DebtLessen : Get immediate debt relief

DebtLessen – Settlement Of Debt
Do It Yourself Debt Negotiation & Reduction Solutions

Frequently Asked Questions

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1. Will DebtLessen really work for me?

As I said earlier, DebtLessen will work for anyone, mainly because of the flexibility the program provides. Even for those looking to avoid bankruptcy, there's no better alternative program out there to help you eliminate your debt.

However, the debt negotiation approach may not suitable for everyone. Although DebtLessen is almost magical when it comes to making debt disappear, it cannot perform miracles for those that have no source of income or funds. Therefore, you will need to have some sort of excess cash to put toward your unsecured debt load to make reduced debt payoffs, much like a monthly payment.

So you need either a monthly cash surplus before making your monthly unsecured creditor payments, or if you're no longer making payments, a monthly cash surplus after paying all of your other monthly expenses.

Your budget surplus will need to allow you to build funds for settlement at a reasonable amount and at a reasonable pace. A standard guideline is that you should be able to set aside roughly 1-2% of your unsecured debt level on a monthly basis. So, for example, if you owe $20,000 in unsecured debt, you should be able to consistently set aside $200 -$400 per month. This would allow a program term of approximately three to six years before becoming debt free.

Ideally, you want to set aside 2% or more per month for best results. However, if you have both the patience and determination to see the process through, you can still wipe away debt and save thousands setting aside just 1-1.5% a month aside−it just takes longer.

Without rapid results, however, your program may become less appealing; you may become frustrated with your lack of progress, which may make your debt settlement plan more difficult to stick with and succeed.

If you happen to fall in the set-aside category of 1% or less, I would highly recommend that you invest in the Premium or Ultimate Program as they both include an add-on module called the Qualified Term Settlement Program.

The Qualified Term Settlement Program is helpful for anyone looking to eliminate their debt, especially for those individuals suffering from a very severe financial hardship. This add-on provides additional aid to those individuals who are unable to set aside a monthly savings of between 1-2%.

With the Qualified Term Settlement Program you will learn how to negotiate reduced upfront long-term payment arrangements with your creditors. This is something almost impossible to do on your own...without knowledge of the process and instruction.

2. Is this Legal?

You betcha! You have the legal right to negotiate with any creditor or collector of your choosing. How successful you will be in your negotiations depends on your level of resources, industry-specific knowledge, and negotiating skills−that's where DebtLessen comes in!

3. How will this affect my credit?

Debt settlement will likely have a temporary negative impact on your credit profile and score. How much so really depends on your current credit score.

If your credit score is currently near 800, then the negative effect to your credit with debt negotiation will likely be more adverse than with an individual who currently has a score of 550. In fact, it's quite possible the person with the latter score could see an improvement to his credit profile once settlement payments have been posted and reported to the credit bureaus.

It's important to understand that credit is constantly evolving and changing based on newly added and deleted information to your report on a daily basis. More weight is given to newly added material, both good and bad. How much your score will decline is impossible to say with any certainty because your score is dependent on many different factors, other than payment history, that are specific to each individual circumstance. In fact, 65% of your credit score has nothing to do with the timeliness of payments or your payment history.

As you begin to settle and pay off each debt, you will likely improve part of your credit profile in two ways: by resolving negative tradelines with a "paid" status and by improving your debt-to-income ratio (a measure of your credit-worthiness). With an improving debt-to-income ratio, you become a more credit-worthy individual, meaning you "can afford" to take on and pay back more debt since you will owe less and less money.

While credit often plays a vital role in the standard in which many of us live our lives, it's important to understand that your priority should be to eliminate your debt first. Once you are free from your debt, you can quickly and easily rebuild and repair your credit profile… a lot more quickly than it takes to settle or pay off all of your debt and a lot more quickly than making a lifetime of payments.

And no matter how you look at it, the effect debt negotiation has on your credit will certainly be less damaging than the 10-year black mark made by a bankruptcy filing.

4. Can I be sued?

Your creditors do have the legal right to file a lawsuit for non-payment of a debt. However, lawsuits are far less common than most people think. It is in the best interests of creditors to avoid spending fortunes on collection costs, court and legal costs, and the costs to collect on a judgment.

A judgment is little more than a simple piece of paper and does not guarantee a collector will ultimately collect on your account. As such, most creditors are invariably open to avoiding lawsuits and are instead more willing to work things out amicably with alternate repayment plans or negotiated settlements.

More often than not, if a lawsuit is filed it's usually only as a means to get the debtor's attention and to "legalize" a debt. That's why it's important not to cut all telephone contact with your collectors and to continue to give them the "opportunity" to collect from you.

The threat of litigation from collectors is all too common, even though they're not supposed to threaten legal action unless they actually intend to bring suit. It's this threat of "we will sue you" that gets the most attention from a debtor and compels most to pay up.

Fortunately the lawsuit "threat" is often only that: a threat - one which often never comes to fruition. In fact, there are literally tens of thousands of litigation-free settlements currently being transacted for debt negotiation clients and individual debtors like you every month all across the country.

The worst-case scenario is that a debtor might be required to pay a debt balance in full in the event of legal action by a creditor. But on the slight chance this does happen, you still have the ability to negotiate and settle your judgment for less money.

DebtLessen will help you with just such a circumstance.

5. Am I allowed to continue using my credit cards?

You're trying to get out of debt, right? The first step out of debt is to stop making charge purchases. So the answer is no, you cannot continue using the accounts you intend to negotiate, because your bank will not negotiate and accept a reduced payoff if you continue to make purchases. Therefore, once you begin the negotiation process, your charging privileges will be automatically withdrawn.

However, some consumers like to leave a credit account or two available to them for emergency, business, or convenience purposes. This is okay as you do have the right to leave any credit accounts of your choosing intact; however, it's advised that you do not make any substantial purchases with these side accounts or they may negatively affect your settlement results.

6. Are there debts that can't be settled using this approach?

In general, secured debts cannot be negotiated. This includes mortgages, equity financing, auto loans, and financing contracts attached to a specific piece of property that may be legally repossessed by your creditor. Government student loans are also excluded. State and Federal taxes may be negotiated, but you will likely need specialized information on how to negotiate with the IRS or you should seek professional help from a tax resolution specialist.

7. What if my creditor/collector won't negotiate?

If your account has properly "aged" and your creditor refuses to accept a reasonable reduced settlement offer, it doesn't mean they're unwilling to negotiate. Instead, it simply means, they are not "ready" to negotiate. Therefore, you may need to a wait for a different stage of the collection process.

Almost every bank will negotiate and settle for less money than what is owed to them because they know they could lose your account in a bankruptcy proceeding. So from a financial standpoint, your creditor would rather receive something instead of nothing.

I say "almost" every bank - only because there may be some institutions that don't negotiate. If there are, I'm unaware of them. Through all of my negotiations, I've never become aware of a bank that will not come to the table and accept a deal.

However, I am aware that some banks can be more difficult than others at different stages of the collection process. As well, some banks refuse to negotiate with debt settlement companies.

DebtLessen will teach you the different stages of the credit and collection process in order to maximize your savings.

8. What about creditor phone calls?

Collection phone calls are an inevitable part of the collection process. And regardless of what anyone tells you, no one can make all collection calls stop, any more than the law can make every driver on our highways obey the speed limit.

With that said, it's not in your best interest to eliminate ALL verbal contact from your creditors. However, you are entitled to limit and take your calls at your leisure. There are several simple techniques and tools to help make this happen for you.

My DebtLessen program includes detailed instructions on how to easily reduce your collection calls to a level that you're more comfortable with without causing a negative reaction by your creditors.

P.O. Box 355 Fulton, MD 20759,
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