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FAQs

Is there really a government debt relief program? ›

When it comes to credit card debt relief, it's important to dispel a common misconception: There are no government-sponsored programs specifically designed to eliminate credit card debt. So, you should be wary of any offers claiming to represent such government initiatives, as they may be misleading or fraudulent.

California debt relief is a real thing. It's available through a number of different California Debt Relief programs, including the state's Debt Relief Program and Mortgage Assistance Program.

National Debt Relief is a legitimate company that has helped hundreds of thousands of people negotiate their debts. The company's debt coaches are certified through the International Association of Professional Debt Arbitrators (IAPDA). National Debt Relief is also a member of the American Fair Credit Council (AFCC).

Accredited Debt Relief is a legitimate business with an A+ rating from the Better Business Bureau. It claims to have helped over 300,000 clients repay more than $1 billion since its founding in 2011.

If you have loans that have been in repayment for more than 20 or 25 years, those loans may immediately qualify for forgiveness. Borrowers who have reached 20 or 25 years (240 or 300 months) worth of eligible payments for IDR forgiveness will see their loans forgiven as they reach these milestones.

The government does not offer "free money" for individuals. Federal grants are typically only for states and organizations.

Your credit card accounts will be closed and, in most cases, you'll have to live without credit cards until you complete the plan. Debt management plans do not affect your credit scores, but closing accounts can hurt your scores.

Today's announcement brings the total loan forgiveness approved by the Biden-Harris Administration to $167 billion for 4.75 million Americans. Thanks to this Administration's efforts more than one out of every 10 federal student loan borrowers has now been approved for some debt relief.

Key Takeaways. Debt settlement costs often range from 15% to 25% of the debt (either the initial debt or the settled debt). Before you hire a debt relief company, it's important to understand the costs and risks associated with these types of services.

Is debt settlement Really Worth It? ›

If you're behind on your credit card payments and looking for a solution, you might be considering debt settlement, which promises to help clear your debts. However, debt settlement is risky and should be a last resort for most borrowers.

Yes, it is possible to buy a home after debt settlement, but it may present challenges. Lenders may view individuals who have settled debts as higher risk borrowers, which could affect their ability to qualify for a mortgage or result in higher interest rates.

Is National Debt Relief legit? National Debt Relief is a legitimate debt settlement company founded in 2009. It's accredited by the Better Business Bureau (BBB) with an A+ rating and holds an accreditation from the American Association for Debt Resolution (AADR).

Accredited Debt Relief is a good option if you need to clear your debt quickly: It boasts clients who complete their payment program can be debt-free in as few as 12 months, half as long as some competitors.

The bottom line

The negative impact of debt forgiveness on your credit score can last for up to seven years. But, that impact may be worthwhile if you're looking for an alternative to bankruptcy or are otherwise in need of substantial relief from credit card debt.

Debt relief companies are an option if you're struggling with a lot of unsecured debt, like credit card bills, personal loans or private student loans. Also known as debt settlement companies, they can negotiate with your creditors and possibly get your balance lowered.

If you're one of the millions of Americans struggling to repay high-interest debt, a debt relief plan may be an option to help you get your finances on track. But it's not a quick fix. It's a long-term solution designed to help you get out of debt over a period of time — typically several years.

American Debt Relief is a reputable firm that uses a process known as debt settlement to help consumers negotiate and settle credit card debt. This company boasts excellent user reviews and can help you get started with a free debt assessment.

What is the Public Service Loan Forgiveness Program? The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your federal student loans after 120 payments working full time for federal, state, Tribal, or local government; the military; or a qualifying non-profit.