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Reduction Financial FAQ

Picture a scenario where you and your creditors are on opposite ends, in a bit of a financial stand-off. You’re well aware of the money you owe them and genuinely want to make things right, but the available cash isn’t on your side at the moment. On the other hand, your creditors are determined to recover what you owe, trying various approaches to collect the debt. It’s a situation where neither party seems to be making any headway.

But that’s precisely where we step in. We’re here to be your advocate, to bridge the gap, and find a solution that works for both you and your creditors. We negotiate a resolution that not only reduces the original balance but also makes the payments manageable for you, and acceptable for the creditors. 

In this way, we bring about a win-win situation where both sides are finally making progress towards a brighter financial future.

Since we tailor each program to suit your unique needs, the duration of your program may vary. It’s determined by the amount of debt you’re seeking to resolve and the monthly commitment you can make to the process. On average, our clients are enrolled for 36-40 months, with a maximum term of 60 months.

It’s important to note that even our 60-month program is significantly faster compared to paying off your debt on your own by making only the required minimum monthly payments. We’re here to help you reach your financial goals more efficiently, making your journey towards debt freedom as smooth as possible.

Our program operates on a performance-based model, which means that there are no program costs until we successfully negotiate a settlement for you. Yes, you heard it right – zero costs upfront.

Once we’ve effectively secured a settlement and ensured the creditor has received payment toward that settlement, we do apply a service fee. This fee amounts to 25% of the balance at the time you initially enrolled. This clarity ensures that you have a clear understanding of the program’s cost right from day one.

The best part is, that you won’t receive separate bills from us. The service fee is conveniently integrated into your monthly draft, making it easy to manage and budget for as part of your ongoing commitment to the program.

Ensuring the security of your money is always a top priority, and we fully recognize that it becomes even more crucial during times of financial hardship. Rest assured, your hard-earned money is in safe hands. The funds you set aside are meticulously safeguarded within a dedicated trust account, overseen by a reputable third-party firm, and established in your name. This means that you maintain complete control over your funds, and no withdrawals can be made without your explicit consent.

Additionally, your money is protected with FDIC insurance. It’s important to note that you won’t be making monthly payments to us. Instead, you’ll be making deposits into your very own savings account, putting you in the driver’s seat of your financial journey.

Creditors have the legal option to pursue debts through the courts, but going to court can be costly, and creditors often prefer to avoid that route. While we can’t promise you won’t face a lawsuit, please rest assured that we are dedicated to doing everything within our power to resolve the matter before it escalates to the courtroom.

Many of our clients are already dealing with the impact of a less-than-ideal credit situation, primarily due to late payments and high outstanding debts—two of the most influential factors affecting your credit score. Whether you’ve maxed out your credit cards or are struggling with a high debt-to-credit or debt-to-income ratio, it’s likely that your credit has been adversely affected.

The good news is that even though your credit may dip a bit temporarily, it’s like taking a few steps back to make a huge leap forward in tackling your debt. In the long run, this can have a very positive impact on your credit. Once your debts are all sorted out, you’ll have the chance to start practicing good credit habits to steadily improve your credit score.