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.
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
Debt collectors are forced to abide by the Fair Debt Collections Practices Act. The FDCPA specifically states that a debt collector is forced to work with a third party who has the Power of Attorney instead of the original debtor. There are also specific rules from state to state. The rules of your state can be found on our homepage.
A. It is not recommended that you apply for other credit while you are enrolled in our debt settlement program as it might affect our negotiating stance with your credit companies. In some instances they might say. “How is this client unable to pay their debt with us if they are able to apply for credit elsewhere?” Further more, the main objective of our credit card debt settlement program is to get out of debt so attempting to get more credit cards would defeat the purpose of our program.
The main thing you are responsible for while on our debt settlement program is to keep us informed of your contact with your creditors and to make your monthly payments as scheduled. We count on you to build up the money in your escrow account so that we can reach a settlement quickly with your credit card companies. If for some reason you have a difficult time making your monthly payment one month you need to let us know five days ahead of time so you do not get charged with an insufficient fund fee when your account is debited. Above all, again, it is important to keep in contact with us as we are working on your accounts.
In order for us to work on any credit cards that have another co-applicant user, we ask that the co-applicant sign a waiver acknowledging that the account is allowed to go on the debt settlement program. Should you have cards that have additional authorized users we ask that you contact your credit card company prior to enrolling in our debt settlement program.
Credit repair is the process of removing inaccurate or bad information on a person’s credit report. Often times our clients will use a credit repair service after they have completed our credit card debt settlement program to raise their credit scores quickly. However, credit repair does not get rid the debt you owe as debt settlement does.
No. Your credit cards do not get paid every month. We negotiate with your credit card companies to get you lower amount then what you already owe. Each month your payment is going into an escrow account while we are negotiating with your creditors. Once there is settlement reached with your credit card company we then pay the creditor the lower amount in one lump sum
Our experience has shown that it is best to deal with the most aggressive creditors first. Everything else being equal, we would settle first with the creditor who is offering the best settlement.
Bankruptcy would still be available as a last and final resort. It is important to make note that any money that was spent on your credit card debt settlement program is permanently gone. You are however, always in control of your FDIC insured escrow account.
Every creditor has an internal policy related to debt settlement, and they all accept settlement offers in a certain range. Creditors typically will accept a settlement around 40 to 60 percent of the balance owed during a certain period of the collection process. Debt settlement is all about timing with your creditors and having the money ready for them when a good settlement offer is reached
Yes, absolutely. When you begin to pay off your debts earlier, your credit score will be able to recover much faster because you are out of the program quicker. This will also greatly lower the chance of any legal action by a creditor.
