Question 1

When should you seek debt relief?

Accepted Answer

When you're overwhelmed with multiple high-interest bills because of excessive use of credit cards and loans, you need the help of debt relief services to lower your financial burden.

Here are a few other circumstances:

You don't have money to pay back your creditors.
Your credit score is going down every month.
Your creditors are threatening to file a lawsuit.

Question 2

How can you choose the best debt relief program?

Accepted Answer

When you need help with debt relief, you must choose the right program. Otherwise, your problem won't be solved. Here are a few ways to do it:

Ask the debt relief company about the most important features of the program.
Find out if they have certified debt consultants.
Check if they are accredited by the Better Business Bureau.
If you are working with a debt settlement company, ask them if they will open an FDIC-insured bank savings account.
Irrespective of the program you choose, check if the debt settlement company, debt management company, or credit counseling agency follow all applicable laws.
Check out the top debt relief reviews online before deciding.

Question 3

How does a debt relief program affect your credit?

Accepted Answer

It depends on the program you're choosing. If you opt for debt settlement, your credit score may drop slightly since you're paying less than the full amount. But you can always rebuild your credit. Debt consolidation or management helps to improve your credit score gradually. Honestly speaking, it's all about the utilization ratio.

If debt relief services help lower your overall utilization ratio (balance-to-limit ratio), your credit score will increase. Suppose your overall utilization ratio drops from 90% to 20% after settling or consolidating credit cards. In this case, your credit score will improve.

Just make sure you don't close your credit card accounts, since that would negatively affect your utilization ratio. If you have a high utilization ratio on one card, you can counterbalance by having a low overall utilization rate.

Question 4

Will I have to pay tax on the saved amount?

Accepted Answer

You have to pay tax if the creditor forgives more than $600. Suppose you accrued a credit card debt of $20,000. Obviously, you didn't pay any tax on that amount since that was not your income. You used the money for fulfilling your needs but didn't pay back your creditor. Later, you enrolled in a debt settlement program to reduce the total amount you owed. If the creditor agrees to reduce your payoff amount to $11,000, you have to pay tax on it since the IRS will consider $9000 as your income.

Question 5

How much do you have to pay a debt relief company?

Accepted Answer

You have to pay a success fee of 15% on the total enrolled debt after the debt has been paid off. A monthly consultancy fee of $50 for 30 minutes consultation with our savings consultant, tax attorney, and budgeting consultant will also be applied. We adjust this fee with the success fee after your debt is paid off.

Please note: The fee structure varies from company to company. OVLG charges a very nominal fee for managing your debts. Some fraudulent debt relief companies don't follow the FTC rules and Consumer Financial Protection Bureau guidelines. They charge an advance fee without doing anything. Learn more about the OVLG fee structure.

Question 6

What are the questions you should ask a debt relief counselor?

Accepted Answer

Are you accredited or certified?
How do you plan to give me relief from credit card debt?
How much do you charge for your debt relief consultation?
When can I expect to be debt-free?
Do you follow all the rules?
Do you offer free budget counseling?
How can I monitor the progress of my case?
What happens if I leave the program midway?

Question 7

How can you get tax debt relief?

Accepted Answer

The IRS has the power to garnish wages or seize assets when you don't pay tax. So it's better to get relief before it's too late. Here are a few options you can take advantage of:

Offer in Compromise
Installment Agreement
Bankruptcy
IRS Forgiveness Program
Innocent Spouse Relief

Question 8

How can you get student loan debt relief?

Accepted Answer

Like the IRS, the federal government has lots of repayment plans for distressed borrowers. Some of them are:

Federal Student Loan Consolidation
Permanent Disability Discharge
Public Service Loan Forgiveness
Income-Driven Repayment Plans
Teacher Loan Forgiveness
Perkins Loan Cancellation
Death Discharge
Closed School Discharge

Question 9

What are the other ways to get debt relief assistance?

Accepted Answer

You can join hardship programs - Usually, banks offer these programs when existing account holders fall behind their payments due to financial hardship like job loss or prolonged illness. These programs create a repayment plan according to the affordability of account holders. So it becomes easier for them to make payments.

Usually, it lasts for six months to 1 year. Sometimes it can last permanently until the balance is paid off.

You can take out a debt consolidation loan - Usually, banks, peer-to-peer lenders, and financial institutions offer this loan. Consumers can repay their debts with this new loan at a lower interest rate and start making payments on it. This helps to save money.

You can apply for a balance transfer credit card - Consumers can transfer the outstanding balance on a high-interest credit card to a balance transfer card which comes with 0% APR for the first 12 to 18 months. If they can pay off the balance within the introductory period, they would save the entire interest.

Question 10

Can you get debt relief help without paying any fee?

Accepted Answer

Several non-profit organizations can help with debt relief and discover various ways to save money without charging any fee. Some non-profit credit counseling organizations charge a nominal fee for offering solutions best suited to your financial situation.

Before working with a non-profit organization, check if they have the mandatory 501(c)(3) certificate. There are instances where fake non-profit companies have scammed consumers. Scammers open fake non-profit companies to lure consumers with the promise of 'free debt relief services.' Once consumers join the program and disclose their confidential financial information, scammers stop all communication. They use all the financial details for their own profit.

Question 11

Why should you choose our law firm over others?

Accepted Answer

We have a team of debt relief attorneys with excellent negotiation skills.

They know all the debt relief laws and protect you against financial abuse.

We have a No Questions Asked Refund Policy

We charge affordable fees on success

You can track your case 24/7

🧮 Debt Relief Suitability Assessment

⚠️ Important Notice

1Financial Stability Assessment

Employment Status

Emergency Fund Status

Essential Expense Coverage

2Debt Structure Analysis

Total Debt Amount

Monthly Income and Payments

Debt Payment Status

3Alternative Options Evaluation

Nonprofit Credit Counseling

Debt Consolidation Options

4Long-term Impact Assessment

Credit Score Importance (Next 5 Years)

Tax Liability Capacity

Stress Tolerance

📋 Assessment Results

🎯 Next Steps

🔗 Professional Resources