Debt relief can seem scary to many consumers. Many people fear that trying to pay off their debt may harm their credit score or cost them a large amount of money. Debt relief is often one of the best options for consumers. Borrowers are able to receive relief from high interest rates and help to restore their credit.

How much does debt relief cost?

One of the most frequently asked questions about debt relief is how much it costs. Borrowers do not have to pay any upfront costs. This means that more money can go towards paying down debt instead of paying for the debt relief service. Borrowers are only required to pay a fee on accounts that are successfully settled. Any unsettled accounts will not be billed to the consumer.

What is the debt relief process?

The first step in the debt relief process is for a consumer and the debt relief company to speak. This meeting may happen over the phone or in person. Once the meeting has been held, the options that a consumer has available will be reviewed. These options may include the ability to settle the debt immediately or accrue money in a savings account to ensure that the account can be settled at some point in the future. Every borrower has a different situation and will have a plan designed that fits their specific needs.

When will you contact my creditors?

Borrowers who begin a debt relief program will have their creditors contacted by a debt relief within the first six to eight months. After having established contact with the creditor; a debt relief expert will see what amount the company is willing to settle the outstanding debt for. A company is often willing to take a fraction of the original amount owed. Borrowers should not use any credit products during this time including credit cards, car loans, mortgages or store cards.

When will I be debt free?

Borrowers will be completely free off unsecured debt once they successfully complete the program. Many consumers are unable to stick to the program and end up falling short. Borrowers should also place as many of their credit cards into the program as possible. Placing only one of your high balance credit cards into the program can cause your repayment to be delayed by months or years. Consumers also should keep in mind that the fee for debt settlement is not paid until after your accounts are settled. There are not upfront fees and customers never have to pay a membership fee, initiation fee or initial processing fee.