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Q: What Is a Debt Settlement program?

A: Debt Settlement (which has also been referred to as debt negotiation, debt consolidation or negotiated debt settlement) is a program where a company enrolls your original debt amount and negotiates it down to a reduced amount saving you typically 40-65% in savings.  Debt Settlement is one of the most effective and proven options accessible to consumers today.  It’s a great choice for the consumer who has more debt than they can pay off in a 3 – 4 year time frame or one that is experiencing a financial hardship and has started falling behind (or just about to fall behind) on monthly minimum payments of unsecured debts.

Q: Who is qualified for our Debt Settlement program?

A: Debt Settlement programs are available for individuals who are facing a financial HARDSHIP.  This means any person who is late on paying their debts, or a medical disability has little or no ability to pay their debts in the future or could be facing a possible bankruptcy. Examples of qualifying hardships would be a loss of income, loss of hours at work, a job layoff, medical emergencies, disabilities, a death of a member of the household who provided any financial assistance, or a separation/divorce.

Q: How do I apply?

A: All you have to do is complete the short form online or call our toll free number.  One of our certified debt consultants will then review your information and call you to comprehend your situation.  Our certified debt consultant will be able to determine if you are qualified for our program or give you advice on the best financial strategy to meet your needs.

Q: How will Houston Debt Consolidation settle my debts?

A: Clients will put money into a FDIC insured savings account on a monthly basis based on the amount enrolled into the program. This amount will be determined with you and it will be based on total amount of debt, your income and expense budget. Houston Debt Consolidation realizes each person’s situation and we are able to customize a program that will fit your needs and ability.  The negotiation process will begin at different times depending on the amount of each debt enrolled in our program.  Clients will be presented a settlement offer once the creditors agree to a settlement amount that is in your favor.  Once Houston Debt Consolidation gets your approval of the settlement, we will instruct the creditor to get us your ‘settlement offer’ in writing for completion.  Houston Debt Consolidation can settle debts in two different ways; one lump sum or a short term settlement option. One lump sum is one payment and the account is paid. A short term settlement is paid over an extended period of time that is agreed upon until the account is paid. Houston Debt Consolidation will go through this process with each of the creditors that the client has enrolled in our program.

Q: Will Debt Settlement have a negative impact on my credit report?

A: YES, a client’s credit score will decline some upon entering into this program.  How much it declines will depend on the original situations and how many creditors are enrolled into the program.  Most of the creditors that are placed into this program are likely to “charge off”, which will reflect negatively on the credit score. However, once this “charge off” debt is settled, the settlement will be reported to all 3 credit bureaus and updated within 30 days.  Once the debts start to be settled and paid, the credit score will begin to improve because the negative items have been fixed and the debt is no longer sitting unpaid outstanding on your credit report.  Of course a high credit score is desirable to have, but if someone has a financial hardship and are not able to pay off debts within a few years, then the first priority should be to pay your debts and get financially debt free to utilize your credit in the future.

Q: What will I pay for your services?

A: Houston Debt Consolidation will analyze your situation with a free consultation and you will receive a quote based on several variables.  All costs and fees will always be fully disclosed and you will be required to review & sign for approval before you commit to our program.

Q: Can I still use my credit cards?

A: NO. All the credit cards enrolled in the program will not be active and creditors will not give you credit privileges while enrolled during the duration of this program.

Q: Can I be sued?

A: YES. Creditors indeed have the right to sue to recover their money.  But typically the purpose of the lawsuit would be to force a settlement in the matter.  In our experience, majority of creditors would rather not have the expense of suing and would rather try to negotiate a settlement instead.  Also if you do get sued we can perform a set aside agreement settlement so that no one has to go to court and the debt can be settled once and for all.

Q: Can Houston Debt Consolidation stop my creditors from calling?

A: NO. Creditors have the right to try and contact you to collect a debt. However, we have been successful in eradicating most harassing calls.  If your account goes to collections; collection agencies have to abide by the FTCPA Guidelines. If you would like to learn more about these guidelines read Fair Collection Practices Act.  We will also supply you a script and a welcome package that will cover all of this topic at the time of enrollment.

Q: Can creditors garnish my wages?

A: No, because the state of Texas is a non-garnishee state and garnishments are not allowed.

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