Q:
Q: Why does the debt consolidation program work?
A: Credit Cards are under a revolving credit
payment plan. They are designed to keep you in debt, resulting
in your paying an extraordinary amount of interest while
trying to pay them off. Under these circumstances, most
people will end up paying between 15 and 30 or more years.
This means they will usually pay out 5 to 6 times what they
originally borrowed.
By changing from a revolving to a fixed payment plan, along
with a lower interest rate, most of the money is applied
to your principal balances instead of just paying finance
charges each month, reducing your total payout term to 3
to 6 years.
Q: Why is debt consolidation better than a loan?
A: Borrowing money to pay back borrowed
money is economic suicide. If you are able to qualify for
an unsecured loan to pay off your unsecured debt (most people
do not) you are basically borrowing from Peter to pay Paul.
If you take out a secured loan such as a home equity or
second mortgage, you are attaching your current unsecured
debt to something of value such as your home. The average
interest rate in consolidation is 6 to 8 percent, which
is usually less than most loans
today.
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Q: How will debt consolidation affect my credit?
A: Our agency does not report to any Credit
Bureaus. If you are current with all your bills and have
a good credit rating, the creditors policies stay virtually
unchanged. As long as you make your monthly payment on time,
the payments to your creditors are considered on time. On
the other hand, if you are over extended and have a poor
debt to income ratio,.
Q: Is this like bankruptcy?
A: No. This is the opposite of bankruptcy. Bankruptcy is
when you don't pay your bills and you destroy your credit.
In consolidation your debts are being paid, and your
creditors are satisfied.
Q:
Can my credit be repaired through debt consolidation?
A: Yes. By using our program you restructure your debt.
Your credit rating will improve by showing a positive
payment history. No one can erase your true credit history,
but the longer you stay in the program, the closer you will
be to establishing a solid credit rating.
Q: Can
I quit the program?
A: Yes. However, if you do decide to quit the program, the
interest rates will go back to what they were before you
started.
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Q:
What are unsecured / secured debts?
A: An unsecured debt is an account or monies owed that has no
tangible property or product attached to it. Examples: Credit
Cards, Medical Bills, Department Store Cards, Signature or
Installment Loans, etc.
A secured loan has something physical attached, that protects
the loan in case of default, such as a House or a car.
Q: Is
this a loan? - Do the creditors get paid in full?
A: No. This is not a personal loan to you. There is no cash in
hand. All your money is disbursed directly to your creditors
at a lower or zero interest rate. The American Debt Foundation
and its servicing agents are hired by you to do three things.
1. To set up and establish a new payment plan with your
creditors that suspends your original terms and will help you
get out of debt by lowering or eliminating your current
interest rates.
2. Handle all Creditor and Collection agency phone
calls after you have joined our Debt Consolidation program.
3. Consolidate your bills into one monthly payment.
Q: Who
needs our service?
A: Anyone who is experiencing problems keeping up with their
bills or seeking to rid their life of financial burden.
Q: I
have debts prior to marriage, Can I do this alone?
A: As long as you were the only signer on the debt and it's in
your name alone, you can enroll in the program individually.
Q:
Will creditors still call me?
A: If creditors call you after you enroll in the program,
simply direct them to our service center. We will advise them
that you are enrolled in our consolidation program, and there
is no reason to contact you further.
Q: How
is my payment determined?
A: Each creditor requires a minimum payment to qualify you for
the program. All creditors have different requirements for
acceptance. The payment is based on your particular mix of
creditors and your balances.
Q: Are
creditors willing to work with your program?
A: Absolutely. Your creditors want to be paid. They also
understand when a client contacts a debt consolidation company,
they may also be considering bankruptcy.
Q: How
do I get started on the program?
A: We offer an online creditor listing form for your
convenience. Just click on the
Free Quote link, fill out the requested information and
submit it. You will be contacted by one of our Financial
Consultants within 24 to 48 hours
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