Consolidation FAQ | Settlement FAQ

You send us one payment each month. We then share out this payment between your creditors and pay the set amount. Your creditors are satisfied that you are trying to straighten out your debts and that they are receiving this set amount each month.

The benefit to you is that you now make only one payment each Month at an amount that you afford and you are no longer being bothered by your creditors.

Debt consolidation is a process by which we negotiate with all of your creditors to obtain the lowest monthly obligation needed to satisfy all of your current accounts.

You pay one "lump" sum monthly which is in turn portioned out to your creditors. This monthly payment will in almost all cases be lower (perhaps by as much as 60%) than the sum of your individual account obligations combined.

We are able to negotiate lower monthly payments because:

We work with many large creditors and have many clients. Because creditors are receiving payments from us on many accounts, they often are willing to reduce and/or eliminate both interest and late charges to our clients.

Because we are recognized by creditors as a leading provider of debt consolidation services, we can also extend the terms of the incurred debt at a reduced and/or eliminated interest rate with no late fees or further adverse effect on your credit history.

Creditors recognize that people who enter a debt consolidation program are trying to repay their obligations in good faith. Creditors are more willing to extend favorable terms to such clients in the hope of avoiding the significant expense of turning the account over to a collections firm or avoid an extended drawn out process if the account holder goes through the expense of declaring bankruptcy.

Creditors recognize that individuals who enter into a debt consolidation program are making a good faith effort to repay their financial obligations.

Creditors are more willing to work with clients by extending favorable terms to avoid the expense of turning these accounts over to a collection agency.

Debt Consolidation is a structured program that satisfies your creditors and gets you back on the track to financial stability.

A restructuring of current debt, under which new terms are negotiated, whereby in most cases payments are lowered and interest rates are reduced or possibly eliminated.

How does debt consolidation work?

A credit counselor will work with you and your creditors to put together a consolidated monthly payment that works for you and satisfies your creditors. In many cases your total monthly payment, interest rates, late fees and even principal owed can be greatly reduced.

Do all of my debts qualify?

Almost any type of unsecured debt - credit cards, medical bills, department store cards, lines of credit, gas cards, collection accounts and taxes qualify.

Do my creditors participate?

Nearly every major creditor will participate in a consolidation program. Credit unions, banks, department stores, collection agencies, hospitals and state and federal governments are just an example of who participates.

What will I have to pay?

You will make one monthly payment to your debt management agency, which will in turn make payments to your creditors on your behalf. Your creditors will then be dealing strictly with the agency and will no longer contact you. Before you say "this sounds too good to be true", keep in mind that your creditors are not lowering your interest rate and making it easier for you to make smaller payments out of the goodness of their heart. They realize that if they don't help you out a little, you may file bankruptcy and they will likely collect nothing

Is this a loan?

Absolutely not! The goal is to get you out of debt, not to dig you in deeper. Borrowing money to pay back borrowed money is the most serious form of financial slavery. It is a Debt Repayment Program. We do not lend money. This is a reduced interest rate program approved by the banks you currently owe money to. They are offering you a better deal through this program. Take advantage of it.

Can you loan me money?

We're not a financial institution, bank, loan, or mortgage company, however, through our extensive experience in the industry, we have aligned ourselves with certain trade groups, professional organizations, financial planners and organizations that may be able to loan you money. Ask your personal credit counselor for more information about our Down Payment Assistance Program.

Will my credit rating be affected?

In exchange for receiving regular payments, most creditors are willing to reduce interest rates, eliminate late fees and report accounts as current with the major credit reporting agencies. The lower interest rates that you can achieve through a debt management program mean that your payments will be lower and you will be able to reduce your balances much sooner. That will also improve your debt-to-income ratio. Savvy debt consolidation planning can boost your credit rating and ease many of the financial burdens in your life, don't underestimate the importance of developing a sound infrastructure to your plan. In most cases, the creditors may also change your accounts to a current status, and waive penalties and late fees. You will be making on time monthly payments, thus our program will not hurt your credit rating. If your credit rating is good it will stay good, if it's not, this program will help you rebuild your credit. You will no longer be considered a risk, but a good paying customer. We do OT report to any credit agencies. Only your creditors can report your actions to the credit bureaus. By making payments promptly most people may actually improve their credit rating. For more information on how this will not affect your credit score, please visit www.myfico.com

Can I still use my credit cards?

You can't use any credit card that is put on our program. Any credit card account considered for consolidation will have to be closed in order for creditors to extend lowered payments, interest rate reductions and waiver of penalties. The program is designed to get you out of debt, as such, it is required that the accounts be closed. It will be a voluntary closure however, not a forcible one.

Do I have to include all of my creditors into the program for consolidation?

No. We recommend that you keep open at least one credit card. Any accounts that are included in the consolidation will have to be closed immediately. You should keep one credit card open for emergency use only.

Can you stop collections agencies from calling and harassing me?

Yes, if collections agencies are still calling you after the first few payments, we may use the Fair Credit Report Act, a federal law, to make them stop calling. If collection agencies are calling you at work and jeopardizing your job, we get them to comply with the law.

How will I know my creditors are being paid?

You continue to receive statements from your creditors. You will be sent a monthly statement that will match the one your creditor sends you every month. We will provide full disclosure as to how we are helping you. When completing the agreement online, you will receive instructions for logging in to view your account live 24/7.

Can you help me repair my credit report?

If you have bad credit at the time you begin a debt management program, your credit rating can only improve. Most Credit card companies and other creditors usually re-age accounts that have undergone debt management with timely payments, you begin establishing a sound credit report.

Is Debt Consolidation Expensive?

No, A small Debt Management Fee is added to your monthly payment. With our Debt Management Fee included, your monthly obligation is usually less than what you are currently paying. There are no up front fees.

Is Debt Consolidation Similar to Bankruptcy?

Absolutely Not!!! Debt consolidation is for people who want to pay what they owe and have the ability to obtain credit in the future. Bankruptcy is designed to absolve you of all your obligations and results in long term negative credit status.

How will I save money?

Monthly payments can be reduced, sometimes up to 50%. Through our expert knowledge and long-established contacts we utilize specialized industry information to negotiate with your creditors. With many creditors we are successful in significantly reducing or eliminating interest rates, late charges, administrative and bank fees.

What kind of debt can I consolidate?

All unsecured debt can be included in our plan. This includes major credit cards, department store cards, gas cards, medical & hospital bills, student loans, and unsecured loans. Secured loans such as house payments and car loans CANNOT be consolidated since they have equity behind them.

Can I send more money if my situation changes?

Absolutely, you can always send in additional funds with your monthly payment and there is never a penalty for early repayment. This also enables you to get out of debt faster.

How do I qualify?

You must have the desire to get your finances under control.

You do NOT have to be a home-owner.

You do NOT have to be delinquent in your payments.

Can you help with my business debts?

This is determined on a case by case scenario. Similar to personal debts, most often we can negotiate with your creditors to arrive at a plan and terms satisfactory to all parties.