Debt Consolidation and Debt Management FAQ's
Does your services loan me money?
No, we do not lend any money, and this is not a consolidation loan. We negotiates with your creditors to lower your payments and interest rates. The end result being similar to a consolidation loan without the collateral and credit checks.
Why shouldn't I file for bankruptcy?
Most people file bankruptcy to escape bill collectors. With our services, we did the necessary foot work for you and offer a safe and sound alternative to bankruptcy. As with most people interviewed, surveys show most people would rather not file bankruptcy. By inquiring thru our services, our satisfied customers are able to avoid the bankruptcy mistake.
I'm not behind on my bills, but I'm barely making it by each month. I've also noticed that my balances never seem to go down. Can I enter this program even though I'm current in my bills?
Yes. Most creditors realize that it is well worth working with people who realize a problem may be on the horizon.
What exactly is unsecured debt?
Unsecured debt is when a creditor holds no collateral. For example, an unsecured debt is usually in the form of: credit cards, department store cards, medical bills, and gas cards. No form of collateral such as a home or car was utilized to secure the "loan" for services rendered or goods received. With a secured loan, and as a precaution against "default" (non payment) what is used as "collateral" for the loan could be liquidated.
How does your program affect my credit report?
This really depends on the creditor. While most creditors waive late fees and re-age your account, it's important to consider this as an extra incentive to work with a pre qualified, high established debt consolidation company especially when you're behind in payments. Some creditors will make a notation in your credit report such as "Managed by Credit Counseling." Generally it is neither a plus nor a minus on your credit due to the fact that you are still making the payments. Also, payments are calculated based upon individual creditor's requirements. The pre-qualified organizations that we work with do not report to the credit reporting agencies. It is in the sole discretion of your creditors whether or not they report your credit counseling status, with most credit agencies acknowledging debt consolidation is a responsible way of dealing with overextended credit issues.