Frequently Asked Questions
1. How does the program work?
Many
people can’t afford to make monthly minimum payments towards their credit
card debt with high interest rates and increasing minimums. It could
take 30 - 40 years to pay off the debt.
Some have also had a decrease in income, suffered a disability, or loss of a job, and are either already behind on payments or can’t afford to stay current due to a financial hardship.
We negotiate your debt down with your creditors so you can get your debt paid off in a much shorter period of time and save a lot more money. This program doesn't just save you a lot of money it helps save you lower stress without worrying about how long you can keep up payments, when will it be paid off, or for some, how you can even survive. Our goal here is to relieve your debt and stress. One of our experienced debt analysts will be happy to help!
2. What is the difference between debt settlement and debt consolidation?
A debt settlement program reduces the amount of debt you owe, allowing you to pay it off much quicker while making smaller payments than the minimum payments you would be paying the creditors.
A debt consolidation just lumps your debt into one payment while not reducing the amount you owe, it just partially reduces of the interest. Consolidation will save you some money long term but the monthly payment will be higher and the program will be longer than that of a debt settlement program. Many times consolidation will include a loan, and it can be difficult to get an unsecured loan on unsecured debt. Consolidation programs give you 1 larger monthly payment instead of several small ones but it does not really solve the issue of the debt itself.
3. What is the difference between debt settlement and consumer credit counseling?
Consumer credit counseling is similar to that of consolidation. This program does not include a loan. This program does reflect negatively on your credit since you are paying another company who is paying your creditors monthly disbursements.
4. Can I settle on my own?
You can do a lot of things on your own but many times its better to leave it to the professionals. We have years of experience in dealing with creditors to negotiate maximum debt reduction. Different creditors have different techniques. Most creditors are not going to accept you telling them you are not going to pay them until you save enough money up to pay them off.
The settlement process can also be very in depth and time consuming, which take time you are probably not going to want to spend. Remember, we work for you not the creditors, so our goal is to help you and you only!
5. How long does it take to settle my accounts?
The time it takes is largely based on the amount of debt you have and the amount you can afford to put towards the program on a monthly basis. Most of our clients finish the program in 36 months or less. Some of our clients finish in under a year. Either way you are going to get them paid off much quicker than paying minimum payments and accruing interest.
6. Is your service guaranteed?
Yes, if Financial Relief Experts is for some reason unable to settle an enrolled account, FDA will refund you the service fee collected on that particular account. Note: You must have sufficient funds to settle the account in order to be eligible for the guarantee.
7. Will this program affect my credit?
Any debt reduction program will affect your credit some way. However, your credit is already being affected. If you are already delinquent you may not see much more of an affect. Even if you are on time you are affecting your credit in 2 major ways. Your credit capacity affects 30% of your credit. That means if you are over 35% of your available credit line or higher you are adversely affecting that portion of your credit. Another major part you are affecting is your debt to income ratio. This does not affect the score as much as it affects your credit worthiness. Having a high debt to income ratio can prevent you from obtaining loans or credit.
The point of credit is having it available when you need it. For many, the best road to guarantee or re-establish credit worthiness is to get rid of your debt. Once you get rid of your debt you are positively impacting several factors of your credit and saving a lot of money and a large burden. Even if you are on time and stay on time for the next 20 years your debt still affects your credit over that time.
8. What is the difference between settlement and bankruptcy?
Bankruptcy is a terrible choice in many ways. With the new laws passed in 2005 it has become more difficult to file for. Most often you would more likely qualify for chapter 13 instead of chapter 7. In a chapter 13 bankruptcy you will pay lawyer fees and filing fees and then usually you will have to pay off your ENTIRE debt over 5 years. At the best the courts decide how much you can pay.
When filing bankruptcy you also have negative affects including; poor credit ratings and history, possible difficulty landing jobs (many potential employers review an applicant's credit history), obtaining loans etc.
Most people think bankruptcy is all they can turn to, but debt settlement is usually a much better legal alternative. Bankruptcy should probably be considered the choice of last resort. Before choosing bankruptcy make sure and spend a few moments on our "Your Choices" (Debt Relief Options) Page or contact us for more information. You can call toll free (866-450-9420) or fill out the form on our "Get Started" page for a free no obligation consultation with one of our friendly debt analysts.