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 in dramatically reducing their overall interest rate, monthly payments, and most importantly pay-off time.

2. How does the debt consolidation 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.

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 in your free consultation after review of your online consultation form. Depending on the total amount of your debt, the pay off time can be reduced from 15-30 years down to 4-6 years. This process can drastically save you thousands of dollars in finance charges.

4. What is the REDUCED INTEREST RATE PROGRAM^®?
The REDUCED INTEREST RATE PROGRAM^® is a program 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 interest rates to an average of 6-12% (Sometimes rates are reduced to 0%)
• Stop over limit fees & late fees
• Cut your overall payment time in dramatically
• 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%.

5. Is a debt consolidation loan an option?
Simply, 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. It will 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 about to go into effect, declaring bankruptcy will be much more difficult unless you meet the new more rigid criteria.

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. Within as little as 2-4 weeks, you can begin to answer your telephone again knowing it will not be a creditor.

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 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. Most secured loans such as mortgage payments 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:

• Cars
• Houses
• Boats

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 free initial consultation.

12. Are debt settlement and debt consolidation the same?
No. With a debt settlement program, skilled professionals will negotiate on your behalf to significantly reduce your debt. In most cases you will only pay a fraction of what you owe. In debt consolidation, your 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.

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 become Debt Free
Just sign up for a Free analysis and a debt free consultation.