Debt Settlement: Frequently Asked Questions - Debt-Assistance-Today.com


• Once I Start My Debt Settlement Program - How Are Creditors Paid?

When you decide on the program that’s right for you, your Debt Settlement company sets up a Debt Settlement Account in your name at a federally insured bank. Enough money is accumulated until all of your creditors can be negotiated with, one at a time.

• What is the Schedule of Payment in My Debt Settlement Program?

Your Debt Settlement company, experienced in helping individual clients such as yourself, works with you to figure out the best monthly amount you can afford to pay. This best amount is then electronically debited from your personal bank account and deposited into your Debt Settlement Account. You work out the best date for that deposit to be made.

When enough money accumulates in your Debt Settlement Account, your Debt Settlement company contacts one of your creditors. You and that creditor agree on the best amount to be paid. That money plus your Debt Settlement company’s fee is then – upon your approval – released to settle your debt with that particular creditor. This process is repeated until all accounts are settled.

Your Debt Settlement company can make no payments without your written or electronic approval.

• What Happens to My Creditors While I Am On the Debt Settlement Program?

Your money accumulates in your Debt Settlement Account. It does not go to your individual creditors until enough money accumulates in your account. That’s when your Debt Settlement company can negotiate a settlement between you and each creditor. In this way you use your accumulated funds to settle with your creditors rather than falling further behind.

• How Can My Debt Settlement Program Help Improve My Credit?

If you are currently behind on payments, you have too much debt compared to income. To become credit-worthy again you must drastically reduce or eliminate your debt. By helping you reduce or eliminate your debt, the customized program you have worked out with your Debt Settlement company is helping you get back on your financial feet as quickly as possible. That is step one. Once you take care of that priority, you will be able to start building good credit for yourself again. During the course of a free consultation, a debt counselor can explain how his Debt Settlement company can work with you to make your financial well being a reality.