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Frequently asked questions

Find answers to some common questions about credit card debt and our role as a debt resolution company.

Am I a good fit for debt resolution?
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The ideal candidate for debt resolution is someone who is experiencing financial hardship that makes it difficult to make payments on their credit card debts. He or she is making minimum or low payments on their cards and sees little improvement in terms of reducing the total amount owed. The ideal candidate is looking to reduce their monthly payments and pay off their debts within a timeframe of 2-4 years as opposed to the decades that it will take by continuing to make monthly payments.

What happens if I miss a payment?
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We understand that you entered the program due to a difficult financial situation. These things take time to improve. However, we want you to be aware that making scheduled payments is critical to your success in your program. The faster you can accumulate savings in your account, the quicker we are able to reach agreements for reduced pay-off amounts on your behalf. Simply put, making your monthly payment is the most important factor in paying off your debts and regaining control of your finances.

Will I be able to use my credit cards?
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No, your enrolled cards will be rendered inactive. We do recommend, however, that you set aside one card to be used for any emergency situations that might arise. This card ideally should have an available balance.

What impact will the program have on my credit?
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More often than not, your credit has already been negatively impacted by the amount of debt you currently owe when compared to your income. Other factors that may be impacting your credit include having a high number of revolving accounts, high utilization levels as well as the amount of your monthly payments compared to what you owe. Our debt resolution plan is designed to pay off your debts in a quick timeframe that will help you achieve your goal of financial freedom. While your credit will likely be negatively impacted during the course of the program, you should be in a better position to build it back up for the long run after resolving and paying off your debts.

Will I receive phone calls from my creditors?
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Our clients may experience some creditor calls. However, we do have systems in place to help minimize creditor calls. Our primary objective is to work with your creditors to reach agreements as efficiently as possible.

Is my data secure?
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At Citizens Debt Relief, we are committed to safeguarding the privacy and security of the personal data entrusted to us. This privacy policy outlines how we collect, use, store, and protect your data to ensure its confidentiality and integrity. By using our services or accessing our website, you consent to the practices described in this policy.

We collect and process personal data only for the purposes specified in this policy. The types of data we collect may include, but are not limited to, names, contact information, financial details, and any other data necessary to provide our services.

How long will it take to resolve all of my debts?
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The time required to complete our debt resolution program will vary based upon how much money you owe and how much you will be able to pay each month to build up the savings required to resolve your debts. Our specialists will work with you to determine the program length that is best suited to get you out of debt quickly while not adding any unnecessary burdens to your current financial situation. Our clients can expect to finish the program somewhere between 2 and 4 years.

When can I expect to start seeing my debts paid off?
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Once you have accumulated a sufficient amount in your program account we will begin negotiating settlements with your creditors. Depending on how much you owe for each of your debts, the timeframe for reaching agreements will vary. Typically, clients can usually expect their first settlement somewhere between the 4th and 7th month in the program.

Where do my monthly payments go?
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Upon enrolling, our clients are set up with their own FDIC insured savings account. A third party processor oversees your savings account and disburses funds to creditors enrolled in the program. Please know that this account is maintained in your name only. It is accessible only with your authorization. You can view your drafts, payments, and account balances and monthly statements online 24/7.

What if my creditor does not work with debt resolution companies?
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Some creditors may tell you that they do not deal with debt negotiators because they want to frighten you into dealing with them directly and accepting a weak offer or perhaps no offer at all. If we enroll a debt belonging to a particular creditor into the program it is only because we have a history of successfully reaching agreements with them on your behalf. Remember, if we cannot reach an agreement then we do not get compensated.

Are there any taxes associated with debt resolution?
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Generally, debt that has been forgiven is considered taxable. There are however, exceptions reserved for hardship. We recommend that you consult with your tax advisor to see if the insolvency/hardship provision is applicable to you.

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