Debt Management FAQ’s

What type(s) of accounts can be settled?
Many types of account issues can be resolved through a settlement. Although you should check with a consultation department, the typical debts that may be settled include:

• Accounts in the process of collection
• Charged-off debt(s)
• Deficiency balances
• Medical bills
• Unsecured loans
• Unsecured credit card debt

What's the difference between an Extended Settlement Program and a Consumer Credit Counseling program?
Unlike Consumer Credit Counseling, where they negotiate interest rates for you, an Extended Settlement Program negotiates the debt itself. You pay the creditors what they want, not what you “owe”.

Why would a creditor want to settle my debt?
Lenders take a risk when they loan people money. Every month more and more individuals and businesses declare bankruptcy. If your accounts are in delinquent status, your creditors are probably worried about the possibility of you declaring bankruptcy, and rather than receiving little or nothing through the bankruptcy courts, they would rather accept a settlement to minimize their

How will I know if it's right for me?
Do your homework.  Check out each company you are thinking about working with. Make every effort to ensure that you are enrolled in a fair and equitable settlement plan. Using the documents you provide on the amounts you owe to your creditors, a specialist will put together a table showing you exactly:

• The amount of your monthly payment
• Your projected overall savings
• How long the program will last.

How much does the Extended Settlement Program cost?
Normally a company will ask for a small percentage of the total debt, spread out over the first 18 months of the program plus a small monthly account servicing fee ($9.50). These costs are included in your monthly payments quoted by debt consultants. A specific proposal outlining all of the fees and allocation of monies paid by you should be prepared for your unique needs during your free consultation.

Do I need to continue sending payments to my creditors after I have signed up with the Extended Settlement Program?
The decision is up to you. Your Debt consultant can advise you more specifically on each individual account during your free consultation.

How will my creditors know that I have enrolled in an Extended Settlement program?
After you have enrolled, a negotiation team will also begin contacting each company when it is appropriate; to arrange settlements as the funds from your monthly payments become available. It is important to understand that the negotiation team has a strategic plan on when to contact which company… it may not be right away.

What if I am receiving collection calls?
If you are receiving collection calls, the collection agent may not yet be aware of your enrollment or may not yet received any requests that may have been sent to their company (or last known collector). You will be given an 800 number to pass along to the collector if they are interested in the settlement plans for the account. You do not need to give them any more information or otherwise converse with the agent other than that.

Please immediately report any collection attempts that you find offensive, excessive or otherwise harassing immediately to a customer service department.

How does enrolling in the Extended Settlement program affect my credit?
You should be aware that while settlements are being arranged, or accounts are waiting to be arranged your creditors may report late payments, collections etc for those accounts on your credit report. During the course of the program your credit profile and score will likely not improve and will possibly suffer.

Is a specific result guaranteed?
The Extended Settlement Service provided is subject to the terms and conditions of the Extended Settlement Agreement and your specific debts. A Debt Consultant should advise you on the guarantees during your consultation and how they can assure the best possible success.