Frequently Asked Questions:

How Often Do You Ask Yourself: "I Wish I Knew How To Rid Myself Of This Oppressive Debt Load?" Here Are Some Answers.

You are seeking debt relief, but don't know where to start? Here's a list of questions we've been asked by previous clients. Please contact us using the live chat icon above, or email us if you need other questions answered. We're here to help.

How does your Debt Reduction Program differ from debt consolidation?

How will the DRG Program affect my credit?

Will all of my debt be eliminated after I've finished the DRG Program?

How long will this process it take?

Does DRG keep my information confidential?

What are the fees and how are you paid?

What can I expect from the DRG Program?

Does debt settlement work with every creditor?

Why shouldn't I just file Bankruptcy?

What is Secured Debt?

What is an Unsecured Debt?

When does a Secured Debt become an Unsecured Debt?

Do I have to include all of my debts or can I select which one's I want you to resolve?

How do I know if my case will be accepted?

Will I receive calls from my creditors through the debt settlement process?

I would like to get the details about your debt reduction program but know I won't feel at ease talking to someone on the phone. Can I get the information any other way?

Q. How does your Debt Reduction Program differ from debt consolidation?

A. Debt consolidation may require you to obtain a new loan in order to pay off your existing debt. If you have too much debt and/or bad credit, it is highly unlikely that you would be approved for a consolidation loan. With our Debt Reduction Program (DRP) we negotiate on your behalf to actually reduce the amount you pay to your creditors. [top]

Q. How will the DRG Program affect my credit?

A. It is important to understand that we do not report anything to any credit reporting agency. Actually most of our clients are already in the unfortunate position where they are unable to make timely payment to their creditors. For many, even if they have maintained a perfect payment history, their credit score may already be harmed because of the high debt load they have been carrying. Our program is not designed to keep your credit profile from being damaged. We are not a credit repair organization.

While on our program, creditors may report no payments or late payments. They may ‘charge off’ the account and/or send the account to a collection agency. Any of these actions will be damaging to your credit report and remain on your report for up to 7 years after you complete our program. Upon completion of our program your credit report will show that the accounts have been paid on ‘terms different than the original agreement’ or possibly ‘settled’ in full, which are negative indications.

However, it will also show that you have fully paid the accounts to a zero balance (which is positive) and your debt-to-income ratio should be excellent (very positive). Debt-to-income ratios are certainly one of the leading indicators of a consumer’s ability to repay any kind of loan. That is why it is not uncommon to be denied on a credit application since the applicant may have a high debt-to-income ratio.

Remember, the main function of a credit report is to allow creditors to decide how much credit (debt) you may qualify for. By completing our program you won’t have to be concerned about this because, after all, the people with the best credit standing are those who do not use credit cards and are free of debt.

One reason people get into financial trouble is because of too much debt. And one of the reasons they have too much debt is because they have such good credit! Does that make sense? It does if you always had good credit but were steadily swamped with those ‘special rate’ credit card offers and took the bait. If you fell into that trap, then using ethical methods to eliminate your debt and organizing your life so that credit is not something you need to rely upon to handle financial problems would seem to be a suitable solution to an overwhelming debt problem.

Getting out of debt means that you will end up with zero balances and be able to enjoy the money you earn each month instead of being on that never ending treadmill of relying on high interest credit cards to ‘carry’ you on to the next month. Since your outstanding debt is resolved by way of settlement, future creditors will see that you have made a determined effort to resolve your debt instead of filing bankruptcy.

Nevertheless, you should not expect to be approved for credit cards for some period of years after completing our program unless you enroll in one of the leading consumer credit education and repair programs that can help you remove negative indications from your credit profile. We will be happy to provide you with this information as well.

Ask yourself this question: “What is more important to me and my family, getting rid of this financial burden and start enjoying life again, or try to persevere and maintain the illusion of having a high credit score?”
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Q. Will all of my debt be eliminated after I've finished the DRG Program?

A. If you follow all of our procedures, you can expect to be free of all contracted unsecured debt at the conclusion of our services. Of course, you will remain obligated on certain secured debts (i.e., Mortgages, auto loans). [top]

Q. How long will this process it take?

A. The length of time necessary for completion varies from case to case and will depend on you having the funds available to resolve your debt. Normally we set up payments schedules so you can complete the program in 36 months or less. You will save a certain sum of money each month in an account that is set up in your name. When you have enough saved, we will make an offer to a creditor.

If the creditor accepts, you are presented with the offer. If you accept the offer, we complete the agreement with the creditor and get it in writing. You will make the payment to the creditor, either by paper or electronic transaction.

You will be provided a verification of the settlement in writing. The creditor reports to the credit agencies that your account has been settled and you owe nothing more on the account. We continue this process until all other accounts are settled. You can see approximate details for a 36 month program by clicking here.  [top]

Q. Does DRG keep my information confidential?

A. Debt Reduction Group is committed to maintaining complete confidentiality. Your information will not be given out to anyone except those persons authorized by you to receive information on your behalf. Of course, the creditors will be advised by us that you have contracted our firm to assist you. You may review our Privacy Notice by clicking here. [top]

Q. What are the fees and how are you paid?

A. The consultation is absolutely FREE. The service fee for settlements is 25% of the amount we actually save you. We will, of course, discuss our fees prior to accepting you as a client and, if accepted into the program, your newly configured monthly payment plan will include all fees. However, when you consider the money you may save with the Debt Reduction Program, it is clear that this program is very affordable. [top]

Q. What can I expect from the DRG Program?

A. Simply stated, and since individual results may vary, ethically we cannot make representations regarding the possible outcome of settlement negotiations. You will be happy to know that we have many clients that are extremely happy with the results of our program. [top]

Q. Does debt settlement work with every creditor?

A. No program works 100% for everyone, and of course no firm can guarantee results in advance. We are proud to say that we have an extremely high success rate. In fact, millions upon millions of dollars in consumer and commercial debt have been settled using our proven methods.  [top]

Q. Why shouldn't I just file Bankruptcy?

A. In some cases it may appear to be the best solution, but you must consider the long term effect. Virtually every time you complete a loan application you will be asked if you have ever declared bankruptcy. ‘Ever’ is the key word. That means that 22 years from now if you answer ‘no’ to that question, you lied. That question may be asked on employment applications as well, since many employers check for past bankruptcies and since it is information regarding your reliability in ways other than financial matters.

You should only file Bankruptcy as a last resort and after seeking the advice of a licensed attorney. If you have enough discretionary income to resolve your debt over time, it may be recommended that you attempt a debt settlement program in lieu of filing bankruptcy. In the long run, resolving your debt through the Debt Reduction Program could reflect more positively on your credit rating than filing for bankruptcy. Remember that a Bankruptcy will stay on your credit profile for up to 10 years.
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Q. What is Secured Debt?

A. A Secured Debt is a loan where the creditor retains a security interest in an item of real or personal property such as a house or an automobile. If you fall behind on payments on this type of debt, the lender has the ability to repossess the property in order to mitigate their damages. It is important to remember that you could remain liable for any deficiency balance owing after the property has been repossessed and sold. Certain exceptions may apply and will depend on the exact nature of the security interest. The laws regarding home mortgages vary from state to state and the lenders rights generally depend on the terms of the mortgage and whether any other lenders have an interest in the Real Property. In these situations it is important to seek competent legal advice to protect your interests. [top]

Q. What is an Unsecured Debt?

A. An Unsecured Debt generally arises out of a contract you enter into with a creditor that enables you to obtain goods or services on credit in exchange for your promise to pay that creditor back. The most common types of unsecured debt are credit cards and personal loans. If you fall behind on this type of debt, the only recourse the lender has is legal action. [top]

Q. When does a Secured Debt become an Unsecured Debt?

A. A secured debt may become an unsecured debt in situations where the property securing the loan has already been repossessed and sold by the creditor. If the sale of the property does not cover the contractual obligation, the consumer owes a deficiency balance. This deficiency balance then becomes an unsecured debt. Certain exceptions may apply and will depend on the exact nature of the security interest. [top]

Q. Do I have to include all of my debts or can I select which one's I want you to resolve?

A. In the Debt Reduction Program it is recommended that you include all of your unsecured debt and this will be discussed during your free initial consultation. [top]

Q. How do I know if my case will be accepted?

A. You will be advised after you complete the entire enrollment process and you case is presented to the approvals board. We may be able to assume at the end of the free consultation that your case will be accepted, but we cannot tell you for sure that it would be accepted.

If you are someone who is in debt, are serious about resolving it and are currently working, then chances are we can assist you and we will tell you so right away, but the final decision won't be made until the approvals board makes their finding. Simply click here to complete the online consultation. [top]

Q. Will I receive calls from my creditors through the Debt Settlement Process?

A. You probably will for at least the first 30 to 60 days until the creditors have added data into their files that you have enrolled in a Debt Reduction Program. Even though DRG sends correspondence to your creditors requesting that they cease all communication with you, you probably will receive calls through the process. If this occurs, simply report the name and phone number of the creditor to our office and we will contact them directly and attempt to redirect their calls to our office.

The Fair Debt Collection Practices Act requires that debt collectors treat you fairly by prohibiting certain methods of debt collection. Of course, the law does not forgive any legitimate debt you owe. You may stop a collector from contacting you by writing a letter to the creditor (see above) telling them to stop. Once the creditor or agency receives your letter, they may not contact you again except to say there will be no further contact. Another exception is that the creditor or agency may notify you if the creditor or agency intends to take some specific action. [top]

Q. I would like to get the details about your debt reduction program but know I won’t feel at ease talking to someone on the phone. Can I get the information any other way?

A. Absolutely! Take The DRG Challenge© by clicking here. You just provide the basic information. Our challenge is to prepare a customized Debt Reduction Plan for you and email it back to you within 8 hours. You will also receive the special report '10 Little Known Secrets to Credit Repair' with our compliments. [top]