Debt Elimination Consultants of Georgia Midtown about us

What is Debt Consolidation?

In today's world of the buy it now and pay for it later attitude many Americans can get caught up in the instant gratification that credit cards provide. It is only after they see that there balances are not going down due to high interest rates or fees, and in some cases that the creditors will not stop calling that they begin to look for a solution to there debt problem. When looking for that solution Americans are given several choices, they can attempt to borrow more money, file Bankruptcy, or simply not pay there debts at all. The one alternative that can provide a cost effective solution to the problem without having the damaging effects of Bankruptcy, or not paying back the creditors is Debt Consolidation. Debt Consolidation is the process of taking a clients unsecured debts and merging them into one monthly payment. It is also the process of working with the clients creditors to lower the high interest rates, and stop the fees and penalties. This is accomplished by setting up a payment plan that is acceptable to both the client and the creditor. The client is given a payment amount based on the debts they are consolidating, and the creditors are sent proposals informing them of the consolidation. The creditors can either accept or reject the
proposal based on what they require, and it is up to the client to maintain there payments through the consolidation in order for them to reach the goal of being debt free.

What is Credit Counseling?

When Americans look for solutions to there debt problems Debt Consolidation can be one of the best alternatives. Credit Counseling is process of assessing a clients debt situation and offering a cost effective way for the client to become debt free without occurring another debt or damaging their credit by filing bankruptcy.

FREQUENTLY ASKED QUESTIONS

WILL THIS HURT MY CREDIT?

THE CONSOLIDATION WILL HELP YOU NOT HURT YOU BY DOING A NUMBER OF THlNGS. FIRST IT WILL REAGE YOUR ACCOUNTS WHICH WILL BRING ANY PAST DUE ACCOUNTS BACK TO A CURRENT STATUS. SECOND BY MAKING CONSECUTIVE ON TIME PAYMENTS THROUGH THE CONSOLIDATION IT WILL HELP YOU TO REESTABLISH OR MAlNTAIN A POSITIVE PAYMENT HISTORY WITH YOUR CREDITORS. ALSO BECAUSE MORE OF YOUR MONEY IS GOING TO THE ACTUAL BALANCE IT WILL QUICKL Y HELP TO LOWER YOUR DEBT TO INCOME RATIO WHICH WILL ALLOW YOU TO IMPROVE YOUR OWN CREDIT.

HOW DO YOU KNOW CREDITORS WILL ACCEPT THE PROPOSALS?

AS LONG AS THE INFORMATION YOU PROVIDED TO US IS CORRECT
THEN WE KNOW THEY WILL ACCEPT THE PROPOSALS BECAUSE WE ARE SENDING THE CREDITORS THE AMOUNT OF MONEY THAT THEY REQUIRE PAID ON YOUR ACCOUNT BASED ON THE BALANCE YOU OWE.

WHAT WILL MY INTEREST RATES BE?

THE AVERAGE INTEREST RATE FALLS BETWEEN SIX AND NINE
PERCENT ONCE WE HAVE SENT AND RECEIVED BACK AN ACCEPTED PROPOSAL FROM THE CREDITOR WE WILL KNOW HOW LOW THE ACTUAL INTEREST RATES WlLL BE ON EACH ACCOUNT. THAT IS WHY IT IS SO IMPORTANT TO START YOUR CONSOLIDATION AS SOON AS POSSIBLE IT ALLOWS OUR COMPANY TO START THE PROCESS OF SAVING YOU MONEY RIGHT AWAY.

HOW COME WHEN I TAKE THE MONTHS TIMES THE PAYMENT IT
COMES OUT TO MORE THAN WHAT I OWE?

BECAUSE WE ARE CALCULATING INTEREST ON THE ACCOUNTS,
NOT ALL CREDITORS REDUCE THEIR INTEREST TO ZERO PERCENT THE TIME FRAME IS AN APPROXIMATION THAT IS CALCULATED BY
USING AN A VERAGE INTEREST RATE OF TEN PERCENT. SO WHEN YOU TAKE THE PAYMENT AND TIMES IT BY THE NUMBER OF MONTHS, THAT FIGURE SHOWS THE APPROXIMATE INTEREST THAT WILL ACCRUE WHILE WE ARE GETTING YOU OUT OF DEBT. IF YOU FIGURED OUT HOW LONG IT WOULD TAKE YOU TO PAYOFF YOUR CREDITORS DIRECTLY AT YOUR CURRENT INTEREST RATE AND HOW MUCH MONEY YOU WOULD HAVE PAID THEM BACK IT WOULD BE SEVERAL TIMES MORE THAN YO OWE RIGHT NOW. SO THEN WITH THE CONSOLIDATION YOU ARE SAVlNG BOTH TIME AND MONEY.

HOW DID YOU COME UP WITH THE PAYMENT?

THE PAYMENT IS DETERMINED BY A FORMULA THAT IS BASED
UPON A PERCENTAGE OF YOUR CURRENT BALANCE AND VERY SIMlLAR TO WHAT THE CREDITORS USE TO DETERMINE YOUR MINIMUM PAYMENT . THE DIFFERENCE IS THE CONSOLIDATION PAYMENT IS DESIGNED TO BE ACCEPTABLE TO YOUR CREDITORS AND STILL GET DEBT FREE AS QUlCKLY AS POSSIBLE.

WHAT HAPPENS IF A PROPOSAL IS REJECTED?

NORMALLY A PROPOSAL IS REJECTED BECAUSE THE CREDITOR WAS
NOT SENT THE CORRECT PAYMENT AMOUNT BASED ON YOUR BALANCE. AT THAT TIME WE WOULD CONTACT YOU WITH THE AMOUNT OF MONEY THE CREDITOR REQUIRES TO INCLUDE THEM IN THE CONSOLIDATION. AT THAT TIME WE GIVE YOU THE CHOICE TO SEND THE EXTRA MONEY OR IF YOU CHOOSE YOU CAN LEAVE THE CREDITOR OUT OF THE CONSOLIDATION AND ADD THEM IN AT A LATER TIME. WE ALSO CONTINUE TO SEND PROPOSALS UNTIL THEY ARE ACCEPTED.

WILL I CONTINUE TO GET BILLS EVERY MONTH FROM MY CREDITORS?

WHAT YOU WILL RECEIVE EVERY MONTH FROM YOUR CREDITORS IS A STATEMENT NOT A BILL. THE STATEMENT WILL SHOW YOU THE PAYMENT YOU HAVE MADE UNDER THE CONSOLIDATION AND THE REMAINING BALANCE LEFT ON YOUR ACCOUNT. THIS WILL ALLOW YOU TO KEEP TRACK OF YOUR PROGRESS RIGHT FROM THE CREDITORS SO YOU CAN SEE DIRECTLY FROM THEM YOUR BALANCES DROPPING DOWN AND YOUR DEBTS ARE BEING PAID OFF.

CAN I STlLL USE MY CREDIT CARDS?

BECAUSE THE GOAL OF THE CONSOLIDATION IS TO GET YOU DEBT FREE AS QUICKLY AS POSSIBLE YOU SHOULD CLOSE YOUR ACCOUNTS AND NO LONGER USE THEM. YOU WlLL NOT BECOME DEBT FREE IF YOU CONTINUE TO CHARGE ON THE ACCOUNTS. ALSO THE CREDITORS ARE ALLOWING YOU TO PAY YOUR DEBTS OFF WITH A LOWER INTEREST RATE THROUGH THE CONSOLIDATION THEY WILL NOT ALLOW YOU TO CHARGE ON YOUR ACCOUNTS AT THE LOWER RATE.

IS THIS BANKRUPTCY?

NO, THIS IS THE OPPOSITE OF BANKRUPTCY. IN BANKRUPTCY YOU DO NOT PAY BACK THE CREDITORS WHAT YOU OWE AND THE BANKRUPTCY IS REPORTED ON YOUR CREDIT FOR SEVEN TO TEN YEARS. IN CONSOLIDATION YOU PAY BACK WHAT YOU OWE TO THE CREDITORS AND WE DO NOT REPORT ANYTHING ON YOUR CREDIT. THE END RESULT OF THE CONSOLIDATION IS TO IMPROVE IT.

IS THIS A LOAN?

NO, THIS IS BETTER THAN A LOAN. IF YOU COULD QUALIFY FOR A LOAN YOU WOULD BE REFINANCING YOUR OLD DEBT, USUALLY AT A HIGHER INTEREST RATE WITH FEES AND PENALTIES IF YOU FALL BEHIND. WITH CONSOLIDATION YOU PAY BACK THE DEBTS YOU ALREADY OWE AT MUCH LOWER INTEREST RATES WITH OUT CREATING A NEW DEBT. ALSO UNLIKE A LOAN THERE ARE NO PRE-PAYMENT PENALTIES AND YOU HAVE THE FREEDOM TO CHOSE YOUR OWN DUE DATE SO YOU CAN BUDGET YOURSELF BETTER EVERY MONTH.

DO THE CREDITORS GET PAID IN FULL?

THE CREDITORS RECEIVE FULL MONTHLY PAYMENTS FOR WHAT THEY REQUIRE. WE FOCUS ON LOWERING THE INTEREST RATES, SO NOW, MORE OF YOUR MONEY GOES TO THE ACTUAL BALANCE OF WHAT YOU OWE INSTEAD OF THE INTEREST ALLOWING YOU TO PAY THE ACCOUNTS OFF IN A MUCH SHORTER AMOUNT OF TIME.

SHOULD I PAY MY BILLS THIS MONTH?

(IN ORDER TO PROPERLY ANSWER THIS QUESTION IT MUST BE DETERMINED IF THE ACCOUNT IS CURRENT OR PAST DUE. )
(IF ACCOUNT IS PAST DUE. ) ANY MONEY YOU SEND TO THE, CREDITORS NOW, WlLL JUST GO TOWARDS THE FEES AND INTEREST THEY HAVE CHARGED TO YOUR ACCOUNTS. THE SOONER WE START YOUR CONSOLIDATION THE FASTER WE CAN PREVENT ANY MORE LATE FEES, OR INTEREST FROM ADDING ONTO YOUR ACCOUNTS.
(IF ACCOUNT IS CURRENT .) IF YOU ARE ABLE TO BOTH PAY YOUR CREDITORS AND START THE CONSOLIDATION THAT WILL ENSURE NO DUE DATES WILL BE MISSED. IF YOU ARE NOT ABLE TO SEND PAYMENTS TO YOUR CREDITORS AND START THE CONSOLIDATION WE CONTACT YOUR CREDITORS AS SOON AS YOUR FIRST PAYMENT COMES IN. THE CREDITORS WILL THEN KNOW YOU HAVE STARTED YOUR CONSOLIDATION AND BEGIN TO LOWER THE RATES. THE SOONER WE CAN START YOUR CONSOLIDATION THE SOONER WE CAN GET YOU OUT OF DEBT.

WHAT IS YOUR FEE?

OUR COMPANY CHARGES A SERVICE FEE WHICH RANGES FROM NINETEEN TO THIRTY-NINE DOLLARS BASED ON HOW MANY CREDITORS YOU HAVE IN THE PROGRAM. THE SERVICE FEE ALLOWS OUR COMPANY TO MANAGE YOUR ACCOUNTS FROM MONTH TO MONTH AND HELPS US TO SURVIVE AS A BUSINESS.

HOW DO I KNOW YOUR COMPANY CAN DO WHAT YOU SAY YOU CAN?

FIRST OF ALL I WOULDN'T RECOMMEND YOU GET INVOLVED WITH ANYTHING YOU DON'T FEEL COMFORTABLE WITH. I WlLL BE THE COUNSELOR THAT WlLL HELP YOU THROUGH THE ENTIRE CONSOLIDATION PROCESS. IF YOU EVER HAVE ANY QUESTIONS YOU CAN ALWAYS CONTACT ME DIRECTLY. ALSO WE ARE A LOCAL COMPANY SO YOU CAN EVEN COME TO THE OFFICE. MOST OTHER COMPANIES ARE OUT OF STATE AND DO NOT ALLOW YOU TO GO TO THERE LOCATION, IF THEY EVEN TELL YOU WHERE THEY ARE LOCATED.
DO I HAVE TO CONSOLIDATE ALL MY ACCOUNTS?

THE PROGRAM IS STRICTLY VOLUNTARY. YOU ARE NOT REQUIRED TO INCLUDE EVERY CREDITOR IN THE PROGRAM. HOWEVER IF YOU HAVE MULTIPLE ACCOUNTS WITH THE SAME BANK, THE BANK WILL REQUIRE YOU TO LIST ALL OF THE ACCOUNTS IN THE CONSOLIDATION. FOR EXAMPLE IF YOU HAVE ONE MBNA, ONE PROVIDIAN, TWO CAPITOL ONES, AND A SEARS YOU MUST EITHER CONSOLIDATE BOTH CAPITOL ONES OR LEAVE THEM BOTH OUT.