Frequently Asked Questions
Have more inquiries? View further FAQs.
Will this Affect My Credit in Any Way?
Our commitment lies in facilitating your debt relief by engaging in
negotiations with your creditors. Through these negotiations, we strive
to secure agreements where your unsecured debt is accepted at a
significantly reduced amount compared to its original value. The speed
of debt resolution depends on various factors, including the condition
of your credit report upon enrollment and the potential influence of
other debts, including those owed to us. It’s important to acknowledge
that this process can have an impact on your credit score, potentially
leading to a decline.
Can I use my credit cards while I'm registered for the program?
You won’t be able to use your program-enrolled credit cards, sorry. We
do advise setting aside one card for usage in the event of any
unanticipated emergencies. This should ideally be a credit card that you
plan to keep and has a balance accessible.
What Happens If I Don't Pay My Monthly Bill?
Each person’s situation is unique, so if something unexpected occurs,
you might need to change your payment schedule. If revisions are
required, we’re pleased to work with you to make them. To stop any
automatic planned payments, get in touch with our Customer Relations
Team at least seven days before the date of your scheduled deposit.
Are Programs for Debt Relief and Settlement Legal?
Yes, debt settlement firms must be completely federally regulated as
well as licensed, bonded, and registered in any state where they conduct
business. Never pay upfront fees to a debt settlement firm; if they do,
they are not a real settlement company. For more than ten years, we have
been providing consumers with trustworthy assistance with debt
settlement.
What Can I Do If My Creditors Break Collection Rules?
In some circumstances, you have the right to file a lawsuit against a
collector. We’ll be keeping track of your interactions with your
creditors and analyzing any letters they send you. We have a connection
with a debtor’s rights firm that will file an action on your behalf if
the law has been broken.
What Happens If My Creditors Sue Me?
Make sure to send it to us right away if you get a summons or any other
legal paperwork from one of your creditors. We have a working
partnership with a law firm in every state that will take on your case
and help with hurried negotiations.
How Does The Process Of Debt Relief Work?
The debt analysis is completely free, private, and doesn’t have any
obligations. There are no up-front costs associated with joining Wisdom,
either. Only when the debt has been satisfied are there any fees due.
Our rates typically range from 15% to 25%, though they can change from
state to state. How can City Debt Relief assist me with my debts? If
you have debt from credit cards, department store cards, medical
expenses, private student loans, payday loans, or business debts, check
out options from Debt Relief. These debts are referred to as
unsecured debts.
What Should I Say to a Calling Creditor or Collection Agency?
The most advisable approach involves informing your creditors that you
prefer to receive all communication in written form, as your current
financial difficulties prevent you from meeting your obligations. It’s
important to note that there is no legal obligation mandating direct
communication with your creditors. Should you be facing persistent calls
from a collector, reach out to our account manager team, who will guide
you through the most effective way to handle such situations.
What Happens If I Face Legal Action from My Creditors?
While it’s possible for any creditor to initiate legal action against
you, it’s worth noting that lawsuits can be financially burdensome. As a
result, creditors often opt to avoid this route. Certain creditors may
employ litigation as a tactic for pressure or debt collection. While we
are not authorized to provide legal counsel due to our non-legal status,
we do have the ability to remove creditors from your program if they are
unwilling to negotiate debt settlements. Should a creditor choose to
pursue a lawsuit related to your debt, our services can offer
assistance.
Will My Forgiven Debt Be Taxable?
You might have to pay taxes on the total of the debt that your creditors
have forgiven, however it is doubtful. For any debt forgiven that is
greater than $600, your creditors will send you a 1099-C form. Debt
forgiveness is considered income. However, you might not be required to
pay any taxes on the forgiven debt if you are insolvent at the time we
reach a settlement with your creditors. to have a better understanding
of your particular circumstance and any potential tax repercussions. You
should discuss any debt that has been forgiven through a debt relief
program with your tax advisor.
Who Meets the Program's Requirements?
Anyone in financial difficulty who is falling behind on or having
trouble making the required minimum payments to creditors on their
unsecured obligations is eligible for the program. You must owe each
creditor $500 or more in unsecured debt in addition to having a minimum
of $10,000 in total unsecured debt.
Will I Get a Call from Debt Collectors?
Although phone calls are a normal part of the debt settlement process,
you are still protected from collection harassment by federal and state
regulations. Numerous clients of ours will occasionally get calls from
collectors. We provide tools and advice on how to handle those contacts
to stop these types of phone calls in order to aid understanding. To
find out more about the federal statutes that govern the conduct of debt
collectors, go here.
Can I Handle My Creditors on My Own in Negotiations?
There may be a small number of people who can execute the work
correctly, but the majority don’t have the patience or the necessary
experience. The risks of performing the task incorrectly typically
outweigh any advantages you would anticipate from doing it yourself.
Yes, you can cut your debt by an additional 18–25% by negotiating with
your creditors on your own. (Our charge ranges from 15 to 25 percent of
the total debt, depending on the client’s location and level of debt.)
Our skilled team of negotiators at City Debt Relief has years of
expertise interacting with creditors and negotiating the finest
settlements. Not everyone has the knowledge we possess or wants to have
ongoing conversations with their creditors.
Do I Have a Good Chance of Resolving My Debt?
Debt settlement typically suits individuals with unsecured debt
exceeding $7,500, who face challenges meeting credit card obligations or
have exhausted their available credit. An ideal candidate is someone
aiming for quicker debt resolution—preferably within one to four
years—rather than the prolonged timeframe of 20 to 40 years through
minimum payments. By minimizing monthly payments, debt settlement offers
the potential to expedite debt clearance. For those grappling with
financial difficulties and confronted with a debt load unmanageable
within the next one to four years, debt settlement can offer a pathway
to reducing monthly payments and achieving swifter debt relief.
Is This A Loan For Debt Consolidation?
This is not a loan for debt consolidation. What we can do is combine all
of your debts into a single, usually lower monthly payment than what you
are currently making.
How much time will it take me to finish the program?
On average, the program takes 12 to 60 months to complete. Depending on
the total enrolled debt and the monthly payment you have decided to make
to your designated account.
What Distinguishes Debt Relief From Debt Consolidation?
Through the process of debt reduction, your outstanding balance is
diminished. Following negotiations, you make payments that are lower
than your original debt amount. In a procedure referred to as
settlement, creditors agree to forgive the remaining debt.
Alternatively, debt consolidation involves combining all your debts into
a single loan, resulting in a solitary monthly payment, often at a
reduced interest rate. Typically, a higher credit score is required for
approval.
Is My Dedicated Account's Money FDIC Insured?
Yes, these clients of the dedicated account providers were covered by
insurance up to the FDIC limitations, which are $250,000 at the moment.
Will Interest and Late Fees Still Be Applied To My Debts?
You have a contract with your credit card company that permits them to
keep charging you interest and late fees whenever you don’t make
payments. This implies that while you’re setting up and funding your
Dedicated Account, your credit card debt may increase. Our objective is
to come to new agreements with your creditors that will lower your
overall debt, as well as any interest or late fees that were applied
when you started our program.
Is Debt Relief Actually Valuable?
Yes! You’re under unneeded stress if you’re living paycheck to paycheck,
have huge credit card balances, and find it difficult to make the
minimal payments. This stress can have an impact on you and your loved
ones. Enrolling in our program will relieve you of the stress, anxiety,
and concern that come with having too much debt in addition to helping
you get your finances in order and negotiate down your debt. You’ll have
more time to concentrate on what’s important, like your family, job, and
living life to the fullest.
