What is the difference between Debt Consolidation and Debt Settlement?
Debt Consolidation and Debt Settlement are sometimes heard interchangably, but they are not the same thing. At Wright & Associates, we use a proven Debt Settlement process to work with creditors on your behalf to actually settle the full balance you owe to your creditors for a reduced amount whereas debt consolidation requires you to pay off your debt in full, usually at a reduced interest rate.
Is my credit report adversely affected by enrolling in a debt settlement program?
You may experience an adverse effect on your credit if your debts are current with no history of late payments, but this is not the typical situation for most of our clients. While our program can initially impact your credit negatively, in most cases, our debt settlement program with time, will improve your debt-to-income ratio and your FICO score will improve over time.
How long does each settlement take?
The amount of time you are enrolled in our debt settlement program actually depends on the amount of funds you have available to pay off your creditors. During your consultation, you will establish an affordable monthly payment that will determine how long it will take to settle with all your creditors.
Is my debt information kept confidential?
We are 100% committed to maintaining complete confidentiality. Your information will not be released to anyone except those persons authorized by you to receive information on your behalf. Of course, the creditors will be advised by us that you have contracted our service to assist you.
When I enroll in the program, what will happen to my accounts, can I still use them?
Once you enroll in our program you are not able to use your accounts.
Will I be able to track the progress of my debt settlement program?
Of course. You can call us to check in regarding the status of your account. You will also receive monthly reports that will keep you informed of the activity on your personal settlement account.
Who pays the creditors while I am enrolled in the debt settlement program?
Payments will be made from your settlement savings account when we reach agreement with your creditors and there are sufficient funds accumulated.
What if my creditors won’t settle?
This is a very unlikely situation, in that creditors know that if they do not settle accounts, even for a fraction on the debt, they will likely not receive any payment on the account whatsoever. In the unlikely event that a creditor will not settle with our offer, they will return with a counter offer that will still be favorable to you.
Do I have to include all of my creditors into the program for settlement?
You should keep one credit card open for emergency use only and to help strengthen you credit rating once you have finished the program.
Will late fees and interest still accrue on my accounts?
It is not possible to stop a creditor from adding interest or late fees to an account. However, your personalized program will reflect those fees and/or interest, and is incorporated into the Settlement Program. Even if fees are added, we negotiate the debt down to a fraction of what you owe so your savings are much greater than the addition of interest or late fees.