We offer two different options to cure your debt. The first program is Debt Consolidation and the second is Debt Settlement. The names may sound similar but each program is very different.

In the Debt Consolidation program also known as Credit Counseling, you will repay your debts in full, but at a reduced interest rate and reduced monthly payment. The average payoff time to be debt free is 60 months.

In the Debt Settlement program you only repay a percentage of your debt, on average between 35% and 60%. This also allows us to drastically reduce your monthly payments. The average payoff time to be debt free is 18 to 36 months.

Debt Consolidation is designed for the consumer that wants to keep his/her credit in good standings and can maintain his/her current monthly payments with only a small reduction, on average 20%.

Debt Settlement is designed for the consumer that wants to get out of debt faster and has a hardship situation that requires a drastic reduction in monthly payments, on average 50%. Or someone that has already fallen behind on monthly payments and can't keep up on monthly minimum payments and still afford normal living expenses.

To know which program is best for you or to answer any questions you might have. Please contact one of our Certified Debt Specialist by calling 1-800-828-1477 8am - 10pm EST

Below are a few more Frequently asked questions about the Debt Settlement program.

Q: When does American Debt Co. begin to settle my accounts?
A: Once we have received your completed paperwork, and after your first payment has been made; your creditors will be notified immediately and American Debt Co. will begin the settlement process.

Q: Does American Debt Co. make monthly payments to my creditors?
A: Typically no, however sometimes the creditor will agree to settle in two or three monthly payments. Most of the time, the creditor will settle for a lesser amount if we pay in one lump sum, usually 35% to 60% of the original debt balance.

Q: What do I do if I miss a monthly payment with American Debt Co.?
A: Don't worry, you will not be dropped from the program. Please contact our customer service department to reschedule your payment.

Q: Will my creditors continue to call me?
A: We notify your creditors of our representation and inform them that they should contact us with respect to settling your debt. Most creditor calls will stop within 30 to 60 days. If you continue to get calls, call our customer service department and they will again contact the creditor informing
them of our representation. In all cases, you should keep a log of all calls you get from creditors with respect to the debt you put into our program.

Q: Will my creditors continue to contact me by mail?.
A: Your creditors may also attempt to correspond with you by mail, however, you will then immediately contact American Debt Co. and report this correspondence. We will handle all of your creditors and collectors on your behalf.

Q: Will this program have a negative effect on my credit?
A: The Debt Settlement Program may have a negative effect on your credit profile. However once negotiated and settled, your creditors will report the accounts as "settled" or "Paid in full".

Q: Why should I use American Debt Co. to settle my debts as opposed to handling it myself?
A: Our team has extensive experience in negotiating debt and working with creditors. We have an impeccable relationship with creditors and collection agencies, who are usually unwavering in negotiating with the consumer directly. Our team has extensive knowledge in consumer debt and the Fair Credit Reporting Act, as well as the Fair Debt Collection Practices Act.

Q: Do I have to include all of my creditors into the program for settlement?
A: No. We recommend that you keep open at least one credit card. Any accounts that are included in the settlement will have to be closed immediately. Creditors won't settle accounts that are still open. You should keep one credit card open for emergency use only.

Q: How long will it take for me to become debt free?
A: It typically takes about 18-36 months after we've negotiated the total amount of your debt down to 40%-60%. This includes all fees. However, if could be much sooner depending on your individual situation.

Q: How much does the program cost?
A: The retainer for our services is 15% of your initial debt amount that you will be enrolling into the program.

Q: What if my creditors won't settle?
A: There are very few circumstances where a creditor will refuse to settle. As with any negotiation, there are offers and counter-offers and given time, and in the majority of cases a settlement is reached. Creditors realize that settlement is in their best interest because if a debtor files for bankruptcy, most times the creditor will be left with nothing.

Q: Will American Debt Co. stop late fees and interest from accruing on my accounts?
A: American Debt Co. LLC cannot stop a creditor from adding interest or late fees to an account. However, your individual program will reflect those fees and/or interest, and is incorporated into the Settlement Program. Because we negotiate the debt down to a fraction of what you owe, your savings are far greater than any interest or late fees that could accrue.