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How will debt settlement affect my credit?
Answer: Debt settlement is a bankruptcy prevention program and may adversely affect your credit in the short term if your debts are current and you have no history of late payments. Since you will have resolved your outstanding debt through our program your future creditors will see that you settled your debts instead of filing bankruptcy.
Do I have to be late on my credit card payments to be eligible for your program?
Answer: No. Our debt settlement program works with debtors in all stages of collection.
How do I know if I qualify for your program?
Answer: There are numerous ways to deal with debt problems. To find out if debt settlement is right for you, talk to one of our experienced friendly counselors. At the minimum, in order to qualify for debt settlement, you need to have a certain amount of unsecured debt, be employed and be serious about getting rid of your debt. At the end of the free consultation, we will let you know if you qualify for the program, and if not, what other options are available.
Will the debt settlement program work for all of my creditors?
Answer: We can't guarantee that every creditor will accept a reduced amount to satisfy your outstanding debt. However, using our knowledge of consumer credit laws and industry know-how, we make a convincing case to creditors about why they should accept our offer. It typically costs the creditor more time and money to go through legal or other collection methods, with no guarantee that they will collect the full amount, so most are happy to receive a portion of the amount owed.
What can I expect as a result of your debt settlement program?
Answer: You can expect to significantly reduce the amount you owe to your creditors. Each creditor is different, and the actual amount that they agree to will be affected by your account history and other factors. However, most creditors will end up settling for between 25 and 60% of the balances owed. After your free consultation we will know your financial situation and will be able to advise you on what expect from the program in more detail.
Will all of my debt be eliminated when I finish the debt settlement program?
Answer: If you include all of your unsecured debt on the program, make all of your payments and follow all of the program procedures, you can expect to have zero unsecured debt at the end of the program. You will still be responsible for your secured debts i.e. mortgages, auto loans, etc. and unsecured debts that you did not retain us to settle (if any).
How does debt settlement compare to bankruptcy?
Answer: Bankruptcy is a legal process that is meant to be the last resort for people in severe financial distress. It has a devastating effect on your credit rating that lasts up to ten years, and you will have to answer questions about it for the rest of your life. It is also has extremely negative repercussions emotionally, socially and financially. Debt settlement is a bankruptcy prevention program and will provide you with financial freedom without the long-term effects that come with a bankruptcy.
What is the difference between unsecured debt and secured debt?
Answer: An unsecured debt is money that you borrow without putting up an asset as collateral. Credit cards, medical loans and personal loans are the most common types of unsecured debts. If you don't make your payments with this type of debt the only thing the lender can do is try to collect through either convincing you to pay or taking legal action.
A secured debt is a loan where the creditor retains an interest in an asset. Mortgages and car loans are examples of secured debts. If you fall behind on payments with this type of debt the creditor can repossess the property in order to satisfy or reduce the debt. If your property is repossessed and sold and the amount of the sale is less than the amount you owe, you remain liable for the difference. The laws regarding home mortgages vary from state to state and the lender's rights usually depend on the terms of the mortgage and whether any other lenders have an interest in the real property. If you are in danger of defaulting on a secured debt, you should seek legal advice to protect your interests.
How long will the debt settlement program take?
Answer: The length of time it takes to complete the debt settlement program varies depending on how much money you can allocate to resolving your debt. This will be discussed with you during your free consultation. Typically, we settle most of our cases in 15to 36 months, although it could be sooner.
Will interest charges continue to accrue on my debts?
Answer: Yes. However as a practical matter, you do not need to be concerned about these charges. In most cases our skilled negotiators will get your creditors to remove these charges while significantly reducing your principle balance as well.
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