Most common debt relief questions:
______________
1. Are you working with an IAPDA-certified debt consultant?
Working with a company that only has certified debt consultors is important. You want to make sure your interests are the number one concern. Consultors put your needs ahead of closing a contract. IAPDA certification requires training in debt solutions, credit counseling, bankruptcy, collection of accounts, and credit ratings.
2. How does debt settlement work?
The first thing you’ll notice is that your phone calls will be answered by a debt consultant whose main job is to answer your questions and help you get rid of your debt problems. The bottom line is that debt settlement assists people who are having trouble paying minimum payments on their debt or have simply run low on money and can’t make the payments. We counsel them and help create a savings plan so they can start saving to pay off the debt. While they are saving we work out a settlement with the creditors.
3. Is my money safe while I am in the program?
All client’s money will be secured in an escrow account held by a third party as your debts are being resolved. The escrow account should be FDIC insured, and you should have control of the account. Companies that provide complete satisfaction will let you withdraw from the service at any time, and you will not be charged.
4. What happens to my creditors while I’m saving on my program?
Your money is now going to your savings trust each month based on the amount you schedule. The money accumulates in the settlement account until enough is saved so we can negotiate a settlement. Your goal for the program is to commit to this monthly set aside instead of paying some of the minimum payments to a few select creditors. That will only get you further behind and stressed. Our plan lets you use the money to save for a lump settlement with creditors. Your creditors are happy because otherwise, you would have likely been headed for bankruptcy and they would have gotten nothing.
5. How much will this cost?
There are no up-front fees, and that is important. We set our fee as a percentage of the total of the outstanding debt that’s included in your program. We do not and never had any hidden fees for setup or monthly fees, and we do not charge a fee to maintain your funding account. Your debt consultant will work with you, so you only pay what makes sense for the goals you want to achieve once you’re completely debt-free.
6. Is Debt Settlement like Debt Consolidation?
Not even close. The consolidator makes a loan so you can pay off all your debts. Then they charge you interest on the loan. This is because, in some cases, you’re still be required to pay interest to the creditors. Naturally, this means that your principal debt balance doesn’t change, and it will take you many years of becoming debt-free. When we work with you on your debt settlement program, our experienced negotiators work hard to reduce your debt dramatically. Often you’ll only pay a portion of what you owed. Most of our clients complete their program and wipe out their debt within 24 to 36 months.
7. Will the creditors still call me?
One of the first things we’ll do is contact your creditors and notify them to begin contacting us on your behalf. It often takes thirty days or so for this to cycle out of their dialing system. During that time, you’ll begin logging any calls or letters from creditors and report it to us.
8. Are there any guarantees?
There is no guaranty because each case is specific to the customer credit and financial situation. What we can provide you is the national average settlement on an unsecured set is 38.5% on the dollar. That is why we are comfortable with the 40% settlement we can offer you.
9. Will this stop late fees?
Fortunately, your program will include the interest or late fees in your total debt balance. While we cannot stop creditors from adding late fees and interest we will negotiate your debt down to just a portion of what you owe. Your saving is much larger than any interest or late fees that would accrue.
10. How will this affect my credit?
While you are enrolled in the program, your credit score will be affected depending on your current score. However, it will improve upon completion of the program you will notice a dramatic increase in your credit score. Remember a credit score is also calculated based on a debt to income ratio.
Contact Us
We are here to help you get back on the road to financial recovery.
______________
We are dedicated to helping you find a debt solution that will improve your financial condition, and end the frustration of avoiding your creditors. Our dedicated team will explain how simple and easy it is to regain control of your financial future.