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FAQ
Is Consumer Debt Reduction the same as debt consolidation?
No. A debt consolidator makes one loan to you to pay off all of your debts. They charge you interest on this loan and in some cases you are still required to pay interest to your creditors. As a result, your principal debt balance remains the same and you remain years away from becoming debt free. With our debt reduction program, our highly skilled negotiators will negotiate on your behalf utilizing our experience and the debt collection laws to significantly reduce your debt. In most cases you will only pay a fraction of what you owe. Typically, with our Debt Reduction Plan we resolve our clients debts in 9 to 24 months, often sooner as with our instant payoff plan. Imagine being able to get out of debt in just 90 days!
Is Consumer Debt Reduction anything like bankruptcy?
NO! There are generally two types of bankruptcy; chapter 7 and chapter 13. Filing for chapter 7 or 13 bankruptcy will severely curtail your borrowing ability for an average of seven to 10 years. Bankruptcy is typically used as a last resort and is the ugliest in the way of getting debt free. There are factors to consider with debt reduction however, when compared with bankruptcy, it's the least painful.
How long will your program take?
The length of time it takes to complete the Consumer Debt Reduction program varies from case to case and depends upon your acquiring the funds available to resolve your debt. This will be discussed with you during your free consultation. Typically, we settle most of our cases in 9 to 24 months sometimes sooner.
Does CDR keep my information confidential?
Yes. Unlike bankruptcy, where your circumstances become "public knowledge", Consumer Debt Reduction puts you in the drivers seat and nothing is disclosed to the public. We only disclose information to those persons that you have authorized to receive that information. All of the creditors that you have contracted us to settle for you will be contacted by us and advised that you have retained the CDR to represent you.
Do I have to be delinquent with my debts to be eligible for your program?
No. Our debt reduction program works with debtors in all stages of collection.
How do I know if I'm eligible to participate?
The majority of applicants are accepted into our program. However, we will not have a definite answer about your eligibility until you have submitted a free, no-obligation application and your financial situation has been reviewed by one of our Consumer Debt Reduction counselors.
What are the fees for your services to complete the debt reduction program?
We offer a free application and consultation to anyone who applies. Different fees may apply depending upon your financial situation. However, if you qualify for our program, we guarantee our fee will "pale in comparison" to the savings and freedom you will enjoy! We pride ourselves in providing detailed accounting statements to our clients upon request.
Does the Consumer Debt Reduction program work for all of my creditors?
No firm can guarantee that every creditor will accept an offer to satisfy your outstanding debt. We have years of experience settling millions of dollars of debt and have built our reputation and integrity with our customers by only accepting cases that we can resolve for a fraction of the debt. After your free consultation we will know your financial situation and will be able to advise you on what expect from the program.
Do I have to include all of my debts or can I choose only the ones I would like you to resolve?
With our Consumer Debt Reduction program you can select which accounts you would like us to settle for you. This will be discussed during your free consultation.
Will all of my debt be eliminated when I finish the Consumer Debt Reduction program?
When you follow all of our procedures you can expect to have zero balances on all unsecured accounts that you have contracted us to resolve. You will still be responsible for your secured debts i.e. mortgages, auto loans, etc. and unsecured debts that you did not retain CDR to settle.
What can I expect as a result of your debt reduction program?
You can expect a substantial reduction in what you owe to your creditors. While each case is different and results vary we typically settle our clients debts for 25% to 50 % off the balances owed.
Are your services guaranteed?
We cannot offer a 100% guarantee that our services will work for you. If we could we would. Before we accept your case we will perform a thorough analysis of your cash flow and debts. When we can help you we will, and if we do not think we can help you, we will not accept you into our program. We have settled millions of dollars of consumer debt and our reputation and integrity have been established by our great success rate.
How can I be sure this will work?
We take great pride in, and our reputation is built on, getting our clients out of debt without the need to file for bankruptcy. After analyzing your financial situation you will either be accepted into the program, which means we can help you, or we will advise you of your best options. This will be discussed with you during the free Consumer Debt Reduction consultation.
What is the difference between unsecured debt and secured debt?
An unsecured debt generally arises out of a contract entered into with a creditor that enables you to obtain goods and services on credit in exchange for your promise to repay the creditor. Credit cards, medical loans and personal loans are the most common types of unsecured debt. If you are delinquent with this type of debt the only recourse the lender has is legal action. A secured debt is a loan where the creditor retains a security interest in real or personal property such as a house or an automobile. If you fall behind on payments with this type of debt the lender has the ability to repossess the property in order to mitigate their damages. If your property is repossessed and sold you remain liable for any deficiency balance that remains after the sale. Certain exceptions apply depending on the nature of the security interest. The laws regarding home mortgages vary from state to state and the lenders rights usually depend on the terms of the mortgage and whether any other lenders have an interest in the real property. In these situations it is important to seek legal advice to protect your interests.
Does secured debt ever become unsecured debt?
A secured debt may become an unsecured debt in situations where the property securing the loan has already been repossessed and sold by the creditor. If the sale of the property does not meet the contractual obligation the consumer owes a deficiency balance. This deficiency becomes an unsecured debt. Certain exceptions may apply and will depend on the security interest.
Will you contact all of my creditors on my behalf?
Yes. A letter will be sent to each of your creditors advising them that you have retained CDR to represent you. We will demand that they cease all communication with you and we will demand that all future correspondence be directed to Consumer Debt Reduction on your behalf.
Will I continue to get calls and collection letters from my creditors?
Once you are accepted into the program we will provide your creditors with the appropriate correspondence that will keep them from calling you; however, there is no law that prevents creditors from sending written correspondence to you. Do not be afraid to read these letters. In fact, it is important that you read each letter carefully as you are certain to get settlement offers from your creditors as a result of your admittance to our program. Settlement letters and any letter of concern should be forwarded to our Client Relations Department.
Will interest charges continue to accrue on my debts?
Yes. However as a practical matter, you need not concern
yourself with these charges. In most cases our skilled negotiators will
get your creditors to lower or even remove these charges while significantly
reducing your principle balance as well.