FAQs

Absolutely. Debt settlement companies must be federally regulated and properly licensed, bonded, and registered in each state where they operate. You should never pay any upfront fees for these services—if asked, take that as a red flag. We’ve been offering trusted debt settlement support for over a decade, ensuring people receive ethical, transparent assistance.

With debt relief (or settlement), the goal is to reduce your overall debt balance. After negotiations, you pay a portion of what you originally owed, and creditors agree to forgive the rest. In contrast, debt consolidation merges all your debts into one loan—often at a lower interest rate—requiring a higher credit score to qualify. Debt relief involves lowering the principal; debt consolidation simplifies multiple debts into a single loan.

If you’re juggling large balances, living paycheck to paycheck, and struggling to cover minimum payments, the pressure can take a toll on you and your loved ones. By joining our program, you can reduce that burden, regain financial control, and settle your debts for less. This frees you up to focus on what truly matters—your family or career, enjoying life to the fullest.

The short answer is—probably yes. It’s important to recognize that debt settlement can affect your credit score, sometimes negatively. Our focus is on negotiating with your creditors to secure debt relief—ideally settling your unsecured debt for less than its original amount. The timeline and outcome depend on various factors, including your credit report’s status when you begin and how other debts (including those owed to us) might impact the process.

We specialize in helping clients resolve unsecured debts, such as credit cards, retail cards, medical bills, private student loans, or payday loans. We call them unsecured because they’re not tied to collateral. If you’re facing debt in these areas, our solutions aim to empower you toward financial stability.

(1) Your initial debt analysis is free, confidential, and comes with no obligation, allowing you to explore your options without commitment. (2) If you decide to proceed, you can join our program with no upfront cost. (3) We’ll negotiate a settlement with your creditors on your behalf. (4) Once an agreement is reached, you review and accept the terms, then begin a manageable monthly payment plan. (5) Our rates typically range from 15% to 25%, applying only after a successful settlement, depending on your location.

Anyone struggling financially with unsecured debt—especially those who are behind on payments or having trouble covering the minimums—may qualify. You must have at least $15,000 in total unsecured debt and owe each creditor $200 or more. This approach helps ensure we can effectively negotiate on your behalf.

The program duration varies, typically between 12 and 60 months. This depends on the total enrolled debt and the monthly amount you choose to deposit into your dedicated account. We’ll work with you to develop a realistic timeline based on your circumstances.

You can try negotiating on your own, but it often takes specialized knowledge and a lot of patience. Even a small oversight could reduce any potential savings. At Moneymend, our experienced negotiators have spent years building relationships with creditors, helping us secure more favorable settlements on your behalf. While our fees usually range from 15% to 25% (depending on your location and total debt), many clients find the peace of mind and time saved well worth the cost.

Once you’ve reached a settlement, you won’t be able to use the cards included in the program. We suggest keeping one credit card out of the program for emergencies. Ideally, it should be a card you intend to keep and that still has available credit.

Everyone’s situation is unique. If something unexpected occurs and you need to adjust your payment schedule, we’re here to help you make those changes. Please contact our Customer Relations Team at least seven days before your scheduled deposit date to pause or change any automatic payments.

You may need to pay taxes on forgiven debt, though it isn’t always required. If more than $600 of debt is forgiven, creditors typically issue a 1099-C form. Under tax law, forgiven debt can be considered income. However, if you’re insolvent at the time of settlement, you may not owe taxes on that forgiven amount. We recommend discussing any forgiven debt with a tax advisor to understand your personal situation and potential tax implications.

Per your credit card agreements, creditors can continue charging interest and late fees if payments aren’t made. While you’re establishing and funding your dedicated account, your balances may temporarily rise. Our goal is to negotiate new terms with your creditors that reduce your overall debt, including any added interest or fees from the time you entered our program.

Yes. Funds in your dedicated account are insured up to the current FDIC limits, which presently stand at $250,000.

If you believe a creditor is violating collection laws, you may have grounds to take legal action. We continually monitor communications and any letters sent by your creditors. When a legal line is crossed, we partner with a debtor’s rights firm that can step in on your behalf, fighting for your rights and peace of mind.

If you receive any legal paperwork, please forward it to us right away. We work with law firms across the country to help manage urgent negotiations or represent you as needed, ensuring that you’re supported throughout the legal process.

If you receive calls from creditors or collection agencies, let them know you prefer written communication due to your financial situation, as there’s no legal requirement to speak by phone. If the calls persist, reach out to our account management team for guidance. While we’re not a law firm and can’t offer formal legal advice, we can remove creditors from the program if they refuse to settle. Moreover, if they decide to take legal action, we will provide resources to help you handle the situation.

Collection calls are a normal part of the debt settlement process, but federal and state laws protect you from harassment. Some of our clients do receive occasional calls from collectors. We equip you with strategies to handle these interactions and minimize disruptions. We know how stressful and disruptive credit calls can be. That's why we distinguish ourselves from competitors by taking prompt action. We send a Power of Attorney (POA) letter to your creditors typically within 48 hours of your enrollment, which should stop these unwanted calls.