Frequently Asked Questions

What is Debt Settlement?

The term "debt settlement" means negotiating with a creditor to reduce the amount of a delinquent debt down to a lower amount, that the debtor can then pay in order to fully satisfy (or pay off) the debt. The primary benefits of this strategy are to help you become debt free sooner, pay your debts on terms structured to your specific budget, avoid bankruptcy, and pay less than you would by making the minimum monthly payments.

How does Debt Settlement affect my credit?

Your credit score is largely comprised of two main factors: your payment history and your debt-to-income ratio. However, many people often mistake good payment history as "good credit". If all of your monthly take home pay goes back out to paying bills, chances are you currently have a dangerously high debt-to-income ratio and your credit rating may already be affected. If this is the case, your foremost concern should be to immediately reduce your expensive overhead. Any debt management intervention will have an impact on your credit. The goal of debt settlement is to help you get into a positive cash flow situation in the quickest, least expensive means possible by negotiating reduced settlement amounts with your creditors. This will specifically address your main financial crisis... your debt! Once your debt is back under control, your "good credit" history will soon follow.

When will I be debt free?

The estimated time frame required for you to go through the program depends on several factors, and this will be discussed with you during your initial free consultation. Because settlement negotiates a 50% or more reduction of your total principal balances, the vast majority of our clients will be able to obtain agreeable settlements with all of their enrolled creditors in less than 36 months. Should your income or financial situation improve at any point, you always have the option of expediting the program to become debt free sooner.

Could I negotiate on my own?

Of course you can! You can also repair your own car or build your own house, but do you know how? We are trained professionals who have years of experience in debt settlement. Our job is to get you debt free as quickly as possible.

Why shouldnt I just file bankruptcy?

Many people faced with financial hardship rush to bankruptcy as a method of resolving their debt concerns, although their problems might have had other solutions. We believe bankruptcy should ONLY be used as a LAST RESORT; pursued ONLY after all other debt relief remedies have been explored. A bankruptcy filing is a very detrimental entry on your credit history, and can remain on your credit reports from 7 to 10 years after the bankruptcy filling has been discharged.

Why shouldnt I get a new consolidation loan?

Borrowing more money is not going to help you. Please understand that youre in a high risk category and the higher the risk for the bank, the higher the rate for you. Remember, you want to get out of debt not deeper in. Plus, if you could get a loan, the lender would most likely want it to be secured by your home or other assets. If you then defaulted, you would lose whatever precious assets you currently have.

What types of debt can be included?

We are able to resolve any unsecured debt, meaning credit cards, medical bills, etc. Debts that are secured by property, such as mortgages, car loans, or purchase contracts cannot be included. We also cannot service IRS obligations or government-backed student loans.