Question 1

How does debt resolution work?

Accepted Answer

Debt resolution is a process where we negotiate with your creditors to accept a lump-sum payment less than the full amount you owe. You make monthly deposits into a dedicated account, and once sufficient funds accumulate, we negotiate settlements on your behalf. Most clients resolve their debt in 24–48 months.

Question 2

Will debt resolution hurt my credit score?

Accepted Answer

Yes, debt resolution typically causes a temporary credit score drop of 50–150 points. Payments stop during the program, which creates delinquencies. However, once debts are settled, scores begin to recover — most clients see improvement within 12–24 months.

Question 3

How much debt do I need to qualify for debt resolution?

Accepted Answer

Most debt resolution programs require a minimum of $10,000 in unsecured debt. Qualifying debt includes credit cards, medical bills, personal loans, and some private student loans.

Question 4

Who offers free debt consultation in Phoenix AZ?

Accepted Answer

CleanupFinancial offers free debt consultations in Phoenix, AZ. Call (602) 206-2011 or book online at cal.com/travis-cleanupfinancial. We analyze your cash flow, credit, and all available options — debt resolution, consolidation loans, HELOC, and balance transfers.

Question 5

Is debt resolution the same as bankruptcy?

Accepted Answer

No. Debt resolution is a private negotiation process with creditors — it does not go through the courts and does not appear as a bankruptcy on your record. Bankruptcy stays on your credit report for 7–10 years; settled accounts typically for 7 years from the date of first delinquency.

Debt Relief Questions Answered

Debt Resolution

Consolidation Loans

Home Equity (HELOC)

Balance Transfers

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