Frequently Asked Questions

• Do I Really Need a Debt Reduction Loan?

If you are struggling making your monthly payments, close to defaulting on a loan or close to filing for bankruptcy then yes, you do need a debt reduction loan.

• So I Pay a Lower Monthly Payment, What's the Catch?

The only catch, if you want to call it that, is that you will end up paying more for the reduction then you would if you paid all your bills off by yourself. The fact that your monthly payments can be dramatically increased can make this a much better option then struggling to pay your current bills.

• Is a Debt Reduction Loan the Same as a Home Equity Loan?

They are the same in theory, with a Home Equity Loan you use the value of your house as a line of credit pay off your loans, but then your house becomes collateral.

• How Long Do Debt Reduction Loans Last?

They can last usually anywhere between 5 and 30 years.

• Can a Debt Reduction Loan Improve My Credit?

Yes! A debt reduction loan can be one of the biggest tools in improving your credit. At your current state you may have trouble paying loans. Perhaps you are only making minimum monthly payments or even defaulting on a few loans. All this can kill your credit score but with a debt reduction loan you will be able to make your more affordable payments on time which, in turn, will improve your credit score.

• Are Their Alternatives to Debt Reduction Loans?

You can get debt counseling. Counseling will help you figure out how to deal with your debts. It won't help you with the actual repayments of your debts but it will give you handy advice on how to dig yourself out of the debt hole and how to avoid it in the future.