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Debt Relief
Help
How do I check the progress of my debt settlement process?
How can we help you to pay off less than your full debt?
What types of debts can we help with the debt settlement program?
What happens in your free consultation session?
What
happens when we reach a settlement?
What
happens if I miss a monthly payment?
How will a debt management plan impact my credit score?
How long will it take to rebuild my credit after a debt settlement
program?
How
does the debt settlement program work?
How will debt settlement impact my credit score?
What are your fees?
Are there tax consequences to debt settlement?
Do you provide
legal advice?
How do I know if you will be able to settle my debts?
How does the debt settlement program work?
A: Our program is designed to help you avoid bankruptcy by attempting to
settle your debts within a reasonable time frame and at a monthly
payment that you can afford. It is important to note that there are many
factors that go into the ability to obtain a settlement and we can not
force creditors to work with us. Therefore, results may vary and not all
creditors may agree to settle. When you make your monthly payments a
portion of the money is accumulated in your trust fund to be used for
settling purposes. When a creditor agrees to a settlement we will
receive it in writing and send it to you for your approval, or act on
your pre-authorization. Once you approve the settlement the debt is then
paid with your trust money. It may be marked on your credit report as
“settled for less than the full amount”. Depending on the condition of
your credit report at the time of enrollment a debt settlement plan may
have an adverse effect on your credit report and credit score.
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How
can we help you to pay off less than your full debt?
A: In a debt settlement program we will aggressively work with your
creditors in order to reach a mutually agreeable settlement. This is
done through a series of negotiations, after you have saved funds,
performed by professionals who are experienced in working with your
creditors. Your hardship and financial situation will be explained to
your creditors during the settlement process in order that a fair
agreement may be reached. Keep in mind that no company or professional
can promise or guarantee you that all of your accounts will settle. If
they do so, this is your sign that they may not be shooting straight
with you. The truth of the matter is that not all creditors will
participate in negotiations. We will do our best to get you results as
quickly as possible with industry experience and knowledge. Furthermore,
all settlements will be approved (or pre-authorized) by you before they
are paid.
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What types of debts can we help with the debt settlement program?
A: We generally can help with any unsecured debt including, but not
limited, to credit cards, medical bills, personal loans and business
debts. However, every situation is different and we cannot guarantee
that all creditors will agree to negotiate and/or settle. We will
analyze your situations and let you know which creditors we will accept
in to the program. Your total unsecured debt may need to be at least
$10,000.
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How will debt
settlement impact my credit score?
A: If you do not make required minimum payments to your creditor you may
be breaking the terms of your agreement with them and your actions will
probably be reported to consumer reporting agencies as a late,
delinquent, charged –off or past due balances. This is true anytime you
fail to make your minimum payments in a timely manner. After settlement
your creditor may comment that the account was “settled for less than
the full amount” on your credit report. Depending on the condition of
your credit report at the time of enrollment, a debt settlement plan may
have an adverse effect on your credit report and credit score.
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How long will it take to rebuild my credit after a debt settlement
program?
A: This mostly depends on you and whether you pay off your creditors,
but it is important to know what impacts your score. Any negative credit
information may remain on your credit report for seven years. Go to
www.myfico.com for more information, or ask your counselor or negotiator
for the break down. Keep in mind that no one can erase accurate but
negative credit information. Essentially, the banks want to access the
likelihood that you will pay the loan back in question. Although your
fico score represents the foundation of the banks analysis, there are
other factors that help determine whether or not you get approved for a
loan. Each lender has separate criteria it will use in conjunction with
your score while evaluating your application. However, when rebuilding,
it is important to focus on financial health, not manufacturing a high
credit score. There are three important steps to remember: First, live
within your budget. If you do not have the money to purchase something
do not buy it. Many Americans overextend themselves by creating a
lifestyle that is not conducive to their income. Second, save money for
emergencies. Many citizens use their credit cards to handle any
emergencies that life throws at them. This creates a credit build up
which leads to a credit crunch, and potential insolvency. Unless you are
committed to saving money to manage emergencies, then eventual credit
difficulties are inevitable. Finally, it is important to invest for the
future. Most experts recommend that consumers begin considering
retirement as soon as they enter the workforce. When focusing on
financial health, your credit score will gradually increase naturally,
but more importantly you will be much more apt not to create the
insolvency that created the difficulty to begin with.
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How
will a debt management plan impact my credit score?
A: Credit will be impaired by participation in a debt management program
and a consumer’s ability to secure other unsecured or secured credit may
be affected. In addition, creditors may place a notation concerning
participation in a DMP on a person’s credit report, and that some
lenders may view such a mark negatively. Although a “credit counseling”
notation is a neutral notation for FICO purposes, some creditors may not
use this notation and instead use a notation with a negative
connotation. Additionally, some lenders may view a credit counseling
notation negatively despite the FICO treatment. Therefore, enrolling in
a DMP may have a negative effect on the client’s credit.
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How
do I check the progress of my debt settlement process?
You can do this in a few different ways…First, you can always call our
customer care representatives from 9-5 EST. They can let you know your
trust account balance and help you with any other questions you may
have. Secondly, you may track your payments and settlement activity
through this website once you become an active client. You will also
receive written correspondence from your creditors when an account is
successfully settled.
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What happens in
your free consultation session?
Your personal counselor will go through a Personal Financial Analysis
with you. This analysis is a detailed session that will identify your
current situation, create a game plan to help reach your financial goals
and review all possible options to find the right option for you.
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What happens when we reach a settlement?
Once a settlement is reached, you are notified for your approval. If you
deem the offer as acceptable, we will immediately settle with your
creditor. You will then receive written notice from your creditor that
the settlement has been reached and paid as agreed, and that debt will
be gone forever. This will be reported to the credit bureaus by the
creditor so your report will reflect a zero balance on that debt.
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What happens if I miss a monthly payment?
We may not drop you from the program for missing one payment. Our
company understands that circumstances may arise and our main focus is
to help you get back on track. The key to working through these times is
communication. Simply let us know your situation, and together we will
make reasonable arrangements to get you caught up. Keep in mind, If more
than one payment is missed we may conclude that this program may not be
right for you and your account may be terminated.
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Are there tax
consequences to debt settlement?
If your creditor settles your debt for more than $600 less than what you
owed, the savings may be reported by your creditor to the IRS as
Discharge of Indebtedness Income. You understand that Progressive Debt
Relief assusmes that you enrolled in its Debt Settlement Plan because
you are insolvent, having financial difficulties with your unsecured
debts, and/or have used a Debt Settlement Plan to avoid filing for
bankruptcy. The IRS website
www.ustreas.gov says that you may be able to exlude Discharge of
Indebtedness income if you are insolvent. For more information on tax
ramifications to you personally please consult a tax preparer, CPA or
Tax Attorney or refer to IRS Publication 908 "Bankruptcy Tax Guide" and
IRS Form 982 "Reduction of Tax Attributes Due to Discharge of
Indebtedness" available on the IRS website.
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Do you
provide legal advice?
Progressive Debt relief does not provide legal advice or representation.
Consult an attorney for legal advice and representation, including for
information about whether Bankruptcy is appropriate for your situation.
By failing to pay creditors, you may be in violation with the terms of
your agreement with your creditors, which may result in a creditor suing
you.
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How do I
know if you will be able to settle my debts?
The acutal size of any debt reduction and the actual length of time that
will be needed to negotiate a specific settlement or to complete your
plan is not guaranteed. Any individual creditor may use a number of
different critieria in determining that creditor's willingness to settle
a debt or the amount acceptable in settlement, including but not limited
to, the amount of debt, the current status of the debt, the reasons you
are seeking debt settlement, the type of debt ant the amount of your
disposable income.
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What are your fees?
This depends largely on the program you choose through Progressive Debt
Relief. Once a specific program is determined, your counselor will give
you the specifics of your fee structure. We are committed to making the
client fully aware of any fees that would be applicable. In respect,
Progressive Debt Relief is committed to maintaining fees that are at the
low end of industry standards, while investing in customer service to
ensure that we deliver a high quality product that creates a positive
end result for our client.
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