Credit Debt Relief FAQ's
Q: What is the difference between what you offer and Consumer Credit Counseling?
A: C (also known simply as "Credit Counseling") was originally started by the credit card companies themselves to collect on credit card accounts. A successful credit counseling program should be able to lower your interest rates. The customer makes one monthly payment to the Consumer Credit Counseling firm and they make the monthly payments to the creditors. A good Credit Counseling program might be a fit for you if you're not having trouble with your monthly payments and your debt amount is manageable given your relative financial situation. The main difference with "Debt Reduction" is that we negotiate with your creditors to lower your principal debt amount, not just your interest rates. Because of this we can typically get you out of debt two to three times faster than a traditional Consumer Credit Counseling Program and save you up to 50% off your principal debt amount.
Q: Do you pay off all my debts and then I would make one payment to you?
A: No, the only way we would be able to do this is by offering you a loan. It is a much smarter move to get help paying off your existing loans than to get a new one. Don't let a consolidation loan company convince you that another loan will solve all your problems. All it will do is possibly buy you a little more time. The fact is you will still owe that entire debt balance. To Consolidate Debt Loans is not getting you out of debt, it's only buying you more time or simplifying the monthly payments. Plus chances are if you're already struggling with your debt, you will not be approved for a debt consolidation.
Q: What kind of debt can you work with?
A: We can work with most kinds of Unsecured Debt. A Debt that is unsecured does not have any kind of collateral attached to the loan. Most credit card debt is unsecured. We are not able to work with secured debt such as a mortgage or auto loan. We can also can also help with Medical Bills, Personal Loans, Deficiency Balances, Repossessions, and Business Debt.
Q: How Does this affect my Credit?
A: This is a very subjective question and depends on what your credit score is when you enter the program. Generally any program that is available to reduce your debt amount, whether that is Credit Counseling, Bankruptcy, or Debt Reduction will usually affect your credit in one way or another. Please call one of our experienced Debt Consultants to get a free financial consultation. There are specific questions we will need to ask you to help us explain exactly how this will affect your credit.
Q: Do I have to pay the service fees up front?
A: No, the service fees are taken out of your monthly payment. The flat fee is generally paid over the first 18-19 months of your program. Out of all the debt settlement companies our fee structure is the most favorable to the client. In some cases we have been able to settle most of our clients debt before the total fee has been paid.
Q: Do I have to include all my credit cards?
A: No, there are certain accounts you can leave out of the program.
Q: Can I pay more than my monthly payment to get out of debt faster?
A: Absolutely! There is no pre-payment penalty and we encourage you get out of debt as fast as possible.
Q: What is the difference between "Debt Reduction" and "Debt Settlement?"
A: There is no difference between Debt Reduction and Debt Settlement. They mean the same thing, to reduce the principal amount of debt you owe.
Q: Is this like a Bankruptcy?
A: No, this program is designed to keep you out of Bankruptcy. If this program was as harmful as Bankruptcy it would make no sense for people to enter it. The reason why people are attracted to Select Debt Relief's Debt Reduction Program is because it's an alternative to bankruptcy.
Q: How do I know that my monthly payments are going into my settlement account?
A: The settlement account (FDIC insured savings account) is set up in your name and we give you the account number. This is basically another savings account that you have complete control over. Once you are enrolled in the program you can check your bank account balance and settlement progress online.
Q: Can you give me information on the different kinds of Debt Relief?
A: Yes, our Debt Consultants are extremely knowledgeable in all the different kinds of Debt Relief. Call now to begin your debt education.
| Debt Reduction | Debt Help | Debt Relief | Debt Consolidation |
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