Frequendly Asked Questions
What is Debt Settlement?
Many individuals have problems paying
their debts on time. Or maybe, you are already behind on payments or cannot
afford to stay current due to a financial or medical hardship. Debt
settlement is a method to reduce those debts. Our trained debt negotiation
specialists will negotiate with your creditors on your behalf to reduce your
debt balances by 40-60%. We can also help you to avoid filing a costly
bankruptcy.
How do I qualify for your Debt Settlement Program?
After you filled out our easy online application, a Debt Counselor will
provide you with a free consultation, which includes a detailed and
customized financial analysis to determine if you would benefit from the
program. The last thing we want to do is put you in a program that will only
provide temporary relief. Our goal is to eliminate your debt as quickly and
as cheaply as possible. If you are in debt and have a legitimate hardship,
chances are we can assist you. However, we do not accept everyone into our
program.
Is this the same as consumer credit counseling?
No. Credit counseling has no effect on your principal balance. In credit
counseling you repay the debt in full, at reduced interest rates. One
problem with consumer credit counseling is that the payments are still
rather high and it typically takes 5 years to pay off the debt. These
companies also receive most of their revenues from your creditors - the very
people to whom you owe money. In other words, they probably do not represent
your best interests. After all, they are being largely supported by your
creditors. While in credit counseling, you pay your debts through the
counseling company. You will stay current on payments and probably not
damage your FICO score. However, you will receive a negative mark on your
credit report, a CC or Credit Counseling mark. This is viewed negatively by
lenders and may damage your creditworthiness.
What about bankruptcy?
Bankruptcy is an absolute last resort. It will have an extremely negative
and lingering affect on your credit report for 7-10 years. It will also
carry a horrible stigma and may affect you in other ways such as employment.
You do not want to file for bankruptcy if it at all possible. If you are
employed, are serious about resolving your debt, and have enough
discretionary income to resolve your debt over time, you should contact us
for a free initial consultation.
How about a loan?
This may already be part of the problem and an additional loan can only
compound matters. Could you even qualify? And if so, you may need to secure
the loan with an collateral - a risky venture. If you default on a secured
loan, you'll lost the collateral, which could be your home.
Who is your perfect client?
An ideal client:
- Has a debt problem he or she cannot resolve.
- Is having trouble staying current, is delinquent, or is close to
being in litigation.
- Has a positive cash flow.
- May be considering bankruptcy, but would like to avoid it.
- Has a minimum of $10,000 in unsecured debt.
- Have some type of hardship (divorce, illness, job loss, etc.).
