- Do I have a financial hardship condition?
- When can my wages be garnished?
- How can I fix my credit?
- What is credit repair?
- What are the different ways to get out of debt?
- What is the difference between secured and unsecured debt?
- Can secured debt ever become unsecured debt?
- Do I have to be behind on my bills to qualify for debt assistance?
- Are your services guaranteed?
- What is the main difference between debt settlement versus bankruptcy?
- What is the main difference between debt management (credit counseling) and debt settlement?
- Will I still get harassed by creditors?
- Will interest charges continue to accrue on my debts?
- Can I still use my credit cards?
- What are the fees involved?
- Can I negotiate on my own?
- What happens to my information?
Q: Do I have a financial hardship condition?
A: Financial hardships are money problems caused via life events such as unemployment, divorce, or medical issues. These hardships are not necessarily the fault of the consumer, but they can wreak havoc on one’s normal lifestyle. The debt solutions offered by Debt-Help-Experts.com are mostly for people experiencing financial hardships, meaning that these programs are not in existence for people who can otherwise solve their debt issues without assistance.
Back to top
Q: When can my wages be garnished?
A: Debt collectors are in the business of making you feel as if they will seize your next paycheck unless you pay them right now. However, this is simply a tactic used to scare debtors into starting a repayment schedule whether they have the necessary means or not. Garnishments are actually relatively rare, and they require a lawsuit and resulting judgment in favor of the debt collector. Even when these things happen, you will always receive an advanced notice on the actual garnishment.
Back to top
Q: How can I fix my credit?
A: Your credit score is a rating making those considering loaning you money aware of the risk they are taking regarding your potential to pay off the debt. These loans can be for the purchase of a home, automobile, or even a credit card (technically, credit card debt is a short term loan). The reality is that only two things can fix your credit: loans that you repay, and time. In essence, you need to rebuild a track record that shows you are less risky to loan money to than before.
Back to top
Q: What is credit repair?
A: Credit Repair companies simply work to remove false and damaging information from your credit report. They usually demand an upfront fee before they start working on your case. Unlike debt recovery programs, credit repair does not provide you with options or education on how to reduce your debt.
Back to top
Q: What are the different ways to get out of debt?
A: Each situation is unique, but on average, from the least extreme debt issues (1) to the most extreme (5), here is a list of options:
- Pay On Your Own / Spend Less and Save More
- Debt Consolidation
- Credit Counseling / Debt Management
- Debt Settlement / Debt Negotiation
- Bankruptcy
.
Back to top
Q: What is the difference between secured and unsecured debt?
A: Unsecured debt is the result of entering into a contract with the creditor that enables you to obtain funds or services in exchange for a pledge to repay the creditor. Credit cards, medical bills, and personal loans are the most common forms of unsecured debts. If you are late repaying this type of debt, the only option for the lender to collect is legal action.
Secured debt originates from a loan where the lender retains a security interest in personal property such as a house or vehicle. If you become delinquent on a secured loan, the creditor has the right to take legal action to repossess the property to mitigate their damages. Laws dealing with the repossession of a home (foreclosure) vary by state and the primary lender’s rights depend on the terms of the loan and whether other lenders have an interest in the property.
Back to top
Q: Can secured debt ever become unsecured debt?
A: In situations where the asset securing the loan has been repossessed and sold by the creditor, any remaining debt unsatisfied by the sale is considered unsecured debt. Some exceptions can apply and depend on the security interest.
Back to top
Q: Do I have to be behind on my bills to qualify for debt assistance?
A: No. The debt solutions we offer can apply to debtors in any stage of the collection process..
Back to top
Q: Are your services guaranteed?
A: No debt solution business can offer a 100% guarantee on success, and if by some chance they do, you should definitely question their credibility. Ultimately, you the consumer has to show some ability to be disciplined concerning spending and saving habits in order to make any debt solution work as designed. However, the agencies we represent are the most reputable in the country and will not put you in a program they think you will not be able to complete because if they do, everybody will lose.
Back to top
Q: What is the main difference between debt settlement versus bankruptcy?
A: Bankruptcy is a last resort and has dreadful effect on your credit score for up to ten years. Debt settlement is a program designed to prevent bankruptcy and can lead to financial freedom without nearly as much damage to your credit and other negative effects of bankruptcy. Bankruptcy can make it difficult to get a job or a loan for a long time if not permanently. Everybody has heard or seen the question: “Have you ever declared bankruptcy?” It is a felony to lie about this question for personal gain.
Back to top
Q: What is the main difference between debt management and debt negotiation?
A: These two forms of debt recovery have much in common so it is important to understand their differences. Debt management plans are assigned by credit counseling agencies, which were originally created by credit card companies to help consumers pay off their debts. (Many would argue that credit counseling agencies still have the best interests of the credit card companies in mind. However, these agencies must abide by certain rules and laws that protect the consumer.) Although most credit counseling agencies claim to be nonprofit, this does not mean they are not squeezing fees out of you in some way or another. The debt settlement firms that undertake in debt negotiation do not disguise the fact that they charge you fees, but the costs are more significant; there is an initial setup fee and there are monthly fees taken out of each monthly payment.
The main difference between debt management and debt negotiation is the way in which they attack your debt through the creditors. Credit counseling agencies have relationships with your creditors and get these lenders to reduce your interest rates and eliminate some fees. Then, they collect monthly payments from you, remove a small fee, and distribute the funds to your creditors in the most efficient way they can. They do this until your debt is completely repaid. The entire repayment process usually takes around 5 years, but every situation is different.
Debt settlement firms also have relationships with your creditors, but they aim to drastically reduce the principal balance of your debt, not so much the interest and/or late fees. Settlement firms collect a setup fee. Next, as they collect monthly payments from you, they remove their monthly fees and then pool your payments. Then, as they see fit, they negotiate with one creditor at a time to reduce your principal debt amounts by around 30 to 60 percent, and they pay off each debt with a lump sum payment. The entire process typically takes 12 to 36 months, but again, there are exceptions and every situation is unique.
Back to top
Q: Will I still get harassed by creditors?
A: Once you get accepted into a debt relief program, your agency will correspond with your creditors to prevent them from calling you again – by law, they must cease the collection calls. However, there is no law that can stop them from sending you written notices. It is a good idea to read these letters since you may start getting settlement offers once they discover you are in a debt relief program. Any such letters should be copied and forwarded to your program supervisor, as this may help in the strategies involved with negotiating your debt, interest rates, or late fees.
Back to top
Q: Will interest charges continue to accrue on my debts?
A: Yes. In a debt management program, interest charges are often significantly lowered as part of the agreement that has you paying off the debts in full through credit counseling.
In debt settlement, the answer is also yes, but often the skilled negotiators can get your creditors to remove the accrued interest and late fees as part of the overall negotiation and reduction of your principal balance.
Back to top
Q: Can I still use my credit cards?
A: Ideally, no. Your enrollment in a debt recovery program is a commitment to getting out of debt. If you want to be successful within your program, you must not incur new debts as you pay off your old ones.
Back to top
Q: What are the fees involved?
A: The consultation you can receive by filling out our form or calling us is always free. If you wind up in a debt management plan, you may have little to no monthly fees, but you will repay almost all of your debt amounts. In a debt consolidation program, the lender may require you to put down some money upfront, or you might opt to lower your interest rate buy paying some “points” that are often rolled into the entire loan amount. A “point” is equal to one percent of the original loan amount. If debt settlement is your path, you will pay a setup fee, and part of your monthly payment will be a fee for their services – the hope of course is that these fees pay dividends in the drastic amounts reduced from your principal debts.
Back to top
Q: Can I negotiate on my own?
A: Yes, you can. You can also fix your computer, repair your car, or do your own taxes, but most people choose to leave these duties to experienced specialists in those lines of work. The agencies that we represent only have one specialty, and that is to get you out of debt through one of three basic methods: credit counseling (debt management), debt consolidation, or debt settlement. These companies have established relationships with creditors that make it far easier for them to do the dirty work and negotiating behind debt recovery than even an educated debtor. It is always a challenge to do things yourself, and sometimes it can be fun and rewarding. However, in the case of debt relief, it’s almost definitely better left to the experts.
Back to top
Q: What happens to my information?
A: When you submit your information on our website, it is sent to one or two debt specialists that serve your area and can also provide a debt relief program for your debt amount. The debt specialist(s) will contact you usually within 2 business hours of your submission, which can be the next morning if you submit your information in the evening. You will also be provided with the debt specialists’ contact information and additional information on their companies once you submit your information. This allows you to research their website(s) or call them to receive your free debt consultation immediately.
Back to top