Frequently Asked Questions

How do the creditors get paid?
Once you are enrolled in the program, we'll set up a sort of savings account in your name, at a federally insured bank. This account will store funds you deposit each month, until we negotiate a single lump sum payment, once sufficient funds are accumulated. We negotiate with each creditor one at a time.

Note that YOU are in control of this process; we will contact you with the settlement we've negotiated and funds are only released with your permission. We will then repeat the process for each creditor until all are complete. We find we negotiate the best settlements by paying in one lump sum, and therefore never make monthly payments.

Will the creditors start calling or keep calling?
Yes, but most will not. Usually the calls will cease after the creditor receives notice from us. The majority of creditors are cooperative and will update your records to indicate you are participating in a debt management plan. Your Debt Counselor will explain how various creditors are handled.

What will happen to my credit?
If you're already 30 days or more behind, your credit is already damaged. In addition, many confuse credit "ability" with credit "score". Credit ability refers to your ability to obtain financing. If you already carry too much debt compared to your income, your credit ability is impaired even if your credit score is perfect. If that's your situation, the next step to restore your credit ability is to become debt free.

Our goal is to provide you the relief you deserve, in the short term, but also to help you change direction and restore financial stability.