Franklin Debt Relief is a debt settlement company that can negotiate settlements with creditors on your credit cards and other unsecured debts.

This company only takes clients with more than $10,000 of debt; each balance must be above $500 to be included in their debt settlement program. In turn, the company contacts your creditors to reduce the amount you owe by up to 50%.

Here are some quick facts about Franklin Debt Relief:

Company Founded in	2006
Years in Business	2
Number of Employees	7
BBB Rating	Satisfactory
BBB Complaints	0
Free Information	Free Debt Consultation
Escrow or Payment Plan Available?	Yes
Source of Funds	For monthly payments, suggested sources include savings, investments, home equity, etc.
Fee Structure	Fees add up to a total of 15% of amount owed, spread out over the first 18 to 19 months of the program
Avg Pct Settlement of Amt Owed	40% to 50% depending on the creditor
Refund Policy	Money back guarantee on service fees

About Franklin’s “New Deal”

Franklin Debt Relief’s “New Deal” service helps eligible customers with their debt settlement program, which can last as long as 3 years depending on the amount paid in. If you are able to pay more, you can finish the program earlier without penalties.

What Happens When You Sign Up?

After you fill out a form, one of Franklin Debt Relief’s debt settlement experts will work with you to determine if debt settlement is the solution for you.

If they agree that they can help, then you’ll need to fax in your credit card statements, which an underwriter will evaluate. Following approval, you’ll learn your monthly payment (which typically can be almost 50% less than the monthly payment you originally made to your creditors) and you’ll receive an estimate as to how long you’ll be in the program. Once you sign the agreement, you begin paying Franklin Debt Relief a monthly payment.

How Long Does it Take to Get Through?

Some clients can finish the program in as little as a year. Franklin Debt Relief’s site mentions how helpful it can be for you to get a home equity loan or home refinancing to settle your debts faster. By doing this you’ll have more cash available to be able to pay your creditors a settlement sum.

Because the program doesn’t seem to penalize you for finishing early, it’s to your advantage to settle your debts in less time.

Do remember that the program doesn’t make payments to each of your creditors every month, You’ll be paying Franklin Debt Relief. Franklin Debt Relief’s negotiators will negotiate with your creditors to reduce the overall amount that you owe and after you’ve accumulated enough money on the program, they’ll pay off the creditors with a lump sum.

One thing to be sure to ask Franklin’s staff is what happens if it takes too long to save up for a settlement and the creditor gets tired of waiting? Will they sue? Will they send your account to collections? (if its not there already)

What Kind of Debt Does Franklin Debt Relief Take Care Of?

Also, this program won’t be able to assist you with your mortgage, car payments, or federal student loans because those are considered secured debts. However, your credit cards, medical bills, personal loans, gas cards, and other forms of unsecured debt can be evaluated and are eligible for settlement.

While you’re on the program, you’re advised to close the accounts after enrollment. On your credit history, it looks better if you took action to close the account rather than let the creditor do it.

What’s the Effect on my Credit Score?

Like any debt settlement program, Franklin’s “New Deal” will affect your credit history. However, as Franklin Debt Relief notes, “your credit history is affected negatively and the amount you owe is affected positively”. Bear in mind that bankruptcy and/or a failure to do anything about your substantial debt will have far more impact on your credit history. See also, Will Debt Settlement Affect My Credit Score?

In the event you have trouble making a program payment one month, the site encourages you to call their customer service number to make arrangements, ideally 5 days in advance if possible.

Other Facts About Franklin Debt Relief

Another pro-consumer factor about the company is the “Take Back Your Phone Day” sponsored to help debtors become aware of how to handle harassing calls from collection agencies.

The company is a member of the BBB OnLine Reliability Program as well as the Association of Settlement Companies (TASC).

With an extensive FAQ section and educational articles on its site, Franklin Debt Relief can answer a lot of consumer questions about the debt settlement process. In addition to the website, you can reach their debt settlement experts at (877)274-1260.

Franklin Debt Relief is located in Chicago, Illinois and serves clients from across the United States.