Please clear some debt Consolidation doubts

Hi Del

Welcome to the forums. Over here, we will actively solve all your debt related queries so that you will be able to have a clear and transparent view of the debt consolidation program.

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Do the creditors really write off 100% of interest & fees or is it subject to negotiation w/ your service?

Generally, the creditors have a desire to get their money back from the debtors. They also don't wish to pass the account to the collection agencies as the debtors have the slightest interest to work with them. They also realize that debt consolidation program may be the last resort offering debt management and budgeting program. When the consultant is in the process of negotiation with the creditors, the consumer is considered to be a better candidate in their eyes who is willing to pay off his debt and not to file for bankruptcy. Following such circumstances, they have a keen interest to cut the interest rates and other financial charges at the maximum. They also get all the painful paperwork eliminated and hence provide the best payment plan to the consumer.

The creditors appreciate the consumers' enrollment with the debt consolidation program as they find them making this responsible move of paying off their debts.

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If it is one low payment not every creditor gets paid or if they do it's not much so do you attack the highest interest rate 1st or just not pay some creditors? Does the member get to see what his one low payment really pays; how it breaks down?

Since the financial consultants have a very healthy relationship with most of the creditors, so ultimately, much of the interest is on the priorities of the consumers and that their interests are protected. Please be rest assured that debt consolidation program pays all your creditors before your payment due dates and within the correct billing cycle. Each month, you will be sent a detailed account statement of all your payments made to the respective creditors. You will be able to analyze your dues left and the time required to complete the ongoing program.

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What if the member has additional money they want to pay in a certain month does that get applied to principle only?

As the creditors are interested in getting their money back, the same rule applies in case of consumers also. If you are willing to pay off your debt quickly as their is some additional money at your disposal, you can definitely use it anywhere in the middle of the program to clear your debt faster. There won't be any change in the calculation of your interest rates as it was in the beginning of your program. Significantly, with this effort, your debt will come to a zero balance in a shorter time.

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Let's say a person signs up w/ your service you negotiate & set up terms & the member doesn't like them can they disenroll & not take your service? What sort of fees would they incur?

I would like to state here that the services rendered to the consumers are completely free of cost right from the beginning of the program. Only you will be required to pay at the rarest occasions is the consultant's fees. However, that also is a very nominal amount and in most cases, the consultants don't charge from the debtors as it gets negotiated.

In case, in the middle of the program, if you are not satisfied with the results, you can leave the program after notifying your consultant. You are enrolled in the program for as long as you want to be in it and you can terminate it at any point of time for any reason.


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If the member completes their obligation with you and had incurred no further debt (all unsecured debt paid in full) how long will it take for their credit score to improve to a point where they are now competitive for lower interest rates.

After all your payments are clear with your creditors, your account will be closed and a report will be sent to the bureaus. Your accounts will be shown as "Paid as Agreed" or "Account Closed- Paid as Agreed" in your credit report. You can get a copy of it from the bureaus and hence see your improved credit score.

Your credit report is one of the most prestigious financial documents in your lifetime and every step should be taken to keep it clean. Debt consolidation program makes this improvement more effective as it has been designed for the benefit of the consumers.

Please let us know your feedback. We will be waiting to hear from you soon about your feedback.

Regards
Roxette