Debt Settlement FAQ

Debt Settlement FAQ

What is the difference between Debt Consolidation and Debt Settlement?

Debt Consolidation and Debt Settlement are sometimes heard interchangably, but they are not the same thing. At Wright & Associates, we use a proven Debt Settlement process to work with creditors on your behalf to actually settle the full balance you owe to your creditors for a reduced amount whereas debt consolidation requires you to pay off your debt in full, usually at a reduced interest rate.

Is my credit report adversely affected by enrolling in a debt settlement program?

You may experience an adverse effect on your credit if your debts are current with no history of late payments, but this is not the typical situation for most of our clients. While our program can initially impact your credit negatively, in most cases, our debt settlement program with time, will improve your debt-to-income ratio and your FICO score will improve over time.

How long does each settlement take?

The amount of time you are enrolled in our debt settlement program actually depends on the amount of funds you have available to pay off your creditors. During your consultation, you will establish an affordable monthly payment that will determine how long it will take to settle with all your creditors.

Is my debt information kept confidential?





Of course. You can call us to check in regarding the status of your account. You will also receive monthly reports that will keep you informed of the activity on your personal settlement account.

Debt Settlement


Payments will be made from your settlement savings account when we reach agreement with your creditors and there are sufficient funds accumulated.

What if my creditors won’t settle?




Will late fees and interest still accrue on my accounts?
