Below please find the answers to the most Debt Settlement: Frequently Asked Questions regarding Debt Settlement Companies. We trust that by reviewing these most often questions that our callers receive you too can find the answers to your questions. If not, please feel free to call us toll free at 1-800-890-6658 for free no obligation advice to your specific questions.
What is Debt Consolidation versus Debt Reduction?
Debt Consolidation is simply taking all of your debt, credit card, medical bills, or personal loans and consolidating them into one monthly payment.Debt Settlement or Debt Reduction (DR) companies actually contact your creditors, for you on your behalf. They then negotiate your debt down for you (sometimes well below 50%) based upon your financial hardship.
Is debt settlement better than bankruptcy?
The biggest problem with filing for bankruptcy as a way of freeing yourself from debt is that it will seriously affect your credit for years to come, it may even result in you losing property, and in some cases, you may end up having to repay your debts anyway.
Who is eligible for a debt settlement program?
The answer is that approximately 93% of all applicants that apply for a debt management plan are accepted into the program. The other 7% are not. The reasons for this vary, however the biggest drawback to being accepted into our program is the persons or companies debt to income ratio.
How is debt negotiated?
The first thing a debt negotiation company will do is send you out a packet with the important documentation for you. Part of that documentation is what is called a Limited Power-of-Attorney (POA). What a limited POA is, is a document that allows debt negotiators to act on your behalf to negotiate and settle your debt.
Am I a good candidate for debt settlement services?
This is probably the most asked question for folks who have a financial hardship and also have at least $20,000 in unsecured debt. In addition, they have to have a strong desire to become completely debt-free. In addition: debt negotiation, debt consolidation, and/or debt counseling services may affect your credit rating. If you have this criteria you, the answer to the question of am I a good candidate for debt settlement services is YES!
How will debt negotiations affect your credit?
Creditors like to prey on people with good credit. They are ones who get the zero interest, balance transfer, no payment for 18 months etc, etc, etc, offers, than those who do not have “good credit.” The problem comes in when the creditors now change the terms of those agreements should you miss one months payment, or forget to follow just one of their little rules in fine print you could not have seen had you had a magnifying glass to begin with.
Where is my money held as it accumulates prior to settlement?
All monies that are drafted from your account each month are placed in a separate savings/dedicated account at another FDIC insured bank under your name, not ours. When you initially sign up for our program, you will receive another packet from our third party pro-rater, Global Client Solutions.
How does a debt settlements program work?
Although not simple, it is all done through negotiation. Therefore, how a debt settlement program works can depend upon a number of factors which includes the role of both the borrower and the lender. The lender of course just wants to know when they are going to get their money back. The consumer on the other hand, wants to know if the amount they owe can be negotiated down to a working figure that they can put together to pay off the debt. The details then come down to a manageable monthly payment plan.
What is a Debt Management Program?
A debt management program is a proven program for consumers who can no longer continue to meet their financial obligations, such as credit card debt, medical bills, and other personal and unsecured debt, due to any number of different circumstances.
How do I contact Nationwide Debt Reduction if I have questions?
Contact Nationwide Debt Reduction by using this information
What is the cost of NDR's program?
Nationwide Debt Reduction costs are based upon a percentage of the dollar amount the debt negotiator can get for you the client. Our Christian debt settlement negotiators earn 20% of the dollar amount they are able to save you.
Can I receive help with my student loans?
Student loan debt help used to be one of the primary debt settlement departments for debt settlement companies. That all changed when the Obama Administration, under the Department of Education, took all government student loans “in house” so to speak, whereby debt settlement companies are no longer able to negotiate a discount with holders, as the government does not negotiate on these matters.
To learn about us, or if you are in need of help regarding your debt, please feel free to contact Nationwide Debt Reduction, Inc. (NDR) toll free at 1-800-890-6658. Our professional advisors will be more than happy to answer your questions. If it is after hours (8:00 am -5:00 pm PST) (11:00 am – 8:00 pm EST) you may go onto our Contact Us website by clicking here, fill out a short form, and one of our advisors can get back to you when it is most convenient for you. We are located in the city of Mesa, Arizona in the Phoenix metropolitan area.