Frequently Asked Questions:

  • Is debt settlement the same as debt consolidation?
  • What type debts can I include?
  • How long does debt settlement take?
  • Will creditors and collectors still harass me?
  • How much will I save?
  • Can you make creditors stop phoning?
  • Why should I use your company?
  • What happens to my credit rating during debt settlement?
  • Why shouldn’t I declare bankruptcy?
  • If I want to hire you, what do I do next?
  • Is debt settlement the same as debt consolidation?

Is debt settlement the same as debt consolidation?

No, it isn’t the same. There is no loan required in debt settlement as there is in debt consolidation. Rather than simply putting all your debts together and getting a long term loan to pay them off, debt settlement sees your balances reduced to lower amounts. In many cases where the debt is significant or your credit is not good, it may be difficult to obtain a loan for debt consolidation.

What type debts can I include?

Debt settlement can include almost any unsecured debts. That means that it must be debt that isn’t secured by collateral. We deal with credit card debt, medical bills, unsecured personal loans, accounts in collections, retail credit card debt and even money owed after a repossession. There are some debts which we may not be able to include in a debt settlement program. Payday loans, legal judgements, medical debts not in collection and consumer finance loans may not be eligible. Any of our experienced representatives will be able to help determine which of your debt is right for a settlement plan.

How long does debt settlement take?

Every financial situation is different but our aim is to have our clients debt free in from 24-48 months. It depends on the type and the amount of the debt, how much can be negotiated in reduction and how much you will be able to set aside each month toward eliminating the amounts. Creditors will sometimes continue to charge interest, put on late fees and other charges but we attempt to factor this into your plan. Once you’ve spoken with one of our representatives and given him your details, we will both have a much better idea of how long the program might take for you. It’s all confidential so you should find out as soon as possible in order to start planning.

Will creditors and collectors still harass me?

We cannot guarantee that your creditors will stop phoning you. They’ll stop when you’ve settled your debt and there are times that once they know you are in a debt settlement program, they will back off. What we can do is provide you with good information on how to combat them. By knowing your legal rights, you will know what they can and cannot say to you. You are allowed to monitor their calls and report infractions. When you start your debt settlement program, tips on how to do this will be included in your packet.

How much will I save?

We want to save you as much money as possible but since each situation is different, predicting is almost impossible. Our representatives can evaluate your circumstances and will certainly be able to give you an estimate on what we think we’ll be able to save for you. You should know that any debt relief company who claims to know an exact amount doesn’t really know. Be wary of those companies.

Can you make creditors stop phoning?

There is not a way we can prevent creditors from phoning you but we can make you aware of your rights. There are set rules they must abide by and we will give you a copy of the document, which lists them all.
Why should I use your company?

We are not paid by other companies. Our fees come from you and they depend upon your success. We want to help you reduce your debt and eliminate it. That is our goal and the principle our company is built upon.

What happens to my credit rating during debt settlement?

It is likely that your credit score will go down during the debt settlement process. If you are already late on most of your bills, the negative effect may be minimal but each and every person’s rating is different and there is no way for our company to project where yours may end up. Because debt settlement can take months or years to complete, if maintaining a high credit score is your goal, this method may not be a good solution for you. Before you begin any debt relief program, we highly recommend that you get copies of your reports and scores from one of the two largest credit bureaus. www.transunion.ca or www.equifax.ca.

Should you be current on all your payments and still decide to join our debt settlement program, you should expect to see your score take a nose dive because the accounts enrolled in your program would be reported as delinquent until the negotiations and final buyout is made. Once a debt settlement program is completed, a credit rating may not be good, but there are incentives at the same time. There will be money saved that can be put toward many things such as retirement, college funding, personal saving or a down payment on a home. Should you decide that bankruptcy is better for you, do remember that it will remain on your credit report for up to seven years and will remain permanently on court records. Weigh all the positives and negatives before signing up for debt settlement. There are some excellent benefits for those who soldier through the process.

Why shouldn’t I declare bankruptcy?

If bankruptcy sounds like it might be the route you want to pursue, do find out first if you can qualify. Start by talking with a licensed bankruptcy trustee and discuss qualifications and all the pros and cons of this legal procedure. It is one of the most extreme financial moves that you can make and it should be carefully thought out prior to implementing.

The effects of bankruptcy are aggressive and long lasting:

  • It is a court procedure.
  • It is law that you must reveal all of your debts and all of your assets.
  • It is law that credit reporting services may keep your bankruptcy notation on your file.
  • It is a public record and that means anyone can know about it.
  • If you do not want a court dictated financial situation and you value your privacy, think before leaping into a bankruptcy proceeding.

If I want to hire you, what do I do next?

Call us and talk with us. Before you do anything, use our free consultation offer to find out if your situation is right for debt settlement. Our representatives are experienced pros and will take you through how debt settlement works and how it might or might not be helpful to you. Every situation is different and each one will vary so there are no guarantees in our assessment. We will be your biggest supporter but a lot of the success in debt settlement is due to your determination. Read more about our plan. Study it and consider if it is for you. Then, hire us.