Frequently Asked Questions?

• Q: What are some of the indications that I may need to join your Debt Settlement program?
  A: Our debt settlement program is only for people facing a financial hardship. This means people who are late on paying their debts, have lost their job, have little or no ability to pay their debts in the future and are facing a possible bankruptcy. We do not advocate that any person to default on their debts. This program is not designed to negotiate debts for people who have reasonable means to pay off their debts. If you have the ability to pay your debts in the normal fashion, than you should continue to do so. This program is NOT for people who are gainfully employed, have high credit ratings and can meet their monthly debt obligations.   
• Q: How does your Debt Settlement program work?
  A: When you enroll in our debt settlement program, we set you up on a monthly payment that is as much as 10%-30% lower than your current minimum monthly payment. In the meantime, we negotiate with the credit companies to get them to agree to substantially lower the amount you owe. Once you have saved enough money and a creditor has agreed to a pay off (normally 40 to 50 percent of what is owed), we pay off the credit card company with a lump sum settlement. In order to benefit you the consumer the most during this process we use an Attorney that handels litigation matters and is working direclty for us to make sure everyting is done legally on the back end of the operation to settle your debts with your creditors.
• Q: What other debts, besides credit cards can I settle using your Debt Settlement program?
  A: We are also able to deal with medical bills, personal loans, repossessions, department store cards, gas cards, and accounts in collections. We are unable to work with mortgages and cars because they are SECURED and will be able to recover the property in the event that you do not pay according to the terms of that agreement. Student loans are also considered SECURED DEBTS because the federal government will allow a student loan creditor to take your tax refund or levy your bank account without a judgment if you default. Since the bankruptcy law changed in late 2005, even private student loans cannot be discharged in a bankruptcy. In sum, we only deal with debts where we will have sufficient leverage in order to procure the lowest debt settlement possible.
• Q. Does enrolling into a Debt Settlement program have a negative affect on my credit?
  A: Yes, your credit score will decline due to entering this program. How much it will depend on your original circumstances. Most of the accounts you place into negotiation are likely to be a "charge-off" before the process starts or a “charge-off" during the process which will reflect negatively on your credit. However, once this charged off debt is settled, the settlement is reported to the credit bureaus. Settled accounts are positive compared to unresolved delinquent debts or bankruptcy. After all the debts have been settled and paid, the credit score should begin to improve since the negative items have been resolved. A high credit score is desirable to have, but if you have a financial hardship and are unable to pay your debts, then your first priority should be to pay your delinquent debts and get back on your feet financially. With having an Attorney handeling the final details this enables you to get a more positive result and help prevent further crediors to come back to you at a later date.
• Q: Can I still use my credit cards?
  A: NO. All credit cards in the program will not be active and you will not have credit privileges. Any cards you DO NOT put into the program should not be used except for emergency purposes. This program is for you to get out of debt and become debt free.
• Q: What is the difference between Debt Settlement and Credit Counseling?
  A: In a debt settlement program, negotiators work on your behalf to reduce your balance by up to 50%. In a credit counseling program, counselors work to reduce interest rates. The average credit card debt settlement program lasts between 1 and 3 years, whereas credit counseling services last for between 4 and 6 years. In general debt settlement tends to be a more aggressive approach to help debt eliminate your debts.
• Q: What is the difference between Debt Settlement and Debt Consolidation?
  A: There are two types of debt consolidation: secured and unsecured debt consolidation. With secured debt consolidation, a consumer gets a loan that is secured by a home or vehicle to pay off their credit card debt, and then pays back the loan at lower interest since it is secured by property. With an unsecured debt consolidation loan, a consumer gets a loan from a bank, presumably at a lower interest rate, to pay off their credit card debt. Debt Settlement does not involve lending, but rather negotiating with credit card companies and other creditors to reduce the amount you owe.
• Q: What is the difference between Debt Settlement and bankruptcy?
  A: Debt settlement is very different from bankruptcy. A bankruptcy has a great impact on your credit versus Debt Settlement. Bankruptcy is a suitable alternative for consumers who do not have any income or are seeking debt relief for secured debts like mortgages and car loans. In a Chapter 7 bankruptcy, the court orders a debtor to liquidate all of their non-exempt property and pays the creditors back with the proceeds from their sale. In a Chapter 13 bankruptcy, the court orders a debtor to turn over all their disposable income for 5 years.
• Q: What will I pay for your services?
  All fees are based off of the total amount of debt that you enroll into our program. A monthly administrative fee will be charged on a monthly basis and will be included in your monthly payment. All costs and fees are always fully disclosed and you are required to sign for approval before you commit to our program.
• Q: Do you make payments to each of my credit cards every month?
  A: No, we negotiate with your credit card companies to lower the amount that you owe. Once you have saved enough money and one of the credit card companies has agreed to lower the amount you owe, we pay them off with a lump sum settlement of your debt.
• Q: What is the difference between credit card debt settlement and credit repair?
  A: Credit repair involves removing inaccurate or unverifiable information off your credit report. Unlike debt settlement, however, credit repair cannot eliminate debts that you actually owe.
• Q: Can I include accounts into the Debt Settlement program that have authorized users or co-applicants?
  A: Before enrolling any credit cards with co-applicants, we ask that the co-applicant to sign a waiver acknowledging that they are allowing the account to be included in our debt settlement program. For authorized users we advise that you ask the credit card company to remove the person from the account prior to enrollment. If this does not work, we will need the authorized user to sign a waiver acknowledging that they allow the account to be included in the debt settlement program.