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!
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 substantial 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.
Who controls the savings fund allocations to creditors?
You do. The savings account is set up and maintained by you. You will need to discipline yourself to add the required funds to the savings account during each month of the program. This amount will be substantially less than the total minimum monthly payments you are now making on your credit cards.
Could I negotiate on my own?
Of course you can! You can also repair your own car or install your own computer network, 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.
What is the difference between secured debt and unsecured debt?
Unsecured debt relies only upon your promise to repay the debt. It is debt that is not tied to any item or property. A creditor doesn't have the right to grab property to satisfy the debt if you default. The most common types of unsecured debts are credit cards, department store cards, medical bills and personal (signature) loans. A secured debt relies upon collateral. Repayment of debt may be secured by real property, personal property, fixtures or a combination of both. A debt that entitles the lender to confiscate a specified piece of property (the collateral) if the debtor cannot repay the secured debt. The most common forms of secured debt are home loans (mortgage or equity line-of-credit) and car loans. The last kind of a "secured" debt is a student loan. Student loans are loans offered to students to assist in payment of the costs of professional education. These loans usually charge lower interest rates then other loans, and are also usually issued by the government.
