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Debt Consolidation Program
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Debt Consolidation |
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Debt Consolidation FAQ |
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How Debt Consolidation FAQ Can Help
The past several decades have seen an explosion in the levels of consumer
debt. While many of our parents and grandparents went their entire lives
without incurring any debt beyond possibly their mortgage, their children
and grandchildren seem to be making up for lost time. These days it is not
unusual for college or even high school students to have their own credit
cards, but unfortunately education on how to use credit wisely seems to be
lacking.
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Debt Consolidation FAQ Form) |
American Debt Foundation
Debt Consolidation
FAQ
Call Us Today For A Free
Debt Consolidation Quote!
1(866)411-3328- 1(866)411-DEBT
10000
Stirling Rd Suite 5
Cooper City , Fl 33024
Debt Consolidation
FAQ
Q:
Q: Why does the debt consolidation program work?
A: Credit Cards are under a revolving credit payment
plan. They are designed to keep you in debt, resulting in your paying an
extraordinary amount of interest while trying to pay them off. Under
these circumstances, most people will end up paying between 15 and 30 or
more years. This means they will usually pay out 5 to 6 times what they
originally borrowed.
By changing from a revolving to a fixed payment plan, along with a lower
interest rate, most of the money is applied to your principal balances
instead of just paying finance charges each month, reducing your total
payout term to 3 to 6 years.
Q: Why is debt consolidation better than a loan?
A: Borrowing money to pay back borrowed money is
economic suicide. If you are able to qualify for an unsecured loan to
pay off your unsecured debt (most people do not) you are basically
borrowing from Peter to pay Paul. If you take out a secured loan such as
a home equity or second mortgage, you are attaching your current
unsecured debt to something of value such as your home. The average
interest rate in consolidation is 6 to 8 percent, which is usually less
than most loans
today.
Q: How will debt consolidation affect my credit?
A: Our agency does not report to any Credit Bureaus. If
you are current with all your bills and have a good credit rating, the
creditors policies stay virtually unchanged. As long as you make your
monthly payment on time, the payments to your creditors are considered
on time. On the other hand, if you are over extended and have a poor
debt to income ratio.
Q: Is this like
bankruptcy?
A: No. This is the opposite of bankruptcy. Bankruptcy
is when you don't pay your bills and you destroy your credit. In
consolidation your debts are being paid, and your creditors are
satisfied.
Q: Can my credit be repaired through debt consolidation?
A: Yes. By using our program you restructure your debt.
Your credit rating will improve by showing a positive payment history.
No one can erase your true credit history, but the longer you stay in
the program, the closer you will be to establishing a solid credit
rating.
Q: Can I quit the program?
A: Yes. However, if you do decide to quit the program,
the interest rates will go back to what they were before you started.
Q: What are unsecured / secured debts?
A: An unsecured debt is an account or monies owed that
has no tangible property or product attached to it. Examples: Credit
Cards, Medical Bills, Department Store Cards, Signature or Installment
Loans, etc. A secured loan has something physical attached, that
protects the loan in case of default, such as a House or a car
Q: Is this a
loan? - Do the creditors get paid in full?
A: No. This is not a personal loan to you. There is no
cash in hand. All your money is disbursed directly to your creditors at
a lower or zero interest rate. The Free Debt Quote and its servicing
agents are hired by you to do three things.
1. To set up and establish a new payment plan with your creditors that
suspends your original terms and will help you get out of debt by
lowering or eliminating your current interest rates.
2. Handle all Creditor and Collection agency phone calls after you have
joined our Debt Consolidation program.
3. Consolidate your bills into one monthly payment.
Q: Who needs our service?
A: Anyone who is experiencing problems keeping up with
their bills or seeking to rid their life of financial burden.
Q: I have debts prior to marriage, Can I do this alone?
A: As long as you were the only signer on the debt and
it's in your name alone, you can enroll in the program individually.
Q: Will creditors still call me?
A: If creditors call you after you enroll in the
program, simply direct them to our service center. We will advise them
that you are enrolled in our consolidation program, and there is no
reason to contact you further.
Q: How is my
payment determined?
A: Each creditor requires a minimum payment to qualify
you for the program. All creditors have different requirements for
acceptance. The payment is based on your particular mix of creditors and
your balances.
Q: Are creditors willing to work with your program?
A: Absolutely. Your creditors want to be paid. They
also understand when a client contacts a debt consolidation company,
they may also be considering bankruptcy.
Q: How do I get started on the program?
A: We offer an online creditor listing form for your
convenience. Just click on the Free Quote link, fill out the requested
information and submit it. You will be contacted by one of our Financial
Consultants within 24 to 48 hours
American Debt Foundation
Few high schools and colleges offer even a rudimentary course on how to
budget money and use credit wisely, so it is no wonder so many people
get in over their heads when it comes to credit cards and other consumer
loans. It is all too easy to just sign your name for every purchase and
forget about the inevitable bill.
The huge rise in levels of consumer debt has created a virtual cottage
industry in Debt Consolidation services. These services seek to help
consumers dig themselves out of their credit card debt and stand on
solid financial footing once again. The bestDebt Consolidation services
do far more than help consumers reduce and eliminate their current debt.
A good Debt Consolidation service will help those consumers to learn
about budgeting and financial planning. Only by learning good budgeting
and spending skills can a consumer be assured that he or she will not
fall back into the credit card trap.
Debt Consolidation firms work with creditors on the behalf of consumers.
They are often able to negotiate friendlier repayment terms than the
individual can work out on their own. For instance, a credit card
company may be willing to lower your interest rate substantially to make
sure you are able to repay the balance you owe. In some cases, the bank
may even be willing to accept a lesser amount than what you owe. After
all, it is in the bank’s best interest as well as your own to keepyou
out of bankruptcy court.
Debt Consolidation companies have experience negotiating these kinds of
deals. They often have contacts within the major banks and credit card
companies. They are able to use these contacts to get deals unobtainable
by the consumer working on their own.
As important as it is, paying off current debt is only part of the
problem, and it should be only part of the solution offered by a
legitimate Debt Consolidation company. It is just as important for a
Debt Consolidation firm to offer credit counseling services and budget
courses to their clients. When shopping for a Debt Consolidation
company, be sure to inquire about these kinds of services. A Debt
Consolidation company that offers extensive credit counseling and
budgeting services can
help you to remain debt free.
Learning to budget your money is one of the most important financial
skills there is. Unfortunately, this vital life skill is all but ignored
in the school system today, and even most colleges devote precious
little time to this subject. No matter how much or how little money you
make, it is absolutely essential that every consumer learn how to live
within their means and budget their money properly. A good Debt
Consolidation company will understand the importance of this skill to
your long term
financial well being and will devote the time necessary to help every
client prepare and stick to a good budget. The bottom line is that Debt
Consolidation can help when consumers get into trouble, but it is vital
to choose a Debt Consolidation firm that has your best interests at
heart. The best Debt Consolidation firms work hard to not only eliminate
current debt for
their clients, but also ensure that they do not incur further debt.
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