FAQs
How long does the ConsolidatesDebt.com program take?
What is secured debt versus unsecured debt?
What kind of debts can’t be negotiated?
Do I qualify for your program?
What does it cost and how does ConsolidatesDebt.com make money?
Will I really be debt free at the end of the program?
What if my spouse (current or former) is on some of my accounts? Will he or she have to be included in the settlement process?
What happens to my credit score?
Will I be able to use any of my cards during the settlement process?
Will I be able to get credit cards, a loan or a mortgage in the future?
Does ConsolidatesDebt.com provide credit repair services?
Why can’t I negotiate my own debts?
Is debt consolidation and debt settlement the same thing?
What happens during bankruptcy?
Will collectors continue to call me during ConsolidatesDebt.com's program?
What if I miss a settlement program payment?
How long does the ConsolidatesDebt.com program take?
The length of the program is primarily dependent upon the size of your monthly payment, but it can also lengthen or shorten depending upon the individual demands of creditors. You can contribute funds beyond your monthly payment in order to accelerate the process, but this is not necessary. One of our Debt Specialists will help you determine an affordable payment level given your budget.
What is secured debt versus unsecured debt?
Secured debt is any debt that is collateralized by another asset. The most common examples are car loans, home equity loans and credit cards secured by a bank account. When a debt is secured the creditor can obtain the right to sell the asset in order to fully repay the debt. ConsolidatesDebt.com can negotiate unsecured debt only, however there are some occasions, such as a car loan balance left after repossession, where secured debt becomes unsecured and is then negotiable. ConsolidatesDebt.com frequently negotiates credit card debt, medical bills, personal loans. Occasionally tax debt can be forgiven. Only in very dire instances can student loans be forgiven.
What kind of debts can’t be negotiated?
Mortgages and any debt secured by an asset such as a bank account, securities account, RV or boat loan. Usually we cannot negotiate car loans or government insured school loans.
Do I qualify for your program?
You must have $10,000 or more in unsecured debts and be able to demonstrate enough monthly income to make regular payments towards settling it. Your debt settlement payment is often less than what you are paying monthly now. You must also be committed to becoming debt free and understand how our program works. Please consult with one of our Debt Specialists to determine your eligibility.
What does it cost and how does ConsolidatesDebt.com make money?
ConsolidatesDebt.com charges a fixed percentage on the amount of money we save you. That means the better we negotiate for you, the incrementally more we receive in fees, and the more you save overall. ConsolidatesDebt.com also charges a small monthly bank account maintenance fee and a non-refundable set-up fee due to the large amount of work we do initially with creditors and banks to get your account established. For a full explanation of the Settlement program please email us.
Will I really be debt free at the end of the program?
All accounts you entered into the program will be reported “settled” with a zero balance and you will be released from any further obligation. You will be completely free of them!
What if my spouse (current or former) is on some of my accounts? Will he or she have to be included in the settlement process?
Your creditors will probably not agree to free either of you from the account, even the spouse entering the debt settlement program. Usually this depends on how many accounts are held jointly and separately. Occasionally we can enroll one spouse without the other, however you should speak to one of our debt specialists to find out what is possible in your situation. Please email us.
What happens to my credit score?
Several factors affect your overall credit score and you should consider the long-term affect of all your debt solution options. The settlement process may create a short-term negative affect on your payment history, however, if you have been late or are behind with recent payments, then it may have little impact, if any. This said, settlement typically has a positive affect on another part of your credit score and that is the amount you owe. Clients sometimes experience an improvement in their credit score by the end of the settlement process because they are left with much less or zero debts outstanding. Click here to learn more about your credit score from the company that created scoring.
Will I be able to use any of my cards during the settlement process?
We strongly encourage you to put all of your unsecured debt into the negotiation process and use debit cards instead. Occasionally, we allow a client to keep a low limit card open for emergencies, but using that card can undermine the negotiation process. Consider how a creditor would react to taking less than full payment, when they know you are keeping another account current.
Will I be able to get credit cards, a loan or a mortgage in the future?
If you’re asking this question then you are the type of client that is best suited for our program, one committed to getting their finances back on track as soon as possible! At the conclusion of our program, you should have what many creditors find most important, the ability to pay, along with minimal other commitments. You may have to go to several financial institutions to secure a loan or find acceptable lending terms. As you near completion of our program we will refer you to companies that can help you re-establish your credit. Click here to learn more about your credit score from the company that created scoring.
Does ConsolidatesDebt.com provide credit repair services?
The only form of legitimate credit repair is removing untruthful and outdated remarks from your credit history. To this extent we protect our clients throughout the settlement process and promise that all debts we settle are reported truthfully.
Why can’t I negotiate my own debts?
You can! You can also sell your own house, repair your own car engine or fix your own plumbing. Most of us are experts at some thing, but not everything. At ConsolidatesDebt.com we are experts in negotiation, specifically debt negotiation. We know the credit and collections industry very well--its cycles, its internal policies and procedures, and the federal and local laws applying to all parties in the industry. Most importantly, we are not you! Keep in mind that the credit industry is also an expert at making people pay. Simply put, the tactics they use on you don’t work on us. They know this and typically start at a much lower negotiating point with us than they would with you. Even though we charge for our service, the end cost to you is lower than you could likely negotiate yourself. And you won’t have to take creditor calls at all—that’s our job.
Is debt consolidation and debt settlement the same thing?
No, absolutely not! In debt consolidation all of your current debts are rolled into one new debt, which is often either at a much higher interest rate or guaranteed by your home. When you secure a loan using your home, you convert unsecured debt into secured debt, giving up hard earned equity in your home. These programs typically only create more debt instead of moving you towards debt freedom. Their goal is very different, and often without the client’s knowledge, debt consolidators are paid by both the client and by lenders who make or service the loan.
What happens during bankruptcy?
At ConsolidatesDebt.com we believe that debt settlement is a better solution. Bankruptcy can be the start of a long-term crippling of your financial well-being. It is the last of all resorts. There are two kinds of bankruptcy, Chapter 13 and Chapter 7. The consequences between the two differ financially, in terms of debt freedom, continued obligations and the loss of assets, including your home. In both cases the long-term implications both financially and psychologically are devastating. No one should file for bankruptcy without first considering debt settlement. ConsolidatesDebt.com’ program is an excellent alternative to bankruptcy. Click here for more information.
Will collectors continue to call me during ConsolidatesDebt.com's program?
We make every attempt to stop creditor calls because we want them talking to us, not you. Legally they have to stop contacting you if you tell them to. We cannot stop creditors operating outside the law, but we do have specific ways to encourage them to stop. If a creditor passes along your account to a collection agency, that agency has the right to contact you in writing and by phone to let you know about the change. Again, ConsolidatesDebt.com will take every possible step to bring them into conversation with us, not you.
What if I miss a settlement program payment?
While we would like every client to take their monthly settlement payment as seriously as they do their rent or mortgage, we know that there are emergencies that take priority over your debt payments. We will continue to work with clients who have legitimate reasons for missing payments and who demonstrate commitment to the success of our settlement programs. |
