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Frequently
Asked Questions
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?
We do not get paid until we settle your debt so we certainly are motivated to get results. 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?
We charge no fees until a debt has been successfully negotiated for you. Once you make one payment towards the negotiated debt than a service fee applies to that particular debt. The amount of the service fee depends largely on the program you choose. 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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Education
Center
Helpful Financial Forms - Download financial forms.
Credit
Cards - Learn about important terms before applying for a
credit card.
Consumer Rights - Learn about your rights under the Fair
Credit Reporting Act.
Debt Warning Signs - Learn about the warning signs of debt.
Credit
Scores - Learn about credit scores and why they are so
important.
Telemarketing Scams - Top 10 telemarketing scams.
Money Saving Tips - Tips to help you save money.
Consumer Debt Statistics - Detailed consumer debt statistics
in the U.S.
Debt Management Plan - How debt management helps you.
Credit
Repair - How credit repair helps you.
Foreclosure Prevention - How and why to prevent foreclosure.
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