Frequently Asked Questions

What is debt settlement?

Debt settlement occurs when you and a creditor agree on a reduced balance to be regarded as full payment of the debt that you owe. This type of program is also known as Debt Relief, Debt Resolution, and Debt Negotiation.

How does Clean Slate's program work?

We offer debt settlement to Americans who are having difficulty paying off their unsecured debt due to a financial hardship. The unsecured debt includes credit cards, medical bills, personal loans, and private student loans. Our program is designed to quickly resolve your debt for signifiantly less than you owe. We will provide you with a debt evaluation to quickly decide if our program is right for you. We will work with you to design a program that fits your monthly budget. Once enrolled, Clean Slate's skilled certified negotiation team will create a strategy to get you the best results.

Is debt settlement the same as debt consolidation?

No, The debt settlement process involved negotiating more favorable terms with you creditors. Typically, that includes waiving some of the principal and stopping the interest. You pay one simple monthly payment. With a debt consolidation loan you still have to pay interest and your full principal balance.

How long does your program take?

The duration of the program depends on the time it takes a client to build up necessary funds to settle. Our average client completes the program from 24-48 months. Clients who are able to contribute more than what is scheduled will complete the program alot sooner than predicted. Compare this to the 20 plus YEARS you would be paying your creditor if you just made the minimum payments each month.

Can you help me with all my debt?

Our team specializes in settling all types of unsecured debt. That includes credit cards, private student loans, medical bills, and personal loans. However, most of our clients hire us primarily to settle their high interest rate credit card debt.

How does debt settlement affect my credit?

Once you begin the program, you will stop paying your creditors which could negatively impact your credit temporarily. After debt settlement your credit report should reflect "settled" for those accounts we have worked with together. This should result in a positive effect on your credit. By engaging in good credit behavior, anyone's credit score should recover over time. Our goal is to help you get out of debt as fast as possible by negotiating with your creditors to get them to accept significatly less than what you currently owe. If getting out of debt is more important to you than the likelihood that your score will be negatively impacted, our program could help you resolve your debt faster and for less.

Can I negotiate on my own?

Yes you can. You can also do your own taxes and repair your own car, but most people would rather leave these tasks to experienced professionals. Our knowledge and expertise puts us in a strong position to stand up to your creditors and fight for the best settlement possible.

Should I include all of my credit cards in the program?

It is reccomended that you include all of your credit cards with balances of $500 or higher into the program. Our job is to show your creditors that a hardship has occured and you can no longer pay as agreed. If you continue to make payments to some of your creditors, it makes it difficult to convince the other creditors that there is a legitimate hardship.

Will I have to take out another loan to cover my current debts?

No. Our debt settlement program is a debt reduction program. We use our expertise to negotiate more favorable terms with your creditors. Typically, that includes waiving some of the principal and stopping the interest. With a debt consolidation loan you still have to pay interest and your full principal balance.The last thing you want is do take out another loan.

Do you begin negotiating with my creditors immediately?

Negotiation activity is typically very limited until you have saved up enough in your settlement account to make reasonable offers to your creditors. The first settlement usually occurs between the 4th and 6th months of a client’s program. This varies greatly depending on your monthly deposit amount, the number of creditors you have enrolled in the program, and the balance of each individual account. In some instances, it may take more than six months before the first settlement is reached.

How much does debt settlement cost?

In Clean Slate's program, clients pay NO fees until a debt is negotiated. Once a settlement is reached with a creditor we immediately contact you for approval. After you approve the settlement and a payment is made to your creditor, the fee associated with the debt is processed. All fees are included in the monthly savings quoted to you by a credit advisor at enrollment. Our fees range from 15% to 25% of the debt balance.

Are debt settlement companies legitmate?

Absolutely. Clean Slate Finance is an accredited member of the American Fair Credit Council (AFCC). All of our credit advisors are certified by the International Association of Professional Debt Arbitratrors (IAPDA). Our company participates in a voluntary annual audit to ensure the company is complying with all laws and industry best practices. Clean Slate Finance only collect fees on debts that we successfully settle for you.

Do you guarantee you will settle all of my debts for a certain percentage?

No, Settlement amounts are dependant on your creditors, how much you owe, the state you reside, how long you have had the debt, and several other factors. There is no guarantee as to how the negotiations will go. Clean Slate Finance typically averages between 48% to 52% across all debt.

Will debt collectors call me?

Most of our clients will experience some collections calls. However, there are state and federal laws to protect consumers from collections harassment. You are not obligated to speak with them. In fact, we recommend that you do not, as it will interfere with the negotiation process. Once they know they are unable to reach you for a payment, they will be calling us to work out a settlement on your behalf.

Can I be sued?

A creditor is well within their rights to turn your debt over to a third party collection agency or a law firm. Just because a creditor is awarded a judgment by the court does not mean they are able to collect on that judgment. When a judgment is awarded, it is still up to the plaintiff to recover their money. The court does not require the debtor to pay, and will not even help collect. If you get sued, a lawsuit is to force a settlement on the matter. In our experience, most creditors would rather NOT go to the expense of suing and simply try to negotiate a settlement. Even if a lawsuit is filed, we will work to negotiate a settlement without a judgement being reached. In your enrollment process we go over these types of scenarios and steps we can take to prevent this from happening.