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Debt FAQ
Below are some of the questions our clients ask first when they inquire
about Debt Consolidation Loan Alternatives services. We will continue
to update this FAQ as time goes on. If you have a suggestion for this
page that might better help answer your question, please contact our webmaster
here.
Q. What exactly is Debt
Consolidation?
A. Debt consolidation is the process of
restructuring your debts with your creditors. Debt consolidation is not
a loan, does not require collateral, or a second mortgage on your house.
In effect, Debt Consolidation Loan Alternatives negotiates with your creditors
to obtain the lowest possible monthly payment needed for your current
accounts, while dramatically cutting the interest rates you pay.
Q. What are unsecured debts?
A. Unsecured debts include any loan or debt
that has no tangible assets or property attached to it. The most common
of these types of debts are: credit cards, department store cards, non-government
backed student loans, medical bills, utility bills and personal loans.
With the Debt Consolidation Loan Alternatives program, all of these kinds
of debt can be consolidated.
Q. What are secured debts?
A. Secured debts are loans or debt that
are secured by personal or real property. The most common forms of secured
debts are mortgages and car loans. In most cases, it is not possible to
successfully consolidate secured debts.
Q. What can I expect from the Debt Consolidation Loan Alternatives program?
A. In most cases, both payments and principal
can be reduced by up to 60%. The DCLA program also reduces or eliminates
interest rates, stops late charges, and ends harassment by creditors.
Because we significantly reduce the interest rates and principal, the
amount of time needed to pay down your debt can be cut by up to 80%.
Q. Why would my creditors want to consider lowering
my payments and interest rates?
A. Credit card companies and other creditors
now have more customers with outstanding debts than ever before. Payment
defaults are also on the rise. Collection agencies rarely collect more
than 20% of total debts after costs. And, if you claim bankruptcy, your
creditors will receive nothing. These are just a few of key reasons why
creditors are willing to compromise in today's credit environment.
Q. Should I try filing for bankruptcy?
A. Although many lawyers have built strong
businesses advising the opposite, you should know that filing for bankruptcy
should be an absolute last resort. Bankruptcy remains on your credit report
for 10 years or more in some states, and can virtually ensure that you
are ineligible for home or car loans, or make borrowing conditions incredibly
difficult. Additionally, you'll also have to pay attorneys and court and
filing fees. Our debt consolidation service is an effective, superb alternative
to bankruptcy that does not damage your credit.
Q. Will consolidation affect my credit rating?
A. Creditors view debt consolidation as
a positive statement because you are making on time payments and a concerted
effort to resolve your debt. We do not report to any credit bureaus.
Q. Who qualifies for the DCLA debt consolidation
program?
A. Consumers with at least $10,000 of unsecured
debt qualify for our program.
For a free debt consultation with
one of our experienced counselors, click here.
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