FAQ - Get your life back! Resolve your debt problems

1 Q : Can I improve upon my credit rating if I use debt settlement services?

A: Yes you can. Once your outstanding amount is all paid off, you can request all negative payments details and adverse track record to be deleted from your account. You have the legal right to verify your account status by any government recognized credit agency and repair the damage done in the past. However your debt status must be redeemed totally and not a single cent remain as “outstanding” amount.

2 Q: Do credit card debt settlements need to be made all at once to achieve debt elimination?

A: It depends. With most settlements you need to pay off each individual credit card debt all at once in a lump sum. That is what most creditors prefer and demand for. However if your monthly income does not support lump sum payment, the way out is to negotiate and reach a “mid way point” that is acceptable to the lending entity. The process involves negotiations.

3 Q : Can’t I just settle my debts on my own?

A: Yes you can if you want to. The questions you need to ask are “Can I bargain effectively?”, “Will I be intimidated by my creditors?”, “Can I do it all alone?” and “Do I have the required financial knowledge and expertise to strike a bargain?”. If you can answer in the affirmative you CAN settle your own debts.

4 Q : How long does debt settlement process take?

A: The debt settlement process usually extends between 12 to 36 months depending upon how well the negotiation process has undergone. This is the standard norm. However several issues are taken into consideration such as your total outstanding amount, your current earning status, your past history concerning payment defaults and perhaps the most important aspect - the “mood” of your creditor, how much flexibility he or she is ready to provide. A good debt negotiator will always try to argue on the basis of financial figures provided by you so you get an optimum deal. Therefore you have to eventually decide – what kind of commitments you can pledge to your arbitrator and how well your representative can negotiate on your behalf

5 Q : Will I be able to get credit in the future?

A: Yes. Engaging debt settlement services indicates you are serious about paying off your debts and creates a positive impression. A specific negotiated monthly payment plan ascertains your commitment and further strengthens your profile. Even a short history of proper monthly payments can make you eligible for additional credit.

6 Q : Will I still be able to use my current credit cards?

A: Generally debt settlement process restricts you from using your existing credit cards which you plan to settle. This is done to control your credit and spending power so you don’t aggravate your negative account status.