Why Debt Dissolve

Debt Dissolve is a technology-based Program that allows consumers to enforce their rights under Federal Laws which are in place to protect you as a consumer without the expense of an attorney. We help shift the balance of power to you and away from Creditors. It’s important you use all the tools that are available to protect yourself legally from unscrupulous Creditors, even if you cannot afford an attorney.

When you’re struggling with the burden of debt, it is difficult to find a solution. Consumers are pulled in many different directions including Credit Counseling, Debt Settlement, Debt Negotiation and Bankruptcy. It can be impossible to know what to do, or even understand the options.

The secret Creditors do not want you to know is that you have rights as a consumer. Most notably the Fair Credit Billing Act offers consumers significant protections which are widely misunderstood.

Creditors have an array or responsibilities to consumers to enforce outstanding debts. Although Creditors would like you to believe they can do whatever they want, that’s not the case, in fact Creditors must comply with very specific regulations, which are often ignored for their own benefit.

Debt Dissolve empowers you to hold Creditors accountable and make sure you get the benefit of powerful (and little known) Federal Laws which protect consumers from unlawful practices which often results in very favorable treatment or Creditors abandoning the collection of debts completely. You have rights, we help you unlock them, affordably.

Since we are not attorneys, you do not pay thousands of dollars every month to protect yourself, we provide tools and peace of mind.

Other Debt Relief Options

Debt relief options can be confusing, we help break down your options in our Consumers’ Debt Relief Guide so you understand what solution is right for you.

Creditor In-House Programs

Many credit card companies have hardship programs consumers can utilize. These hardship programs qualify you if you have the right ratio of income to expenses and can afford to make a payment each month at a reduced interest rate. Hardship programs can be challenging because your income and expenses have to be within a small window where you can pay back the debt over 48 to 60 months on average. These programs still require a 100% repayment to the Creditor and they do require you to have enough income to make the payments. Hardship programs do not typically reduce balances at all, only a small reduction in interest. Although a hardship program can be beneficial, it is not a solution to reduce total amount of debt.

Debt Consolidation

With a Debt Consolidation Program, typically you have to qualify for a new loan in an amount sufficient to pay off your credit cards and other debt. Consumers who have tried to get new loans can tell you how difficult it can be to qualify for a new loan when you have credit card debt. Since debt consolidation is a new loan, all the usual underwriting parameters apply such as a minimum credit score, a favorable debt to income ratio and a reliable source of income which is sufficient to pay off all your debt. Even if you do qualify, these programs just shift the payment from a number of Creditors to one Creditor but do not reduce the amount and therefore do not offer most consumers meaningful relief.

Debt Settlement

In debt settlement programs, a 3^rd party company typically collects money from you each month which they put into a separate account for you, similar to a savings account which you fund. Once the amount accumulates the settlement company approaches your Creditors one-by-one and offers the amount you have saved to settle the debt for some amount less than the outstanding balance. Debt Settlement can be effective if you have almost enough to pay Creditors and can put away a significant amount over time. However, debt settlement companies can be expensive with the average debt settlement client paying roughly $2,950 just in fees to the debt settlement company (the actual settlements are in addition). Another drawback is the average settlement in the debt settlement industry is 68% as a lump sum. Although this is a nice reduction, it does not take into account the company’s fees as well as the additional amount you may owe in taxes as discharged debt is usually taxable. So by the time you add up all the fees, settlement amount, and discharge of indebtedness taxes, you end up paying more than you expected. Finally, during this process collections continue and you may face lawsuits from Creditors, late fees and aggressive collection tactics.

Non-Profit Credit Counseling

Most non-profit credit counseling programs are actually run or sponsored by the credit card companies. Their role is to extract as much from you as you can offer. These programs are similar to the Creditors’ in-house hardship programs but with a 3rd party in the middle. Additionally, most of these “non-profit” operations still charge a fee for their services although if you are just slightly short on making your payments, they can often reduce interest rates for a fixed term.

Bankruptcy

For most people, bankruptcy offers more meaningful relief than many of the other options. As you’ve probably heard in a chapter 7 bankruptcy, debt is eliminated through a court process however if you have assets of any kind, those assets can be liquidated to pay Creditors. Chapter 13 bankruptcy is a repayment plan for Creditors based on your income, but you must typically devote all your disposable income to paying back Creditors for 5 years if you are to receive a reduction in overall balances. Additionally, both chapter 7 and chapter 13 bankruptcy can stay on your credit report for 10 years.

Debt Dissolve

We do not fit into any of these categories. Our unique system uses Federal Laws such as the Fair Credit Billing Act, to help you lawfully dispute your debts according to the consumer rights already in place to protect you. Creditors do you not want you to be aware of your rights because they often do not act in accordance with the law and legally disputing the debt can result in a discontinuation of creditors’ collection efforts altogether. If collections do continue, our platform preserves all your important documents to use in your defense of unlawful collection attempts.

Disputing a debt, and defending your consumer rights will never be a bad idea. You have an absolute right to demand these documents and information from Creditors, so why wouldn’t you? And with our affordable cost, there’s no reason to wait. The sooner you start the Debt Dissolve process, the sooner you very well may find yourself completely debt free!