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FAQ

Why should I choose Affordable Debt Consolidation in Texas?
  1. Our Debt Negotiation service is 20 to 40 percent LESS compared to most out-of-state companies.
  2. We specialize in resolving debt for TEXANS and have been doing so for nearly two decades.  Texas has specific consumer protections that can work to your advantage when a company knows how to use them in your favor.
  3. Our Texas Debt Specialists can assist if a Debt Consolidation Loan or Credit Counseling program is a better option.
  4. In-person consultations are available at some Texas locations.  Please call for availably.
  5. We assist with creditor lawsuits.
What services do you provide to resolve debt?

Our Texas Debt Specialists assist Texans with multiple programs offered by our company and our highly rated partners.  Credit Counseling is one option available to lower interest rates with most credit cards.  Debt Relief using Debt Settlement to negotiate significant reductions in the amount you pay back your creditors is another option.  For those who qualify, we offer an affiliate platform to shop hundreds of lenders who offer debt consolidation loans to Texas residents.  Either option will allow you to consolidate debt with one monthly program amount.  We also assist Texans with an exclusive Advanced Hardship Program for those who meet the program’s financial hardship criteria.

Do you loan money to pay off my debt?

We are not a lender and do not loan money.  We offer an affiliate platform to shop hundreds of lenders who offer debt consolidation loans to Texas residents.  Shopping as many lenders as possible will increase your chance of qualifying for the best loan possible.  Many Texans who have been denied by their bank have been able to receive a loan through our affiliate platform.  Receiving offers is free and will not impact your credit score.  However, if your credit scores and debt-to-income ratios are not excellent, qualifying for a low-interest Debt Consolidation Loan is challenging.  Even with good credit scores, transferring debt from one lender to another is not likely to solve your debt problem if you are struggling.  If you have been denied a Debt Consolidation Loan and want to explore additional options to obtain one, our Texas Debt Specialists will provide you advice and recommendations.  After discussing your financial situation, we may also offer free advice on how to increase your chances of qualifying.  We provide forms of Debt Consolidation with Debt Management and Debt Relief programs that do not require a new loan.  These programs are designed to resolve debt with an affordable program payment that, in many cases, can be less than half compared to minimum payments.

How much will my monthly payment be?

That depends on which Debt Relief option you use and how much you can afford each month.  Any option is likely to have the opportunity of a much lower monthly cost compared to making minimum payments.  Debt Negotiation programs are often less than half compared to the monthly cost of minimum payments.

How does Debt Negotiation affect my credit rating?

Anytime you do not make the payments you agreed to make with your creditors, whether in a program or not, your credit rating will be negatively impacted.  If your credit lines are near their credit limits, this is currently impacting your credit score negatively.  Our Debt Specialist can evaluate your credit score and debt by obtaining your credit report and score using a soft pull that has no impact on your credit rating.  This service is free of charge.  Our goal with Debt Negotiation is to resolve your debt as fast as possible by obtaining forgiveness of a large portion of your balances.  This can be a great alternative to a very damaging bankruptcy and, in some cases, can even be less expensive compared to Chapter 13 bankruptcy.  Once you have eliminated your debt, you can quickly rebuild your credit.  Also, by not carrying the unsecured debt, your debt-to-income ratio will be dramatically improved, which will improve your overall financial profile.  Many of our clients will have better credit scores when they graduate than when they started because they no longer owe the unaffordable debt.  The reality is that a good credit score is practically useless if you cannot afford to take on and pay more debt.  You can get a good credit score back, but you cannot get back the money thrown away to high-interest payments.  We offer debt relief and debt management services.  We are not a “credit repair” company.

Do you accept creditor lawsuits?

Yes!  We can accept most creditor lawsuits by utilizing our exclusive partnership with who we feel is the best debt defense attorney in the state of Texas.  We understand money is tight, so we have a very special arrangement with the top Texas debt defense law firm that allows our clients to receive high-quality legal services at a very affordable cost.  We have found most other debt relief companies will not enroll a lawsuit unless funds are immediately available to settle.  We usually include lawsuits as part of our program with affordable monthly program payments.

Will I receive calls from creditors or debt collectors?

Not in Credit Counseling as long as you make on-time payments.  With Debt Negotiation, we provide an option in Texas to prevent nearly all creditor calls.  Since we are a Texas company specializing in resolving debt for Texas residents, we know how to utilize state consumer protections.  Most other states do not offer the same protections as Texas, and these laws are separate from federal laws such as the FDCPA.  If utilized, Texas law can prevent nearly all harassment from original creditors in addition to debt collectors when you hire an attorney in addition to our services.  Therefore, our clients can use optional separate legal services made by very special arrangements the best debt defense attorney in Texas, in our opinion.  By retaining a Texas attorney,  Texas laws will make it illegal for creditors to call you.  The creditors are will only be authorized to contact the attorney or our settlement representatives.   By including the optional and separate legal services along with our Debt Negotiation services, your combined cost may still be comparable or less expensive than out-of-state competitors not offering the additional legal protections.  We do not know of any other Texas Debt Relief company or out-of-state Debt Relief company with the resources to offer this optional high level of protection.  Other companies may offer a “pre-paid” legal type insurance that does not provide any upfront legal representation.  If you do not utilize the optional legal services, we will try to minimize creditor calls, but most creditors or debt collectors will continue to call until the debt is settled.

If I use Credit Counseling, how much will my interest rates be reduced?

This will depend on the creditors you owe.  Interest rate reductions down to 6 to 11 percent are common with most credit cards.  There is a huge benefit with Credit Counseling if you are currently paying high interest rates.  If your credit card interest rates are already low or you have low-interest rate installment loans, the benefit of Credit Counseling may not be significant.  Debt Settlement may be a better option if you are struggling to make payments on accounts that currently have reasonable interest rates.

Do you guarantee you will settle all of my debts for a certain percentage?

No one can, and it is illegal to make such promises.  We have nearly two decades of experience, so after reviewing your creditors, we design your program with a realistic good-faith estimate, factoring you’re the individual creditor you owe.   We have found many other companies make it a practice of over-promising and under-delivering.  Our goal is to be more conservative with our estimates.  We prefer our programs to take less time than estimated as much as possible, although some clients will be enrolled longer than estimated.  Texas residents often contact us upset with an out-of-state competitor.  A common situation is realizing the competitor quoted unrealistic estimates to sign them up.  One of the largest out-of-state Debt Relief companies has been sued by the federal government and several state governments for repeatedly selling their clients unrealistic outcomes.  Our company will not give you an unrealistic estimation to get your business.  Contact us if you want an honest assessment.  We will always work hard to obtain the best deal possible with your creditors.

How much do your services cost?

Consultations are free with no obligation.  Credit Counseling clients will typically pay a fee ranging from $35 to $55 a month.  Debt Negotiation clients pay our company no fees whatsoever until a debt is negotiated and settled.  All fees charged by us are included in the affordable monthly program amount that we quote you.  This amount (including fees) is often less than half compared to making minimum payments.  Our settlement fees are a flat 15% of your enrolled debt spread throughout the program as debt settles.  Most Debt Relief companies charge 20 to 25% of your enrolled debt.   Our fees do not include any optional third-party fees, and the third parties set such fees.  A third-party Texas law firm administers the Advanced Hardship Program, available to Texas clients who meet hardship qualifications as an alternative to bankruptcy.

Do you guarantee the lowest fees?

We do for our Debt Negotiation program for Texas residents.  Typical settlement fees in our industry are between 20 to 25%.  As a Texas company focused on resolving debt for Texas residents, we can keep our overhead low and can offer settlement services at a flat fee of 15%.  Our fees are not charged until an account is settled and payment has been made towards the settlement.  If you are qualified for our services and can find a reputable company that is registered in Texas with the Office of Consumer Credit Commissioner (as required by law) and is rated “A” or higher with the Better Business Bureau, we will provide our settlement services at a lower fee than our competitor or provide you with a $250 gift Visa card.  This guarantee only applies to our settlement services and does not apply to optional third-party services.  Contact our Texas Debt Specialists for more details.

What is Debt Settlement?

Debt Settlement is also referred to as Debt Relief, Debt Resolution, or Debt Negotiation. This method resolves your unsecured debt by negotiating with creditors and reducing the amount you owe.

For the process to be successful, you stop paying your creditors monthly and start saving money in a special purpose account.  Once enough money is saved, a new payoff amount is negotiated for the lowest amount possible, and funds are transferred from this special purpose account to pay the settlement.  This process repeats until all debts are resolved with a zero balance.

What is Credit Counseling?

Credit Counseling is a form of Debt Management that can lower your interest rates from high-interest credit cards while allowing you to make one monthly payment.

What types of debt can you help me with?

We can help with credit cards, unsecured installment loans, medical bills, department store cards, payday loans, and many other types of unsecured debt.  Our programs assist with loans that are not attached to collateral (auto loans and home loans, for example) unless the collateral has been or will soon be repossessed.   We do not assist with the department of education student loans because they are backed by the federal government.  Unfortunately, we do not know of any reputable company that can help with federal student loans, but free assistance is available at studentaid.gov.  We can help with some private student loans and some business debts on a case-by-case basis.

Why should I use a Texas-based Debt Relief company focused on resolving debt for Texans?

Texas has additional consumer protection laws, and as a company focused on resolving debt for Texas residents, we have the knowledge to utilize these laws to your advantage.  Texas also has fee caps that many out-of-state companies do not follow.  Also, any Debt Relief or Debt Management company doing business in Texas must be licensed.  This requires registration with the Office of Consumer Credit Commissioner.  Also, check the Better Business Bureau at bbb.org to research their Accreditation, rating, complaints, and how long they have been in business.  Debt Relief companies should provide a realistic timeframe and a realistic estimate of your potential savings.   Federal law prevents Debt Relief companies from charging their fees until after a debt has been settled.

Can a creditor file a lawsuit while I am in a Debt Negotiation program?

In a settlement program, your accounts go past due until they are settled.  A creditor can choose to use a law firm and the court system in an attempt to collect on the debt.  Texas has higher consumer protection laws than most other states, so a creditor might not be able to collect on a judgment.  We have extensive experience with Texas collection attorneys and are prepared to handle these types of collection methods.  Many of our clients utilize affordable optional legal protection with whom we feel is the top debt defense attorney in Texas.  This highly rated debt defense attorney is not optional with any other debt relief company.  By having a top-rated debt defense attorney retained upfront, creditors are less likely to file a lawsuit once they are notified of your legal representation.  The attorney will take additional actions to try to prevent a lawsuit if needed, and the attorney will also provide legal representation if a lawsuit still occurred.  Most of our competitors offer an inferior “pre-paid legal” type product that does nothing to prevent lawsuits.  With these inferior “pre-paid legal” products, no attorney is actively working on trying to prevent lawsuits, and you also have no idea who your attorney would be until after a lawsuit occurs.  Some of these “pre-paid legal” products do not guarantee they will find an attorney to take your case.

Do I need to include all of my credit cards in your Debt Negotiation program?

You may keep out an account with a balance under $1000 if you keep it under $1000 while enrolled.  You may also keep out any account you can pay down and keep under $1000 within six months.  Your Texas Debt Specialist will discuss any exceptions after reviewing your creditors.  Generally, if enrolled creditors see that you can pay other accounts with significant balances, it will make it difficult to negotiate the lowest possible settlement.

Where are my funds held in the Debt Negotiation program?

We use a third-party company called Debt Pay Gateway.  Funds are held in your FDIC special-purpose custodial account to fund settlements and pay our fees only after successfully settling an account, and at least one payment is made towards the new negotiated balance.

Will I owe taxes on my forgiven debt balances?

A creditor may send you a 1099-C for the amount of debt forgiven.  The IRS could consider forgiven debt as taxable income.  IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, may exempt you from owing any taxes on debt that has been forgiven.  According to IRS.gov “A taxpayer is insolvent when his or her total liabilities exceed his or her total assets.  The forgiven debt may be excluded as income under the ‘insolvency’ exclusion.  Normally, a taxpayer is not required to include forgiven debts in income to the extent that the taxpayer is insolvent.”  You want to speak with your tax advisor if you receive a 1099-C.

Do interest and late fees accrue on my accounts in a Debt Negotiation program?

Anytime accounts are delinquent, your creditors will continue to add interest and late fees onto your balances.  We factor that your balances will increase some until settlements are reached.  While we factor this upfront in our estimations, we only charge settlement fees based upon your enrolled balance.  Keep in mind that the interest is going to continue to accrue with your creditors regardless of whether you make minimum payments or not.

Can I negotiate on my own?

Yes.  You can also do your own taxes, make repairs to your own home, and repair your own car.  Most people would rather professionals handle these tasks.  If you make a mistake during the negotiation process, the debt collector may still come after you for the full balances.  Also, dealing with professional debt collectors can be very stressful for an untrained individual.  Aside from the time, effort, and knowledge needed, an experienced debt negotiator may obtain lower settlements.  Our negotiators typically do not speak with the same debt collectors that speak to individuals.  Those debt collectors are highly trained to get individuals to pay the most amount possible, and they usually receive a commission based on how much they can collect from you.  Our debt negotiators often deal in bulk and may negotiate several client accounts in one deal.  We typically deal with special business-to-business representatives with creditors and collection agencies.  If you would like to negotiate your own accounts, our Texas Debt Specialists will provide your resources at no charge.

When do negotiations begin with my creditors?

Negotiations usually begin about six months into the program, depending on how your program is structured.  This is when most creditors start offering our negotiators good settlements.  Negotiations may begin sooner or later in some instances.  Each account is negotiated one at a time, and you will receive a copy of the final settlement agreement showing a zero balance after each account is resolved.

How long will it take to get out of debt?

Credit Counseling programs typically take 4 to 6 years, depending on what you can afford on a monthly basis.  We usually design Debt Settlement programs estimated at somewhere between 24 to 48 months, but they can be shorter or longer depending on how much you can afford monthly.  The programs can be longer or shorter than estimated, depending on final settlement amounts.  If you only make the minimum payments on your credit cards, you could be in debt for the next 10 to 20 years.  If you only make minimum payments and don’t make any more charges on your credit cards, it could still cost you 2x, 3x, or even four times as much as you originally borrowed.

How is Debt Negotiation different from filing bankruptcy?

We have found Most Texans consider bankruptcy as a last resort.  It will remain on your credit report for ten years after Chapter 7 is discharged and seven years after a 3 to 5 year Chapter 13 repayment plan is completed.  Bankruptcy may affect your qualification for employment, certain types of state licensing, insurance, as well as qualifying to rent a home or apartment.  Bankruptcy is also a public record that could be found during background checks for the rest of your life.  Bankruptcy could cause a denial of credit or very high interest rates for several years.  Since bankruptcy laws changed for Chapter 7, many people will not qualify due to their income and assets.  Under Chapter 13 bankruptcy, your debt payments are restructured, and you will still have to pay a percentage of the debt or the entire debt balance while still suffering the consequences of bankruptcy.  Debt Negotiation is an alternative to bankruptcy and, in some cases, may cost less compared to Chapter 13.  We are not a law firm, and we do not provide legal advice or bankruptcy services.  We may be able to refer you to Texas attorneys who provide bankruptcy services if you wish.

When should I seek help with my debt?

Contact us if you have high levels of unsecured debt and are in financial hardship, such as divorce or income loss.  If you’re barely keeping up with your minimum payments and the balances on your accounts keep growing, then our programs could be a great option.  If you have no savings, investments, or retirement and your extra money is lost to high-interest debt month after month, talk to one of our Texas Debt Specialists.  They will help you learn about your options to resolve the debt as quickly and affordably as possible without bankruptcy.

How to Receive Debt Consolidation in Texas ?

The fastest way to get help is to call to speak with a Texas Debt Specialist now. You may also fill the form above and one of our Texas Debt Specialists will reach out to provide you a free and no-obligation consultation.
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Debt Consolidation in Texas, Texas Credit Counseling, and Texas Debt Relief Consultations are Free of Charge with no obligation. Clients who fund the program as scheduled generally experience approximately a 50% reduction of their enrolled balance before fees, or approximately a 35% reduction after payment of settlement fees over a 24 to 48 month period, not including optional separate services such as Texas Finance Code or Debt Defense provided by a Texas law firm or a legal insurance plan. Affordable Debt Consolidation is not a lender but offers Texans a platform to shop Debt Consolidation Loans offered by 25+ third-party lenders.

Individual results vary based on the ability to fund the program and the creditors enrolled. Statements made are examples of past performance and are not intended to guarantee that your balances will be reduced by a specific amount or that you will resolve debt within a specific time period. Settlement fees are not charged until a debt is reduced and a payment has been made to the creditor. We do not assume consumer debt, make monthly payments, provide tax or legal advice. We are not a credit repair company. A tax professional can discuss possible tax consequences of paying less than the full balance. Programs available in Texas. Logos used are the property of their owners.

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