Enrolled Debts

Enrolled debts summary: 

• Enrolled debts are those you include in your debt settlement program. 

• To be enrolled, a debt must typically be unsecured debt, such as credit card debt, medical bills, or most personal loans. 

• The total amount of the enrolled debts in a debt settlement program could help set the customer’s fees: they are usually 15%-25% of enrolled debts. 

Enrolled Debts Definition and Meaning

Enrolled debts are the debts you choose to include in your debt settlement program. 

Types of Enrolled Debts

Not every type of debt can be enrolled. But virtually any type of unsecured debt can be included in a debt relief program. For example:

• Credit cards

• Unsecured personal loans

• Medical bills

• Department store charge card debt

• Some private student loans 

• Payday loans

• Other unsecured personal debt

Being enrolled doesn’t guarantee that the debt will be settled. That’s because creditors aren't required to participate in debt settlement programs, and not every creditor will negotiate. 

Mortgages, car loans, and other types of secured personal loans aren't eligible for debt settlement and can't be included as enrolled debts. 

Key Features of Enrolled Debts

When you sign up for a debt settlement program, the program staff helps you understand how to choose which debts to try to negotiate. 

To qualify as enrolled debt, a debt must be unsecured. This means there is no collateral backing the debt. Collateral is something the lender could take and sell if you don’t pay the debt. For example, the car is the collateral for a car loan, and the home is the collateral for a mortgage. Those kinds of debts aren’t candidates for a debt settlement program. 

Unsecured debts aren’t guaranteed by something of value that the lender has the right to sell if you default. Credit cards, medical bills, and many personal loans are examples of unsecured debt that can become enrolled debts in a debt relief program.  

Enrolled Debts: One More Important Thing to Know

Another important aspect of enrolled debts is that the amount of enrolled debt may determine the cost of your debt settlement program. For example, Freedom Debt Relief typically charges a fee of 15%-25% of your enrolled debts. Other debt settlement companies may have a different fee structure.