When does Prestige Financial begin my debt relief?
I have a flexible monthly income. Can I still participate in the program?
Are my creditors going to continue to call me?
Will my creditors call me at work?
Will my creditors continue to contact me by mail?
Will this program have a negative effect on my credit?
Why should I use Prestige Financial to settle my debts as opposed to handling it myself?
Who do I call if I have a question about the program or a problem with a creditor?
Do I have to include all of my creditors into the program for settlement?
How long will it take for me to become debt free?
How much does this program cost?
What if my creditors won't settle?
Will Prestige Financial stop late fees and interest from accruing on my account?
Is debt settlement the same as debt consolidation?
Can you settle your debt on your own?
Is Debt Settlement the same as Consumer Credit Counseling?
Will I owe money to the IRS for my reduced settlement?
What if I'm sued and they get a Judgment?
Will your program stop legal action against me?
Q. When does Prestige Financial begin my debt relief?
A. Once you have fully retained our services, your creditors will be notified immediately and Prestige Financial will begin the settlement process. However, we can only settle a debt once the full funds are available in your settlement account.
Q. I have a flexible monthly income. Can I still participate in the program?
A. Yes. Our fees and payment schedule are on a client-by-client basis. We will figure an affordable and simple plan for your unique situation.
Q. Are my creditors going to continue to call me?
A. We notify your creditors that we are representing you and demand they stop contacting you. It usually takes about 30-90 days for them to stop contacting you. In the meantime, you will keep a creditor log of every phone call or letter that you receive from a creditor and report it to us.
Q. Will my creditors call me at work?
A. They may attempt to contact you at work, however, once we have notified them of your enrollment in our program, the phone calls will stop altogether.
Q. Will my creditors continue to contact me by mail?
A. Your creditors may also attempt to correspond with you by mail; however, you will then immediately contact Prestige Financial and report this correspondence. We will handle all of your creditors and collectors on your
behalf.
Q. Will this program have a negative effect on my credit?
A. The Debt Settlement Program will have a short-term adverse effect on your credit during the program. As there is no pain free way out of debt so to speak. But minimum payments are not being made to the creditors while we are negotiating. So they can report you as late on your credit bureau, until the account is settled which would be 36 months or less. However, we are not just negotiating on the balance of the account but the entire account. Once an account is negotiated and settled, your creditors will report the accounts as "paid as agreed, settled as agreed or paid in full with a balance of $0. And typically as part of the agreement we can get any derogatory information removed that was reported on the account. Once you have completed the program and you are debt-free, ultimately by taking care of the debt the credit usually takes care of itself. Most people have a good credit score but have a high debt to income ratio which offsets that good credit score.
Q. Why should I use Prestige Financial to settle my debts as opposed to handling it myself?
A. Our team has extensive experience in negotiating debt and working with creditors. We have an impeccable relationship with creditors and collection agencies, who are usually unwavering in negotiating with the consumer directly. Our team has extensive knowledge in consumer debt and the Fair Credit Reporting Act, as well as the Fair Debt Collection Practices Act.
Q. Who do I call if I have a question about the program or a problem with a creditor?
A. Upon enrollment, you will be given an account number and will be able to contact an account representative who will be handling your case. You can talk directly with any account representative whenever you need to discuss a problem or concern.
Q. Do I have to include all of my creditors into the program for settlement?
A. No. We recommend that you keep open at least one credit card. Any accounts that are included in the settlement program will have to be closed immediately. Creditors won't settle accounts that are still open. You should keep one credit card open for emergency use only.
Q. How long will it take for me to become debt free?
A. It typically takes about 18-24 months after we've negotiated the total amount of your debt down to 40%-60%. This includes all fees. However, it could be much sooner depending on your individual situation.
Q. How much does this program cost?
A. Our Debt Settlement Program costs are based on an individual basis and are determined by a Prestige Financial Compliance Officer and you. Your monthly payment will be determined by what you can comfortably afford, and is based upon your level of debt, income, and living expenses.
Q. What if my creditors won't settle?
A. Creditors know that if they don't settle for even a fraction of the debt, they will most likely get nothing. Creditors aren't dumb and they know that at a certain point, they have to take what they can get! Most of them will settle very quickly, wouldn't you? In the rare event that a creditor won't settle with our offer, they will return with a counter offer that will be favorable to you. Creditors know that if you declare bankruptcy, then they will get absolutely nothing, and that is what they are trying to avoid.
Q. Will Prestige Financial stop late fees and interest from accruing on my account?
A. Prestige Financial cannot stop a creditor from adding interest or late fees to an account. However, your individual program will reflect those fees and/or interest, and is incorporated into the settlement Program. Because we negotiate the debt down to a fraction of what you owe, your savings are far greater than any interest or late fees that could accrue.
Q: Is debt settlement the same as debt consolidation?
A. No. The goal of the debt settlement is to reduce the overall amount of the debt, by negotiating agreed payoff amounts with your creditors. In Debt consolidation you acquire a loan to pay off your unsecured debt with secured debt.
* Debt Consolidation loans transfer the debt from one account to another and typically takes an unsecured debt(s) and changes it into a secured debt (usually your home). If you do not have enough equity (typically 25 - 30% LTV), bad credit, or too much debt, it is not likely that you will be approved for a debt consolidation loan.
* Statistics are that about 70% of the people who obtain a debt consolidation loan find themselves in deeper debt than they were originally within a two year period. You cannot borrow your way out of debt. Ask yourself why you would want to go from an unsecured loan to a secured loan over a longer period of time?
* The main problem with consolidation loans is that once you have paid off the credit cards you have a whole new source of spending power: $0 Balance credit cards. It does not take long before these cards are credit balanced out again leaving you in a worse financial situation. You end up not only having to pay back the cards but also the consolidation loan.
* If you start missing payments on the consolidation loan, you stand to lose the asset (usually your home) that the loan is secured against.
Q: Can you settle your debt on your own?
* Sure you can, but we would not recommend it. You may be able to make your own plumbing repairs or install your own computer network, but most people don't have the time or expertise to deal with it.
* Creditors deal with thousands of people who are in financial difficulty every day and have a vast array of sophisticated (and some rather blunt) methods of intimidating you into financial arrangements you cannot keep.
* The settlement process is usually very emotional and stressful, especially when you are the one being attacked by collectors over the phone. Most people prefer to leave these tasks to experienced people who earn their livelihood doing that particular kind of work.
* We have a staff of debt negotiators whose only job is to negotiate the settlement of unsecured debt, every day, five days a week. By letting PFS do what we do best, you will get better settlements with a fraction of the stress.
* PFS knows how to deal with creditors and have in-depth knowledge about how these institutions work. We can potentially save you thousands of dollars and free you from a considerable amount of stress.
Q: Is Debt Settlement the same as Consumer Credit Counseling?
A. No. Debt settlement does not work like consumer credit in most respects. The goal of the debt settlement is to reduce the overall amount of the debt, by negotiating agreed payoff amounts with your creditors. Debt Settlement can save you thousands of dollars and years of repayment.
Consumer Credit Counseling Companies typically have a non-profit status. Many consumers confuse "non-profit" with "no charge for services", or charity. Non-profit Consumer Credit Counseling Companies generate millions of dollars each month and employ thousands of people. The way Credit Counseling works is that you typically meet with a Credit Counselor, who analyzes your unsecured debts, other obligations, and your monthly income. A credit counselor then formulates a monthly budget and presents a plan that includes lowering of credit card interest rates and sometimes, the monthly payment. The Credit Counseling Company then contacts all your unsecured debt Creditors of unsecured debt and requests that the consumer be permitted to enter the bank's hardship repayment plan at a lower interest rate. Most hardship plans are for a 12-18 month period. Note: most Consumer Credit Counseling programs run 48 - 60 months. During the program a single payment is sent to the Credit Counseling company and they in turn make payments directly to all your creditors for the next 48 - 60 months.
The consumer credit counselor charges what seems like a relatively small fee. What you are not told is that the Credit Counseling companies act as a surrogate of the Credit Card Company. They make most of their money from "donations" from your Creditors based on the amount they "collect" from you while in the program. An arrangement very similar to how collection agencies are paid by creditors. So a credit counseling company may not have your best interest at heart. These donations are the primary purpose for these companies organizing under a "non-profit" status (for-profit companies cannot receive donations).
The downside to credit counseling is as follows:
* In a Credit Counseling program you pay the full amount of debt owed at a hopefully reduced interest rate.
* Credit counselors don't always make timely payments resulting in late fees and a derogatory credit history.
* Not all Creditors agree to reduce your interest.
* Almost all Creditors require you to be at least 30 days late before entering hardship programs (late payment history);
* Payments are still high and it typically takes 5 or 6 years to pay off the debt.
* Credit Counseling companies frequently advertises 50% lower monthly payment, but this almost never happens. Even if it did happen, smaller monthly payments would only string out the program period and not get you out of debt;
* Most Credit Counseling programs have a high failure rate.
* Many these companies are funded by your creditors - the very people to whom you owe money. In other words, they may not represent your best interests.
* Additionally, your credit will have a CC or Credit Counseling mark on it. This is viewed negatively by most lenders and may hinder your ability to refinance a home or get a loan.
Q: Will I owe money to the IRS for my reduced settlement?
A. Creditors are required to report canceled debts exceeding $600 to the IRS and you are supposed to report the same as income on your annual tax return. However, the IRS permits you to write off any "income" from canceled debts up to the amount by which you were "
Insolvent" at the time. Therefore, unless you have a positive net worth, then you ordinarily will not be obligated to pay taxes on the forgiven amounts. Additionally, if you do not qualify as insolvent non principal amounts such as fees accumulated on the account may be deducted from the amount reported. Refer to: www.IRS.gov Publication 908
Q: What if I'm sued and they get a Judgment?
A. Here are some facts; Right now in the United States there are between 200 and 300 billion dollars of uncollected (Money Judgment debt). The court does not require the debtor to pay, and will not even help collect. Very few people know how to find these assets or what to do when they are found. The result is that millions of Judgments are just sitting in files. "Four of five winners of a Judgment never see a dime." We negotiate all unsecured debts, which include judgments. Regardless of what stage of collections a debt is in, it can be negotiated.
Q: Will your program stop legal action against me?
* Creditors have the right to use legal means to collect a debt. Some creditors are more likely to file suit than others.
* Creditor lawsuits are NOT COMMON they do happen. It is also a common tactic of third-party creditors or collection agencies to threaten you with a lawsuit (which is illegal if they do not intend to sue). The reality is that third-party creditors or collection agencies rarely ever sue. You should be aware that a creditor can only sue you if it retains an attorney that is in your state. Furthermore, it takes time and costs money to file. Lastly, even if a creditor is to take legal action, they can only collect what you have. A wage garnishment takes time and always hinges on your employment and may not be applicable in your state. If you own a home it is difficult for a creditor to attach the equity in your home and it may be protected by your state's homestead act. In conclusion, it is typically more cost effective for a creditor to settle than to pursue legal action. While we cannot guarantee that legal action will not be taken, we are confident that our experience in dealing with creditors can reduce the possibility of this happening.
* Despite any legal action that may or may not be taken, your account can be settled before, during or after the suit. Just because an account goes to legal action does not mean that we cannot settle it. The threat of legal action can be the scariest of all, IT CAN BE HANDLED.
* Note: We cannot provide you with legal advice. We work with your creditors to find a solution that will satisfy everyone before legal action is taken.
Call me now, to get started and become Debt Free in 36 months or less.
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