Page 2 - Frequently asked questions about unsecured and credit card debt relief
Do I have to include every one of my accounts in your credit card debt settlement program?
It is up to you which credit cards you want to put on our credit card debt settlement program. We encourage our clients to include all the credit cards that they are having trouble paying on. Any card that you would like to keep off of the program should only be used in case of an emergency. We urge you to use the extra money you save each month instead of your credit cards.
What should I do with my credit accounts once I am in your credit card debt settlement program?
You should stop making payments to your creditors. Once you are enrolled in our debt settlement program, our attorneys will be contacting creditors to let them know that you are looking to settle. Keep the copies of your statements and correspondence from you creditors in a safe place. We might be able to use them against your creditors later on.
How does credit counseling compare to credit card debt settlement?
With our credit card debt settlement program, our law center works for your to cut your credit card balances to around %50. Credit counseling works different in that they have counselors who work to lower your interest rates. Typical time for credit card debt settlement is from 1 to 3 years. Credit counseling services can typically take 4 to 6 years and your are still paying interest on your credit cards. Debt settlement is a faster and less expensive approach to debt relief.
How does credit card debt settlement different from debt consolidation?
Debt consolidation can be broken down into two types: secured and unsecured debt consolidation. When dealing with a secured debt consolidation, the person in debt gets a loan that has collateral that is secured with a house or a car. The loan will have a lower interest rate because it is attached or secured to something. An unsecured debt consolidation loan is when the person looking for a debt consolidation gets an unsecured loan from the bank to pay off their credit cards. Debt settlement does not have anything to do with lending any money. Credit card debt settlement negotiates with your credit card companies to reduce the amount of debt that you owe.
So with a credit card debt settlement, do I have to make more then one payment each month?
No, One of the things people like about credit card debt settlement is that they only have to make one monthly payment. That payment is typically less then what the consumer was paying out monthly before.
What if I were able to get a home equity loan to help pay for my credit card debt settlement?
Yes, if you are able to get a home equity line of credit we encourage you to do so. If you were to get a line of credit, we would get a settlement from you credit card companies and pay them off faster. This usually takes a while to do and we understand that this is often times not an option for those who are in our credit card debt settlement program.
Doesn’t credit card debt settlement work just like bankruptcy?
Not at all. Credit card debt settlement is a bankruptcy prevention program. Bankruptcy has a much worse consequences on your credit unlike a credit card debt settlement. Bankruptcy has been compared to getting a bad tattoo. That is to say that Bankruptcy has a much worse affect on your credit score then debt settlement. Bankruptcy is an option for people who have zero income or are looking for some debt relief on secured debts like a car or mortgage payments. Chapter 7 bankruptcy is when the court orders the debtor to sell off all of there non-exempt property and then the court has a trustee that will pay back all of the creditors from the money made from selling their items. Worse yet, a Chapter 13 bankruptcy is when the court demands that the person filing bankruptcy pay all of their disposable income for the next 5 years.
How do I get started with your debt settlement company?
The best way to get started is to fill out our from and speak with one of our debt settlement experts. A debt settlement representative will be able to go over your credit card bill and your situation to see if you qualify for our debt settlement program. We will go over your credit card statements with you and then submit them to our attorneys who will further review them. Once you are approved for the program, we will be able to get you exact numbers of what your monthly payments will be and how long you will be in our debt settlement program. Then we will fax, email or mail you our agreement which will need to be filled out and sent back to us.
Once I am in the credit card debt settlement program, can I be sued by my creditors?
There is a possibility that you could be pursued by your creditor for the full amount. Our team will review your situation once we receive everything about your creditors from you to avoid this. We also set up your monthly payment and debt settlement term length so that your creditors are getting paid in a reasonable amount of time. To give you an example, we don’t offer a 48 month program for someone with $10,000 dollars in debt.
Its should also be mentioned that taking legal action would be a last resort once they have tried every other way to collect there money. Secondly, most credit card companies know that if they try to sue someone for the amount owed that they will most likely just file bankruptcy. So then creditor would then get nothing.
How much is your credit card debt settlement going to cost me?
Our fees are spread out over the first 10-19 months of the program and are based on how much debt you have. Our fees are 20% of your total debt. We can reduce your debt by up to 40% and including our fees of 20% means you are paying back 60% of what you owe. This makes our credit card debt settlement program the least expensive avenue for debt relief. Only bankruptcy would be cheaper.
What kind of situation do I have to be in to qualify for your Credit card debt settlement program
Your qualification is based on a few different factors, the credit cards you have, your state of residence and your recent account activity. We look for clients who are starting a state of financial hardship. A state of hardship is broadly deals with the some financially catastrophic events such as losing a job or a recent divorce. Perhaps medical bills that are piling up or any other events that have caused the client to have acquired high credit card debts and not have the ability to pay back what is owed.
Is there anyway you can stop the collections calls?
There is no way to stop collection calls instantly. You can expect to get phone calls from them, but once you join the program your attorney will put your creditors on notice that you are represented and, by law, this should prevent the creditors from calling you. This process takes a short while for these big companies to, “have the right hand know what the left hand is doing” There is no law from stopping the creditors from sending you any written correspondence, however, if they send you any letters you should immediately forward those letters to the customer service department.
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