Debt Settlement is your best alternative to filing Bankruptcy, Aid My Debt and its partner can help you.
Debt Settlement is your best alternative to filing Bankruptcy. Lower your monthly payments and eliminate the interests and late fees. Ask for a FREE Debt Settlement quote right now, it will give you an idea of what to expect in your debt relief process.
Debt Settlement is quite an option when you are in a deep financial debt situation. Many people think that filing bankruptcy is the first option but what they don't realize is that the ghost of bankrupcty will follow you for no less than 10 years in your credit record. With Debt Settlement you won't have to worry about that ghost.
Yes, with Debt Settlement your credit will be affected but you can eventually, in a period of 1+ year, experience an overall improvement in your credit score.
1. How do I know if I am able to apply for Aid My Debt's debt settlement program?
To qualify for our Debt Settlement Program, you must have at least $10,000 in unsecured debt. We accept only U.S. citizens.
2. How will the Debt Settlement process affect my credit?
All the accounts that have been settled appear positively on credit reports when compared to bad debt, or a bankruptcy. Your credit rating will decline on the front end until the debts can be eliminated, whereupon your credit rating will improve again because the most important factor when determining a credit score is the "debt to income ratio".
Clients generally experience an overall improvement in their credit score once the settlement process has been completed. Once you are free of the debts you have placed in our program, Aid My Debt will provide you with advice on remaining debt-free, improving your credit rating and building a financially secure future.
If you have been unable to keep up with the minimum monthly payments to your creditors, then the debt has already been reported as delinquent, which has most certainly affected your credit rating. Generally this also means that you have a high debt-to-income ratio, further contributing to a poor credit score.
The question that you must ask is, "Which is more important; getting out of debt, or protecting my credit rating?"
If you eliminate the debt, your credit worthiness improves dramatically
3. What does the IRS will require from me once my debts are settled?
Banks are required to report canceled debts over $600 to the IRS and you are required to report the same as income on your yearly tax return. The IRS does permit you to write off any "income" from canceled debts up to the amount by which you were "insolvent" at the time. Unless you have a positive net worth (highly unlikely if you are deep in debt) then you usually wont have to pay taxes on the forgiven amounts.
4. Will I ever be sued?
Lawsuits in matters of debt collection are far less common than one would think. Many debtors fall behind on payments, or are unable to make payments for years, yet never hear from a lawyer.
Obviously a bank has the right to sue and collect the money owed to them, but most often if you keep the lines of communication open, even if through your negotiator, the likelihood of being sued is minimal. Banks would much rather come to an agreeable compromise than go through the process of litigation.
The threat of an impending lawsuit is a primary reason that many people unwisely and hastily file for bankruptcy. It is widely acknowledged that the costs associated with going to court far exceed the benefits. If there is an alternate solution available, such as debt settlement, a creditor typically chooses this option so they can minimize their losses.
5. Can my wages be garnished during the Debt Settlement Program?
A very common method used by aggressive debt collectors is the threat of wage garnishment. These collectors try to make it sound like this will happen on your next payday if you don't send a check immediately.
This is, of course, completely false.
The creditor first has to sue you (which we already know is not their best option), then obtain a judgment, and then file for a garnishment action.
Wage garnishment can normally be avoided if you're willing to work with your creditors.
6. My credit cards, will I still be able to use them?
No, you will not be able to continue using your credit cards. Not necessarily a bad thing when you are trying to pay them off of course.
When you enter our Debt Settlement Program, we will require that you discontinue any further use of your cards except for one that should be kept and used exclusively for emergencies.
7. How long would my Debt Settlement Program take?
The length of time to complete your program will depend on the amount of your current debt and the amount of time you take to stock your Debt Settlement Account.
Aid My Debt and its partners can usually eliminate your unsecured debt within 12-36 months (1 to 3 years). Our debt counselors will tell you how long you will take in your Debt Settlement Program after you fill out your FREE Quote.
8. What are the differences between Aid My Debt and Consumer Credit Counseling / Debt Consolidation companies?
Aid My Debt and its partners work with Debt Settlement which can help you get rid of your debts by reducing each one of them from 40% to 60% at least. You'll be debt free in between 12 to 36 months. Once a settlement is reached, you never have to make another payment!
Consumer Credit Counseling services usually work for your creditors, earning a percentage of what you pay to them. You will be expected to pay 100% of your debt plus interest, by making smaller payments over a longer time period. Because Consumer Credit Counseling makes its money by earning a percentage of the amount you pay to your creditors, their incentive is to get you to pay 100% of your debt, rather than to try and settle or neogtiate with your creditors.
Debt Consolidators will loan you money (and charge interest of course) to "consolidate" your debt, and you will pay off your debt at 100% of the debt amount, sometimes including late fees and additional interest.
9. What types of debts qualify and what does not qualify for Aid My Debt's Debt Settlement Program?
Only unsecured debts, or debts without collateral, are permitted in our program.
A secured debt is one in which a creditor holds something of value as collateral, such as your home or car. We can not add these to your program. However, if the collateral is repossessed or foreclosed, Aid My Debt and its partners may be able to help you resolve what you still owe on the balance of the loan.
10. What happens if a creditor refuses to negotiate?
Aid My Debt and its partners have yet to find a creditor that refuses to negotiate. We work with thousands of creditors on a regular basis. We handle our client's negotiation as professional as this business allows so we can find mutually agreeable settlements.
11. Is Aid My Debt able to stop late fees and interests from accruing on my accounts?
Aid My Debt and its partners cannot stop a creditor from adding interest or late fees to any of your accounts. Nonetheless, your individual Debt Settlement Program will reflect those fees and/or interest.
Because Aid My Debt and its partners negotiate the debt down to a fraction of what you owe (remember, to 40% to 60% at least), your savings are far greater than any interest or late fees that could accumulate.
12. Do I have to include all of my creditors into my Debt Settlement Program?
We recommend you don't. We think you should keep at least one credit card open for EMERGENCY USE ONLY though.
Any accounts that are included in the Debt Settlement Program will have to be closed immediately. Creditors won't settle accounts that are still open.
13. When does Aid My Debt start settling my debts?
Once you have fully retained our services, Aid My Debt and its partners will immediately notify your creditors and the Debt Settlement process will begin.
However, we can only settle a debt once the full funds are available in your Settlement Account.
14. Will I be dropped from the program if I miss a monthly payment to Aid My Debt?
Of course not, but you simply call our customer service department and we will arrange payment over the phone. We understand that circumstances may arise and we will help you get back on track with your payment schedule.
15. How do I find out how the progress of my settlements are?
Just call us at 888-XXX-XXXX , Monday thru Friday from 8am - 6pm MST to speak with a representative. We will gladly help you with anything you need.
16. My monthly income is flexible, can I still be able to participate in your Debt Settlement Program?
Yes, abosolutely. Our fees and payment schedule is based on a client-by-client basis. Together, you and us, will figure an affordable and simple plan for your particular situation.
17. Are my creditors going to keep to calling me?
Once Aid My Debt and its partners start your Debt Settlements, your creditors are contacted to inform them that they should contact us with respect to settling your debt.
Most creditor calls will stop within 30 to 60 days. If you continue getting calls, let our our customer service department know of this and we will again contact the creditors informing them of our representation.
However, you should keep a log of all calls you get from creditors with respect to the debt you put into our program.
18. Will my creditors keep contacting me by mail?
Your creditors may also try to correspond with you by mail, so as soon as you receive a letter from them, you will immediately contact Aid My Debt and report this correspondence. We will handle all of your creditors and collectors on your behalf.
19. Who do I call if I have a question about the program or a problem with a creditor?
Just call us at 888-XXX-XXXX , Monday thru Friday from 8am - 6pm MST to speak with a representative. You can talk directly with any account representative whenever you need to discuss a problem or concern.
We are ready for you anytime.
20. Can't I just do all this by myself? Debt Settlement seems pretty easy...
Yes, of course, but it's not likely that the end result will be a positive one.
Banks rarely take debtors seriously and are well prepared for the amateur do-it-yourself negotiator; in fact, the representatives at your credit card companies have prearranged scripts waiting for do-it-yourself negotiators to call.
You'll hear a lot of "we do not settle debts under any circumstance" and "I can transfer you to a department that may be able to help you qualify for our hardship program." Most consumers simply give up at this point because they feel that Debt Settlement isn't possible this way.
Not to worry, Aid My Debt and its partners are more than happy to help you.
21. What's the cost of this Debt Settlement Program?
Aid My Debt's Debt Settlement Program costs are based on an individual basis.
Your monthly payment will be determined by what you can comfortably afford, and is based upon your level of debt, income, and living expenses.
8. What are the differences between Aid My Debt and Consumer Credit Counseling / Debt Consolidation companies?
