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- What
is Debt Management?
- How
does the program work?
- How
long will it take to complete the program?
- What
is the REDUCED INTEREST RATE PROGRAMŽ?
- Is
a debt consolidation loan an option?
- Is
bankruptcy an option?
- How
much does this service cost?
- Will
I still receive harassing phone calls?
- What
is an unsecured debt?
- What
is a secured debt?
- Do
I have to include all of my debts?
- How
will this affect my credit?
- What
is your refund policy?
1.
What is Debt Management?
Debt
management is a process that allows a professional firm to reach
an agreement with your creditors to achieve the lowest and most
affordable monthly obligation needed to satisfy all your credit
accounts. Although this is NOT A LOAN, we are able to assist most clients
in reducing their overall interest rate, and most importantly pay-off time.
2.
How does the program work?
All
of your accounts are consolidated into one manageable monthly
payment that is then disbursed to your creditors each month on
the same date.
Most creditors will reduce or lower your interest rates,
re-age your accounts, and stop late & over limit fess. Although
creditors recognize that people who enter into a debt management
program are making a good faith effort to repay their obligations,
we cannot guarantee that all creditors will agree to participate.
By
joining an established debt management program, you solve
the underlying problems of high debt without taking drastic steps
such as declaring bankruptcy or committing yourself to a long-term
debt consolidation loan.
3.
How long will it take to complete the program?
The length of time necessary to complete the program
varies from case to case and will be discussed with you in your
free consultation after review of your
online consultation form. Depending on the total amount
of your debt and your interest rate, the pay off time can be reduced from 15-30 years
down to, in most cases 4-5 years. This process can result in a significant reduction in finance charges.
4. What is
the REDUCED INTEREST RATE PROGRAMŽ?
This is a program designed for people experiencing financial hardship. The REDUCED INTEREST RATE PROGRAMŽ is designed
to reduce or eliminate your interest charges and help stop over
limit & late fees. It is specifically designed to reduce your
unsecured debt by lowering interest rates.
With this exclusive program, we are able to:
- Reduce most
interest rates typically to an average of 6-12%
- Stop
over limit fees & late fees
- Cut
your overall payment time dramatically if you presently have high interest.
- Re-age
your accounts (Bring them up to current status on your credit
report)
Creditors
often charge average interest rates of 22-25% and often as high
as 30%.
By enrolling in
the REDUCED INTEREST RATE PROGRAMŽ, we are often able to save you
considerable interest cost!
5.
Is a debt consolidation loan an option?
Of course, but a debt consolidation loan usually requires collateral
(i.e. home, car, 401k or retirement funds, etc.). This type of
loan will not reduce the amount of money you owe if collateral is required. It can only
place your assets at risk and extend your debt further into the
future.
6.
Is bankruptcy an option?
Bankruptcy
is the option of last resort and a serious decision in which
an attorney should be consulted. Although it will eliminate
your debts, taking this action will have a long-term negative
effect. First consider the cost; filing for bankruptcy can cost
$1,200 - $2,500. You must go to court and may have to face some
of your creditors. Additionally, a bankruptcy remains on your
credit history for 10 years and may impact your ability to get
credit, or possibly employment. Also, a bankruptcy on your credit
history can affect the cost of various types of insurance and
even your ability to get a place to live.
7.
How much does this service cost?
Although funding for many programs comes through voluntary
contributions from participating creditors, clients that qualify
for a Debt Management Program (DMP) can enroll accounts regardless of whether
or not their specific creditor(s) support Fair Share contributions.
These programs are designed to save our clients money and liquidate
debts at an excellent rate.
Creditors realize that if they don't help you out a little,
you may file for bankruptcy and they will likely collect nothing.
By enrolling
in a debt management program, creditors can at least recoup
the principal on your debt plus a redcued interest rate.
8.
Will I still receive harassing phone calls?
Upon
enrollment into the REDUCED INTEREST RATE PROGRAMŽ, your
collection calls will begin to dissipate as we begin to handle
your account.
9.
What is an unsecured debt?
An unsecured debt is debt for which a creditor holds
no collateral or property that they can take back if the debtor
fails to pay. These debts generally arise out of a contract you
enter into with a creditor which enables you to obtain goods or
services on credit in exchange for your promise to pay that creditor
back. If you fall behind on this type of debt, the only recourse
the lender has is legal action.
EXAMPLES
| Credit
Cards |
Medical
Bills |
Personal
Loans |
| Department
Store Cards |
Legal
Bills |
Unsecured
Personal Loans |
| Cellular
Telephone Bills |
Magazine/Record
Clubs |
Health
Club Memberships |
| Collection
Agencies |
IRS |
Some
Judgments |
| Student
Loans |
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10.
What is a secured debt?
A secured debt is a loan where the creditor retains a
security interest in an item of real or personal property such
as a house or automobile. Most secured loans such as mortgage
payments and auto loans cannot be consolidated, as well as, any
loan cosigned by another person. With these types of debts it is important
to seek competent legal advice to protect your interests.
11.
Do I have to include all of my debts?
You can select which accounts you would like us to handle.
It may be recommended that you include all or most of your unsecured
debt. These options will be discussed during your no obligation consultation.
12.
How will this affect my credit?
Upon joining a DMP your creditor score may be affected.
13.
What is your refund policy?
You may cancel this agreement without any penalty or obligation
within 5 business days from the date the agreement is signed.
If you cancel within the prescribed period of time any payment
made by you under this agreement, will be returned to you less
your monthly service fee, within 30 to 90 days following receipt
of your cancellation notice, depending on method of payment made.
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