DEBT SETTLEMENT FAQs
Why should I chose debt settlement instead of bankruptcy?
Many people faced with financial hardship rush to bankruptcy as a method of resolving their debt concerns, although their problems might have 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 extremely detrimental to your credit history, and can remain on your credit report for 7 to 10 years. While not paying your debt also hurts your credit report, it has been our experience that consumers prefer debt settlement if they want to avoid bankruptcy and otherwise cannot afford to continue the payments to their creditors.
Will creditors continue calling me?
You can expect to get phone calls from them, however, we will contact most of your creditors by sending out either letters of authorization or cease and desist letters based on who is currently holding your debt. This lets the creditor know you are facing financial hardship and have employed assistance to help you with your outstanding debt. The creditors will be informed that all attempts to collect their debt should be directed to the Consumer Debt Counselor Group. There is no law from stopping the creditors from sending you any written correspondence. If they send you any letters, you should immediately forward those letters to our Client Services department. If you have a home phone, you have an additional advantage. We will provide you will a unique home phone module that will direct collection calls to our office without you having to say a word.
Who will I make payments to?
Your monthly payments are deposited directly into a FDIC insured Special Purpose account through either Noteworld Servicing Center or Global Client Solutions. This secure savings account is set up in your name and is accessible 24 hours a day, allowing you to monitor your account at your own convenience.
What are the fees for your service?
We will provide you a free evaluation. Once we go over your financial situation we will be able to let you know what your total fees will be, If what we set up is comfortable with you, we can start helping you right away.
The fees for each case vary based upon the complexity of your financial situation and
the effort required assisting you to zero debt. This will be determined during your
free consultation. The fees will be minimal compared to the amount of money we
will save you.
How long will the program take?
The length of time to complete the program varies from case to case. Usually it takes anywhere from 12-48 months.
How will debt settlement affect my credit?
Debt settlement is a bankruptcy prevention program. If you are current on all your bills and have no history of late payments, your credit will be affected. In the end, the program will improve your debt to income ratio because your debts will be paid off which can help repair your credit score. After completion of the program, your accounts will appear with positive marks and a ZERO BALANCE.
Do I have to include all of my debts?
No, YOU decide which accounts you would like us to settle.
How much can I expect to save through your program?
On average, you can save anywhere from 40-60% of the total debt that is being handled by the group.
What is secured debt?
Secured debt is a contractual agreement (loan) between you and a bank where you put up real or personal property as collateral. If you default on the loan payments to the bank the property can be repossessed or foreclosed upon.
What is unsecured debt?
Unsecured debt is a contract entered into with a creditor that enables you to purchase goods and services on credit with a promise to repay the debt. Credit cards, gas cards, department store cards, medical bills, and unsecured personal loans are the most common unsecured debt.
Will my information be kept confidential?
Yes. We will only disclose your information to those who you authorize us to. Obviously, you are agreeing to allow us to discuss your information with your creditors and to disclose only so much of what is necessary to process your account with our third party account processor.
