FAQS Debt Settlement Frequently Asked Questions
Question 1- What are the fees for your services to complete the debt settlement program?
Answer: The fees for each case vary based upon the complexity of your financial situation and the effort required by us to assist you to zero debt. This will be discussed with you in detail. It is important to note that with our fees included you will pay a fraction of your debt balance. In fact, by the end of the CCDR Debt Relief Program, you will have saved money!
Question 2- Will you contact all of my creditors on my behalf?
Answer: Yes. A letter will be sent to each of your creditors advising them that you have retained CCDR to represent you. CCDR will demand that they cease all communication with you and we will demand that all future correspondence be directed to our office on your behalf.
Question 3- How will debt settlement affect my credit?
Answer: Debt settlement is a bankruptcy prevention program and may adversely affect your credit if your debts are current and you have no history of late payments. The debt settlement program will, in the end, improve your debt to income ratio and may, therefore, improve that portion of your credit score. Since you will have resolved your outstanding debt through the CCDR program your future creditors will see that you settled your debts instead of filing bankruptcy.
Question 4- Does secured debt ever become unsecured debt?
Answer: A secured debt may become an unsecured debt in situations where the property securing the loan has already been repossessed and sold by the creditor. If the sale of the property does not meet the contractual obligation the consumer owes a deficiency balance. This deficiency becomes an unsecured debt. Certain exceptions may apply and will depend on the security interest.
Question 5- Do I have to be delinquent with my debts to be eligible for your program?
Answer: No. CCDR’S debt settlement program works with debtors in all stages of collection.
Question 6- How do I get approved for your program?
Answer: CCDR is not for everyone and everyone is not for us. If you are in debt, employed and serious about resolving your debt, take the first step, Contact us and we will advise you of your acceptance into the CCDR program or other options available to you.
Question 7- Is debt settlement the same as debt consolidation?
Answer: No. A debt consolidator makes one loan to you to pay off all of your debts. They charge you interest on this loan and in some cases you are still required to pay interest to your creditors. As a result, your principal debt balance remains the same and you remain years away from becoming debt free. With the CCDR debt settlement program, our highly skilled negotiators will negotiate on your behalf utilizing our experience and the debt collection laws to significantly reduce your debt. In most cases, you will only pay a fraction of what you owe. Typically, with the CCDR Debt Settlement Program we resolve our client's debts as quick as 30 days or as long as 48 Months. Plans are put together to fit your budget!
Question 8- Does the debt settlement program work for all of my creditors?
Answer: No firm can guarantee that every creditor will accept an offer to satisfy your outstanding debt. CCDR only accepts cases that we can resolve for a fraction of the debt. After your first conversation with CCDR, we will know your financial situation and will be able to advise you on what expect from the CCDR program.
Question 9- Are your services guaranteed?
Answer: We cannot offer a 100% guarantee that our services will work for you. If we could we would. Before we accept your case we will perform a thorough analysis of your cash flow and debts. When we can help you we will, and if we don’t think we can help you, we won’t accept you into the CCDR program.
Question 10- Will all of my debt be eliminated when I finish the debt settlement program?
Answer: When you follow all of our procedures you can expect to have zero balances on all unsecured accounts that you’ve contacted us to resolve. You will still be responsible for your secured debts i.e. mortgages, auto loans, etc. and unsecured debts that you did not retain us to settle.
Question 11- What can I expect as a result of your debt settlement program?
Answer: You can expect a substantial reduction in what you owe to your creditors. While each case is different and results vary we typically settle our client's debts for 25% to 50 % of the balances owed.
Question 12- How does debt settlement compare to bankruptcy?
Answer: Bankruptcy was designed to be your last resort and has a devastating effect on your credit rating! Debt settlement is a bankruptcy prevention program and will provide you with financial freedom without the long-term effects that come with a bankruptcy.
Question 13- Do I have to include all of my debts or can I choose only the ones I would like you to resolve?
Answer: With the CCDR debt settlement program you can select which accounts you would like us to settle for you. This will be discussed during the first conversation with CCDR.
Question 14- How can I be sure this will work?
Answer: We take great pride in, and our job is built on, getting our clients out of debt. After analyzing your financial situation you will either be accepted into the CCDR program, which means we can help you, or we will advise you of your best options.
Question 15- What is the difference between unsecured debt and secured debt?
Answer: An unsecured debt generally arises out of a contract entered into with a creditor that enables you to obtain goods and services on credit in exchange for your promise to repay the creditor. Credit cards, medical loans, and personal loans are the most common types of unsecured debts. If you are delinquent with this type of debt the only recourse the lender has is legal action. A secured debt is a loan where the creditor retains a security interest in real or personal property such as a house or an automobile. If you fall behind on payments with this type of debt the lender has the ability to repossess the property in order to mitigate their damages. If your property is repossessed and sold you remain liable for any deficiency balance that remains after the sale. Certain exceptions apply depending on the nature of the security interest.
Question 16- Will I continue to get calls and collection letters from my creditors?
Answer: Once you are accepted into the CCDR program we will provide your creditors with the appropriate correspondence that will ask them to direct calls to our office (usually within 1 week of first payment being made to the program); however, there is no law that prevents creditors from sending written correspondence to you. Do not be afraid to read these letters. In fact, it is important that you read each letter carefully as you are certain to get settlement offers from your creditors as a result of your admittance to our program. Settlement letters and any letter of concern should be forwarded to CCDR.
Question 17- How long will your program take?
Answer: The length of time it takes to complete the debt settlement program varies from case to case and depends upon your acquiring the funds available to resolve your debt. This will be discussed with you. Typically, we settle most of our cases in 9 to 24 months often sooner.
Question 18- Will interest charges continue to accrue on my debts?
Answer: Yes. The truth is that interest will likely continue no matter what you do. The biggest difference here is you will be debt free typically in less than 36 months for a lot less than you owe now. If you continue just making the minimum payment you will pay in most cases for decades.
Question 19- Will my accounts be closed?
Answer: Your credit grantor will close any account on our plan (usually). We recommend that when joining, you close your accounts on your own. We believe that it will look better on your credit report if you close them.
Question 20- Will my closed accounts re-open?
Answer: No. Once an account is closed, that account number will never re-open. After your debts are paid off you can apply for new credit cards or start with a secured card.
Question 21- Why are my creditors saying that they won’t work with you?
Answer: Most likely the person who is telling you that is a paid collector who is self-interested and makes commissions or bonuses on what they receive from you. They may tell you they won’t work with us just to get you to send money directly to them. Once you become our client, you will direct all creditor calls to CCDR.
Question 22- Can CCDR stop interest, fees, and/or penalties or freeze my account balances?
Answer: No. Whether or not these additional charges can be added to your account is determined by the agreement you signed with each of your creditors when you first obtained the account. If the agreement allows for these additional charges, then we cannot prevent creditors from assessing them. Of course, if your creditors continue adding these charges, then your account balances will keep growing until we are able to negotiate settlements. But remember, even if you were able to continue making the minimum monthly payments, these charges would be added. Also, even with these additional charges, we are going to negotiate a lump-sum final settlement, and this amount is typically far less than the total balance due. Therefore, in the long run, these charges are nothing to worry about.
Question 23- Do I need to add all of my accounts in the CCDR program?
Answer: With the CCDR debt settlement program you can choose which accounts you want to include.
Question 24- What types of debts can be included?
Answer: CCDR is able to resolve any unsecured debt, meaning credit cards, medical bills, etc. Debts that are secured by the property, such as mortgages, car loans cannot be included. We also cannot service Income tax obligations or government-backed student loans.