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Frequently asked questions
Note: This Q&A Is specific to OUR Debt Consolidation service and may not be relevant for others.
Do you have a question not listed here? Contact the webmaster so we can add it!
Q. Do I have to pay a fee to use your service?
Our credit counseling agency does require a nominal contribution on your part to enroll in the debt consolidation program. This nominal fee covers operation costs and will be included in your monthly payment.
Our fee is lower than other credit counseling agencies.
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Q. Does your service involve a loan?
No. We do not offer loans as part of our debt consolidation service nor is a loan required.
We negotiate interest rates and minimum monthly payments with creditors and then combine all your monthly payments into one payment.
As a result of this, your monthly payment will be lower than what you are currently paying, you will save you money due to the lower interest rates and you will only have one payment to be concerned with.
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Q. How does your service lower my monthly payments?
We negotiate with your creditors to obtain better repayment terms for you on existing debts.
Creditors are willing to participate in debt consolidation because they understand that; if you've enrolled in our debt consolidation service, you're taking action and you have a plan in place that you're going to follow to pay off your debts.
And that's in the creditor's best interest because it lessens the chance of a client declaring bankruptcy.
If an unsecured creditor's client files bankruptcy, the creditor often receives nothing. ↑
Q. How will I know when payments are made to my creditors?
Each month you will still receive a statement from your creditors through the mail indicating when a payment has been made.
You will also receive a login so you're able to view records online.
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Q. Is it a good idea to "shop around" for the lowest payments?
Regardless of where you go, all consolidation agencies base the new
monthly payment on the terms of the creditor.
The only thing that would ever flucuate your new monthly payment would be "setup fees and monthly
servicing fees". Both of which, we do not charge.
ALL debt consolidation agencies go through the same procedures with creditors in order to provide their service. ↑
Q. What exactly is Debt Consolidation?
dictionary.com, in the first definition of consolidate defines consolidate as:
"To unite into one system or whole; combine: consolidated five separate agencies into a single department."
With debt consolidation specifically, it means to combine all unsecured debts into one unsecured debt.
But our debt consolidation service doesn't stop there.
In addition to consolidating your unsecured debts, we
negotiate with your creditors to obtain better repayment terms for you on existing debts.
Creditors often drop late charges, and drop over the limit charges.
Your accounts are reset to show that you are current with your payments.
Monthly payments are often lowered and interest charges are reduced - even to levels between 0 and 5%!
Over time, lower interest rates can save you thousands of dollars -- which can take years, or even decades off your payments.↑
Q. What kind of debts can be consolidated?
Unsecured debts such as credit card debt, department cards, judgments, medical loans, collections, IRS, repos, past due utilities, service charges, personal loans, signature loans, store credit or charge accounts, gas charge accounts and certain installment loans.
To qualify for our program, your combined debt must total $5,000 or more and you must have at least two accounts in debt. ↑
Q. What do I need to do to get started?
Just fill out our free quote form, Click Here.
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Q. What is unsecured debt?
Debt that is not guaranteed by the pledge of any collateral. Most credit cards are unsecured debt, which is one reason why their interest rate may be higher than other forms of lending, such as mortgages, which use property as collateral.
Things such as: credit card debt, department cards, judgments, medical loans, collections, IRS, repos, past due utilities, service charges, personal loans, signature loans, store credit or charge accounts, gas charge accounts and certain installment loans are unsecured debt.
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Q. Will debt consolidation hurt my credit?
No, this program may actually increase credit scores, because you will be paying creditors on time. Keep in mind, our agency does not report to credit bureaus. Your creditors do.
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Q. Will I still be able to use my credit card?
You cannot use any credit cards that are put in the debt consolidation program.
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Q. Will you contact my employer or report to the credit bureaus?
No. Credit bureaus will not be reported to and employers will not be contacted. ↑
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