Frequently Asked Questions | Texas Debt Relief | Debt Redemption

Question 1

As a Texan, Why should I choose Debt Redemption Debt Relief For Texans?

Accepted Answer

Short Answer: Debt Redemption is a Texas-based, 100% veteran-owned debt relief company with an A+ BBB rating, performance-based fees up to 40% lower than many competitors, and programs designed exclusively for Texans.  Full Answer: 1. Our Debt Relief service fees are up to  40% LESS  compared to most competitors, especially out-of-state companies. Please see our  Lowest-Fee Guarantee  FAQ for details. 2. Debt Redemption is  100% veteran-owned , rated  A+ with the Better Business Bureau , and has been serving Texans for over  two decades . We encourage you to read all our BBB reviews through our    . 3. We specialize in servicing  Texans exclusively . We believe our clients have an advantage over “cookie-cutter” or “assembly line” programs from out-of-state debt relief companies. By focusing only on helping fellow Texans, we can operate more efficiently and pass these savings on to you 4.  We do not charge fees  for our Debt Relief program until a debt is reduced and payment is made toward the settlement. Fees are charged proportionally to the settled debt balance. 5.  In-person consultations  are available at our Texas Headquarters for those who prefer face-to-face guidance. 6. We offer  multiple debt solutions , including Debt Negotiation, debt consolidation loan options through an affiliate platform, and nonprofit Credit Counseling referrals. See the next FAQ for details.

Question 2

What options can you assist me with to resolve overwhelming debts?

Accepted Answer

Short Answer: We help Texans compare and use multiple options, including Debt Negotiation, access to a debt consolidation loan marketplace, nonprofit Credit Counseling, legal help with lawsuits, and referrals to a trusted Texas bankruptcy law firm when appropriate.  Full Answer: If you’re facing overwhelming credit card balances or personal loan debt, you’re not alone—many Texans struggle with the same challenges due to rising interest rates, unexpected emergencies, or the high cost of living. Our team is based in Texas and focuses exclusively on helping Texans find the right path out of debt. We offer several tailored options depending on your needs:  We negotiate to reduce what you owe on unsecured debts, often resulting in much lower total payoffs than trying to manage balances on your own.  Through an affiliate lending platform, you can shop multiple lenders for a  credit card debt consolidation loan  and compare rates and terms in one place.   For clients who can afford regular payments but are crushed by high interest, we connect you with a highly-rated  Credit Counseling program  that can reduce interest rates—sometimes to as low as  6% —without requiring a new loan.   If you’re facing creditor lawsuits, we help you explore settlement and legal options through a Texas-based debt defense attorney.  When appropriate, we may recommend a reputable  Texas bankruptcy law firm  that offers affordable payment plans to clients we refer. They help you compare bankruptcy to non-bankruptcy options so you can make an informed decision. No matter where you are in your financial journey, we’re here to help you understand your choices and take the next step with confidence.

Question 3

What is Debt Negotiation/Debt Settlement?

Accepted Answer

Short answer: Debt Negotiation (Debt Settlement) is a hardship program where we negotiate with your creditors to resolve unsecured debts for less than you owe, using funds you save in an FDIC-insured account. Full answer : Debt Negotiation, also called Debt Settlement, is a hardship program that helps people resolve unsecured debts—like credit cards, personal loans, or medical bills—by negotiating a  reduced payoff amount  with creditors. Instead of continuing to make high-interest monthly payments, you set aside money in a dedicated FDIC-insured account. Once enough funds build up, a negotiator works with your creditors to settle each debt, one at a time, for  less than what you owe . When a debt is settled, it’s reported with a  zero balance , even though you paid less than the original amount. For many Texans, this can be a more affordable alternative to trying to keep up with minimum payments that barely reduce the principal. Often, the monthly contribution to your special purpose account can be  less than half  of what you’d otherwise pay toward credit cards. Program lengths vary depending on how much debt you have and what you can afford each month, and your resulting settlements. Most programs are estimated between  12 to 60 months , with some cases finishing in as little as  twelve months . In extreme hardship situations, plans may extend to an estimate beyond  60 months. Texas law also plays an important role. After  48 months from the first missed payment , unsecured debts in Texas become “time-barred,” which means creditors can no longer sue you in court on that debt. Some clients choose to settle before that point; others prefer to wait until debts are time-barred before negotiating. This makes Debt Settlement particularly strategic in Texas.

Question 4

How much does your Texas Debt Relief service cost?

Accepted Answer

Short answer:  All consultations are free, and you pay  no fees  until a debt is settled and you’ve made a payment. Our performance fee is  15% of enrolled debt , which is often up to 40% lower than many competitors. Full answer:  All consultations are  100% free  with no obligation. Our program uses  performance-based fees , meaning you pay nothing until we successfully negotiate and settle a debt and you’ve made at least one payment toward the new balance. Our negotiation fee is a  flat 15% of your enrolled debt , which is already built into your affordable monthly program payment. The industry standard in Texas is around 25%, making our fees  up to 40% lower  than many competitors. Please note: any  optional third-party services  (such as legal representation or certain other add-ons) may involve separate fees administered by that provider.

Question 5

Do you guarantee all my debts will settle at a particular percentage?

Accepted Answer

Short answer: No. Federal regulations prohibit guaranteeing a specific settlement percentage. We provide realistic estimates based on actual history, not promises we can’t legally make. Full answer: No legitimate company can legally guarantee that your debts will settle at a specific percentage. Federal regulations prohibit this type of promise. What we can provide is a realistic, good-faith estimate based on over  two decades of settlement history  and the specific creditors you owe. While many companies advertise unrealistic savings just to get people enrolled, those claims often lead to disappointment and even regulatory action. At Debt Redemption, we believe honesty from the start is the best way to help Texans succeed. Our estimates are built on  actual settlement outcomes , and we are upfront that results can vary. Some clients finish sooner than estimated; others may take longer depending on their creditors and circumstances. When you speak with one of our Texas Debt Specialists, you’ll receive a clear, straightforward evaluation of your situation—not a sales pitch. While no company can guarantee a settlement percentage, our experienced negotiators will always work to save you as much as possible.

Question 6

Do you guarantee the lowest negotiation fees?

Accepted Answer

Short answer: Yes, for qualified Texas residents, we guarantee lower performance fees than any licensed, reputable competitor—or we’ll give you a  $1,000 Visa gift card  if specific conditions are met. Full answer: Debt Redemption is a Texas-based company, and we believe that we provide Texans with the best deal available anywhere by focusing exclusively on helping our Texas neighbors. Our Debt Relief program is designed by Texans and created solely to give Texans an advantage.  Out-of-state debt relief companies usually charge around  25% of your enrolled debt  as a performance or contingency fee. You could easily pay up to  40% higher fees  by using another company. We keep overhead low because we only serve our home state and do not rely on expensive national TV and internet advertising. We provide full-service Debt Negotiation with performance fees of only  15% of your enrolled debt , charged only after a debt is settled and payment toward the settlement has been made. If you’re a Texas resident qualified for our Debt Negotiation service after a free, no-obligation consultation, we will provide you with  lower performance fees than any licensed and reputable competitor . If we are unable to offer lower performance fees than a qualified competitor, we will give you a  $1,000 Visa gift card  if:     Please speak with one of our Texas Debt Specialists for more information.

Question 7

How does Debt Negotiation impact my credit rating?

Accepted Answer

Short answer: If you’re already behind, your credit is usually already damaged and can begin recovering after settlements. If you’re current when you enroll, scores will drop at first but may improve over time as debts are resolved. Full answer:  The impact depends on your situation when you enroll.   Most clients can rebuild their credit once their debts are resolved—especially if they continue paying other obligations like mortgages or auto loans on time. It’s also worth noting that a “good” credit score doesn’t help much if you’re overwhelmed with high-interest debt and a poor debt-to-income ratio. Once your debt is settled, your debt-to-income ratio improves, giving you far greater financial flexibility. Debt Redemption is not a credit repair company and cannot promise specific credit score results, but many clients find they are in a stronger position to rebuild and use credit wisely once they’re debt-free.

Question 8

Will I receive calls from creditors or debt collectors using Debt Negotiation?

Accepted Answer

Short answer:  Yes, you may still receive calls, but Texas law gives you strong protections, and we offer access to a Texas debt defense attorney who can help dramatically reduce or redirect those calls. Full answer: Yes, during the debt negotiation process, it is possible that you will continue to receive calls from creditors or debt collectors. Collectors are often paid on commission and have a financial incentive to contact you directly and try to collect as much as possible, as quickly as possible—even if they know a settlement is likely coming.  Fortunately, Texas gives you  stronger consumer protections  than many other states. In addition to the federal  Fair Debt Collection Practices Act (FDCPA) , the  Texas Finance Code  provides protections against harassment from both original creditors and third-party collectors. Debt Redemption has an exclusive, affordable referral arrangement with a  Texas-based debt defense attorney . If you choose to retain the attorney:   Hiring an attorney is optional and separate from our program, but many clients find it provides valuable peace of mind. If you choose not to retain legal representation, our negotiators will still work hard to reduce calls as settlements are reached—but most creditors will continue contacting you until there is a signed agreement in place.

Question 9

Where are my funds for settlement held?

Accepted Answer

Short answer:  Your settlement funds are held in an  FDIC-insured custodial account  managed by an independent third party—you stay in control, and we only get paid after a debt is successfully settled. Full answer:  When you enroll, your settlement funds are not held by us directly. They are placed in a special-purpose  custodial account  managed by  FORTH , an independent third-party company with an A+ rating for reliability. Key points:     This setup gives Texans transparency and protection while we negotiate with creditors.

Question 10

Why is a Texas-based Debt Relief company focused on resolving debt for Texans better for me?

Accepted Answer

Short Answer: Because we only serve Texans, we understand Texas laws, Texas creditors, and Texas consumer protections—and can often deliver better service at lower fees than national companies.  Full Answer: Since we only service Texans, we are very efficient at it and do not have the high national advertising expenses of national or out-of-state debt relief companies. Therefore, we can provide a very high level of customer service with performance fees often  40% LESS  compared to out-of-state companies. We also understand  Texas-specific consumer protection laws  and use this knowledge to help leverage those laws to your advantage. In contrast, our performance fees are significantly lower than the maximum allowed under state regulation. Some out-of-state companies may not be licensed in Texas or may not have your best interest in mind. We are sometimes asked to clean up the mess left by other companies that failed to provide the service needed to help ensure success. Any debt management or debt relief company working with Texas residents and not registered with the  Texas Office of Consumer Credit Commissioner  is violating the law. When researching any company, check:    Federal and state law also prevent debt relief companies from charging fees until after a debt has been settled.

Question 11

Can a creditor file a lawsuit while enrolled in a Debt Relief program?

Accepted Answer

Short answer: Yes, any creditor has the right to sue if you’re not following the original agreement, but we use strategies—and optional legal help—to reduce that risk and protect you under Texas law. Full answer (summarized):  To negotiate forgiveness of a large portion of your balances, debts must become  delinquent  and show hardship. While most individual debts enrolled do not result in a lawsuit, any time you do not follow the original lending agreement—whether you’re in a program or not—a creditor has the right to use the civil court system to collect. We minimize this risk by:    If you retain the attorney:     We also offer an alternative legal plan, similar to what many competitors provide. While it’s lower-cost, it is  not proactive  and does not stop creditor calls. Instead, it covers the cost of finding and paying an attorney if a creditor elects to file a lawsuit during the program. All legal services are optional and administered directly by the providers.

Question 12

Do I include all my unsecured debt in your Debt Negotiation program?

Accepted Answer

Most clients include all unsecured debts with balances over  $1,000 —such as credit cards, personal loans, medical bills, or certain lines of credit. Smaller balances under $1,000 may sometimes be excluded, as long as they remain below that threshold while you’re enrolled. You may be able to keep out a credit card you pay down and maintain under $1,000 within about six months, which can help preserve a small line of credit for emergencies. However, creditors look closely at your overall picture. If they see you continuing to pay certain large unsecured debts while trying to negotiate others, it may weaken your negotiator’s leverage. That’s why enrolling  all major unsecured debts  is usually the most effective strategy. Our Texas Debt Specialists will review your accounts and discuss any exceptions based on your specific needs.

Question 13

Will I owe any taxes on the forgiven amounts?

Accepted Answer

In many cases, creditors may issue a  Form 1099-C  for amounts they forgive. The IRS generally treats this as taxable income. However, the “insolvency exclusion” may apply. If your total debts are greater than your total assets at the time of forgiveness, you may not owe taxes on some or all of the forgiven amount. This is typically handled using  IRS Form 982. Because every situation is unique and tax laws can change, we recommend speaking with a  qualified tax professional or CPA in Texas  to review your specific finances and determine how any forgiven debt may affect you.

Question 14

Do interest and late fees accrue on my enrolled debts?

Accepted Answer

Yes, interest and late fees can continue to accrue on delinquent debts after you enroll.   We factor these potential costs into your  program estimates  so you have a realistic picture. Any added interest or fees are included in the  final negotiated settlement , and our performance fees are based on your  original enrolled balances , not on later-added charges. Even when current, interest continues to accumulate on credit cards, which is why many Texans feel stuck paying for years. Debt Negotiation is designed to resolve your entire balance—including principal, interest, and fees—for significantly less than you’d pay by making minimums for decades

Question 15

Can I negotiate debt on my own?

Accepted Answer

Yes, some Texans choose to negotiate directly with creditors or collectors, especially if they have only a few accounts and are comfortable with financial discussions. However, collectors are professionals trained to recover as much as possible, often on commission. Without experience, it’s easy to:    Professional negotiators bring:     If you’re considering negotiating on your own, our Texas Debt Specialists are happy to provide  free guidance and resources  so you understand your rights under Texas law before you start.

Question 16

When do negotiations begin with my creditors?

Accepted Answer

Negotiations typically begin once you have saved enough money in your  FDIC-insured Special Purpose Account  to make a realistic settlement offer. We do not try to settle everything at once; instead, we focus on one account at a time as funds become available. In many cases, creditors are most willing to offer significant reductions after an account has been delinquent for about  six months , so negotiations often begin around that timeframe. Timing can vary by creditor and how quickly you build funds. After each successful negotiation, you receive a  written settlement agreement  showing the terms and confirming the debt is resolved with a  zero balance . This continues until all eligible debts in your program are settled.

Question 17

How long will my Debt Negotiation program last?

Accepted Answer

Program length depends on your  budget and total enrolled debt.    Actual duration may be shorter or longer, depending on final settlements and creditor behavior. Some clients choose to exclude debts that reach the  48-month statute of limitations  in Texas. By comparison, making only credit card minimums can keep you in debt for  15–20+ years  and cost you  2–4 times  what you originally borrowed.

Question 18

Should I consider Debt Negotiation instead of bankruptcy?

Accepted Answer

Bankruptcy is often viewed as a  last resort.    Debt Negotiation is often a strong alternative—especially to Chapter 13. It aims to:    We are  not a law firm  and cannot provide legal advice, but we have a relationship with an experienced Texas bankruptcy law firm, so you can compare both paths with an attorney and decide what best protects your future.

Question 19

When should I obtain professional help to resolve my debt?

Accepted Answer

You should strongly consider professional help when:      In Texas, creditors can pursue court judgments that may affect your finances, so waiting too long can increase both stress and cost. Our Texas Debt Specialists will review your situation and explain your options before things get worse.

Question 20

Do you lend money to pay off debt?

Accepted Answer

No. Debt Redemption is  not a lender. Instead, we provide Texans access to an  affiliate platform  where you can shop dozens of reputable lenders offering  credit card debt consolidation loans . This:    If you qualify, a consolidation loan can simplify your finances with  one fixed payment , potentially lower your rate, and help you pay off debt faster. If you don’t qualify or it’s not the best fit, we’ll explore other options such as our Texas Debt Relief program.

Question 21

What is Credit Counseling?

Accepted Answer

Credit Counseling is a type of  debt management program  that targets high interest rates—not principal balances. Through a nonprofit credit counseling agency:    Programs typically last about  five years.  You still repay  100% of your principal,  but at a much lower interest cost than staying on regular credit cards. Credit Counseling can be a good fit if you:    If you’re already behind or facing serious hardship, other options like Debt Negotiation may be more appropriate.

Question 22

What types of debt do you assist with Debt Negotiation?

Accepted Answer

Our Debt Negotiation program focuses on  unsecured debts , such as:       We  cannot  include:    In some cases, we may assist with  private student loans  or certain business-related debts, depending on circumstances. The best way to know is to speak with a Texas-based Debt Specialist who can review your accounts and confirm eligibility.

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