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Frequently Asked Questions
Will this affect my credit in any way?
The debt relief process may impact your credit score. While working with Relief Strategies, we negotiate with your creditors to settle your unsecured debt for less than you owe. During this time, your credit score may initially drop, but as settlements are reached and debts are resolved, your debt-to-income ratio improves, which can benefit your credit score over time.
What happens if I don't pay my monthly bill?
We understand that situations can change. If something unexpected happens, please contact our Customer Relations Team at least seven days before your scheduled deposit. We will work with you to adjust your payment schedule as needed.
What happens if my creditors sue me?
If you receive a summons or legal paperwork from a creditor, send it to us immediately. Relief Strategies works with a network of attorneys in each state who can assist with rushed negotiations and offer guidance through the legal process.
Will my forgiven debt be taxable?
In some cases, forgiven debt may be taxable. If the amount forgiven is over $600, creditors may send you a 1099-C form. However, if you are insolvent at the time of settlement, you may not be required to pay taxes on the forgiven debt. Consult with your tax advisor to understand your specific tax situation.
Will I still get calls from debt collectors?
It’s possible you will receive calls from creditors during the program. Federal and state laws protect you from harassment, and we can provide tools and advice on how to handle these calls. We also recommend informing creditors in writing that you prefer all communications be sent by mail.
What types of debt can Relief Strategies help with?
Relief Strategies helps clients with unsecured debts like credit cards, medical bills, department store cards, private student loans, and payday loans as well as Federal Student Loans. We do not handle secured debts, such as mortgages or car loans.
How long does the program take?
The program typically takes between 12 to 60 months to complete, depending on the total amount of debt enrolled and your monthly deposit into the dedicated account.
Is my dedicated account FDIC-insured?
Yes, the funds in your dedicated account are FDIC-insured up to $250,000. This ensures your money is protected while you save for settlements with your creditors.
Will interest and late fees continue to be applied to my debts?
Yes, creditors may continue to apply interest and late fees while you build up your dedicated account. However, our goal is to negotiate settlements that reduce the overall amount of your debt, including those fees.
How much does debt relief cost?
Relief Strategies partners with debt settlement vendors, and while we do not charge fees directly, our partners do. These fees are federally regulated and are only collected after a successful settlement that you approve. Typically, fees range between 25% to 30% of the total enrolled debt, depending on your location and the size of your debt. All fees are disclosed upfront, ensuring transparency with no hidden charges.
Can I withdraw money from my dedicated account?
Yes, you have full control over your dedicated account, and you can withdraw funds at any time. However, we advise against withdrawals as this may delay your settlements and progress in the program.
Can I use my credit cards while enrolled in the program?
You won’t be able to use credit cards that are enrolled in the program. However, we recommend keeping one credit card available for emergencies, ideally a card with a manageable balance.
Are debt relief and settlement programs legal?
Yes, debt settlement is legal. Relief Strategies is fully compliant with federal and state regulations. We never charge upfront fees. Fees are only collected after we successfully negotiate a settlement that you approve.
How does the debt relief process work?
Our process begins with a free, confidential debt analysis. Once you enroll, you stop making payments to your creditors and instead, make deposits into a dedicated account. As funds build up, we negotiate with your creditors to settle your debts for less than you owe. Fees are only charged after a settlement is approved, and each settlement is completely transparent.
Who qualifies for the debt relief program?
Anyone struggling to make minimum payments on unsecured debt (credit cards, medical bills, etc.) and has at least $15,000 in total unsecured debt may qualify for our program. The program is designed for individuals facing financial hardship and looking for a manageable way to resolve their debt.
Can I negotiate with my creditors on my own?
While it’s possible to negotiate your own debt settlements, it can be time-consuming and complex. Our experienced negotiators work on your behalf to secure the best settlements possible. By participating in wholesale debt negotiation, where multiple clients' debts are negotiated together, you benefit from greater leverage and better terms than if you were negotiating alone. We have the expertise to handle negotiations efficiently and ensure you get the best deal.
Is this a consolidation loan?
No, our program is not a debt consolidation loan. Instead of combining debts into a new loan, we negotiate with your creditors to settle your debts for less than you owe.
What is the difference between debt relief and debt consolidation?
Debt relief involves negotiating with creditors to reduce the total amount owed, while debt consolidation combines all debts into a single loan, often with a lower interest rate. Debt consolidation requires a higher credit score, whereas debt relief focuses on reducing the principal owed through settlement negotiations.
Is debt relief really worth it?
Absolutely. If you're struggling with large amounts of debt and finding it difficult to make minimum payments, debt relief can offer a solution. Our program helps reduce stress, lower monthly payments, and provides a clear path toward becoming debt-free.
What should I do if a creditor breaks collection rules?
If a creditor violates collection laws, such as harassing you or not honoring a request to stop calling, contact us immediately. Our partners track all communications with creditors and can connect you with a debtor’s rights attorney if necessary.
