FAQ
The following is a list of Questions & Answers for the Debt Settlement program. Please call 877-300-4500 if you do not find the information you need from the information in this website.
Q. Who is the debt negotiation program for?
A. The program is designed for anyone in financial hardship who is falling behind or having problems making minimum payments to creditors on their unsecured debts. You must have a minimum of $10,000 in total unsecured debt and a minimum of $500 of unsecured debt with each individual creditor.
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Q. How do you reduce my debts?
A. Our certified debt negotiators are trained to negotiate and work with your creditors or collectors on your behalf. While results do vary, most creditors will settle with us and you will only pay a portion of your principle balance. This occurs through a series of negotiations in which we discuss your hardship situation and your ability to pay a certain amount. All negotiation agreements are approved by you before they are finalized.
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Q. How does debt negotiation compare to bankruptcy?
A. With Debt Negotiation, your accounts are settled for less and paid with a zero balance. In most cases, a bankruptcy is a consumer's last resort and has a devastating effect on your credit rating. Many of our clients look to Debt negotiation as a last resort prior to filing bankruptcy or prior to receiving any credit counseling.
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Q. What is discussed during my free consultation?
A. The first thing is to see if you qualify. We look over your current financial situation and review your income and expenses in order to determine the best program for you. We will provide you with a timeline of how long it'll take to be debt free and what type of settlement to expect from each creditor or collector. Please call (800) 974-1736 to speak to a Debt Consultant today.
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Q. How long does the debt negotiation program take to complete?
A. The average time it takes for each client is 24 - 48 months, however, it really depends on your ability to save the funds that will satisfy the amount of your settled debts.
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Q. Do I have to be behind on my debts to qualify for your program?
A. We do find that we are able to negotiate better settlements for our clients who are in true financial hardship or on the verge of financial hardship, however, our negotiators are experienced in working with all types of creditor accounts.
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Q. How does debt negotiation affect my credit rating?
A. Debt negotiation will have a negative impact on your credit. How much your credit declines depends on your original circumstances when enrolling in the program. When the settlement is complete, we will send to you the settlement document that you will then send to the credit reporting bureaus showing that it is "settled", "paid", or "settled and paid less than the full amount". When you have completed the program and all your debt is paid in full, your credit will typically begin to heal itself, provided all additional items on your credit are clean.
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Q. How much does your debt negotiation program cost?
A. Our fees are among the most competitive fees in the industry. The fees for each debt negotiation vary on a case by case basis and may differ from state to state. The fees are clearly explained during your free consultation. For more detailed information about our debt negotiation program fees, please call us now at (800) 974-1736.
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Q. Do I have to include all of my debts in the program?
A. You will be able to select which accounts you would like us to negotiate for you. This will be discussed during your free consultation.
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Q. Do all of my debts qualify for the program?
A. The program is designed for unsecured debts. These include credit cards, personal loans, department store cards, medical bills, gas cards, past due utility bills, cash call loans, furniture loans, jewelry loans, auto loans (only if it's a repo), etc. The program will not work for home loans, equity loans, education loans, government loans, income tax payments, secured loans, etc. Please call (800) 974-1736 for a free consultation and a complete list of qualifying debt.
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Q. Will the debt negotiation program work on all of my unsecured debt?
A. No firm can guarantee that every creditor will accept an offer, however, our program does work for most, if not all of your creditors. It is a company policy of ours that all of our negotiators are certified through the International Association of Debt Arbitrators prior to negotiating any debt for any of your clients. Our negotiators have also built strong relationships with creditors nationwide and have gone through extensive in-house training.
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Q. Can I continue using my credit cards?
A. No! The program will not work, and the creditors are less likely to settle if you are using your cards. You shouldn't be using credit cards if you are in true financial hardship and cannot pay. This also means you must stop transferring your balances.
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Q. What happens when a negotiation is reached?
A. Once a negotiation with one of your creditors has been reached and savings funds are confirmed, we will email, fax or mail over to you the exact settlement amount for your approval. It is solely your choice to decide whether or not to accept the negotiated agreement. If approved, the papers will be signed and we will continue with the settlement process. The process will continue until all of your accounts are settled.
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Q. Will HelpUDebt.com keep all my personal information confidential?
A. YES! HelpUDebt.com will absolutely maintain your confidentiality at all times. We only disclose information to those persons that you have expressly authorized us to disclose information to in writing.
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Q. Can I negotiate my debts on my own?
A. Negotiating your own debts can be done. Keep in mind though that Creditors are well trained in dealing with thousands of people in various degrees of financial difficulty. The process can also be very stressful, emotionally draining and time consuming. By allowing HelpUDebt.com to act on your behalf, you will not have to deal with the stress of attempting to negotiate directly with your creditors. Our certified debt negotiators have professional training and proven success with creditors and collectors.
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Q. Do I have any tax ramifications for the amount of debt settled?
A. Creditors are required to report canceled debts exceeding $600 to the IRS and you are supposed to report the same as income on your annual tax return. However, if you were insolvent at the time, the IRS permits you to write off any income from canceled debts by the amount you are insolvent. Therefore, unless you have a positive net worth, then you ordinarily will not be obligated to pay taxes on the forgiven amounts. Also, if you do not qualify as insolvent, non principal amounts such as fees accumulated on the account may be deducted from the amount reported. Refer to IRS Publication 908.
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Q: Is it possible I get sued in a debt settlement program?
A: Yes, a credit card company has the right to pursue a client in court to collect the debt amount. In most cases, this is a last resort for credit card companies after they have exhausted every collection method possible. Our experienced debt analysts do a great job in making sure that the possibilities of our clients facing legal action are reduced. In most cases, the settlement process begins with your creditors when a summons is received. Since credit card companies understand that seeking legal remedies will typically result in a client filing bankruptcy, they prefer to accept settlements instead of legal action.
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Q. Will I continue to get calls and correspondence from my creditors/collectors?
A. Once you are accepted into our debt negotiation program, you will direct all correspondence to our debt negotiation team. Keep in mind that there is no law that prevents creditors from sending written correspondence to you. As a matter of fact, you may receive letters from creditors or collectors discussing settlements. If you receive these letters, it is important that you forward these letters to our offices immediately, along with any other letters of concern. As far as phone calls go, our staff cannot help stop calls, however, we will refer you to call a third-party Consumer Advocacy firm which specializes in making sure creditors and/or collectors are abiding by FDCPA (fair debt collections practices act) guidelines and not harassing you on the phone or at your place of business. Contacting this firm and working with them will be free of charge for you.
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Q. Will interest and late charges continue to accrue on my debts while I am on the program?
A. Most creditors will continue to charge fees and interest until the account is paid. However, when our debt negotiators work out a settlement offer, we attempt to negotiate from the original principal amount owed, not from the amount after fees and interest.
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Q. Who do I call if I have a question about the program or a problem with a creditor?
A. You can call the account representative that you are assigned to. Our customer service number is (800) 974-1736. HelpUDebt.com will also assign you your own personal account manager who will be handling your account and dealing with your creditors.
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Q. What is the approval process for your debt negotiation program?
A. After we analyze your situation, you will either be accepted into our debt negotiation program or denied. HelpUDebt.com program is not for everyone. If you are in debt and serious about resolving your debts, you should take the first step and contact us today for a free consultation. We will advise you whether or not you qualify for our debt negotiation program and will help you choose the best option for you and your individual circumstances. If you are approved, HelpUDebt.com takes great pride in our work and making sure our clients are debt free. Call us at (800) 974-1736 for your free debt evaluation.
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We are Orange County California’s
Leading Debt Management Specialists. Specializing in Credit
Card Interest Rate Reduction, Mortgage Modification, Debt management
and Renegotiation, Foreclosure and Short Sale, debt management.
We provide credit counseling, and
help you manage you debt in a way that you are able to pay off
your debts in a short period of time, while still being able to use
your credit cards and making the ends meet. Our Programs are
designed to fit you, not the other way around.
Our debt management programs
include debt reduction, consumer credit card counseling providing
fast debt relief. Through good money management we provide you
a true debt solution. More than just a credit counseling
services, or debt counseling, consumer credit counseling service -
we help you reduce your debt and help you establish a plan toward
debt free living. Our goal is to help you eliminate your long
tem debt, manage your credit debt, avoid bankrupts and manage your
money in a realistic way that will keep you out of debt.
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