Q 1: How does your program work?
A. Our program is a debt settlement program. What that means is we will contract
to communicate and work on your behalf with your creditors to negotiate
settlements/discounts on your unsecured debts. Our Settlement teams are experts
in negotiating the reduction of debt amount in many cases to only 40 - 60% the original
balance. We will assess your situation and set you up on a comfortable monthly
budget payment to meet our mutual goals of reducing and settling your debt as
quickly as possible. An in depth program review will be conducted in your free
initial consultation.
Usually it would take 25-50 years to pay off debt by making minimum monthly
payments. Debt Settlement shortens that process by negotiating the balance
amount so you can comfortably pay it off within two to three years, on terms
you can afford - sometimes sooner!
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Q 2: How do I qualify for your program?
A. During your free consultation, a credit specialist will discuss and assess
your situation and determine if you are a good candidate for the debt
settlement program. Debt settlement is not for everyone. One of the things we
look at are recent hardships that have contributed to your current debt problem
i.e. job loss, divorce, illness, pay reductions etc. We also look at the types
of debt you have i.e. credit cards, medical bills etc. It's these and other
factors that will help us both determine what your best course of action is and
whether debt negotiation is a fit for you. Your free consultation can provide
you with all the answers you need to make an informed decision on your future.
Q 3: How do I get started?
A. Getting started in our program is a quick and easy process. After speaking to
one of our experienced credit specialists, he/she will create an enrollment
package that will be tailored to fit your financial capabilities. This package
will be sent to you via email, fax, or priority mail. After the completion and
return of your enrollment package, we will get to work for you and take all the
stress off of your shoulders!
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Q 4: Do I have to include all my debts?
A. No. You can select which debts you are unable to pay and enroll only those
creditor accounts. This will be discussed with you in your initial
consultation.
Q 5: How does your program compare
to other options?
When trying to find a solution to resolve your debt, you have 4 options:
-
Consumer Credit Counseling (CCCS)
- These companies will typically set you up on a payment plan that will take
you anywhere from 4-7 years to pay everything off. They strictly work on
getting your interest rates lowered and their monthly payments work out to be
more than your monthly minimums the majority of the time. So, they don't
provide the cash relief that most people in debt are looking for. These types
of companies were originally created by credit card companies in thoughts of
being a good way for them to "keep people in the game". Most of them are
actually owned by credit card companies to this day.
-
Debt Consolidation Loan - We've all heard the saying "robbing
Peter to pay Paul." That's exactly what these loans are. IT IS IMPOSSIBLE
TO BORROW YOUR WAY OUT OF DEBT.
These loans will have you put up your assets as collateral. (Most of the time
it will be your home.) Effectively, you're turning your unsecured debt into
secured debt. Should you miss any payments, regardless of the situation, your
most valuable asset becomes at risk.
-
File Bankruptcy
- This is the most detrimental thing you can do to your credit. The biggest
misconception about bankruptcy is that you will not have to pay anything back.
The new bankruptcy laws are making it even more difficult for consumers to
file. Not only will this mark stay on your credit report for 7-10 years, but
essentially it will follow you for the rest of your life. Most applications now
ask if you've ever filed bankruptcy in the past. Answering dishonestly is
considered a federal offense. This should only be a last resort to solving your
debt problems.
-
Debt Settlement
- Not only will this option in many cases save you 40-60% off of what you currently owe, but
it can be done in 36 months or less. We can set you up on a monthly payment
schedule that will provide the cash relief most clients desperately need. When
debts are settled, they are reported back to the credit bureau as having a zero
balance. This will help you improve your debt to income ratio and get you back
on the right track. By submitting a request to have one of our team members
contact you, we can show how this option will not only get you out of debt in a
timely manner, but also take all the stress off of your shoulders.
-
Continue to Make Minimum Payments - This is the "in debt for
life" theory. If you can only afford to pay the required minimum monthly
payments, you will, in all likelihood, remain indebted for the next 25 to 50
years depending on how much you owe.
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Q 6: How will this affect my credit?
When you enroll into our program, we will engage your eligible creditors within a strategic time period and
inform them that you will no longer be making payments on the accounts and that
they will need to redirect all correspondence to us. Your enrolled accounts
will be reported as past due until they are settled. Once settled, they will
reflect that the account was handled in a satisfactory manner and that there is
no outstanding balance owed. Your debt to income ratio makes up a large portion
of your credit report and given that each account will show a zero balance once
settled, you can expect that ratio to improve gradually. If you have debt, your
debt to income ratio is already adversely affected. The fact of the matter is
that any type of debt management program will affect your credit in some way.
Debt settlement gives you the benefit of only having it affected while you're
in the program. Given that we do not pay your creditors for you, our name will
not appear on your report. This will look like you took care of your debt on
your own.
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Q 7: How are the Service Fees paid?
The service fees are usually paid between 16 and 24 months of the program. A
portion of the monthly budget is applied to the service fee and the remaining
is placed into a savings account that is used for the actual settlement. A
portion of our service fee goes toward covering the costs of contacting the
creditors and sending cease desist letters to 3rd party collections companies,
etc. The calls are redirected to our offices to negotiate the settlements for
you. As per the agreement, our guarantee states that if Fast Debt Solutions
is unable to settle an enrolled account, Fast Debt Solutions
will refund the client in the amount equal to the percentage that was
originally charged on that particular account balance at the time of initial
enrollment. Client must have sufficient funds to settle the account in order to
be eligible for this service guarantee.
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Q 8: What should I expect after enrollment?
Enrollment begins after your first monthly budget payment. We will engage your
creditors within 72 hours of your first payment. Once enrolled, we will mail
you a complete Debt Solutions Kit. This kit will contain everything you need
for the successful completion of the program. Additionally, both you and your
creditors will receive a monthly update call from us. This call is to keep both
you and your creditors informed of progress, and provide updates on our mutual
communications. We will walk you through the entire program step by step, and
negotiate settlements with your creditors on your behalf. These debts can be
settled with the creditors in one to three installments. We will discuss every
settlement offer with you and advise you on each procedure as it presents
itself.
It is important that you leave all communications with your creditors to us. If
you have any questions or concerns during the program, you can immediately call
your Credit Specialist who will be happy to answer any questions you have. Our
customer service department can also be contacted at any time:
customerservice@fastdebtsolutions.com.
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Q 9: Will the creditors still call and correspond
with me?
Yes. However, they will only contact you as long as you continue to communicate
with them. Aside from leaving all communications to us, we have also included
instructions in the Debt Solutions kit that will show you how to eliminate
these calls. You have rights under the Fair Debt Collection Practices Act to
prohibit abusive practices by debt collectors. We have programs to help you
exercise your legal rights which will minimize phone calls from creditors.
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Q 10: Can I get through the program earlier than
expected?
We design our program to have you debt free in 36 months or less. We will set
you up with a monthly payment amount that is easy for you to manage, which in
turn can free up some extra cash for personal use. If you are ever able to
afford more than the monthly payment we've designated for you, you'll see
yourself finishing this process much sooner than expected. THERE ARE NO
PENALTIES OR HIDDEN COSTS FOR EARLY PAYOFF! Our goal is
to get you out of debt as fast as possible.
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Q 11: What is unsecured debt?
Unsecured debt is any type of account that you did not put up any collateral
behind, meaning no tangible assets or personal property is attached. These
types of debts include credit cards, department store cards, medical bills,
unsecured personal loans, repossessed vehicles, etc. Some examples of secured
debts are mortgages and vehicle loans. In a secured debt, the lender has the
ability to repossess the tangible property against the debt.
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Q 12: Are there any taxes I will incur?
Any creditor that forgives or writes off $600 or more of a debt's principal (the
amount not attributable to interest or fees) might send you and the IRS a Form
1099-C at the end of the tax year. These forms are for the report of income,
which means that when you file your tax return for the tax year in which your
debt was settled or written off, the IRS will make sure that you report the
amount on the Form 1099-C as income.
There are a few exceptions stated in the Internal Revenue Code. For example, if
the financial institution issues a Form 1099-C, you do not have to report the
income on your tax return if the cancellation or write off of the debt is
intended as a gift, or you were insolvent before the creditor agreed to settle
or write off the debt.
Insolvency means that your debts exceed the value of your assets. To figure out
whether or not you were insolvent, you will have to total up your assets and
your debts, including the debt that was settled or written off.
If you conclude that your debts exceed the value of your assets, include IRS
Form 982 with your tax return. For more information or to download the form
from the IRS's web site go to
http://www.irs.gov.
Please also refer to
IRS Publication 908 (7/1996), Bankruptcy Tax Guide.
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Q 13: What are my obligations for the program?
We provide you with a Welcome Debt Kit to guide you through the entire program.
Your obligations include deferring to your savings account, the minimum amount
stated in the contract, which is considerably lower than your minimum monthly
payments are now. We only require a few pieces of information to get you
started in the debt settlement program. The most important obligation is to
become debt free!
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Q 14: Why should I stay away from bankruptcy?
As previously mentioned, bankruptcy is the most detrimental thing you can do to
your credit. This mark will stay there for 7-10 years and will even follow you
around for the rest of your life. Credit applications as well as some
employment applications will ask if you have ever filed in the past. Why do
this when it may keep you from getting the things you want in life, including a
good job? Considering there are other, more beneficial options, you should
always keep bankruptcy as an absolute last resort.
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Q 15: What results can I expect?
The dedicated professionals at Fast Debt Solutions are
committed to saving you money, getting you out of debt and improving your
quality of life. We will be working to get a significant reduction off the
total balances of the unsecured debt that you enroll into this program. Your
best interests are our top priority! The bottom line is that you
will be debt free in 36 months or less and on your way to the life you want!
Success means eliminating your debt. Success is our priority! Our reputation
depends on it!
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