Frequently Asked Questions
Everything You Need to Know About Our Program
Program
How does the program work?
After enrolling, you’ll begin setting aside a fixed monthly amount based on your total enrolled debt and financial situation. As your savings grow, our team negotiates with your creditors to reduce the balances. Once a settlement is reached, you’ll review and approve it before any payment is made. This process continues until your debts are successfully resolved.
Who is eligible for the program?
This program is designed for individuals experiencing financial hardship who are struggling to keep up with payments on unsecured debts. Generally, you should have at least $10,000 in total unsecured debt, with a minimum balance per creditor.
How long does the program take?
Program timelines vary depending on your financial situation, but most clients complete the process within a structured timeframe based on their savings plan and negotiations.
Are there upfront fees?
No. Fees are only applied after a debt has been successfully settled. We do not charge fees before delivering results.
Do I need to include all my accounts?
It’s recommended to enroll all eligible unsecured debts. Keeping accounts outside the program may make negotiations more difficult.
Will I be completely debt-free after the program?
The goal of the program is to resolve all enrolled debts. Final results depend on your participation and completion of the program.
What types of debt qualify?
Eligible debts typically include:
- Credit cards
- Store cards
- Medical bills
- Personal loans (unsecured)
Non-qualifying debts include:
- Mortgages
- Auto loans
- Federal student loans
- Secured or collateral-backed debts
Creditors
Do you make payments to my creditors?
No. Instead of making monthly payments, we focus on negotiating reduced settlement amounts with your creditors.
Will creditors still contact me?
Yes, it’s common to receive calls if you are behind on payments. We provide guidance on how to handle these communications effectively.
Are there rules creditors must follow?
Yes. Debt collectors must follow regulations such as the Fair Debt Collection Practices Act (FDCPA), which protects you from harassment or unfair practices.
What should I say if a creditor contacts me?
You can request that all communication be sent in writing. If you’re unsure how to respond, our support team can guide you.
What should I do with letters from creditors?
Keep all correspondence and share important documents with our team so we can assist you appropriately.
Negotiations
When do negotiations begin?
The timing varies depending on factors such as your debt amount, creditor type, and financial situation. Our team determines the most effective time to begin negotiations.
Will all debts be settled at the same percentage?
No. Settlement amounts vary by creditor and situation. Some may settle for less, while others may require higher amounts.
Why use National Financial Freedom instead of doing it myself?
While self-negotiation is possible, our experienced team understands creditor strategies and works to achieve more favorable outcomes, saving you time and stress.
Account
How does my account work?
You’ll have a dedicated account with an FDIC-insured institution, managed by a third-party administrator. You’ll receive regular statements and updates.
How are settlements approved?
Every settlement offer is presented to you for approval before any payment is made. You remain in control of all decisions.
Can I access my account online?
Yes, you’ll receive login details to monitor your account and track your progress.
Legal & Lawsuits
Can creditors take legal action against me?
Yes, legal action is possible. If you receive any legal notice, inform us immediately so we can assist you and guide next steps.
What happens if I’m sued?
We will work quickly to resolve the situation and may connect you with legal professionals who specialize in debt-related matters.
How common are lawsuits?
While possible, legal action is relatively uncommon and depends on individual circumstances such as debt size and creditor policies.
Collections
How can debt collectors contact me?
Collectors may reach out by phone, mail, or other standard communication methods.
What if a collector violates the law?
You have rights. If a collector acts improperly, we can guide you and connect you with legal support if necessary.
What information must collectors provide?
They are required to send written details about your debt, including the amount owed and creditor information.
Can collectors contact others about my debt?
They may only contact others to locate you—they cannot disclose your debt details.
Credit & Taxes
Will this affect my credit score?
Yes, debt settlement may negatively impact your credit. However, resolving debt can help you rebuild your financial standing over time.
Do you offer credit repair services?
No. However, once your debts are resolved, your credit can gradually improve with responsible financial behavior.
Are there tax implications?
In some cases, forgiven debt may be considered taxable income. We recommend consulting a tax professional for personalized advice.