Frequently Asked Questions

Debt consolidation is the process of combining multiple debts into more affordable a single monthly payment. The result is that you pay off debt faster, while saving money.

There are several types of debt consolidation programs. The goal of of these programs are to reduce the monthly payment to give you the ability to pay it off faster than making minimum payments at your current higher interest rates with multiple creditors.

The main benefits of debt consolidation include:

1. A single monthly payment – One payment, to one source, once a month. No more worrying about due dates and minimum payment amounts.
2. Lower interest rate – Credit card interest rates can add hundreds – sometimes thousands – of dollars to your debt. Lowering the interest rate will reduce the amount of debt you pay.
3. Pay off debts faster – Debt consolidation programs reduce the payoff time for credit card debt to 1-5 years. Trying to pay off high interest credit card debt by making minimum monthly payments can take approximately 15 years or even longer in most cases. to this item.

Debt resolution (also known as debt relief, debt settlement, negotiated debt settlement, or debt negotiation) is a process where a company negotiates or settles an unsecured debt to a creditor or debt collector.

The debt resolution company has two goals when they’re negotiating with your creditors:

1. to reduce the amount you owe and;
2. to “settle” the debt more quickly than it would take you to pay it off on your own.

While that may seem too good to be true, the debt resolution process is very common for most creditors.  Many creditors often settle debt for less than the amount owed. Creditors know that clients facing hardship may never pay the debt or potentially declare bankruptcy, so it’s in the creditor’s own interest to settle the debt for less rather than getting no money at all.

While debt resolution is generally for people with $10,000 or more in unsecured debt (includes everything from credit cards and store cards and medical bills), it can be beneficial for anyone facing financial hardships and has more debt than what they can pay off in the next two to four years.

So, if you need help in reducing your monthly payments and resolving your debts, debt resolution can help you achieve these at a lesser total amount, easier and faster than you would on your own.

Once you’ve enrolled in the program, you’ll open your FDIC-insured Dedicated Account (sometimes called an “escrow,” “settlement” or “special purpose” account) that is owned completely by you. The money in that account belongs to you and you have full control over the funds that can be withdrawn by you at any time. This account is simply where you’ll send your monthly deposits and is used to build up your savings so you can use those funds to pay off your creditors and fees upon our negotiators reaching lower account settlement amounts for you.

Once one of your creditors agree to a lower settlement and you’ve approved it, payments from your Dedicated Account will be sent to the creditor. Sometimes, the settlements involve one lump-sum payment to creditors, while others involve multiple payments over time. When the settlement is complete, your debt with the creditor is considered resolved and the debt resolution services on that debt are complete.

We do not charge any consultation, application, credit pull fees or collect upfront fees whatsoever. The program is designed where fees are only earned contingent on successfully reaching bona fide settlement terms from each creditor with more favorable terms on your behalf and collected after a settlement is authorized by the client and the first payment has been made. Fees generally range from 18% to 27% of your enrolled debt balances at the time of enrollment, which can vary by state, creditors and amount of debt enrolled. These fees are already factored into your total program payment terms upon enrollment into the program so there are no surprises, hidden costs or additional fees. Therefore, the total amount you’ll pay, including our fees, is significantly less than paying your full debt off on your own. This model helps us align our program success, with your success; the faster we work to get your debts settled, the faster you’ll be back to your goal of financial freedom. 

While individual results vary depending on the creditor(s) - some creditors will typically settle for lesser amounts or quicker than other creditors.  However, our program typically cuts the total amount owed by approx. 45-55% of the enrolled balance for most of our clients.  Additionally, the settlements are typically based on the amount owed at the time of enrollment in the program, so this often saves you from additional accrued interest or fees compared to you continuing to pay the creditors in full on your own.

How long your program takes depends on a few factors, including how much money you deposit in your account every month. You can start paying off debts when you’ve saved enough money to cover the negotiated settlement amounts. The more money you can add to your Dedicated Account, the quicker your debts can be settled. However, most of our clients complete the program to pay off all their enrolled debts within two to four years.

Absolute Debt Relief is an established leader in debt resolution. We have a standing promise in place to our customers to ensure that we deliver timely results with the maximum benefit attainable. We call this our Absolute Promise.  

1. Each prospective customer is given an opportunity to learn about debt relief options, even those outside our scope of service.
2. Each and every customer is given a personalized assessment and recommendation of a course of action that affords the best opportunity to achieve their financial goals.
3. Full transparency from us and open communication with our team are keys to your success, something we take very serious.
4. We only win when you win. Since we do not collect any advance fees, any compensation for our services is only earned when your debts are settled, aligning our interests perfectly to get you out of debt as quickly as possible. 

Yes, most debt resolution options may temporarily affect your credit initially, but many clients start to show signs of recovery around 6 months as they progress through the program and start paying of their balances, but this can vary.

Credit is very fluid. It is not an indication of where you've been or where you'll be in the future. It's a snapshot of your current situation. Many clients with debt have often already experienced an adverse impact to their credit score, even if they're paying their creditors on time. Therefore, the significant monthly cash savings can often far outweigh a temporary hit to your credit score.

Credit cards are the most common form of debt to consolidate because of the revolving high-interest rate. Many unsecured personal loans are also able to be consolidated with a debt resolution program. There are some creditors that do not settle or participate in debt resolution programs, in which case we would advise you to omit those debts. Additionally, certain debs like pay-day loans, collection items like medical bills, rent, utilities, phone bills and other forms of unsecured debt may be eligible.