Debt Consolidation FAQ
American Debt
Foundation
http://www.americandebtfoundation.com
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American Debt
Foundation
http://www.americandebtfoundation.com
Debt Consolidation FAQ
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Cooper City , FL 33024
Debt Consolidation FAQ
Why can't I
just negotiate with creditors on my own?
Why can't I just keep paying off my creditors
on my own?
How much will it cost me to be on the Debt
Management Program?
How will joining Debt Consolidation Services
affect my credit rating?
Can I send in more money once I have a better
cash flow?
Should I pay my bills in the time before I send you my first
payment?
After I pay off one account, can I just pay less?
Will I still receive harassing phone calls?
Q: Why can't I
just negotiate with creditors on my own?
A: In some cases, you can negotiate with creditors on your own to
arrange payment or have positive information reported to a credit
bureau. However, to get the benefits of lowered monthly payments,
lower interest rates, stopped late charges, and waived over the
limit fees, you need Debt Consolidation Services. We deal with
non-profit organizations, and their credit counselors can secure you
these benefits not usually available to consumers.
Q: Why can't I
just keep paying off my creditors on my own?
A: If you keep paying just the minimum to your creditors at the
current interest rate, it will take you much longer than if you paid
off your debt through our Debt Consolidation Services. A $10,000
debt usually takes 32 years and $24,500 to pay off, if you are
paying the monthly minimum of 2.5% of the balance at an average
interest rate of 18.5%. Because we may be able to reduce your
interest rates, stop over the limit fees, and so on, it will take a
lot less time to pay off your debt through us. Chances are, in the
past, all your debt payments have just gone to pay off interest. You
probably haven't even reduced the balance! On average, our debt
consolidation clients pay off their debts in 3 to 5 years, depending
on individual circumstances.
Q: How much will
it cost me to be on the Debt Management Program?
A: Due to the fact that Debt Consolidation Services works with
non-profit organizations, we do not charge any advance fees for our
service. We do request that clients make a monthly contribution to
our organization to cover the costs involved in handling the
accounts on a monthly basis. As non-profit organizations, our debt
consolidation counselors depend on these small contributions to meet
the operating costs. Our clients find that their increased cash flow
from lower monthly payments, interest rate reductions and stopped
late charges more than covers the cost of the monthly contribution.
Q: How will
joining Debt Consolidation Services affect my credit rating?
A1: Do you have a good credit history? If yes, then you should be
aware that your credit report may state that you are working through
a debt consolidation service. We can't guarantee how future
creditors will interpret this information, but we believe that it
shows you are trying to get help. Your credit report probably states
that you've been carrying balances, made late payments in the past 7
years, or even missed payments, so it may not be as perfect a credit
history as you think.
A2: If no, then Debt Consolidation Services can only help you. If
you make your payments in full and on time, then many of your
creditors will "re-age" your account, which means they will show
your accounts as current after several payments. In general, if you
are paying off debt, that can revitalize your credit report. Showing
that you are working through a debt consolidation service may show
future creditors that you needed help but wanted to pay off your
debts in full.
Q: Can I send in
more money once I have a better cash flow?
A: Of course - you can always increase your monthly payment. The
more you pay, the faster your accounts will be paid off. Just let
the debt consolidation office know you want to increase your
payments beforehand so we can figure out which creditors to pay more
money.
Q: Should I pay
my bills in the time before I send you my first payment?
A: That's your decision, however we recommend that you do if you
can. There is a brief negotiation period of approximately 30 days
after we receive your first debt consolidation payment. During this
time we make arrangements for future payments with creditors. If you
miss due dates for accounts during the negotiation period, you are
at risk of penalties and negative information reported to the credit
bureau.
Q: After I pay
off one account, can I just pay less?
A: That's your decision, but we highly recommend that you pay the
same amount and transfer whatever you used to pay for the other
account to a high interest account. That way, as you pay off each
account, you end up paying more to the remaining accounts, speeding
up the process without changing your monthly spending budget.
Q: Will I still
receive harassing phone calls?
A: You might the first several months on the program since it takes
time for your creditor's collections department to find out you're
using our debt consolidation services. If you get a harassing call,
inform the party to call our debt consolidation office and speak to
your account specialist. If you get a harassing call from a
collection agency that is not part of your creditor's company, we
will provide you with a cease and desist letter. 3rd party
collection agents must obey this letter, according to the Fair Debt
Collection Practices Act. Make sure you tell your account specialist
if you receive any such calls from a collection agent.
Debt Consolidation FAQ
American Debt
Foundation
http://www.americandebtfoundation.com