Debt Consolidation FAQ

New Jersey Debt Consolidation

American Debt Foundation

   http://www.americandebtfoundation.com

Debt Consolidation/Credit Counseling

How will this program help me?
We work with creditors nationwide to reduce, and in some cases eliminate interest rates, late fees, penalties, and other concessions the banks will not allow the general public on their own. It is a fail-safe process to pay your creditors using a formula based on interest rates and balances maximizing the power of your hard earned dollars. The program will help you become free of debt in the quickest possible fashion while saving you thousands of dollars in interest and finance charges.

How do I qualify?
If you have at least $5000 in unsecured debt such as credit cards, medical bills, and student loans, then you are eligible to fill out the application.

Is this a loan?
Absolutely not! The goal is to get you out of debt, not to dig you in deeper. Borrowing money to pay back borrowed money is the most serious form of financial slavery. Most loans require collateral, such as a home equity loan. Why would you want to secure your unsecured debts with your most precious assets such as your home?! If you can't pay, you'll lose those assets to repossession or foreclosure. This is a reduced interest rate program approved by the banks you currently owe money, they are offering you a better deal through this program. Take advantage of it.

Will I still be able to utilize my credit cards?
The program is designed to get you out of debt, as such, it is required that the accounts be closed. It will be a voluntary closure however, not a forcible one.
Will I continue to receive harassing calls from my creditors upon enrollment into the program?
Your creditors are contacted promptly upon enrollment. However, it is possible that calls or letters may still come until the program is up and running in it's entirety. If this happens, simply contact the customer service department and they will contact the creditor for you to eliminate the problem.

Will I still receive statements from my creditors?
Yes. You will never be left in the dark as to your payments. You will continue to receive your statements from your creditors reflecting payment received, as well as a statement from the program showing how your payment was disbursed.

How much money will the program save my family?
It varies depending on which creditors you have your accounts with and how much you send each creditor per month as a payment. We would also need to know your current interest rates per creditor to give you an accurate savings depiction. Fill out the no-obligation application in it's entirety and a financial consultant will contact you within 24 to 48 hours to tell you the exact savings.

Will you run a credit check to qualify me?
No. Again, this is not a loan, it is an interest rate reduction program initiated by the banks, it's their program. We do not check with or report to any credit bureaus or reporting agencies.

Who determines my monthly payment?
Debt consolidation firms have no control over the payments the creditors require. Your monthly payment is determined solely by your creditors based on your exact balances and their policies. To find out what your monthly payments would be and how long it would take you to pay down your debt, fill out the no-obligation application in it's entirety and a financial consultant will contact you within 24 to 48 hours to give you a quote.
 

Debt Negotiation/Settlement

Q. Is your Program the same as debt consolidation?
A. Debt consolidation requires you to obtain a new mortgage loan in order to pay off your existing debt. Our partners negotiate on your behalf to actually reduce the total amount you owe to your creditors. We arrange affordable monthly deposits within your budget and negotiate with your creditors to pay off both the charges and the interest. If you have too much debt and/or bad credit, it is highly unlikely that you would be approved for a debt consolidation loan.

Q. How does this affect my credit rating?
A. Your credit is already compromised, before coming into this program. Even if you have a perfect payment record, your income-to-debt ratio is too high. And this is the very first thing a creditor will look at: Can their income support more debt? By the time you are done with your program, you will be able to get more credit. Why? Because you have handled your debts! Your income-to-debt ratio is okay.

Q. Will all of my debt be eliminated after I've finished your Program?
A. You can expect to be free of all unsecured debt at the conclusion of our services. Of course, you will remain obligated on your secured debts (i.e., Mortgages, auto loans). However, once all of your credit cards and other unsecured debts are eliminated, you'll be in a much better financial condition.

Q. How long does it take?
A. The length of time necessary for completion varies from case to case and will depend on you having the funds available to resolve your debt. The amount of time necessary to complete your case will be discussed with you in your free consultation after review of your online consultation form. Usually, all of your unsecured debts can be paid off in 12-36 months.

Q. What are the fees to begin the program and how are you paid?
A. All of the fees come from your monthly deposits. There is no large upfront fee that you need to pay, prior to joining our program. We will of course discuss our fees prior to accepting you as a client. When you consider the money you may save with, it is clear that this program is very affordable.

Q. What can I expect from your Program?
A. You can expect a substantial reduction in the amount of debt you owe to unsecured creditors. While individual results may vary, we may settle your outstanding debt and save you 60-70%.

Q. Do these procedures work with every creditor?
A. No program works 100% for everyone, and of course no firm can guarantee results in advance. We are proud to say that we have an extremely high success rate.

Q. Why shouldn't I just file Bankruptcy?
A. You should only file Bankruptcy as a last resort and after seeking the advice of a licensed attorney. If you have enough discretionary income to resolve your debt over time, it may be recommended that you apply for a Debt Settlement Program in lieu of filing bankruptcy. Resolving your debt through our Debt Settlement Program will have a more positive impact on your credit rating in the long run. Remember that a Bankruptcy will stay on your credit profile for up to 10 years, and cost you a lot more in the long run.

Q. What is Secured Debt?
A. A Secured Debt is a loan where the creditor retains a security interest in an item of real or personal property such as a house or an automobile. If you fall behind on payments on this type of debt, the lender has the ability to repossess the property in order to mitigate their damages. It is important to remember that you could remain liable for any deficiency balance owing after the property has been repossessed and sold. Certain exceptions may apply and will depend on the exact nature of the security interest. The laws regarding home mortgages vary from state to state and the lenders rights generally depend on the terms of the mortgage and whether any other lenders have an interest in the Real Property. In these situations it is important to seek competent legal advice to protect your interests.

Q. What is an Unsecured Debt?
A. An Unsecured Debt generally arises out of a contract you enter into with a creditor which enables you to obtain goods or services on credit in exchange for your promise to pay that creditor back. The most common types of unsecured debt are: credit cards and personal loans.

Q. Can a Secured Debt become an Unsecured Debt?
A. 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 cover the contractual obligation, a deficiency balance is owed by the consumer. This deficiency balance then becomes an unsecured debt. Certain exceptions may apply and will depend on the exact nature of the security interest.

Q. Do I have to include all of my debts or can I select which one's I want you to resolve?
A. It may be recommended that you include all of your unsecured debt and this will be discussed during your free initial consultation. However, in some cases we might recommend you keep one small card for emergency purposes. Discuss this with your Debt Consultant and they will help you come to the best decision.