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FAQ's |
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Undoubtedly, during the debt settlement process questions will arise. When this happens, please do not hesitate to call your debt settlement coach. We are here to help you reach your
goal of financial freedom and are available to answer any questions that you have.
How long does it take to complete the Credit Answers program?
We recognize that each individual's situation is unique, and we take every detail into consideration when planning a personalized credit consolidation program that works in
conjunction with your budget. The length of time to complete the program varies with each individual and this will be discussed in full during your initial consultation. The average
Credit Answers client will complete the program in around 36 months*, depending on the individual's financial and personal situation. We are happy to discuss your concerns and questions when you
call for your initial free consultation.
How does debt settlement differ from debt consolidation?
The names sound the same, but there is a world of difference. Debt settlement may decrease your debt balance*. Your results may vary based on our negotiations and
agreements with the many Creditors with which our Debt Negotiators have established relationships. Whereas, debt consolidation programs combine all your outstanding debt into one
lump sum, and secure your total debt amount with an asset of great value such as your home. Debt consolidation only buys you more time, drawing out the payback process and offering risky
consequences. Debt settlement generally takes around 36 months to complete with much lower monthly payments, because your debt may be reduced*, although
your results may vary and no outcome is guaranteed.
Do I have to combine all my debts, or can I pick certain debts to settle?
The decision of settling some or all of your debts is totally up to you. Our Credit Specialists will help you decide what strategies are best for you during the free consultation.
We normally recommend settling all unsecured debt to help you get on the path to financial freedom quicker.
What's so bad about filing bankruptcy?
Bankruptcy may seem quick and simple, however many people file for bankruptcy each year failing to realize they are forced to deal with the harsh effects that will plague them for
the rest of their lives. One must first be aware that bankruptcy does not go away after 7-10 years, as some bankruptcy attorneys may claim. The reality is nearly all credit
applications ask if you have ever filed bankruptcy, and to answer falsely is considered a federal offense. Also, costly court and lawyer fees accompany the process of filing for
bankruptcy. And with changes in Bankruptcy laws, many consumers will not be able to eliminate their debt simply by filing for Chapter 7.
Consumers may now be required to file Chapter 13, which requires you to pay back a portion of your debt under the supervision of the court. This process may last for years. Bankruptcy
should be considered one of the last remaining options in solving financial problems but you should always consult with an attorney regarding such matters.
What kind of team do I have working for me at Credit Answers to settle my debt?
We build relationships with our clients based on trust and support. We know the difficulties and stress that financial problems entail. Our dedicated team of knowledgeable Credit
Specialists have experience dealing with personal debt and will provide you with facts that will help you make informed decisions. With years of combined experience in reducing
and eliminating debt for our customers, our team of experienced credit specialists wants to help you live better debt free.
How does the IRS treat debt that is forgiven?
Financial institutions are generally required to provide a Form 1099-C in the event that a forgiven debt amount exceeds $600.00. Please understand that if you receive a Form 1099-C
showing income in the form of canceled debt, this does not necessarily mean that you owe taxes on the forgiven portion of the debt. In most cases clients can legally and ethically
exclude forgiven debt from their income through the "insolvency exclusion" provided by the IRS code. This exclusion means that your liabilities exceed the fair market value of your
assets, or in other words, you "owe" more than you "own". We recommend that you consult your tax advisor regarding your particular circumstance. They will also be able to assist you
on filling out Form 982 that excludes you from the particular debt.
Does Credit Answers make monthly payments to your creditors for you?
No, you are responsible for all payments to Creditors, including settlement payments. Credit Answers only collects its fees on a monthly basis and you are responsible for any
payments to creditors and for saving funds to settle your debt.
Is it wrong for me to avoid creditors calls or use different types of call screening devices?
It is your right to accept or not accept unwanted calls. If you have told your Creditor you are unable to make a payment and they continue to call, and your circumstances have not
changed, then what would the purpose be of talking to them? We leave the decision up to you.
How does debt settlement affect my credit?
That depends on what your credit looks like when you enrolled in our debt settlement program. But in general if you do not make payments and pay your creditors according to the
terms of your agreement your credit will suffer. That is one of the trade-offs you will have to make if you are serious about reducing your debt.
What happens if I am unable to save funds?
This is a debt settlement program and if you are unable to accumulate funds then we will not be able to settle your accounts. If something happens and you are unable to make a full
or partial payment, call your Settlement Coach about getting some short term relief.
Does Credit Answers have control of my savings?
No, Credit Answers does not have any control over your savings and never acts as an intermediary when it comes to your funds. The only money Credit Answers ever receives from you is
our service fees.
Can Credit Answers stop collection efforts including lawsuits brought by creditors?
No, but we do have strategies on helping you manage the collection efforts and can direct you to an attorney to answer any suits that may be filed.
Do late fees and interest charges stop while I am in the program?
No, the interest and fees continue to accumulate, but Credit Answers will negotiate your settlement with your original balance in mind.
Can I be sued by my creditors?
If you fail to make payment to your creditors, they may take legal action against you.
Does Credit Answers contact my creditors?
At the appropriate time and once you have accumulated funds to settle an account, Credit Answers will contact your creditors to begin settlement discussions.
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Get Debt Relief Now!
For a free consultation call 1-800-297-6417 or start by filling in the form below and one of our specialists will contact you. We are here to help you 24 hours a day.
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