FAQs
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Frequently Asked Questions
What is a debt relief program?
A debt relief program is a customized plan that is designed to get you out of debt as quick and affordably as possible (normally 12 – 36 months depending on your debt load). A debt relief program will lower your interest rate and consolidate your credit card and unsecured debts into one low monthly payment. Depending on the type of debt relief service that is most suitable for your financial situation and credit profile, a debt relief program can also negotiate with your creditors to reduce the amount you owe, earning you the maximum savings potential and getting you out of debt in a fraction of the time that you could on your own.
See which debt relief program is best for you by calling one of our certified credit counselors to see if you qualify. Call 888-960-5774 and get a free debt review today.
Can I consolidate my debt without a loan?
Yes, you most certainly can (and should!) Under a debt relief plan, all your debt will be consolidated into one low monthly payment without the use of a loan. Our debt team will strategically distribute your single affordable month-ly payment among your various creditors.
Consumers Alliance is not a loan company. We don’t believe people should take on more debt to pay off existing debt. Typically, those new loans carry high interest rates and have little to no advantage over simply consolidating the debt at a lower rate.
What can I expect when I talk to a debt expert?
A member of our debt team will go over your income, debt, and expenses. If you do not have access to your debt information, our debt experts, with your permission, can do a “soft pull” on your credit report. This has NO im-pact on your credit score, rather it gives the most updated information on your current debt.
How long does a free debt review take?
A debt review can take as little or as much time as you need! The initial debt review usually only takes 5-10 minutes, but for customized budget and debt advice, you should expect your session to last anywhere from 20-40 minutes (depending on how many debt accounts have.)
What is the fee for a debt relief program?
A debt review is free of charge. If you choose to enroll in a debt program, the program fee will depend on the amount of debt that you enroll and the state in which you reside. In a debt management program, there is a small monthly service charge which will be applied to your account. This fee regu-lated by law and will be included in your custom quote.
The majority of our clients find that even with the small fee that we charge for our programs (which affords us the ability to pay our staff and fund out-reach and educational programs), they are saving significant amounts of money by the time that their debt is payed off. Many clients save between 30%-50%, depending on the size of their debt.
How do I sign up for a free debt review?
Call one of our debt experts at 888-960-5774. Or, you can request to schedule an appointment by providing your contact information and go at your own pace!
Will enrolling in a debt relief program affect my credit?
A debt management program should not have any negative impact on your credit. Since your accounts will be paid on time and at a lower interest rate, your credit score should see some improvements (you’re literally freeing up credit, which reflects positively on a credit score!)
Alternative debt relief programs, like debt settlement, can negatively impact your credit score because they significantly reduce the balance of debt that you’ll repay to your creditor.
What is Unsecured vs. Secured debt?
Only unsecured debt is eligible for enrollment in a debt relief program. Un-secured debt is debt that is not covered by an asset, like:
Credit Cards
Department Store Cards
Medical Bills
Personal Loans
Collections Accounts
Some private student loans (very limited)
Secured debt is not eligible for enrollment in a debt program. Secured debt is backed by an asset, like:
Mortgages
Car Loans
Student Loans
IRS Debt
Payday Loans
Do I have to enroll all of my debt?
No, you are not required to enroll all of your debt. We normally recommend leaving an account open in case you need access to credit, in the event of an emergency.
Can I still use my credit cards while enrolled in a debt relief program?
No, any debt account that has been enrolled in a debt relief program will be closed. For this reason, we recommend leaving an account open in case you need access to emergency credit.
How long will it take to pay off my debts?
Because we customize each debt plan to make it most affordable for our clients, the time to pay off can vary. However, based on average client results since 2004, the average time it takes to achieve debt freedom is 12-36 months. Keep in mind that missing scheduled payments can extend the time it takes to pay off your debt significantly.
Will I receive regular updates about the status of my accounts?
Each month you will receive an email prompting you to login to your account, review your monthly statement and get excited about the status of your progress!
Can I change my draft payment date once I’m enrolled?
Yes, you most certainly can (if you must)! Give our client service team a call several days ahead of your draft payment date and we will update your draft payment date. We’ll advise you if this will negatively impact your on-time payment to creditor at time of request.
Is Consumers Alliance a trusted debt relief agency?
Asking who you can trust is a great idea! Consumers Alliance has been helping clients climb out of debt since 2004. We have helped over 100,000 people achieve debt freedom and are proud to have maintained an A+ rat-ing with the BBB since opening our doors!
Well we highly encourage you to take advantage of our offer for a free debt review and ask questions! During your initial phone call with a member of our debt expert team, we will walk you through all of the pros and cons of a debt relief program and provide you with very helpful resources!