Stockbridge Debt Relief FAQ’s
Will late fees and interest still accrue on my accounts?
Yes, your debt payment plan will still include payment for your late fees and interests. These fees will still be charged by your creditors until you fully pay your debts. However, these non-principal fees won’t matter too much in the long run since our debt settlement program can give you a significant reduction in your total payable amount. We will help you pay a total that’s lesser than your original debt, even with all interests and late fees factored in.
What if my creditors won’t settle?
Most creditors accept debt settlement since this ensures that they’ll still get some money back. Unlike if you file for bankruptcy, your creditors will receive nothing. If, however, your creditor will deny the settlement, we can still present a counteroffer and negotiate payment arrangements that are appropriate for your current financial status and future earning potential.
Does Debt Settlement have a negative impact on my credit?
Yes. Unfortunately, because most of your accounts that are in negotiation will “charge off,” this will have a negative impact on your credit score. This is because even if you plan to fully pay what you owe through debt settlement, it will still reflect in your history that you failed to meet the terms of your original credit agreement. This negative effect will stay in your credit history for years and can affect your loan applications, credit viability, and employment opportunities.
Fortunately, there’s good news. You can still build your credit score back up by settling your current debts and managing your future credit with more efficiency. Optimal Debt Solutions can even help you do this to ensure your financial stability in the future.
Will I continue to get calls and collection letters from my creditors?
Yes, a lot of creditors will still call you for payment updates, but this won’t happen too much once they’re informed that you’re working on a settlement with us. You don’t need to worry, however, since we provide a program kit for new clients to help you learn how to handle creditor calls and minimize any possible harassment. Also, feel free to contact the debt expert we assigned to your account and update us about your creditors’ collection efforts.
Will this program stop legal action against me?
No. Unfortunately, entering into a debt settlement program can’t stop your creditors from executing legal actions against you. However, even if there’s no guarantee that you won’t face any lawsuits, the risk is significantly reduced since most creditors will be more considerate upon learning that you’re in a program to help pay back your debts.
Also, even if a legal proceeding is going on, Optimal Debt Solutions will still continue to process your debt settlement and negotiate on your behalf whether before, during, or after your lawsuit. Our goal is to help eliminate your debt in the quickest way manageable so you can focus on other aspects of your life without worrying about aggressive collectors and any debt-related lawsuits.
Also, we recommend that you work with an expert attorney should your creditor file a lawsuit against you. This can ease the entire process for you since you’ll have a professional to manage your legal affairs while we focus on clearing your debts.
Who is Qualified?
If your financial problem immediately affects your ability to make payments, you can qualify for a debt settlement program. Typically, your problem should also have no quick end, like loss of income, medical issue, death of an earning spouse, divorce, and tax liabilities.
Additionally, a qualified person should have fallen behind on several monthly payments and have proven inability to pay their remaining debts. Their type of debts should also be eligible for settlement, which usually refers to most unsecured debts. This means that if there are no property or assets that your creditor can take to satisfy your debt, you can enter into a debt settlement program. Unsecured debts include personal loans, medical bills, and credit card debts.
How do I apply?
To apply, fill out the application form online on our website. Once you submit it, one of our debt consultants will review your details and contact you for a situational assessment. Once we have all the necessary information about your credit situation and particular financial crisis, we will determine if you’re eligible for our program or not.
What will I pay for your service?
The monthly payment you’ll be making will already include our service fee. This amount is based on the overall debt that’s included in your debt settlement program. Don’t worry, though, because we will disclose the entirety of our service fee at the beginning. We will then require your signature indicating that you approved of the fees before we will finalize our partnership and your specific payment plan.
When I enroll in the program, what will happen to my accounts? Can I still use them?
If the overall canceled debts exceed $600, the original creditors are required to report this to the Internal Revenue Service. The debtor is then required to report this as income in their yearly tax return. However, if you still don’t have a positive net worth, you are not required to pay taxes for your forgiven debts.
Also, if you don’t qualify as insolvent, don’t include the non-principal fees accumulated on your account on your tax return report.
Can I still use my credit cards?
No. All the credit cards that are involved in your debt settlement program will be inactive, canceling all your credit privileges. And if you have credit cards that are not enrolled in the settlement program, we advise against using them so you won’t have any new debts and you can focus on clearing your current ones.
Call Optimal Debt Solutions today at (617) 910-4352 for your Free Evaluation with a Stockbridge Debt Relief expert!