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1. What is debt consolidation?*
Debt consolidation 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 clients facing financial hardship by reducing most interest rates and pay off time.
2. How does the debt consolidation program* work?
All of your accounts are consolidated into one manageable monthly payment, provided you make your required monthly payment, that is
then disbursed to your creditors each month.
3. How long will it take to complete the debt consolidation program*?
The length of time necessary to complete the program varies from case to case and
will be discussed with you after reviewing your no obligation consultation. Depending on the total amount of your debt, the pay off time
can usually be reduced to just 4-5 years, while saving interest cost.
4. Possible Benefits of a DMP?
- May Reduce interest rates
- May Stop over limit fees & late fees
- May Cut your overall payment time in dramatically
- May Re-age your accounts (Bring them up to current status on your credit report)
5. Is a debt consolidation loan an option?
Simply, a debt consolidation loan may require collateral (i.e. home, car, 401k
or retirement funds, etc.). This type of loan will not reduce the amount of money
you owe. It may 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 - $1,500. 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
a place to live. Also with the new bankruptcy leglislation,
declaring bankruptcy is more difficult.
7. How much does this service cost?
We are very sensitive to the financial crunch our clients are under and we pride
ourselves in providing our clients with a superior level of service which they deserve
and expect. Therefore, we charge a very nominal service fee based on the client’s
amount of debt as well as the total number of creditors they are putting into the
program. Upon review of a client’s account, our counselors would be able to advise
a client of the exact fee.
8. Will I still receive harassing phone calls?
Upon enrollment into the program 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
- Magazines/Record Clubs
- Health Club Memberships
- Collection Agencies
- Some Judgements
- Student Loans
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. Secured loans such
as mortgages and auto loans cannot be consolidated, as well as, any loan
cosigned by another person. The laws regarding home mortgages vary from each individual
state and the lenders rights are usually dependant on the terms of the mortgage,
in addition to, other mitigating factors. With these types of debts it is important
to seek competent legal advice to protect your interests.
EXAMPLES:
11. Do I have to include all of my debts?
You can select which accounts you would like us to resolve. It may be recommended
that you include all or most of your unsecured debt. These options will be discussed
during your initial no olbligation consultation.
12. Are debt settlement and debt consolidation the same?
No. In debt settlement the creditors are not getting a montly payment and you are seriously damaging your credit. In debt consolidation, most interest rates will be reduced, meaning
a greater portion of your payment goes towards principle, thus getting you out of
debt in a fraction of the time. This is a program for those experiencing financial hardship.
13. Can I still use my credit cards?
Any credit card that you include in our program cannot be used once you are accepted.
14. What do I need to do to get started?
All you need to do is to fill out our form and submit it to one of our trained professionals
and you will be contacted within 24-48 business hours.
15. Will my information be kept confidential?
Yes. DebtOptions and it's affiliates are bound by the "Rules of Professional Conduct"
and will maintain your confidentiality at all times.
16. What is the length of time?
This may vary due to the the type of debt included, but typically you will be debt
free in as little as 36-48 months.
17. How can I pay off my CC'S sooner?
Just sign up for a no obligation analysis and consultation
*This is not a Debt Consolidation Loan. Your creditors will be paid monthly only if you make your full scheduled monthly payment to us on time.
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