Frequently Asked Questions

Debt resolution (also known as debt settlement, negotiated debt settlement or debt negotiation) is a process where a company works on behalf of their client to secure more favorable terms with creditors or debt collectors. The debt resolution company has two goals when they’re securing new terms and agreements with your creditors: Reduce the overall amount you owe Resolve the debt more quickly than you would on your own While that may seem too good to be true, the debt resolution process is pretty standard for creditors. They know that clients facing hardship may never pay the debt or decide to declare bankruptcy, so it’s in the creditor’s own interest to agree to different terms rather than getting no money at all.

Debt resolution is generally for people with $10,000 or more in unsecured debt who want to reduce their total amount of debt. If you’re facing financial hardship and have more debt than you can pay off in the next two to four years, debt resolution may help to reduce your monthly payments and resolve your debts more quickly than you would on your own.

While individual results do vary, the average amount of debt that our clients pay on their resolved debts is 55% of their enrolled balance. This number excludes Debt Well Set’s fees.

We only work with debts without collateral attached to them, also known as unsecured debts. Credit card debt, medical bills and payday loans are all examples of unsecured debt. Debts with collateral attached, like mortgages and car loans, are not eligible for our debt resolution program. We are also unable to assist with federal student loans. If you’re still unsure about whether your debt qualifies, we can help — contact us today for more information.

Here’s an overview of our process: One of our Certified Debt Specialists will review your financial situation. Our team will then create a customized debt resolution program for you based on your total enrolled debt, monthly budget and overall financial goals. There are no upfront fees — we won’t make a penny unless we are able to successfully lower your enrolled debt.* Once you agree to and enroll in your customized program, we’ll help you open an FDIC-insured Dedicated Account (also known as an “escrow” or “settlement” account) that you fully own. You’ll make monthly deposits into this account, which will later be used to pay your resolved debts. Our Certified Debt Specialists will begin working with your creditors to reach more favorable terms. While this is happening, we recommend that you stop using any open credit cards, lines of credit or personal loans included in your debt resolution program. Collectors and creditors may continue to reach out to you in an attempt to avoid working with our team, but you can let calls from unknown numbers go to voicemail and block repeated creditor calls. This can help give our Debt Specialists better leverage. Once we reach a new agreement with your creditors, we will contact you for approval. Payments from your Dedicated Account will be used to pay the newly-agreed upon resolution. Once the new terms are paid off, your debt with the creditor is considered resolved. We’ll continue this process until all of your enrolled debts are resolved. *NOTE: Our team will collect a fee from your Dedicated Account, but only once: You and your creditor have agreed upon resolution You’ve made at least one payment towards that new resolution We have reduced what you owe

While programs can vary depending on your unique financial situation, the average debt resolution program lasts two to four years. Your program’s length will depend on a few factors, including how much money you deposit in your account every month. The more money you can add to your Dedicated Account, the quicker your debts can be resolved. Making monthly payments to your Dedicated Account is an important part of Debt Well Set’s resolution program; missing monthly payments can stall the process.

A Dedicated Account is generally an account that is used to save money for a larger purchase or specific goal. When participating in an Debt Well Set program, the money in your Dedicated Account will be used to pay off your resolved debts. Once you’re enrolled, our team will help you open an FDIC-insured Dedicated Account where your funds will be deposited.

You do! The reason for setting up this new account, rather than putting your monthly deposits into an existing bank account, is to keep those debt resolution funds separate from your other money. If you ever withdraw from the program, the remaining funds in your Dedicated Account, minus banking, third-party and earned debt resolution fees, are yours to keep.

We understand that life might throw you a financial curveball, and you may need to adjust your payment schedule if the unexpected happens. That’s perfectly okay, and we’re happy to work with you to make any needed adjustments. Be sure to contact our Client Success Team at least five days before your scheduled deposit date so that we can pause any scheduled electronic withdrawals.

Debt Well Set is a legitimate company with accreditation from the American Fair Credit Council and an A+ rating and accreditation from the Better Business Bureau. Our clients always come first, and we’re committed to providing honest and transparent services that allow them to regain control of their finances.

We have no upfront fees, and our team doesn’t make a penny unless we successfully lower your enrolled debt.* Our fees are performance-based and contingent on our success with reaching more favorable terms and agreements with creditors on your behalf. These fees vary, but generally range between 15% and 25% of your debt balances at the time of enrollment. *NOTE: Our team will collect a fee from your Dedicated Account, but only once: You and your creditor have agreed upon resolution You’ve made at least one payment towards that new resolution We have reduced what you owe

Our top priority is to reach the best terms with your creditors as quickly as possible. While the majority of our clients start receiving resolution offers within the first six months of starting their program, there are some instances where it may take longer before your first resolution is reached. Approximately 90% of our clients who stick with our program receive their first settlement within nine months of starting their program.* Resolution time frames vary greatly depending on your monthly program deposit amount, the number of accounts you have enrolled in the program, delinquency dates, the creditor’s terms and the balances on each account. We work with these creditors thousands of times every month, and we strategically time each resolution to get you the best and fastest results possible. *Program data based on enrollments between January 1, 2020 through April 30, 2021.

Part of your agreement with your credit card companies allows them to continue to add interest and late fees to your debt any time you fail to make payments. This means that your credit card debt could go up while you’re getting your Dedicated Account set up and funded. Our goal is to reach new agreements with your creditors that will reduce your debt overall, including any interest charges or late fees that were added when you began our program.

While a resolution can be achieved in most cases, there are some circumstances in which a creditor will refuse to resolve an account. If this occurs, we will remove the refusing creditor from your program and adjust your fees accordingly.

Phone calls are a natural part of the debt resolution process. You may receive an increase in calls while our team works on reaching more favorable terms and agreements with your creditors. Our most successful clients have avoided the stress and annoyance of persistent creditor phone calls by taking some or all of these steps: Letting calls from unknown numbers go to voicemail. Blocking the phone numbers of persistent callers on their mobile device. Redirecting creditor calls directly to our team by changing the contact information on their enrolled accounts to ours. Reporting repeated creditor calls to our Client Success Team.

Some creditors use lawsuits as a tactic to intimidate or force payments. While we are not lawyers and cannot provide legal advice, we can remove creditors from your program who refuse to resolve your debt. Should a creditor take legal action on your debt, you can contact our team for assistance. Depending on where you live, you may have the option of joining a legal assistance program when you enroll in your debt resolution program. Talk with a Certified Debt Specialist for more details. Note: We are not a law firm and can’t offer any legal advice.

In general, forgiven debts can be taxable. When tax time rolls around, you’ll likely receive a Cancellation of Debt form (1099-c) from the lender that forgave your debt. To learn more about your specific situation, and understand the potential tax implications of any debt that’s been forgiven through a debt resolution program, it’s a good idea to talk to your tax advisor.

It is normal to see a temporary drop in your credit score when starting your debt resolution program. This can be concerning, but it is temporary and an anticipated part of the process that helps lay the groundwork for us to lock in new terms and agreements with your creditors. The most important thing to remember is that you are the one with the control — not your creditors. The quicker you get through the program, the quicker your overall creditworthiness can begin to improve. Additionally, many of our former clients have reported full credit score recovery and improvement after graduating from their debt resolution program.