Q. Why would my creditors agree to lower my Interest rates?

A. Our debt consolidation program is administered by a nonprofit 501(C)(3). Banks qualify for tax credits from the government when they cooperate through these debt programs. Therefore, your creditors will lower interest rates, reduce or eliminate fees and do whatever they can to help us help you get your life back in line.

Q. Why do I never seem to make progress paying off my debts?

A. Certain accounts (especially credit card accounts) are intentionally structured to keep you in debt. High interest rates and/or fees may be eating up the bulk of your payment each month. This is like running on a treadmill. The solution is to get your interest rates reduced through our debt consolidation program.

Q. How much time will I save by utilizing your debt programs?

A. A typical credit card account may take more than 20 years to repay. Our debt programs are structured to complete within three to five years on average. Since there are never any pre-payment penalties, you can accelerate your debt program if you prefer. Many of our clients complete their debt program program ahead of schedule.

Q. How much money will I save utilizing your debt program?

A. Of course every situation is unique. Our debt programs may reduce your total repayment expense by up to 60% or more.

Q. Which creditors participate in your debt program?

A. Participants include all major credit card companies (Visa, Mastercard, Discover), department stores, medical clinics and hospitals to name a few.

Q. What is unsecured debt? What types of debts will qualify for your debt programs?

A. An unsecured debt is when the creditor holds no collateral. Examples of unsecured debt include credit cards, personal loans (signature loans), medical bills, student loans, state and federal income taxes, charged-off accounts and accounts with collection agencies. Examples of secured debt include vehicle loans, mortgages and home equity lines of credit. Our debt programs are designed to assist with most forms of unsecured debt. Secured debt will not qualify for the debt programs that we offer.

Q. Can I resolve my mortgage and/or car loans with your debt programs?

A. No. These are examples of secured debts and will therefore not qualify for our debt programs. See the preceding question and answer for more information.

Q. Should I get a loan instead?

A. It is not generally recommended to pay off debt with more debt. The difficulty of borrowing more money to get out of debt can often put the debtor in a deeper hole, accentuating the fear, worry, and financial burdens that the debtor already feels. Unsecured consolidation loans are among the highest level of risky loans because typically the interest rates are designed to match the lender's risk. In most cases, the debtor will not be able to retain a loan due to the ever increasing balances, interest rates, and debts they already possess. And even if that debtor can produce a loan, that loan may not make financial sense, essentially costing the debtor even more money.

In addition to the above stated concerns, if a debtor is able to obtain a "secured" loan (i.e. home equity loan) then that debtor just turned "unsecured" debt into "secured" debt increasing your stress and in turn increasing your risk, particularly because the bank can possibly take your home. A debtor should always compare the overall repayment expense. Even at a low interest rate, a fifteen or thirty-year loan will end up costing you several times as much in total repayment expense. Also, converting unsecured debts (i.e. credit cards, etc.) into secured debt (i.e. home equity loan) puts your home or other assets at risk in the event of an unforeseen financial hardship like a health problem or a period of unemployment. The loss of a job or unforeseen financial disaster is quite common, so converting the "unsecured" debt into a "secured" debt can be a high risk situation, which should be carefully examined.
 

Q. Is my information kept confidential?

A. Yes. We treat your personal information as we would treat our own. For a more thorough review of our strict standards of confidentiality, read our privacy policy.