Frequently Asked Questions
Q. When will I have my debts paid off?
The average debt settlement program lasts 2-4 years and the length of your program depends on a few factors, one being how much money you apply to your program. You can pay off debts when your settlement account fund has accrued enough money to pay of a negotiated settlement. This is why it’s essential for you to build up your settlement account fund as fast as you can. Missing payments to your debt settlement program will hinder the negotiation process because there will be less funds to negotiate with. The more money you can add to your account, the quicker your accounts can be settled.
Q. What happens if I end up missing monthly payments? Am I going to be kicked out of the program?
No. Even if you diligently create a savings plan sometimes unforeseen instances occur. That’s no reason to be dropped from the program. Simply call customer service and we’ll find a way to get you back on track. If you know in advance that there’s going to be a problem with a payment give us 5 business days advanced notice and we can work out other arrangements. Keep in mind that building up your settlement account is important to settle your accounts. If you miss a payment your debt relief program will be delayed and you could miss possible settlements.
Q. What about the bank account for settlement funds… who is in charge of that?
You are. When you set up your bank account you will do so in your name. It’s your money. The idea behind setting up this new account is to keep it separated from your current bank accounts. If you withdraw from the program the remaining funds in the account are yours.
Q. What about all the calls from collectors? Are they going to keep coming?
Thanks to federal and state laws you have rights against collection harassment. In the best case scenario those bill collectors will be calling a third party assisting with your debt relief and not you if they are looking to receive payment.
Q. Am I going to owe taxes on whatever debt was forgiven?
Forgiven debts can be taxable. You should speak with your tax advisor regarding the potential tax implications of any forgiven debt as a result of a debt relief program.
Q. Will I still get charged interest and late fees on my accounts?
Part of your agreement with credit card companies allows for them to continue to add interest and late fees any time you fail to make payments. This means while you’re getting your settlement account set up and funded your credit card debt could go up. Our goal is to secure reductions to your account balances no matter what kind of interest charges or late fees have been added.
Q. What if I want to do my own negotiating?
Nothing is stopping you. The better question would be why haven’t you up to this point? Sure you can fix your own car and fill out your own taxes but what if you get it wrong? That’s why people turn to professionals with years of experience to help them through important matters like reducing debt.
Q. How soon do you start working with my creditors?
On the average negations begin within 1 to 2 weeks after you sign up with the program. These initial calls will be to let them know that you are entered into a partnership and you are working on reducing your debt. This also lets them know what company they should be calling to settle this debt and not you! Most of your creditors won’t get into serious discussions of debt reduction until they know you are serious about paying them off. This can only be accomplished once you have established a settlement account and funded it properly. The first settlement usually happens within the first 3 to 5 months of the program.
Q. What happens if my creditors try to sue me?
A creditor is well within their rights to have your debt taken over by third party collection agencies and/or law firms. When something like this happens, we strive to continue working on your account. The difference is that we might move this particular account to a priority list. It has been our experience that many of these lawsuits are never actually filed. They just want a settlement. If a lawsuit does get filed against you we can attempt to resolve that account by setting up a specific payment plan. We are not a law firm and can’t offer any legal advice.
Q. Will you make any kind of guarantee to settle whatever I owe for a certain amount?
No. There are many factors in settling a debt and every case is different.
Q. What happens if any of my creditors won’t budge on a settlement?
In extreme cases when a creditor doesn’t want to settle the only option is to remove the card from the account. Adjustments in the fees will be made and you won’t have to pay if a settlement can’t be reached. The chances of this happening are rare. Most of the creditors you’re signed up with are happy to get some form of settlement, especially when you can show a hardship.