Frequently Asked Questions

Everything you need to know about the path to financial independence. Transparency is our priority.

Will this hurt my credit score?

If you are a top borrower with a score of 750-850, debt resolution will likely have a temporary negative effect. However, our typical client has a score of about 620. Becoming debt-free often provides a stronger long-term foundation for credit rebuilding than carrying high-interest balances indefinitely.

How is a FICO score calculated?

Your FICO score is determined by five weighted factors: Payment History (35%), Amounts Owed (30%), Length of Credit History (15%), New Credit (10%), and Credit Mix (10%). Debt resolution addresses the 'Amounts Owed' significantly over time.

Is Debt Resolution a loan?

No. Debt Resolution is not a loan. It is a negotiation process where expert partners in our network work with your creditors to reduce the principal amount you owe, allowing you to settle the debt for less than the original balance.

What about creditor calls?

Anytime you owe money, creditors have a right to call. However, our partner networks are experts in TCPA laws. Many partners offer call-forwarding services and direct mediation with collection agencies to significantly reduce or eliminate these interruptions while you are active in the program.

How long does the program take?

Clients who stay with the resolution program typically see their debts resolved within 24 to 48 months. The timeline varies based on your total enrolled debt and your ability to save funds in your dedicated account.

What are the tax consequences?

Savings realized through debt resolution may be considered taxable income by the IRS. Many clients mitigate this through 'insolvency' filings, but we recommend consulting with a tax professional regarding your specific situation.

Do I still make payments to my creditors?

No. To provide the motivation for a creditor to accept a settlement for less than the full amount, you typically stop making minimum payments and instead fund a special purpose savings account that YOU control. Once enough funds are saved, our partners negotiate the lump-sum settlement.