Frequently Asked Questions |
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What is Debt Consolidation?
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Debt consolidation is a process of restructuring your existing unsecured debt with your creditors. Debt consolidation is not a loan, but a way to lower your monthly payments and lower (sometimes even eliminating) the interest you are currently paying on your unsecured debt.
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Is Bankruptcy an Option?
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A bankruptcy will have a devastating effect on your credit. Most financial institutions will not even consider a credit application involving a bankruptcy for at least three to five years. In addition, the bankruptcy can stay on your credit report for seven to ten years, or even longer. (See our DID YOU KNOW section for more information.)
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What are my benefits for using a Debt Consolidation Program?
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With a debt consolidation plan you will set yourself in motion to get out of debt. A lower monthly payment will make it more convenient for you to pay off your debt, thus relieving your daily financial and emotional stress. In addition, you may be able to eliminate late fees and additional finance charges as well as negative marks on your credit report. (See our KEY BENEFITS section for more details.)
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What kind of debt qualifies for debt consolidation?
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Most unsecured debt can be included in a debt consolidation program. For example, credit cards, medical bills, student loans, taxes and bank lines are debts commonly consolidated. Secured loans such as a mortgage or a car loan usually cannot be consolidated successfully.
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Do I have to pay anything up front?
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There are no up front fees to examine your indebtedness. We analyze your debt completely and explain the consolidation process prior to your acceptance of our services. Upon acceptance of our services, a modest fee will be applied for your P.F.A. (Personal financial analysis).
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What creditors participate in debt consolidation programs?
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All major credit card companies (Visa, Master Card and Discover), department store cards, hospitals and medical clinics, student loan bureaus and federal revenue departments to name a few.
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Can Secured Debt Be Included In The Debt Consolidation Program?
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No. Only unsecured debt can be included in our debt consolidation program. Payments on secured debt (such as mortgages, auto loans and leases, and loans secured by household goods or other tangible assets) must continue to be made in accordance with the terms of the finance contract
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What Kind of Debt Does Debt-Free America Work With?
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DEBT-FREE AMERICA works with unsecured debt. This means debt that is not backed by tangible assets. For example a mortgage is called a secured debt because it is backed by the tangible asset of the property itself; we do not work with secured debt.
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Examples of unsecured debt which we work with
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I.R.S.
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Major Credit Cards
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Department Stores
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Hospital/Medical Bills
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Banks/Finance Companies
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Autos (Repossessions Only)
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Personal Loans (unsecured only)
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Oil/Gas Credit Cards
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Almost any unsecured debt....
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Examples of debt which we do not work with
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Mortgages
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Auto Loans
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No Co-Signers
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No Secured Debt
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Please note that just because some of your debts may not qualify, you can still obtain substantial benefits by letting us consolidate the ones that do.
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Do you provide loans?
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No, we do not provide loans. We provide a debt consolidation service which will allow you to satisfy your current obligations without incurring more debt. (See our Who Should Apply section for some reasons why the last thing people with credit problems need is more debt).
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Do you charge a fee?
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Yes, however this fee is structured on an individual basis and can be incorporated into your monthly payment program and is far below the amount of money we save you in reduced interest charges, late fees, and total monthly expenditures. (See our Did You Know section for more about why we can get the creditors to lower your monthly obligations)
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Are you a collection agency?
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No! We work for you! We will stop creditors from harassing you once you join our program.
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Do you repair credit?
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Through the use of our services, your credit rating may improve by showing a positive payment history as your debt is consolidated and your creditors are paid monthly. However, we do not erase correctly-reported negative credit history. We can, however, help you in removing any erroneous negative credit history. In addition, we will ensure that upon completion of the program, your creditors acknowledge in writing that you have satisfied your debt with them.
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How Do I apply?
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Applying is safe, simple and secure. You can apply on-line through our secure server or you can apply over the phone or by mail. (See our HOW TO APPLY section for more details.)
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Do you Provide Educational Materials?
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Yes! We believe all consumers should educate themselves in the use of credit. Accordingly, we have provided an entire section of free publications for your use. (See our PUBLICATIONS section for articles pertaining to the use of credit in today's market.)
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