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Debt Redemption FAQ

  1. Our Texas Debt Relief services are typically 40% LESS compared to most competitors, especially out-of-state companies.  Please see our lowest-fee guarantee FAQ.
  2. Debt Redemption is 100% veteran-owned, Rated A+ with the Better Business Bureau, and has been serving Texans for two decades.  Please read all our BBB complaints by clicking here: Debt Redemption Better Business Bureau
  3. We specialize in servicing Texans exclusively.  We believe our clients have an advantage over “cookie-cutter” or “assembly line” programs from the Debt Relief companies working nationally.  We also feel that by focusing on helping fellow Texas, we can do it much more efficiently, and we 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 towards the settlement.  Fees are charged proportionally to the settled debt balance.
  5. In-person consultations are available at some Texas locations.
  6. We offer multiple debt solutions.  Please see the following FAQ.

With multiple offices in Texas, our Debt Specialists specifically help Texans resolve very high credit card debt and personal loans with numerous options, including the following:

  1. Our Texas-based Debt Relief Program to negotiate forgiveness of a large portion of your credit card and personal loan debt balances.
  2. An affiliate platform to help you shop lenders for the best credit card debt consolidation loan.
  3. A highly-rated Credit Counseling resource to reduce your credit card debt interest rates without a new loan.
  4. Advanced Hardship Programs utilizing the Texas Finance Code.  These programs provide an additional alternative to bankruptcy for Texans who meet certain hardship guidelines.
  5. Assistance with the resolution of creditor lawsuits.
  6. We can also provide you with a highly-rated Texas bankruptcy law firm if you prefer to pursue bankruptcy or compare bankruptcy to non-bankruptcy options.  The bankruptcy law firm offers affordable payment plans to clients referred by Debt Redemption.

Debt Redemption is not a lender.  We offer an affiliate platform to shop dozens of lenders who provide credit card Debt Consolidation Loans to Texas residents in addition to our Texas Debt Relief services.  Shopping multiple lenders with our affiliate platform is free, and it will give you an advantage compared to applying with an individual lender.  Another benefit is that reviewing the offers from many lenders will not impact your credit score.  If you have been previously unable to qualify for a Debt Consolidation Loan, speak to one of our Texas Debt Specialists about our affiliate platform or options to resolve debt without any new loans.  Our Texas Debt Relief programs often provide a monthly program payment of less than half compared to high-interest minimum payments.

Debt Negotiation is a type of Debt Relief, also referred to as Debt Resolution or Debt Settlement.  This method resolves your unsecured debt by negotiating a lower amount to pay your creditors and settle in full with a zero balance.  The process involves setting money aside in a new special purpose account rather than making small monthly payments to your creditors.  Each enrolled debt is negotiated and settled one at a time using money that accrues in the special purpose account until all debts are settled with a zero balance remaining.  The monthly amount you set aside is often less than half compared to making high-interest credit card monthly payments and the time frame to resolve the debt is often 24 to 48 months, depending on your budget.

Credit Counseling is a hardship program designed to reduce your credit card interest rates, often down to somewhere between 5 to 11 percent without a new loan.  Depending on your current interest rates, the program is likely to lower the monthly cost of your debt and provide you with one convenient monthly payment.  These programs will also accelerate your ability to pay off your debt.  Most Credit Counseling programs are structured to last about five years.  Credit Counseling will not negotiate down your balances, only your interest rates.

Debt Negotiation is a hardship program to negotiate your debts for less than the balances owed.  The programs are often able to provide a monthly cost lower than half compared to making minimum payments.  Depending on your monthly budget, the program term is usually estimated to last between 24 to 48 months but could be longer or shorter than estimated depending on the final settlement amounts.  During this process, your debts go into a delinquent status or remain delinquent while making a monthly payment into an FDIC insured Special Purpose Account.  Each debt is then negotiated and settled one at a time using funds accrued in your Special Purpose Account.

It is illegal for any company to make such a guarantee.  We will provide a realistic good-faith estimation using historical settlements from two decades of experience and factoring in the specific creditors you owe.  We have found it common for many other companies to make unrealistic claims and “bait and switch” their clients.  These tactics are often uncovered by reading the patterns of Better Business Bureau complaints.  One of the largest out-of-state Debt Relief companies was sued by the federal government and several state governments for charging high fees and providing unrealistic outcomes.  Our goal is for our clients to graduate sooner than estimated as much as possible, although some clients will be enrolled longer than estimated due to various factors.  Debt Redemption will not give you an unrealistic expectation to convince you to enroll.  Speak to one of our Texas Debt Specialists if you want an honest evaluation.  We will always work hard on your behalf to save you the most money possible.

Credit Counseling is a form of Debt Management that can lower your interest rates with credit card debt and some installment loans while providing one monthly payment.  It is considered a form of Debt Consolidation that does not require a new loan.  Both Credit Counseling and Debt Negotiation are considered hardship programs, but Credit Counseling does not negotiate the balances.  Only the interest rates are reduced.  We have an arrangement with a highly rated non-profit Credit Counselor if you would like to pursue this option.

Your new interest rates are highly dependent on the specific creditors that you owe.  Credit card companies will often reduce your interest rate down to 11% or less through an arrangement with the Credit Counselor.  If you already have low credit card interest rates or installment loans, there might not be many benefits with Credit Counseling.  In some cases, Credit Counseling will meet your needs and goals.  Our Texas Debt Relief program is often a better option in many situations, especially if you need the lowest monthly cost possible and want to resolve the debt in the shortest time without bankruptcy.

Consultations are entirely free with no obligation.  Our Debt Negotiation fees are performance-based.  Clients pay our company no fees until a debt is negotiated and settled, with at least one payment to the new negotiated balance.  Our negotiation fees are a flat 15% of your enrolled debt and factored in your new affordable monthly program payment.  Most Debt Relief companies charge 20% to 25% of your enrolled debt.  In other words, our Texas Debt Relief fees are 25% to 40% LOWER than most other companies.  Our fees do not include any optional third-party fees administered by a separate provider. 

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 Texas Debt Relief program is designed by Texans and created solely to give Texans an advantage.  Out-of-state and national debt relief companies usually charge between 20 and 25% of your enrolled debt as a “performance” or “contingency” fee.  You could easily pay 25% to 40% higher fees by using another company to resolve your debt. 

We have a low overhead since we only serve our home state.  We do not have the expense of substantial national TV and internet marketing campaigns seen by national-type companies who pass these high costs down to their clients.  We provide full-service Debt Negotiation with performance fees of only 15% of your enrolled debt.  We only charge performance fees according to the amount of debt settled after payment towards the settlement.  

If you are a Texas resident qualified for our Debt Negotiation service after a free 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 $250 Visa gift card with the following simple requirements:

  1. As state law requires, the competitor is registered with the Texas Office of Consumer Credit Commissioner.  Please note that it is criminal to offer debt relief or debt management in Texas without proper licensing.
  2. The competitor is rated “A-” or higher by the Better Business Bureau.
  3. We receive verifiable written proof of the competing offer.

The guarantee only applies to our performance fees for Debt Negotiation services and does not apply to any optional third-party service.  Please speak to one of our Texas Debt Specialists for more information.

It depends on your credit standing upon enrollment.  Anytime you do not make your payments as initially agreed to your creditors, it will negatively impact your credit rating, whether you enrolled in a program or not.  If you are delinquent, your credit should start to improve as debts settle with a zero balance due.  If you have been making on-time payments before enrollment, your credit scores will decrease since enrolled debts must be in a delinquent status to obtain forgiveness of a large portion of your balances.  As long as you make on-time payments with other debt, such as mortgages or auto loans, you should be able to rebuild your credit relatively quickly after all of your debt is resolved with a zero balance.  Also, consider that your debt-to-income ratio is likely very poor if you struggle with debt, even if you have a good credit score.  A good credit score is practically worthless if you cannot use it, not to mention that if you are struggling with your debt now, how would you make additional debt payments without increasing your income?  Once your debt is gone, your debt-to-income ratio will improve tremendously, and you will have a lot more buying power relative to your credit score.  Remember, you can always get an excellent credit score back, but you cannot get the money back lost to high-interest payments.  Debt Redemption is not a credit repair organization.

In contrast to Debt Negotiation, credit counseling programs make monthly payments to your creditors.  These programs do not negotiate the balances down, and your only savings is from a lower interest rate.  Therefore, your credit rating shouldn’t fall as much as going delinquent, but it will decrease if you have excellent credit upon enrollment.  The decrease is from your enrolled debts being closed with no available credit.  Furthermore, creditors will note that you are in a debt management program which may be seen as like a “soft bankruptcy” to lenders if you try to apply for new credit.  While this is not bankruptcy, lenders know that you had to hire a company to manage your debt for you, so you are unlikely to be qualified to obtain any new debt while enrolled other than perhaps high-interest predatory loans.  Compared to a Debt Negotiation program, we have never seen a creditor note that someone hired a company to settle their debt.  Also, Debt Negotiation programs are usually much shorter if comparing the same monthly cost, and you can start rebuilding your credit as soon as you graduate.  Choose a program that best fits your needs and goals.


We can enroll credit cards, unsecured installment loans, medical bills, department store loans, payday loans, and most other unsecured debts.  Unless the collateral has been or will soon be repossessed, our program cannot assist with secured debt, including home and auto loans.  Student loans backed by the department of education are not eligible, but free student loan assistance is available at https://studentaid.gov.  We do assist with some private student loans and some business debt.  Please speak to one of our Texas Debt Specialists for more information.  

The negotiation process by itself will not stop creditors or debt collectors from calling you.  Even if creditors know they will ultimately receive a settlement, individual debt collectors usually receive a commission based on the amount they collect from you.  Therefore, they may call you directly in an attempt to collect more money than our negotiators may arrange.  Texas has specific consumer protection laws that protect you in addition to the federal Fair Debt Collection Practices Act.  The Texas Finance Code can prevent nearly all harassment from original creditors and third-party debt collectors when enforced.  Debt Redemption has an exclusive, affordable arrangement with who we feel is the top debt defense attorney in Texas.  By retaining the attorney, in addition to our program, Texas law will be enforced, making it illegal for creditors and debt collectors to harass you by phone.  Instead, they will only be authorized to call the law firm or our settlement representatives. 

The legal representation is optional and separate from our Debt Negotiation service.  The cost of both services combined may be comparable to or less than out-of-state competitors that cannot offer this type of legal service through a specialized Texas law firm.  We do not know of any other company inside or outside Texas that can offer this high level of optional legal protection.  All other companies we know of can only provide a reactionary legal insurance plan that does not mandate the creditors to talk to a law firm rather than you.  We also offer an optional reactionary legal plan if that is all you require.  If you do not utilize this optional legal representation, our negotiation team will help reduce the number of calls you receive as much as possible.  However, most creditors and debt collectors will attempt to call you until a settlement agreement is in place.

Since we only service Texans, we are very efficient at it, and we do not have the high national advertising expenses of national type or out-of-state Debt Relief companies.  Therefore we can provide a very high level of customer service with performance fees typically 25% to 40% LESS compared to out-of-state companies.  We also understand Texas-specific consumer protection laws to help leverage these laws to your advantage.  We have found many out-of-state companies are charging Texans high fees well above our state regulations.  In contrast, our performance fees are significantly lower than the state regulation. 

A scary truth is some out-of-state companies are not licensed in Texas and do not have your best interest in mind.  We are often asked to clean up the mess these companies make since they may not have the Texas resources or level of service needed to help ensure success.  Any Debt Management or Debt Relief company doing business with Texas residents and not registered with the Office of Consumer Credit Commissioner is breaking the law.  It is not hard to imagine how a company that violates the law will treat clients.  Any Debt Relief company should also provide an honest and realistic estimation of your potential savings and the amount of time it will take to resolve the debt. 

Federal and state law prevents Debt Relief companies from charging their fees until after a debt has been settled.  When researching any company, check the Better Business Bureau report at http://bbb.org.  Read how long the company has been in business, Accreditation, rating, and review any complaints filed against the firm since companies cannot hide or use fake reviews to hide these complaints. 

To negotiate forgiveness of a large portion of your debt balances, the debt must go delinquent to demonstrate a hardship.  While most individual debts enrolled do not experience a lawsuit, any time you do not follow the original lending agreement, whether enrolled in a program or not, the creditor has the right to use the civil court system as a method of debt collection.  However, most creditor lawsuits can be avoided by prioritizing settlement on debt at risk of a lawsuit.  Texas also has very high consumer protection laws compared to most other states, making it difficult or impossible for a creditor to collect a judgment in many situations.  If a judgment would be difficult to collect, using a lawsuit as a method of debt collection is less attractive to a creditor.  We have extensive experience with this method of debt collection in Texas as we enroll many clients with pre-existing lawsuits and judgments. 

Many of our clients utilize optional affordable legal representation from whom, in our opinion, is the very best debt defense attorney in Texas.  This highly rated and awarded attorney is not available as a separate option with any other Debt Relief company.  The advantage of having the attorney retained upfront is that creditors will understand that you have legal representation, providing additional protection to minimize lawsuits.  This reduces the creditor using a lawsuit as a debt collection “scare tactic.”  The attorney will also take action to attempt to avoid a lawsuit whenever necessary.  If a creditor still files a lawsuit, the Texas debt defense attorney will represent you and protect your best interest. If necessary, an attorney would handle court appearances on your behalf.

Although the legal representation is optional and separate from our Debt Negotiation service, our performance fees are 25% to 40% less than most competitors.  Our much lower fee makes adding the optional legal representation with the highly-rated attorney affordable.  If you utilize the optional legal representation, the law firm will also handle all creditor calls on your behalf to give you peace of mind throughout the process while our negotiators resolve your debts.

Alternatively, we can provide a quality reactionary only “pre-paid legal” or “legal insurance” plan like most competitors may offer.  While the cost is lower, this plan will not provide any proactive upfront legal representation but will find you an attorney and cover the cost to represent you if you experience a lawsuit while enrolled.  The legal insurance plan plus our Texas-based Debt Negotiation plan provides a closer “apples to apples” level of service to what most competitors offer.  However, with our performance fees, usually 25% to 40% LESS than a competitor, the savings when choosing us can be enormous.  

Clients usually enroll all unsecured debts with balances over $1,000.  You may keep out a credit card with a balance under $1,000 if it remains under $1,000 while enrolled.  You may also keep out credit cards that you can pay down and keep under $1,000 within six months of enrollment.  It is not in your best interest if your enrolled creditors see that you can pay other unsecured debt with significant balances.  Doing so could make it more difficult for your negotiator to obtain the highest possible savings for you.  Your Texas Debt Specialist will discuss any exceptions after reviewing your creditors and situation.  

In Debt Negotiation, we utilize a highly rated third-party company called Debt Pay Gateway.  Funds are held in your FDIC special-purpose custodial account to fund settlements and pay our performance fees when they are due.  We only collect performance fees after settling a debt, and at least one payment is made towards the new negotiated balance.

Sometimes creditors may send you a 1099-C for the debt amount forgiven, which the IRS could consider a taxable income.  The IRS provides Form 982 Reduction of Tax Attributes due to Discharge of Indebtedness.  This form may exempt you from owing any taxes on the forgiven debt, depending on your assets.  According to IRS.gov “A taxpayer is insolvent when his or her total liabilities exceed his or her total assets.  The forgiven debt may be excluded as income under the ‘insolvency’ exclusion.  Normally, a taxpayer is not required to include forgiven debts in income to the extent that the taxpayer is insolvent.”  We recommend speaking with your tax advisor if you receive a 1099-C.

In Debt Negotiation, if you are current or less than six months delinquent, creditors will add or continue to add some interest and possibly late fees onto your balances for at least the first few months of delinquency.  We factor this additional amount upfront in our program estimations.  Any amount added is included as part of the settlement, and you only pay performance fees based on your enrolled balances.  Remember that interest will continue to accrue on your debts regardless of whether you are making your minimum monthly payments. 

Yes.  Some people elect to do their taxes, make significant repairs to their homes, and service their vehicles.  Most people prefer to have experts in the field handle these tasks.  We have seen people make mistakes and debt collectors then go after them for the total balances.  Dealing with professional debt collectors can be very stressful for someone who is not trained and does not do so daily.  In addition to the time, effort, and knowledge that you need, an experienced debt negotiator may have the ability to obtain lower settlements.  The debt collectors that deal with consumers are highly trained to get the most money possible and usually receive a commission based on the amount they can collect from you.  Our negotiators often speak to separate business-to-business representatives with the creditors and collection agencies on a professional level.  Sometimes our negotiators also leverage multiple debts owed by multiple clients to negotiate a “bulk” savings.  If you would like to negotiate debt independently, our Texas Debt Specialists will provide you with resources to help you succeed at no charge. 

Each debt is negotiated one at a time as money accrues in your special purpose account.  Negotiations usually begin about six months into the program since this is when most creditors start offering our negotiators the highest reductions of your balances.  The exact time when negotiations start depends on how your program is structured, the status of your debts upon enrollment, and the creditors owed.  After each settlement is completed, you will receive a document verifying a zero-balance due.  

Depending on your monthly budget, we usually estimate our programs anywhere from 24 months to 48 months, although we have had clients with the ability to complete a program in as little as three months.  In extreme hardship cases, we will sometimes estimate programs to approximately 60 months to provide the lowest possible monthly program payment.  Any Debt Negotiation program can be longer or shorter than estimated, depending on the amounts of the final settlements.  If you only make the minimum payments, you might stay in debt for the next 15 or 20+ years.  Assuming you do not make any more charges on your credit cards, only making minimum payments could still cost you 2x, 3x, or even 4x as much as you originally borrowed. 

We believe most Texans only want to consider bankruptcy as a very last resort.  If you qualify, chapter 7, then bankruptcy can be a quick way to eliminate unsecured debt.  It will remain on your credit report for ten years after chapter 7 is discharged or seven years after a three-to-five-year repayment plan from chapter 13.  Bankruptcy may affect your qualification for employment, some licensing, insurance, and your qualification to buy a house long after the discharge.  It is also important to understand that bankruptcy is a public record and can easily be found in background checks, potentially for the rest of your life.  


Since the bankruptcy laws changed years ago, many more people cannot qualify for chapter 7 due to their income and assets.  Chapter 13 bankruptcies became much more common, which is restructuring your debt repayments.  This means you will pay either a portion or all of your debt while still suffering the consequences of bankruptcy.  Debt Negotiation is an excellent alternative to a chapter 13 bankruptcy in many cases.  In some cases, the Debt Negotiation program can be less than chapter 13, and in other cases, it could cost more.  We are not a law firm, and we do not provide legal advice.  We have a special arrangement with a very experienced and highly-rated Texas bankruptcy law firm to provide statewide bankruptcy services.  The law firm can help you obtain an honest comparison of bankruptcy to Debt Negotiation. 

Many of our clients have accumulated tens of thousands or hundreds of thousands in high-interest unsecured debt such as credit cards or personal loans.  Some could barely cover the minimum payments or had already fallen behind.  The financial hardship is often caused by income loss, divorce, high-interest rates, the Pandemic, or simply due to inflation.  If you are making your minimum payments but have no savings, investments, or retirement because of never-ending debt payments, talk to one of our Texas Debt Specialists today.  If you haven’t made payments in months and face lawsuits from your creditors, we can also provide affordable help.  Your Texas Debt Specialist will learn about your unique situation and discuss multiple options to resolve your debt as quickly and affordably as possible.

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