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