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Debt  Reduction
Call Today: (877) 274-1260
If you successfully complete our program, it’s possible that you’ll enjoy these benefits:
Settle your debts for less than you owe
  (read here for full details about how much you can expect to save)
Resolve your unsecured debts in 18 to 60 months
  (read here for full details on how long our program lasts)
No Up Front Fees - Don't Pay Till You See Results!
Credit Card  Debt Reduction
FDR's "New Deal" debt reduction* service is an innovative approach to resolving unsecured debt, specifically credit cards. A client in our credit card debt reduction program may be able to settle their debts for less than they owe, saving thousands in the process, while making one affordable payment to the program. For consumers overwhelmed with credit cards, medical bills, repossessions, personal loans, or collections debt, debt reduction is a great solution because you can become debt free quickly and cheaply, all while potentially avoiding the harsh implications related to bankruptcy.
Getting Approved  for Credit Card Debt Reduction
After speaking to one of our debt reduction consultants, a client submits their most recent statements from their creditors, and our experts come up with a reasonable monthly payment based primarily on the following factors: 1) who the client owes; 2) what state they live in; and 3) their recent account activity. As a rule of thumb, the average monthly payment in our debt reduction service tends to be between 1.5% and 2% of the total amount of debt that a client enters into our program. Our fees come out of the monthly payment and are completely paid off over the first 18 to 19 months.
Debt Settlement Reduction:  Saving for Settlement
A client begins making their monthly payment into a savings account that is set up for them by Noteworld Servicing Center in conjunction with Key Bank, but which they have total control over. It is automatically withdrawn from their current checking or savings account the same day every month. Meanwhile, we advise the client to close every account that is enrolled and ask their creditors to note "account closed by consumer" on their credit report. This can prove advantageous for their credit down the road. In the meantime, as the client saves money in their savings account, payments are not disbursed to the creditors, but rather saved in order to eventually settle the accounts.
Debt Reduction:  Settling your Debt
Once a client has enough money saved, we negotiate with the creditor and attempt to convince them to accept a lump sum settlement offer. Every time a debt is settled the client receives the settlement letter for their records. Average reductions are a percent of what is owed at the time of settlement (not including fees), and the creditor reports the debt as "settled" or "paid" on the client's credit report and signs a document releasing the client of any legal obligation for paying the rest of the debt. We reduce debts in one of three ways: 1) paying the account off individually with a lump sum; 2) setting up a favorable payment plan with the creditor, where our client pays back a substantially reduced balance over 3 to 6 months.  3) in some cases, settlements cannot be obtained (usually because a client lacks the savings necessary or the creditor is pushing for litigation to resolve the account) – in these instances we are usually forced to set up a payment plan on the account where the client pays the balance back in full, plus interest, as well as interest and late fees that accrued up to that point. 
The Downsides  of Credit Card Debt Reduction
Now that you understand the workings of our "New Deal" debt reduction plan, let us address some of the downsides of the program. For starters, since you are behind on your payments throughout the negotiations, debt reduction may have an adverse effect on your credit. The credit implications of credit card debt reduction are not as severe as bankruptcy, but it is not as good as if you had paid the debt back in full and without third party help.  Any marks as a result of our program will stay on your credit for up to seven years.  Secondly, a creditor is always reserved the right to pursue past due debts in court, and it is possible that a client can be sued during their debt settlement reduction program.  Although this is possible and does happen, since many consumers who are sued by unsecured creditors end up filing bankruptcy, creditors understand that it may be more profitable for them to accept debt reduction offers. That said, there is no way to guarantee you will not be the target of legal action by a creditor. Thirdly, since the account is past due, the creditors are reserved the right to call you for information regarding the status of your account with them. There are numerous state and federal laws that protect consumers from debt collector harassment, but unfortunately, there is little protection from harassing phone calls from original creditors such as the credit card companies unless you live in a few states. Our debt reduction team may be able to take advantage of these laws to minimize collection calls, but the truth is that calls will occur during the course of the program. One of the final downsides of debt reduction is that it's possible that you may have to pay taxes on the money you saved in our program. If you are insolvent at the time the debt was settled, you can fill out IRS form #982, which may exempt you from owing taxes on your savings. Someone is considered insolvent when they owe more than the value of their assets. Needless to say, many of our clients fit this profile because they are in a financial hardship, but to be sure about your individual situation, you should consult with a CPA or tax attorney because Franklin Debt Relief does not offer tax advice.  Also, keep in mind that if you're getting taxed on your savings, it may not be a grave concern anyway because you still may save money since the taxes are only on the savings.

*The debt is negotiated, not all creditors may negotiate or provide settlement offers, full program participation is required, and that by "reduce" the company means that upon successful completion of the program the consumer's settlements should be less than their debts.

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