What are my options to get out of debt?

Continue Payments – Please use our debt calculator to see how long it will take to pay off your debt. The calculation will show you how long it will take for you to pay off the debt without our assistance, and potentially, how much less time it will take to settle the debt if you use our service.

File Bankruptcy – While bankruptcy might be the last resort for a struggling debtor, it is a public record, may stay on your credit report for up to 10 years and adversely affect your chances to obtain housing and employment.  Therefore, bankruptcy should be considered very carefully.

Debt Consolidation – This is a service created by your creditors to help them recover their losses. It may take up to six years to pay off your debt and you will have to pay the entire Principle amount. You might have to obtain a new loan and borrow against your house or another asset. Firms that provide this service typically receive compensation from the creditors, despite their non-profit status.

Debt Settlement – This is a debt management method in which the Principle amount you owe is negotiated with your creditors.  It is the most viable alternative to using either Debt Consolidation or Bankruptcy.  Your creditors would prefer to use Debt Settlement and receive a portion of what is owed to them, rather than see you go bankrupt and owe them nothing.

What is the difference between Debt settlement and Debt consolidation (consumer credit counseling services)?

Debt Settlement is the program developed to negotiate the Principle amount of your debt. Creditors are interested in negotiating and settling your outstanding consumer debt to avoid your completely discharging the debt through bankruptcy. You are motivated to settle your debt in order to avoid bankruptcy, creditor harassment and possible legal action. In a Debt Consolidation program, only the debt interest, not the Principle, is negotiated.  This program, ordinarily sponsored by the creditors, usually requires that you take out a loan against your secured assets (house, car) and it can last up to 6 years or more.

How long will it take?

Depending on your debt structure and personal financial situation, the time to complete the Credit Rx USA Program will vary. The program is designed to be completed in 12-36 months.

What are the effects of the program on my credit score?

Your consumer credit score is calculated based on several factors and the only way to avoid adverse effects on your credit score is to repay the original debt under the original terms.  However, using debt settlement, your overall debt to income ratio will rise during the settlement process.  Since you will be resolving the debt, you will no longer owe the money to your creditors and this is one of the factors that creditors look upon favorably when determining your credit worthiness. Credit Rx USA is not a Credit Repair company.

Can I settle my school loans and mortgage?

No. The Credit Rx USA Program is available for unsecured debt only. The types of debt we can settle include credit cards and personal loans. We cannot accept any type of loans that include collateral (secured loans - mortgage, government-backed school loans).

Why would my creditors settle for less than I owe?

Creditors can lose the entire outstanding balance if you decide to use your last legal resort – bankruptcy - and you probably want to avoid bankruptcy because of the negative consequences. Settlement is the meeting point for you and your creditors. Through the Credit Rx USA Program, both sides come to an acceptable solution. Creditors receive a portion of your balance in exchange for your decision to pay off as much of your debt as you can.

Will Credit Rx USA help me stop creditor calls?

As soon as you join the program, we will advise your creditors of our representation. If you still receive phone calls you can refer your creditors to Credit Rx USA.

Do I qualify for the program?

Amounts of $10,000 and more in unsecured debt qualify for the Credit Rx USA Program. During the free debt evaluation, we will determine your specific situation and advise if your current debt structure and ability to budget the funds for the settlement is suitable for our program.

How much money can I save?

It will depend on your specific financial situation. Please use our debt calculator to see the potential savings.