Popular Debt Questions

We recommend clients, or future prospects to read through all of these debt questions, as they may answer some current thoughts. Additionally, we believe every consumer should know both positive and negative aspects of a debt settlement and the pros and cons of any debt program or service.

How does debt settlement work?

Debt settlement is a process that involves a series of professional negotiations with the creditors that extended credit to you.

The purpose is to settle each account for a reduced pay off of the actual balance owed. Your personal financial hardship is presented to the creditors, and cease and desist letters are sent to them, so they know you're working with us to close these accounts. You (the client) have the option to approve, or decline a settlement offer before the creditor is sent funds from the special purpose account held in a FDIC Account at Rocky Mountain Bank and Trust. Once the debt is settled, and the settlement agreement is finalized they can no longer take any further action for that account - because it was paid, settled and closed.

How does debt settlement affect my credit score?

During the program you must default on your payments in order for any debt settlement company to reach a settlement offer, including us. Until the accounts are closed 35% of your credit score will be affected, which is the payment history. Keep in mind; most of our clients are already behind on payments so this aspect is already diminished. On a better note 3 months after the account is closed that affected 35% will be restored thus having a great impact on your score. Furthermore, 30% of your credit score which is the debt-to-income ratio will also improve, because the debt is paid off. So as a matter of simple 1st grade math your credit score will have improved 65% when the program is over, and the debt is gone - for good!

How much do I save?

Every client is unique; therefore the saving amount fluctuates between 42-58%. What determines your savings is the age of your debt, the creditors which we are negotiating with, the state of residence you reside in, your hardship, and the amount of debt you owe to that individual creditor.

How do we get paid for this debt settlement service?

Because we enroll, and settle debt by the millions we’re able to charge a small percentage. Our fee structure does not change (fixed), and is calculated (included) into your saving amount of 42-58%. Furthermore everything quoted is presented to you (the client) in contract, and must be read agreed upon and signed.

Our debt settlement service fee is either 10%, or 15% of the debt amount you enroll and this amount is rolled into your quoted, fixed monthly payment. Why 10, or 15 percent? Good question. By law some states legislation prohibit a non-attorney to settle debts with creditors. So, we have attorneys that represent our company and you. Basically, if an attorney represents you they negotiate / communicate with you and your creditors and we manage your payments, provide excellent customer service, payment changes, as well as disburse the settled amounts to your creditors.