Frequently Asked Questions

  • When does Practical Debt Relief begin settling my debt?
    Once you have fully retained our services, your creditors will be notified immediately and Practical Debt Relief will begin the settlement process. We can only settle a debt once the funds are available in your settlement account. Remember, it can take 4 or more months before enough funds are accumulated in your special account before we can begin making serious offers.
  • If I miss a Monthly payment, will I get dropped from the program?
    No. Simply call our Customer Service Department and we will make the appropriate arrangements. We understand that circumstances may arise and will help you get back on track with your payment schedule.
  • Will my creditors continue to call me ?
    Probably. We notify your creditors of our representation and inform them that they should contact us with respect to settling your debt. Most creditor calls stop within 30 – 60 days. If you continue to get calls, call our Customer Service Department and they will again contact the creditor informing them of our representation. You do have rights covered under the Fair Debt Collection Practices Act. We will inform you of ways to protect yourself from undue harassment and abuse. Please be sure to keep a log of all calls you get from creditors with respect to the debt you put into our program.
  • Will this program have a negative effect on my credit ?
    Yes. The Debt Settlement Program may have a negative effect on your credit profile. However, once you complete the program your lower debt to income ratio and the elimination of all outstanding debt will help to increase your score as your creditors will report the accounts as either “Paid,” “Settled in Full,” “Settled,” or “Paid as Agreed.”
  • What is unsecured debt ?
    A debt that is not tied to any item of property. A creditor does not have the right to grab property to satisfy the debt if you default. The creditors only remedy is to sue you and get a judgment.  Examples are: most credit cards, department store card and unsecured loans.
  • What is secured debt ?
    A debt on which a creditor has a lien. The creditor can institute a foreclosure or repossession to take the property identified by the lien, called the collateral, to satisfy the debt if you default. An example is your house or car.
  • What are the tax consequences of your program?
    Your creditors may provide a form 1099–C for cancelled or settled debt exceeding $600 which you are required to report to the IRS. The IRS permits individuals to legally exclude forgiven debt from their income through the "insolvency exclusion". This permits you to write off any forgiven debts up to the amount by which you were "insolvent" at the time. If your total debt and liabilities exceed the fair market value of all your assets, you would ordinarily qualify for the exclusion. We recommend that you consult your tax advisor for advice specific to your situation. They will also be able to assist you on filling out IRS Form 982 to get the exclusion.
  • Is the information I give Practical Debt Relief confidential?
    Yes, all information you give Practical Debt Relief is strictly confidential.
  • Can I still use my credit cards if I use this program ?
    Yes. However, any account that you enroll in the program will no longer be active. Any cards you do not put into the program should only be used for emergency purposes. This program is for you to get out of debt and to get you back on your feet financially. Also, it is possible that your active credit cards can lower or close your credit card account through routine credit checks.
  • Can the creditors garnish my wages or pursue legal action against me ?
    Lawsuits are not common but your creditors have the right to pursue legal action to recover their money. In our experience, most creditors would rather not go to the expense of suing you. The threat of lawsuits is a common tactic of aggressive creditors or collection agencies. The reality is that such action rarely occurs. It takes time and costs money to file a lawsuit and even more to collect on a judgment. Creditors realize that if they push you too hard they run risk of you filing for bankruptcy, in which case they often receive nothing.
  • Does Practical Debt Relief repair my credit?
    No. Practical Debt Relief's purpose is to reduce your debt and does not engage in credit repair services. Negative items will remain on your credit report according to the conditions imposed by the credit bureaus. Settled accounts with a zero balance are positive when compared to unresolved delinquent debts or bankruptcy. After all your debts have been settled and paid, your credit score should begin to improve since the negative items have been resolved. There are several factors used to determine your credit score including your debt amount, balance to limit ratio, payment history, length of credit history, and types of accounts. Although your payment history will be affected with a debt settlement program, your debt amount and balance to limit rations will be greatly improved. As each of your accounts are settled throughout the debt settlement program you are then free to rebuild your payment history on your new or existing accounts and rebuild a solid credit profile.
  • Is there a penalty for paying my debt off sooner than my program requires ?
    Absolutely not. There is no pre-payment penalty.
  • Can Debt Settlement be better than Bankruptcy ?
    Absolutely! Bankruptcy stays on your credit for 7 – 10 years and can affect you for the rest of your life. With our program, the debts you enroll may be completely satisfied in 1 – 3 years* getting you back on track to financial freedom.
  • Can’t I just settle things myself ?
    You can try. However, each financial institution and collection agency has its own policies and procedures and you need to know what they are to be successful. Also, you must use different negotiating strategies with different financial institutions and collection agencies. What works with one will usually not work with another. In fact, your approach with one company could trigger a lawsuit with another company. In addition, you need to know what constitutes a good settlement offer. Our staff of IAPDA certified debt arbitrators are professionals at this. The key is knowing when to accept a certain offer versus holding out for a more favorable one. Many creditors threaten litigation to intimidate you.  Most of the time, they are bluffing. How do you know when they are bluffing as compared to being a real threat? Don’t drive yourself crazy over this! Let our experienced professionals take care of the leg work. To sum it all up, we are better equipped to deal with your settlement.
  • Can you guarantee that my creditors will settle for a lower balance? Do you guarantee a percentage?
    There are no guarantees with the program. However, our Debt Negotiators have experience in the industry and have established relationships with creditors. They are able to settle with just about anyone and if the creditor is not cooperative, we move on to the most eager creditor and work our way down the list.
  • How are the funds controlled and disbursed?
    Your funds will be held in a special account that we cannot access. You and Practical Debt Relief will be able to view it as its balance builds. Once the balance reaches a point where we can make a reasonable settlement, funds are disbursed from the account directly to the creditor.

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Call 1-888-839-3574
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I didn’t think it was possible to cut my debt by over half. The stress of the phone calls and loss of credit was causing my blood pressure to skyrocket. Now, I feel much more relaxed and know I am on the plan to success. Thank you Practical Debt Relief.
Bill, Florida

Thanks for your hard work and being so patient with my Crazy Debt Situation. I am sleeping better at night because of you.
Nathan, New York

I never knew I had so many options when it came to handling my debt. Thank you Practical Debt Relief for taking me through the process and caring for my situation. The results are fast and impressive.
Kristi, California


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Practical Debt Relief, Inc.
5210 S University Dr Suite 104 Davie, Fl 33328
● Phone: # 888-839-3574 ● Fax: # 888-853-7651