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What Is Debt
Consolidation?
We
are a debt consolidation firm and we consider this to be one of the better
options.
Debt Consolidation is a process that allows a
firm to reach an agreement with your creditors to achieve the lowest and most
affordable monthly payments. This is not a loan but we are able to dramatically
reduce your overall interest rate, monthly payments, and most of all, your
payoff time. They also refer to this as Debt Management or Consumer Credit
Counseling.
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How Can A
Debt Consolidation Program Help Me?
We can combine all of your accounts in to one
manageable and affordable payment and then disburse those payments to each of
your creditors on a monthly basis. We work closely with your creditors to reduce
interest rates, lower your monthly payments, re-age your accounts (bring
accounts back to current status) and waive late or over limit fees. The
creditors acknowledge that people who enter the
debt consolidation program are making efforts to pay their obligations.
By joining the
debt consolidation program, you solve costly problems such as
debt consolidation loans, bankruptcy or debt settlements.
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How Does A
Debt Consolidation Program Work?
Please
click here for a
detailed explanation of the debt consolidation process.
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What
Information Will I Need To Enroll On The Program?
To enroll in our
debt consolidation program is a lot easier than most people think it is.
All we need to get you started is the names of your creditors and the balances.
Then one of our knowledgeable counselors can conduct a
free,
no obligation quote for you.
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Do I Have To
Include All Of My Unsecured Debt?
You can decide on which accounts you would like
to include. Although we highly recommend you include all of them. However, your
counselor will be able to better recommend what options best suit your needs
during your free consultation.
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What Is An
Unsecured Debt?
Unsecured debt is a debt that is not guaranteed
by the pledge of any collateral. Most credit cards are unsecured debt, which is
the main reason why their interest rate is higher than other forms of lending,
such as mortgages, which employ property as collateral. Examples of unsecured
debt are; credit cards, department store cards, unsecured personal loans,
student loans, IRS, collection agencies, medical bills and some judgments.
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What Is A
Secured Debt?
Secured debt is a debt backed by a mortgage,
pledge of collateral, or other lien; debt for which the creditor has the right
to pursue specific pledged property upon default. Upon default, the creditor can
repossess the property or collateral identified by the lien in order to satisfy
the debt. Another example is automobiles.
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How Will This
Affect My Credit?
A sure way to answer this
question is to refer you to a website directly affiliated with the credit
bureaus. Please visit
www.myfico.com , Click “Credit Education”, scroll
down to the blue highlighted topic “What’s NOT in your score” and review the
last bullet point which states “Whether or not you are participating in credit
counseling of any kind.”
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How Do I Obtain My Credit
Report?
You can obtain a free credit report once a year by
visiting
www.annualcreditreport.com
and receive all 3 credit reports by all three credit bureaus, or you can contact
them directly.
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How Long Does A
Debt Consolidation Program Take To Complete?
This varies and depends on each individual case
but the length of time on the program far outweighs the length of time it would
take you to payoff your creditors on your own. A typical program can take
anywhere from 2 to 4 years, whereas on your own, 20 to 30 years.
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Should I Consider Bankruptcy As
An Option?
This option will have a long term negative effect.
Bankruptcy remains on your credit history for ten years and may impact your
ability to gain possible employment or credit. Bankruptcy on your credit history
can also affect the cost of various types of insurance and even a place to live.
Whenever considering bankruptcy, you should always consult an attorney and keep
in mind filing for bankruptcy can cost $1200.00 to $1500.00. Even after it is
removed after the 10 years, different applications such as
employment applications, loan applications, credit applications, always
ask, “Have you ever filed for bankruptcy?” So it can stay with you a lot longer
than the ten years. Bankruptcy should always be a last resort. In some states,
they can take your property and make you pay back a portion of what you went
bankrupt on.
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Should I Consider A
Debt Consolidation Loan?
Some things to consider with a
debt consolidation loan is that it usually requires collateral and it
only places your assets at risk and can extend your debt further. This type of
loan does not reduce the amount of money you owe, in fact your overall payment
may be less but they end up charging you higher interest rates, as high as 21%
or 22% extending your overall length of time and you end up paying a lot more.
We do not offer these loans.
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