| Frequently
Asked Questions |
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| Why would my creditors accept
less money to pay off the debt? |
| Since the directors of our organization
have dealt with major lenders for the past 28
years, creditors have come to realize that we
fulfill negotiated settlements within the time
frame stipulated in the settlement agreement.
They also realize it will benefit them to settle
the account rather then not get paid at all. [Top
of Page] |
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| What is the difference between
debt reduction and debt consolidation? |
| The major difference is the savings
to you. In other words, Consumer counselors mainly
get some reduction in interest only. It can take
as long as 6 to 9 years to pay off your debt,
and you are paying off your debt dollar for dollar.
Our debt reduction program gets your actual debt
balances reduced by 60% to 70% on average, and
the time frame to get you out of debt can be as
little as 9-18 months depending on your budget.
For example, if your debt amount is $25,000 we
will get it reduced on average to $10,000. [Top
of Page] |
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| What type of debts can I put into
your program? |
| We work with most unsecured debts,
such as credit cards, personal loans, department
stores, etc. We do not work with secured loans
such as car loans, boat loans etc. [Top
of Page] |
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| How will the debt reduction program
affect my credit report? |
| Most people that enter our debt
reduction program are deep in debt. As we settle
your debts your credit report income to expense
ratio will substantially improve. Your credit
report will also show creditors that you did the
right thing by paying off your debts, rather than
filing a bankruptcy. [Top
of Page] |
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| How does the debt reduction program
work? |
| A professional financial consultant
from our staff will review your application. The
consultant will contact you and discuss your financial
situation. Your income and expenses will be analyzed
and we will suggest the most affordable payment
plan based on your budget. You will be informed
of your monthly payment and targeted time frame
to resolve your debts. You will receive written
confirmation of the achieved creditor settlements.
Upon enrollment into our debt reduction program,
we notify your creditors that you retained our
organization to resolve your debts. In addition,
the creditors are told that all future communications
should be directed to our office. This helps to
stop creditor harassment. Our main goal is to
get you out of debt as quick as possible, while
saving you as much money as possible, and we will!
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| What is the difference between
bankruptcy and debt reduction? |
| A chapter 7 bankruptcy alerts
creditors that your past debts were not paid.
Our debt reduction program alerts creditors that
you did the right thing by paying off your debts.
You also improve your income to debt ratio. Bankruptcy
stays on your credit report for 10 years. [Top
of Page] |
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| Must I close the credit card accounts
that I give you for reduction? |
| Yes, the credit card accounts
we will be working with for reduction must be
closed.. Because, it is very difficult or almost
impossible for us to get settlements from creditors
if you keep charging to the accounts. [Top
of Page] |
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| Do I have to give you all my credit
card accounts? |
| No, it is not necessary to give
us all your credit account accounts. We usually
suggest that you keep at least one credit card
that has the lowest balance and interest rate
for emergency purposes. [Top
of Page] |
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