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Q. Will a Debt Management program affect my
credit standing?
A: It is important to first point out
that we DO NOT report to the credit bureau. If your credit
report reflects any late or missed payments, then the Debt Management
program will likely to improve your record eventually by facilitating consistent,
on-time monthly payments. Once you have cleared your debts, you will
have a stronger foundation to help you re-establish credit.
Q. Why should I use DebtReform?
A: DebtReform is not paid by
any organisation and is working for you
to reduce your debts down to the lowest possible amount
and eliminate them as soon as possible. We get paid purely on our
performance, based on a percentage of the debt that you want us to
eliminate. Who would you rather work with, a company that gets
paid for collecting your money for the creditors or someone that gets
paid for reducing the amount you owe?
Q. What goes on during the initial
consultation?
A: The initial consultation typically lasts for forty-five to sixty minutes. During this time, our
trained Consultants will discuss with you about your income, expenses,
assets and liabilities. They will proceed to suggest ways to help you
trim your outflow of funds to a manageable level and recommend a suitable program
or solution that
would suit your current financial situation.
Q. How much would it cost to be on the Debt
Management Program?
A: The consultation is FREE.
However, should you
decide to engage our services, the fees are charged based on a percentage
of your total debts which would be paid in low monthly
installments. All
fees will be discussed upfront should we decide that Debt Management is
your best option. All our clients realized that with an increased cash
flow from lower monthly payments, interest rate reductions and stopped
late charges, the savings more than cover the cost of our fees.
Q. What type of debt can be handled through the
program?
A: The program
can accommodate almost any kind of unsecured debt. Unsecured debts
are debts not collateralized by any assets. Examples are credit
cards, credit lines and contra losses. Unfortunately we
cannot deal with secured debt although we do take secured debt into
consideration when organising your financial plan.
Q. Who qualifies for the program?
A: Our experienced Debt Consultants
will do a detailed financial analysis to determine if an individual would
benefit from the program. Our main focus is to make sure that the program
is a realistic solution to the individual's particular situation and
needs. The last thing we want to do is put someone on a program that will
only provide temporary relief. Our goal is to eliminate your debt
problems as quickly and with as little cost as possible. Our typical client:
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Has a debt problem he or she cannot resolve alone;
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Is having trouble staying current, is delinquent on his or her accounts, or
is close to being sued by their creditors;
-
Has a positive cash flow and can afford to pay some of the debts;
-
May be considering filing for Bankruptcy;
-
Is serious about resolving his or her debt;
-
Has a consistent amount of monthly income.
Q. Why can't I do this on my own?
A: Although it is possible, it is
very difficult to negotiate debt on your own. Creditors deal with
thousands of people who are in financial difficulties every day and have a
vast array of sophisticated (and some rather blunt) methods of getting you
to repay your debts. All creditors have different
protocol and expectations and handling the negotiations on your own can be
tricky, mentally draining and could even worsen the situation.
The process is usually very
emotional, stressful (especially when it's you who is
being harassed by collectors) and time consuming.
By letting DebtReform do what we do best; you will get better settlements
with a fraction of the stress.
Q. What kind of interest rate can I get?
A: DebtReform will be able to show
your creditors a clearer picture of your current financial situation so as
to be able to convince them that you truly need help and they
will determine your interest rate on a
case-to-case basis.
Q. How are the payments made to the creditors?
A: Unless requested, you make the payments directly to your
creditors. This is to ensure that the payments are made in a timely manner
with
no complications.
Q. When is my payment due?
A: When you enrol in a Debt
Management program, you choose the payment date that is best suited for
you.
Q. Should I continue paying my bills during the
negotiation period?
A: We
recommend that you do if you can. There is a brief negotiation period of
approximately 30-60 days for us to
make arrangements with your creditors. If you missed the due
dates for your accounts during this period, you are at risk of
penalties and it might not bode well with your creditors.
Q. Can I make higher payments to my creditors once I have a better cash
flow?
A: Of course you can always increase
your monthly payments. The more you pay, the faster your accounts will be
cleared. Just let us know if you want to increase your payments
beforehand and we will advise you accordingly.
Q. After I pay off one account, can I just pay
less?
A: That's your decision, but we
highly recommend that you pay the same amount and merely transfer the
amount to pay for the cleared account to the next higher interest
account. That way, as you pay off each account, you will speed up the
process without changing your monthly spending budget.
Q. Will the creditors take legal action against
me?
A: Creditors do have the legal right
to pursue a debtor in a court of law to collect the debt. Usually this is
a last resort after much effort to collect without response or
satisfaction. Taking a client to court is a costly and time-consuming
activity that most creditors would prefer to avoid if given an
alternative. We encourage communication with your creditors so as to
constantly update them of your status.
If a creditor does take legal action,
we have the knowledge and the legal resources to address the
proceedings. We help you through every step of the legal process to
ensure that a settlement is reached. We cannot appear in court on your
behalf as we are not lawyers but we do have our own corporate lawyers if you so request.
Our objective is to work with the creditors to
find a solution that will satisfy everyone before further drastic actions are
taken.
Q. Will I still receive statements?
A: You will continue to receive
statements from your creditors so that you may track your progress whilst on the
Debt Management program.
Q. Can I still use my credit facilities if I
enrol
in a Debt Management program?
A: The objective of the program is to
get you out of debt as quickly as possible. Usually the
creditors will suspend your credit facilities during your repayment
period. It is the ease of using such facilities that got you
into trouble in the first place and it is prudent that the use of these
facilities should stop. When you have completed the program we want you
to be debt-free, not stuck with remaining debt which could possibly cause
you future problems.
Q. How does Bankruptcy affect my credit rating?
A: Bankruptcy, without a doubt, is
the most damaging credit action you can take. For some people, it is
necessary, but for many it is not. Please refer to our website for more
information on Bankruptcy and how it will affect you.
Q. Is Debt Management similar to Bankruptcy?
A: Absolutely Not!!! Debt Management
are for people who have the ability and intention to pay. Bankruptcy is designed to absolve you
of all your financial obligations but should only be considered a last resort.
Q. Is this legal?
A: Absolutely. For many of our clients, this is the only effective way to ever
get out of debt. Without the use of Debt Negotiations, Bankruptcy
would be the only option left. Through our
negotiation efforts, the creditors recover a portion of the amount owed.
This creates a win-win situation for both debtor and creditor.
Q. Will my information be kept private?
A: We are 100% committed to
maintaining complete confidentiality and privacy. Feel free to read our
comprehensive privacy policy found on this site. Your information will
not be given out to anyone except those persons authorised by you to
receive information on your behalf.
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