlement Program Work?

The debt settlement company will notify your creditors once you have enrolled into a program. The company will begin working with your accounts, and deal with your creditors on your behalf. Your responsibility will be to save your money in your own account. When you are ready to settle and have the funds available we will then negotiate a settlement with your creditors. We will settle with your creditors one-by-one until you are completely debt-free. Upon completion of our program we will repair and restore your credit at no cost to you!

We negotiate mutually agreeable settlements between individual consumers and their creditors one-at-a-time. Each account is settled for a mutually agreed upon amount. We often settle accounts in the range of .25 - .50 cents on the dollar, accepted by the creditor. In most cases our program allows our clients to avoid bankruptcy and debt consolidation loans and ultimately become debt free.

Do I have to be delinquent with my debts to be eligible for your debt settlement program?

No. The settlement company works with your creditors in all stages of the collections process.

Will my credit be affected?

Anytime you enter into a debt relief program you are negatively affecting your credit. Two very important factors that make up a credit score are calculating your debt-to-income ratio, and/or payment history.  If you have a high debt-to-income ratio, you will not be able to obtain any more credit. If you are not current on your payments then you already have been affecting your credit.  By settling your debt you can improve your debt-to-income ratio to a point where your credit score drastically increases to become debt-free.  After a debt has been negotiated, then you can begin the credit restoration process.  During this time one can help re-establish a positive credit score.  What is more important to you?  Your credit score or eliminating your debt?  If your debt is what's causing you to have a low credit score, then you must eliminate your debt and then challenge deragotory marks on the credit report.  Our program is designed to eliminate your debt and, then help you improve your FICO score. 

If you are behind on any payment, or soon falling behind, your credit is already impaired - you have too much debt compared to your income. This is known as a high debt-to-income ratio. To be considered credit-worthy again you must drastically reduce or eliminate your debt (which subsequently reduces your debt-to-income ratio). Our primary concern is helping our clients get out of debt as quickly as possible and to become financially stable. Credit, while a very important thing to have and maintain, is of secondary importance to getting your debt under control and becoming financially solvent. Most people think if you are current on payments your credit is good. But in cases where the debt is more than your income can afford, your credit is technically used up and you are no longer really credit worthy in the eyes of most lenders. At the end of our program, your debt-to-income ratio will be greatly improved and you will once again be able to build really good credit.

Can I negotiate with creditors on my own?

You can try, but in most cases, we will be able to negotiate better concessions with the creditors for several reasons: TrueDebt Solutions, Inc. has established contacts with banks, lending institutions, and collection companies. Our experience at knowing what to say in order to obtain the best settlement possible is our hallmark of our success.  The emotional and personal involvement is removed. TrueDebt Solutions also has  increased leverage with creditors due to the many debt accounts we are managing.

Bankruptcy Law Changes?

Bankruptcy can stay on your credit report for up to 10 years, but it's a question you'll have to answer for the rest of your life on any given application.

Here's a rundown of the key changes for consumers under the new bankruptcy law:

Chapter 7 vs. Chapter 13: In a Chapter 7 bankruptcy, your assets (minus those exempted by your state) are liquidated and given to creditors, and many of your remaining debts are cancelled, giving you what's known as a "fresh start." In 2004, over 1.1 million people filed for Chapter 7, accounting for roughly 72 percent of non-business bankruptcies.

Since many Chapter 7 filers don't have assets that qualify for liquidation, credit card companies and other creditors sometimes get nothing.

In a Chapter 13 bankruptcy, you're put on a repayment plan of up to five years. Any debts not addressed by the repayment plan don't have to be paid. Last year, there were 445,574 Chapter 13 filings.

Under the new law, fewer people will be allowed to file under Chapter 7; more will be forced to file under Chapter 13.

Lawmakers who favor the new law argue that it will prevent consumers from abusing the bankruptcy laws - using them to clear debts that they can afford to pay.

How does debt elimination compare to Consumer Credit Counseling Services(CCCS)?

Debt elimination is a quicker, more efficient way of eliminating your unsecured debt because it can take up to 36 months. Consumer Credit Counseling Service can take up to 7 years to complete.  Most CCCS only provide debt management plans.  TrueDebt Solutions can evaluate your situation and select the best solution to help you become debt-free. In addition, studies show that more than 60% of people who start a debt management plan drop off before completing the plan. With TrueDebt Solutions program, you are assured to reach your goal of USA debt relief without resorting to bankruptcy.

805.  Communication in connection with debt collection   [15 USC 1692c]

(a) COMMUNICATION WITH THE CONSUMER GENERALLY.  Without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer in connection with the collection of any debt --

(1) at any unusual time or place or a time or place known or which should be known to be inconvenient to the consumer. In the absence of knowledge of circumstances to the contrary, a debt collector shall assume that the convenient time for communicating with a consumer is after 8 o'clock antimeridian and before 9 o'clock postmeridian, local time at the consumer's location;

(2) if the debt collector knows the consumer is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain, such attorney's name and address, unless the attorney fails to respond within a reasonable period of time to a communication from the debt collector or unless the attorney consents to direct communication with the consumer; or

(3) at the consumer's place of employment if the debt collector knows or has reason to know that the consumer's employer prohibits the consumer from receiving such communication.

(b) COMMUNICATION WITH THIRD PARTIES.  Except as provided in section 804, without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than a consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector.

(c) CEASING COMMUNICATION.  If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except --

(1) to advise the consumer that the debt collector's further efforts are being terminated;

(2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or

(3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.

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