Question 1

What is debt settlement?

Accepted Answer

Debt settlement is negotiating with creditors to pay less than the full amount owed. Creditors often accept reduced payments because getting something is better than nothing, especially on older debts.

Question 2

How is WestDebt different from other debt settlement companies?

Accepted Answer

WestDebt provides DIY guidance rather than negotiating for you. This means lower fees (5% vs 15-25%), you stay in control, and you learn skills to handle finances long-term. We provide the strategies and contacts—you make the calls.

Question 3

How long does debt settlement take?

Accepted Answer

Typically 12-36 months depending on your total debt and monthly contribution. The more you can save each month, the faster you can settle accounts.

Question 4

How do I get started?

Accepted Answer

1) Add all your creditors in the Creditors section, 2) Set your monthly budget in Profile, 3) Activate your plan in Payments, 4) Follow the strategies provided for each creditor.

Question 5

What if my creditor isn't in your database?

Accepted Answer

We have strategies for hundreds of creditors. If yours isn't listed, we provide general negotiation guidance and you can contact our support for personalized advice.

Question 6

Can I change my monthly contribution?

Accepted Answer

Yes! Go to Profile anytime to adjust your budget. We recommend saving as much as possible to settle faster and avoid potential lawsuits.

Question 7

What does WestDebt cost?

Accepted Answer

Our fee is 5% of your enrolled debt, spread over 24 monthly payments. For example, if you enroll $50,000 in debt, your fee is $2,500 total ($104.17/month).

Question 8

Where do my settlement funds go?

Accepted Answer

You keep your settlement savings in your own bank account. WestDebt never holds your money. When you're ready to settle, you pay the creditor directly.

Question 9

What if I can't make a payment?

Accepted Answer

Contact us before missing a payment. We can work with you on options. The WestDebt fee payment is separate from your settlement savings.

Question 10

Will debt settlement hurt my credit?

Accepted Answer

Yes, in the short term. Settled accounts appear on your credit report for 7 years. However, most people see significant credit recovery within 2-3 years of settling, and it's generally less damaging than bankruptcy.

Question 11

Can creditors sue me?

Accepted Answer

Yes, creditors can sue for unpaid debts. This is why we recommend saving aggressively and settling accounts before they reach lawsuit stage. Our Legal Defense section provides guidance if you're sued.

Question 12

What about taxes on forgiven debt?

Accepted Answer

Forgiven debt over $600 may be reported as income (1099-C). However, if you're insolvent (debts exceed assets), you may not owe taxes. Consult a tax professional for your situation.

Financial Education Center

New to WestDebt?

Understanding Debt Settlement

Getting Started with WestDebt

Understanding Charge-Offs and Collections

Creating a Debt Payoff Budget

How Debt Settlement Affects Your Credit Score

Your Rights When Dealing with Debt Collectors

Ready to Start Your Debt-Free Journey?