Frequently Asked Questions
• How long will it take me to get rid of my debt?
• Can debt settlement be used for any kind of debt?
• Why should I choose debt settlement over bankruptcy?
• Would my credit be affected by a debt settlement program?
• Will my creditors still contact me if I’m involved in a debt settlement program?
• How is debt settlement different from Debt Consolidation and Consumer
How long will it take me to get rid of my debt?
The amount of time it takes to settle all of your debts depends on the amount you owe, your income, and your living expenses. Usually, with our program, our clients can become debt-free in three years.
Can debt settlement be used for any kind of debt?
Debt settlement can only be used to settle unsecured debt. Unsecured debt generally consists of credit cards, unsecured personal loans, student loans, IRS, and medical bills. You cannot use debt settlement with secured loans such as home and auto loans.
Why should I choose debt settlement over bankruptcy?
Filing for bankruptcy should be a last resort to solve your financial problems. Many think that bankruptcy is their only way out when, in fact, there are other alternatives. Filing for bankruptcy severely damages your credit and should only be used after all other debt relief remedies have been explored.
Would my credit be affected by a debt settlement program?
A couple of factors come into play here. First, when you make payments on your debt, your creditors can report the debt simply as “paid” or “paid – negotiated.” In this case, your credit is not affected.
On the other hand, if you have been behind on your bills because you can’t afford to make your monthly payments, this will appear on your credit report. The key to having good credit is to make your monthly payments and get out of debt. Once you are debt-free you can restore your credit to good standing.
Will my creditors still contact me if I’m involved in a debt settlement program?
Once you join our debt settlement program your creditors will no longer bother you. We will handle all collection efforts and concerns so you can stop worrying about them.
How is debt settlement different from Debt Consolidation and Consumer Credit Counseling?
Under our debt settlement program, we will negotiate with your creditors to significantly lower your total debt which is usually up to 75% of your outstanding balances. This will save you money on your debt principal and interest which will allow you to pay off your debt faster.
Debt Consolidation involves pursuing a new loan to pay off all your existing debts. With debt consolidation, although you may have low monthly payments, you are still responsible for paying all your existing debts. With debt settlement you typically pay only 50-75% of your outstanding debt balances.
A Consumer Credit Counseling Service will lower your monthly payments but they will also extend your term. You end up paying the same or more than the original debt. Typically with a Consumer Credit Counseling Service the program lasts about eight years as opposed to debt settlement which only lasts about three years.
Content provided by InterMark Media, Inc.
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