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Frequently Asked Questions about the debt consolidation from our affiliate,
CuraDebt:
Could
I negotiate on my own?
In order to obtain the long-term interest rate
concessions, minimum payment reductions and other concessions, you need to
use a company such as CuraDebt with a non-profit negotiation team.
How
does your program work?
In your initial, free
consultation, your Debt Consultant will see if the debt management or the
debt settlement program will best solve your needs.
CuraDebt contacts each creditor on your
behalf and makes arrangements for them to accept reduced monthly payments.
Your creditors are asked to stop all collection activity and to deal
directly with CuraDebt. In some cases, creditors will stop or reduce
finance charges to clients of CuraDebt.
Payment to your creditors is handled through CuraDebt. Each month, you pay
a specified amount, which is deposited into a trust account and
distributed monthly to each of your creditors until all of your debts have
been paid.
What
are the fees to join?
There is a small
administration fee/contribution and a small monthly contribution to cover
account maintenance, processing, and the monthly mailing of statements.
As always, the consultation and custom plan is free of charge as a
community service to you.
- How
will my credit report be affected?
CuraDebt does not report
any of your information to the credit bureaus. This is a
responsibility of your creditors, and most companies have favorable credit
reporting policies. If you are currently behind on your payments,
you have probably already been reported as late. Once on a debt
management program, many companies will re-age your account within 90
days, meaning they will report your account as current on your credit
report. Many companies will also report your participation in a debt
management program. Showing that you are working through a credit
counseling service may show future creditors that you needed help but
wanted to pay off your debts in full.
Will
I still receive harassing phone calls?
CuraDebt serves as the contact for
creditors and provides you with instructions on what to say in the interim
time that your account is being established with creditors.
How
does this compare to consumer credit counseling services?
Most consumer counseling services only
provide debt management plans. By providing both debt negotiation
and debt management plans, CuraDebt can evaluate your situation and
select the option that is best for you. In addition, studies show
that in excess of 60% of people who start a debt management plan drop
off before completing the plan. In many cases, CuraDebt can
migrate a client who is unable to make the new payment on the debt
management plan to a debt settlement plan where he/she can eliminate the
debt for a lower monthly payment. With these added benefits, you
are assured to reach your goal of debt freedom without bankruptcy.
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