Debt Settlement is the fastest and least expensive solutions to debt reduction. Often referred to as Debt Negotiation, Debt Settlement is an alternative to Bankruptcy, Consumer Credit Counseling and other third party intervention programs. If you are considering Bankruptcy, you should consult a Bankruptcy attorney.
What is Debt Management?
Debt Management is a hardship program with creditors that allows for a reduction in interest rates, and forgives late fess and penalties. This allows customers to pay off the total principal in four to five years with significant savings in interest payments.
What debt can be included?
Unsecured Debt only. This could mean unsecured major Credit cards, Department store cards, Medical bills, and personal loans. If you have any Secured debt such as Mortgages or Car payments, Premier Debt will refer you to the correct professional. No Student Loans or Tax Liabilities are allowed.
Who can benefit from Debt Solutions?
Our Debt Solutions Programs are designed for consumers who are facing a financial hardship. This can mean a job loss, medical issues or perhaps a divorce – these candidates may have a reduction in income. If you have the financial means to meet your obligations, then you should honor your debts! If you are not meeting monthly obligations, come in and see us!
How will a Settlement Program effect My Credit?
The question is, which is more important at this time, your credit or cash? Yes, a debt settlement program will effect your credit negatively as will all Debt programs. Most likely, your credit score is already damaged, or will be in the near future. How much your score will decline will depend on many circumstances. Most accounts that are negotiated are likely to go into a “charge off” status. This status will unfortunately reflect negatively on your report. Once the charge off debt is settled, the settlement is reported to the bureaus.
How will a Debt Management Program effect My Credit?
According to Fair Isaac, the fact that you participate in credit counseling is not calculated into your FICO score. However, scoring models developed by other companies do not necessarily follow the FICO factors. For a list of what is and is not included in your FICO score, see the Fair Isaac Credit Education section, www.myfico.com/CreditEducation/?fire=1.
Can I still use my credit cards?
No!! You will be advised to stop using all credit cards in the program. Any cards you do not enroll in the program, we suggest you keep for emergency purposes only.
Will Enrollment STOP Creditor and Collection calls?
In a Debt Management Program, YES.
In a Settlement Program, unfortunately we cannot promise they will stop. Your creditors do have a right to call in attempts to try and collect a debt. However, most creditors are cooperative and reasonable. Once they receive your hardship letter, the calls may reduce. However, if your account is in collections – then a collector/collection agency MUST adhere to the Fair Debt Collection Practices ACT; FDCPA . This act specifically states that a debt collector is obligated to contact the third party when requested by a consumer. This allows them to call us to discuss your matter.