Frequently Asked Questions
1. What exactly is “debt resolution”?
Debt resolution is a form of a “financial workout” for consumers where our organization negotiates with creditors to modify the terms of our clients’ debts at a reduced rate. We customize an affordable plan for our clients to repay their creditors.
2. What types of debt can be resolved?
All unsecured debt including credit card debts, lines of credit, medical bills and personal loans can be resolved and negotiated.
3. Should I put all my credit cards in the program?
This is up to you. You may keep one card open for emergency use only. However, you will have to stop using any creditor accounts enrolled in our program. Creditors will not lower balances on open accounts and our purpose of this program is to help you become debt free. We can’t help you become debt free if you are still charging on your accounts.
4. Will I be totally debt free when I’m done?
Our program is focused on dealing with your unsecured debts; such as credit cards, medical bills, and unsecured personal loans. Once you have completed our program, you will have extra money each month to spend how you like. You may use this to pay down your auto loans, mortgages, or other secured debts that are not part of our program.
5. Will debt settlement stop creditors from harassing me?
Although we cannot guarantee that all creditors will cease calling you about your debt, we immediately send notice to all your creditors that you are represented by us and that they should only contact us regarding your debt. If any creditors contact you after we have given them notice, simply tell them to contact us directly. If any collection agency continues to harass you, contact us and we will refer your matter to an FDCPA attorney.
6. When does USA Debt Professionals begin negotiating down my debt?
Typically in the first month we send letters to your creditors notifying them that we are now representing you and we will then begin negotiations. The timing of the settlement depends on how late your payments have been, how much money you have saved, and your financial situation.
7. Will this program have a negative effect on my credit?
A good credit score can help you get more debt, this is the last things our client's need. Any time you do not pay your exact obligation to your creditors, your credit is negatively affected. However, once your individual accounts are settled, your creditors are required to report this information to all major credit reporting bureaus to update your individual credit report. This allows you the opportunity to start to rebuild your credit at that time.Your credit affects your ability to obtain loans; debt ratio can be just as important. With a successful completion of our program your debt ratio will be significantly better. Our program also focuses on fixing your budget, monthly cash flow, and savings.
8. How long will it take me to become debt free?
It can take anywhere from as little as 6 months to 48 months. It is dependent upon how much you can afford each month and how much debt will be in the program. There is no penalty for graduating the program early so we always encourage our clients to save as much as possible to get through the process quicker.
9. What if my creditors will not settle?
Creditors know that if they are unwilling to negotiate the terms of your debt, they could end up with nothing. They realize that at a certain point, they have to make reasonable concessions. In the event that a creditor will not settle with our initial offer, they will usually return with a reasonable counter offer. Creditors know that if you choose to file bankruptcy, they can receive absolutely nothing, and that is what creditors are trying to avoid.
If you have more specific questions not answered here please contact USA Debt Professionals at (877) 543-7770.
