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Frequently Asked Questions

  1. What are my options to get out of debt?
  2. What is the difference between Debt Settlement and Debt Consolidation (consumer credit counseling services)?
  3. How long will it take?
  4. What are the effects on my credit rating?
  5. Can I settle my school loans and mortgage?
  6. Why would my creditors settle for less than I owe?
  7. Will you help me stop creditor calls?
  8. Does everyone qualify for debt settlement?
  9. How much money can I save?
  10. How can I afford this program, I’m already struggling?

 

More Questions?
Call 1-877-257-0900 Or Request Free Evaluation

 

  1. What are my options to get out of debt?

    Continue Payments – Please use our debt calculator to see how long it will take to pay off your debt. The calculation will show you how long it will take for you to pay off the debt without our assistance, and potentially, how much less time it will take to reduce the debt if you use our service

    File Bankruptcy – While bankruptcy might be the last resort for a struggling debtor, it is a public record, may stay on your credit report for up to 10 years and adversely affect your chances to obtain housing and employment.  Therefore, bankruptcy should be considered very carefully.

    Debt Consolidation – This is a service created by your creditors to help them recover their losses. It may take up to six years to pay off your debt and you will have to pay the entire principal amount. You might have to
    obtain a new loan and borrow against your house or another asset. Firms that provide this service typically receive compensation from the creditors, despite their non-profit status.

    Debt Settlement – This is a debt management method in which the principal amount you owe is negotiated with your creditors.  It is the most viable alternative to using either Debt Consolidation or Bankruptcy.  Your creditors would prefer to use Debt Settlement and receive a portion of what is owed to them, rather than see you go bankrupt and owe them nothing.   
     
  2. What is the difference between Debt settlement and Debt consolidation (consumer credit counseling services)?

    Debt Settlement     is the program developed to negotiate the principal amount of your debt. Creditors are interested in negotiating and settling your outstanding consumer debt to avoid your completely discharging the debt through bankruptcy. You are motivated to settle your debt in order to avoid bankruptcy, creditor harassment and possible legal action. In a Debt Consolidation program, only the debt interest, not the principal, is negotiated.  This program, ordinarily sponsored by the creditors, usually requires that you take out a loan against your secured assets
    (house, car) and it can last up to 6 years or more.
     
  3. How long will it take?

    Depending on your debt structure and personal financial situation, the time to complete the DebtOne Debt Settlement Program will vary. The program is designed to be completed in 12-36 months.
     
  4. What are the effects of the program on my credit score?

    Your consumer credit score is calculated based on several factors and the only way to avoid adverse
    effects on your credit score is to repay the original debt under the original terms.  However, using debt settlement, your overall debt to income ratio will rise during the settlement process.  Since you will be resolving the debt, you will no longer owe the money to your creditors and this is one of the factors that
    creditors look upon favorably when determining your credit worthiness. DebtOne Financial Solutions is not a Credit Repair company.
     
  5. Can I settle my school loans and mortgage?

    No. DebtOne Debt Settlement Program is available for unsecured debt only. The types of debt we can settle
    are credit cards and personal loans. We cannot accept any type of loans that include collateral (secured loans - mortgage, government-backed school loans).
     
  6. Why would my creditors settle for less than I owe?

    Creditors can lose the entire outstanding balance if you decide to use your last legal resort – bankruptcy - and you probably want to avoid bankruptcy because of the negative consequences. Settlement is the meeting point for you and your creditors. Through the DebtOne Debt Settlement Program, both sides come to an acceptable solution. Creditors receive a portion of your balance in exchange for your decision to pay off as much of your debt as you can. 
     
  7. Will DebtOne help me stop creditor calls?

    As soon as you join the program, we will advise your creditors of our representation. If you still receive phone calls you can refer your creditors to DebtOne.
     
  8. Do I qualify for the program?

     Amounts of $10,000 and more in unsecured debt qualify for the DebtOne Debt Settlement Program. During the free debt evaluation, we will determine your specific situation and advise if your current debt structure and ability to budget the funds for the settlement is suitable for our program.
     
  9. How much money can I save?

    It will depend on your specific financial situation. Please use our debt calculator to see the potential savings.  
     
  10. How can I afford this program?

    We will discuss our fees during your free debt
    evaluation    . Our program is custom-tailored to fit each client’s budget and is based on the amount of your
    debt. Many debtors find our program to be the most affordable and fastest solution to get out of debt.

  Reduce and settle your debt
     up to 50% - 75% less than
     what you owe*
 
  Become debt free in
     12 - 36 months 

  Avoid Bankruptcy

Enter Amount of Unsecured Debt:
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"It would take 34 years to pay off a $2,500 loan, and total payments would exceed 300% of the original principal."

Source: GKM Banking Industry Report

"Credit card statements, unlike those for mortgage and car loans, do not disclose the amortization rates or the total interest payout at the minimum rate."

Source: U.S.C. § 1637 Inc.

"Credit card issuers earn about 75% of their revenues from the interest paid by borrowers who do not pay in full each month. Several companies have instituted charges or even canceled credit cards for customers who pay in full each month, preferring customers with large credit balances who pay minimum monthly payments."

Source: The Boston Globe

"In 2001, the Federal Reserve cut interest rates by 4.75%, but major bankcard issuers cut their rates by only 1.35% on average."  

Source: Federal Reserve Board

"Industry consultants estimate that credit card companies could cut their bankruptcy losses by more than 50% if they would institute minimal credit screening."

Source: Fair, Isaac & Co.

"Some institutions now invest in bad credit card debt. For example, Commercial Financial Services acquires credit card debt that has been charged off as uncollectible from 25 of the largest credit card issuers, packages the debt into securities which it sells to investors, then pursues new collection activities against the customers. CFS securitized $1 billion in charged-off credit cards in 1997, and plans to securitize $1.5 billion this year."

Source: OCC Comptroller's Handbook

"The FDIC observes that by marketing high-risk debt to customers who are at substantial risk for non-payment, credit card issuers have contributed to the rise in consumer bankruptcies."

Source: Ellis, Consumer Interest Rate Deregulation

"Banks actively solicit debtors for new credit after they file for bankruptcy. Industry analysts explain that these debtors are attractive because they have shown they will take on credit and, by law, they cannot seek a bankruptcy discharge for another six years."

Source: Dr. Michael Staten, Director, Credit Research Center, Krannert School of Management, Purdue University
 
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* This range is based on DebtOne's results on average in negotiating discounted settlements of unsecured debt in exchange for its clients' agreed savings plan to pay such settlements and its past successful results on behalf of its clients are not a prediction or guarantee a given client or clients will obtain a reduction of debt within that range or in any amount whatsoever. DebtOne is not a loan consolidation company, lender or broker for any lender.