FAQs

 

Frequently Asked Questions

These questions and answers are for the Debt Consolidation Program.

  1. How does Debt Consolidation Work?
    A: You can read more about how consolidation works by Clicking Here.
  2. What are the Benefits (Pros & Cons) of Debt Consolidation?
    A: You Can read more about the Benefits of Debt Consolidation by Clicking Here.
  3. How will Debt Consolidation Affect my Credit?
    A:     Debt Consolidation doesn’t affect your FICO score at all. When FICO calculates your credit score, they do not take into consideration whether or not you’re enrolled in a credit counseling of any kind.
  4. Someone told me Debt Consolidation shows up like a Bankruptcy?
    A:     Absolutely not, Debt Consolidation is an alternative to Bankruptcy. Bankruptcy is court ordered where Debt Consolidation is not. With a Bankruptcy you pay none or some of your debt back. Bankruptcy has a negative impact on your credit report. Through Debt Consolidation you will pay all your debt back monthly just at a much lower interest rate. This means you will maintain or restore your credit rating.
    5. Frequently Asked Questions
    Frequently Asked Questions
  5. Can I get a Home Loan / Car Loan during the program?
    A: If you meet the lender requirements, you should have no problem getting a home or a car. However if you’re going to get a house or a car in the next 6 months, I’d suggest waiting to consolidate your debts until after you’ve made the purchase.
  6. Should I get a home loan / Line of Equity to pay of all my debts?
    A:      Right now your debt is unsecured. That means that even if you don’t make payments on time, the creditors can’t take any of your physical property away from you. When you get a home loan or line of equity to pay off your debts, you will increase the amount of your mortgage and put your home at risk. If you’re struggling right now, a home loan / line of equity might not be a good idea.
  7. Debt Consolidation didn’t lower my monthly payments….
    A: Unfortunately sometimes this is true. Although most of the time a Debt Consolidation can lower your monthly payment, sometimes the consolidation payment is the same amount that you’re paying now. Few times it might be a little more than what you’re currently paying. Remember, the point of a Debt Consolidation is to get you out of debt fast without negatively impacting your credit. Would you rather pay $400 per month on your own for 20 years or would you rather pay $400 per month through Debt Consolidation for 4 years?
  8. How do I know if the company I chose is good?
    A: Look up the company on the Better Business Bureau. You want to find a company that has been around for 3+ years and has a Good Rating with the BBB. An example of this would be Consumer Debt Solutions, Inc. They’ve been around for almost 10 years already and have an A+ Rating with the Better Business Bureau.
  9. Can the creditors take away my assets if I’m in a Debt Consolidation?
    A: If all your debts are unsecured, the creditors can’t take anything away from you.
  10. What kind of Debts can be included?
    A:     Unsecured credit cards, loans, collection accounts, medical bills, etc.
  11. A creditor has placed a Judgement on my account, can this still be included in the program?
    A:     Unfortunately once a creditor has sued you and placed a Judgement on your account, the only way of getting that taken care of is directly through the creditor or by filing bankruptcy.