Frequently Asked Questions about Debt Elimination

Here are the answers to the most commonly asked questions about debt elimination.

What is debt elimination?

Debt elimination is very similar to debt consolidation and works in much the same way. Eliminating debt with a professional service usually involves the application of reduced interest rates that your company has negotiated with your creditors ahead of time. With lower interest rates, it's easier to eliminate debt because your monthly payments are reduced and more of your money goes toward paying down the principal of the debt. In exchange for access to the exclusive low interest rates, you pay a small fee to participate in the elimination service.

How much does debt elimination cost?

Different companies have different fee schedules. You will usually have to pay a commission fee up front and then a monthly fee as you go. The monthly administrative fee is typically about $10-$40 and covers the company's overhead costs as they handle your bill payments.

How can I sign up to eliminate my debts?

Getting started with a debt elimination service is simple. Before you enroll, though, it's a good idea to have a consultation with an advisor about your debt situation to discuss exactly how the program can help you. When you complete the sign-up form on our site, you will be referred to an elimination service that can provide you with a free consultation. Just fill out the sign-up document, and you will get a chance to talk with a professional with no strings attached.

How long does a debt elimination program take?

On average, you can become debt-free with a debt elimination program in four to eight years. The amount of time it takes for you to get out of debt will depend on your creditors, interest rates, and the size of your debts.

What's the minimum amount of debt I must have to participate?

You should have at least $5,000 in unsecured debt (meaning debt not tied to physical property) in order to qualify for debt elimination.

Will I have to cancel my credit cards when I sign up for the program?

Yes, debt elimination does require that the credit cards included in the program be canceled. You might be able to keep one card for emergency purposes. Get on a debt diet on the next page.