Your debt settlement questions, answered honestly.

Yes, temporarily. During the program you stop making minimum payments, which impacts your score. However, most people considering settlement already have damaged credit from high balances or missed payments. After completing the program and becoming debt-free, credit scores typically recover within 12–24 months. We’re upfront about this — anyone who downplays the credit impact isn’t being honest.

Three things: lower fees (15% vs 18–25%), zero BBB complaints in 21 years (vs hundreds or thousands at national firms), and Texas-only focus meaning deep expertise in Texas consumer protection laws. You also get a dedicated contact person rather than a rotating call center representative.

Most clients complete the program in 24–36 months. Timeline depends on total enrolled debt, your monthly deposit amount, and creditor negotiation outcomes. Some clients with smaller debt loads finish in 12–18 months. We provide a personalized timeline during the free consultation.

Unsecured debts including credit card balances, medical bills, personal loans, private student loans, and collection accounts. Secured debts like mortgages and auto loans cannot be settled. We review your specific debts during the initial consultation.

Yes. Debt settlement is a legal process regulated by the FTC and individual states. However, the industry does have bad actors — which is why verifying a company’s BBB record, reading real reviews, and understanding the fee structure is important before enrolling. Debt Redemption is a BBB A+ Accredited Business with a 4.94/5.0 Google rating.

You can exit the program at any time with no cancellation fees or penalties. All funds in your dedicated savings account remain yours — you have full control. We don’t lock clients into contracts they can’t leave.

It’s possible but uncommon. Most creditors prefer to negotiate rather than pay legal fees. If a creditor does take legal action, we work with affiliated attorneys who specialize in debt defense in Texas. We’ll never leave you without support. We explain this risk honestly during your free consultation so you can make an informed decision.

Forgiven debt over $600 may be reported to the IRS as taxable income on a 1099-C form. For example, if $30,000 in debt is settled for $15,000, the $15,000 difference could be treated as income. However, if you were insolvent (your debts exceeded your assets) at the time of settlement, you may qualify for an exclusion. We strongly recommend consulting a tax professional. We’re upfront about this because too many companies don’t mention it.

Yes, you can negotiate directly with creditors. Some people do this successfully, especially with smaller balances. However, most creditors have professional negotiation teams, and the process can be stressful and time-consuming — especially with multiple accounts. Our 21 years of relationships with creditor settlement departments typically result in better outcomes and faster resolutions than DIY efforts.