Question: What if my Creditors won’t stop calling me?
Answer: Our Do It Yourself Debt Settlement Guide includes a Legal Document that will assist in ceasing contact by your creditors. Debt collectors are bound by the Fair Debt Collections Practices Act (FDCPA). The FDCPA specifically states that a debt collector is obligated to contact third-parties with a Power of Attorney instead of the debtor.
Question: Will my credit be reported negatively during the negotiation process?
Answer: Our Do It Yourself Debt Settlement Guide includes techniques to negotiate the reporting of debt, once you come to an agreement, which will not have an adverse effect.
Question: Should i close all of my credit card accounts?
Answer: It is beneficial to close accounts yourself, so that they read, "account closed by consumer". If you have accounts in good standing, you can keep them open and continue to pay on time. Most debt settlement companies will try to get you to close all of your accounts to make it easier for them to negotiate with creditors. In this day and age, however, credit cards are a necessity at times.
Question: How long do creditors have to collect on a debt?
Answer: Based on your State’s "Statute of Limitation", you may be able to get out of paying your debt entirely. Creditors are unable to collect old unpaid debts based on the date of your last transaction. In other words, if you have a debt that you haven’t paid or charged on in a certain amount of years, you can have that debt erased from your credit. Our Do It Yourself Debt Settlement Guide includes a list of all 50 States and their statutes.
Question: Should I apply for other credit while negotiating debt?
Answer: We recommend that you do not seek new inquiries on your credit or open up new debt accounts while trying
to negotiate with creditors. This can hinder your ability to negotiate, as the creditors will look upon this negatively.
Question: Are Collection Agencies hard to negotiate with?
Answer: Actually, Collection Agencies have more incentive to settle than do creditors. They have usually purchased your debt for pennies on the dollar, so they will be willing to cut your debt drastically in order to settle.
Question: Are some Creditors unreasonable and won’t negotiate?
Answer: Discover, Citibank and MBNA are notorious for being tough on negotiation. Do not be discouraged if you do not have great success with these creditors, you’re not the only one.
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