Debt-Medics.com

Who qualifies for this program?
Debt settlement programs are for people who are late on paying their debts, are struggling with their minimum monthly payments, or have little or no ability to pay their debts in the future and are possibly facing bankruptcy. This approach is the most cost-effective option for people facing hardships including things such as:

We will set you up with an affordable monthly payment in line with your income and expense budget and based on your total amount of debt. This payment amount is determined on a client-by-client basis between you and a debt consultant. Based upon what you are able to pay each month into your settlement account, we can determine how many months you will be part of the program, and ultimately be debt free. Your payments are put aside in your settlement account on a monthly basis. We begin the negotiation process once you have accumulated enough settlement funds to make a reasonable offer to your creditors to settle the debt. Once a creditor agrees to a settlement amount, the settlement will be paid and the account will be shown paid as agreed.

Does debt settlement have a negative impact on my credit?
Your credit score will be negatively affected upon entering this program. The level of effect will depend on your original credit profile. If you are already delinquent on your accounts, a debt settlement program may not have much effect since the accounts are already reporting derogatory on your credit report. If you have delinquent unpaid accounts, debt settlement may be an excellent option to resolve the unpaid balances. If your accounts are still in good standing, debt settlement will have a temporary negative effect on your credit score. Your creditors will continue to report your accounts as "past due", "charged off", or "in collections" until the debt is settled. Settled accounts with a zero balance are positive compared to unresolved delinquent debts or bankruptcy. After all the debts have been settled and paid, we advise our clients to use our credit repairing services to remove all the derogatory remarks on your credit report.

Can the creditors pursue legal action against me?
Lawsuits are not common but your creditors certainly have the right to pursue legal action to recover their money. In our experience, most creditors would rather not go to the expense of suing and simply try to negotiate a settlement. The threat of lawsuits is a common tactic of aggressive creditors or collection agencies. The reality is that such action rarely occurs. It takes time and costs money to file a lawsuit and even more to collect on a judgment. A wage garnishment takes time, depends heavily on your employment, and may not even be applicable in your state. If you own a home it is difficult for a creditor to attach a lien to your home and your home may be protected by your state's homestead act. It is typically more cost effective for a creditor to settle on an account than to pursue legal action. Creditors realize that if they push you too hard they run risk of you filing for bankruptcy, in which case they often receive nothing.

What if a creditor wont negotiate?
We have yet to find a creditor that won't negotiate. We work with thousands of creditors on a regular basis. We pride ourselves in being professional with creditors to find mutually agreeable settlements.

How does this affect my credit?
The Debt Management Company does not report to any credit bureau.
All credit reports contain a combination of public records and information provided by creditors. Creditors retain the right to report that you have enrolled in a debt management program as a notation on their individual entry. The Debt Management Company has no control over creditor reporting decisions. Some clients may experience a short term blemish on their credit report during the first 90 days which is the negotiating period. We know of no long term negative impact.

How does your Debt Management Program work?
You make one convenient monthly payment to us and we disburse those funds to your creditors at our pre-negotiated rates. It is a new payment plan, customized to meet your needs. Our debt management program is not a loan.

My creditors are calling me, what should I do?
Please let them know that you are enrolled in our debt management program. Provide them with your enrollment number, enrollment date and our toll-free number. Ask them to contact our customer service department.

Why do creditors participate in your program?
Creditors are interested in repayment of the funds they expended on your behalf.

Participation
in our program assures them of that repayment. Our debt management program gives you an opportunity to pay off your debts in a timely manner with manageable payments. Not all creditors participate in Consumer Credit Counseling and may not offer benefits. We do our best to negotiate on your behalf. If a creditor does not participate, we can include your current payment to them as part of your monthly account activity.

Am I eligible for your plan?
Your Debt Management Company’s counselor reviews your completed budget analysis to confirm the suitability of the program to your situation. We want you to succeed. Our concern centers on your ability to meet the obligation to your new payment plan.

Will my accounts remain open?
No. Purchase activity would undermine your goal of becoming debt free and oppose the purpose of debt management. While you are in the program, your accounts will be closed.

Will I still receive statements from my creditors?
Your creditors will continue sending you monthly statements showing the payments disbursed from our program and your balances being reduced.

Do you send a monthly statement?
Yes. Our statement will show a breakdown of payments made to each creditor and your remaining balances. Please refer to your creditor statements for exact balances and interest rates. The remaining balance shown on our statement is only an estimate. We require you send us updated copies of your creditor statements every 90 days.