1. What happens to my credit? Your credit will decline. By how much depends on the original condition of your credit. The credit decline occurs due to late payments and the "charge off" of enrolled accounts. However, bankruptcy causes longer term credit damage. Paying off debt via a settlement also decreases the debt-to-credit ratio, which according to Fair Isaac, founder of the FICO credit score, composes one third of the consumer credit score.

2. What is the debt-to-credit ratio? The debt-to-credit ratio is a proportion of your credit and loan account balances to the accounts' credit limits. Lenders use this equation to determine if a borrower can qualify for more credit. To calculate your debt-to-credit ratio, divide the balance of your total debt by your accounts' total credit limit. As an example, if your balance is $3,000 and your credit limit is $4,000 your debt-to-credit ratio is 75%. A debt-to-credit ratio of 30% or better qualifies borrowers for loans with favorable interest rates. However, borrowers that have a debt-to-credit ratio over 50% are seen by lenders as a high credit risk. If you have a high debt-to-credit ratio, the best way to improve your credit is to pay off, or pay down high credit balances. Ideally, you should keep credit balances at or below 30%.

3. Is debt settlement LEGAL? Debt settlement is 100% legal in most states. You have the right to hire a professional debt negotiator to help you negotiate a settlement of your debt. However, creditors and debt collectors depend on debtors' ignorance of this powerful debt reduction procedure.

4. How can I stop collection calls? Although you have a right to be treated fairly by a debt collector, there's no sure way to completely stop the collection calls. Debt collectors have a notoriety of violating consumer's rights. However, the Fair Debt Collections Practices Act (FDCPA) allows you to send out a cease and desist letter to require a third-party debt collector to stop calling you. After receiving the letter, the debt collector may contact you one more time, but only to inform you of what, if any action they intend to take to collect the debt. Note: The cease and desist letter does not apply to the original creditor.

5. How does debt settlement rival credit counseling? Credit counseling debt management plans are known to have a very low completion rate. The main reason is that this debt consolidation approach targets the reduction of interest rates, which generally produces ineffective debt reduction for a debtor in a severe financial hardship. In contrast, debt settlement can reduce the debt's principal and interest, thereby allowing debtors to get out of debt in a much faster time.

6. Can I negotiate with my creditors? Negotiating on your own can involve many frustrating hours and hostile, unproductive communication with debt collectors. You may also not be able to reach the same success as a professional negotiator.

7. Should I file for bankruptcy? You should consider bankruptcy as the last recourse. A bankruptcy remains in public records for 20 years and on credit files for 10 years. Filing bankruptcy can cause you to be turned down for credit and employment. Changes in the bankruptcy law also made it more difficult to qualify for Chapter 7, which allows you to discharge most debts. The remaining option is a Chapter 13 debt repayment plan, which requires you to repay a portion of your debt. The new law also extended the time to repay your debt from 3 to 5 years. And if you miss a court-ordered payment, your case can be dismissed.

8. What makes you different from other debt settlement companies? Many companies actually "retail" debt settlement services that they then outsource to third-party debt settlement service providers. However, we are a professional debt settlement service provider with experienced in-house negotiators. We also specialize and business and commercial debt settlement.

9. What types of debt do you work with? We work with a variety of UNSECURED DEBTS, such as credit cards, medical accounts, collection accounts, personal loans, and business debts. However, we can not accept SECURED DEBTS, such as mortgages, auto loans, loans for personal property that can be repossessed, IRS taxes, and student loans.

10. What is the Debt-to-Freedom Plan? The Debt-to-Freedom Plan is the name of our debt settlement program, which specializes in the settlement of unsecured personal debts, such as credit card accounts, medical debt, and business debt.

11. How do I apply? Complete our online form or call 1-800-213-9968 for an immediate FREE consultation. One of our debt advisers will assess your financial hardship to determine your eligibility for our program and assist you in completing an application for underwriting approval. You will know if you're approved within 24 hours.

12. Do I have to include all of my debts? You may be eligible to exclude certain accounts. However, for emergency purposes we recommend leaving out an account only if it has a low balance.

13. Do my ex-spouse's debts show on my credit report and am I responsible for them? If you have joint accounts with your ex spouse, the debts may appear on your credit report. Even if a divorce decree can prove your ex spouse is 100% responsible to pay the accounts, you are still jointly responsible.

14. Do I have to pay taxes on the amount I save? The forgiving creditor must give you a 1099-C tax form and you must report to the IRS for the forgiven or canceled portion of the debt that exceeds $600 as taxable income. However, the IRS does not require you to report the forgiven debt if you were insolvent, meaning the amount of your debt was greater than your assets when the creditor forgave the debt.

15. Will my personal information be sold or given to other parties? We respect your privacy and abide by all privacy laws. Our confidentiality agreement also states that your personal information will not be released to ANYONE!