FAQ's (Frequently Asked Questions)

Q. How do the creditors get paid?
A. Consumer Credit Counseling: After you and your personalized financial counselor generate a financial plan, your creditors are immediately informed of your willingness to enter a debt consolidation program. Actual payments are forwarded to your creditors beginning with the first payment you make into the Consumer Credit Counseling Program.

Debt Negotiations (Arbitration): After entering a Debt Settlement Program, you set up an account at a federally insured bank. The sole purpose of this account is to house the necessary money for following the scheduled repayment program. Once enough money is accumulated to satisfy an obligation with a creditor, you will authorize the withdrawal and payment of those momies. All consequent payments to the creditors will be made from this account.

Q. Can you explain the benefits of consumer credit counseling in more detail?
A. In consumer credit counseling we can lower your monthly payment, reduce your average interest rate, wave over-limit and late fees, and re-age your account The payments you make to your creditors are initially processed at the credit counseling center and sent to your creditors immediately thereafter. You also only have to make ONE monthly payment, which we will disburse proportionally to each one of your creditors.

Q. Can you explain debt settlement in more detail?
A. We work out a monthly amount that you can afford to pay and that amount is electronically debited from your personal bank account and is deposited into your client account at a federally insured bank on the date(s) you work out with our financial counselor.

Once you have accumulated enough money, which is based on the pay-off agreement we have scheduled with each of your creditors, each creditor is paid.

This program is not a traditional debt settlement and is purely based on your ability to repay within your financial means and to avoid bankrupty. Please call us for more detailed information.

Q. Can you give me an example of how much I can save in debt consolidation and debt settlement?
A. Given the following: $20,000 of debt, an annual average interest rate of 16%, and making only minimum payments, you would be in debt for over 30 yrs and would pay over $20,000 in interest alone. In debt consolidation, we can lower your interest rate to only 6% and you would pay a total of $2300 in interest ($23,000 total) and be in debt in a little over 4 years. In a debt settlement program, depending on your income and expenditures, you can save $9200, and pay $10,800 total, and be out of debt in only 2.5 years.

Q. How is my credit affected during credit counseling?
A. Your FICO score if NOT affected in credit counseling.

Q. How is my credit affected during debt settlement (arbitration)?
A. If you have revolving debt that exceeds your income significantly, you are probably already aware that your credit score is impugned. Furthermore, if you are behind on payments, your payment history is negatively effected. While we cannot control the way your creditors or the credit bureaus post remarks to your credit profile. Please remember that your credit score should reflect your credit worthiness. If you have accrued substantial debt, your credit rating does not adequately reflect your financial capabilities. Our goal is to settle and resolve your debt in the most efficient manner and within your capabilities. While we do not attempt to remove derogatory credit remarks or directly cause derogatory remarks to be removed, you are more than welcome to consult one of our reputable credit repair agency after the completion of the program to help resolve credit-remark issues.

Q. Should I stop paying my creditors?
A. We can provide you with an analysis and schedule of what should be anticipated if you enroll in our debt settlement program to resolve your debt. We do not and cannot advise you to stop paying your creditors. However, we may advise you that your income, in relation to your schedule of expenses, is presently insufficient to adequately resolve your debt and that borrowing money from other creditors to pay revolving debt may be undesirable.

Q. How will settlement appear on my credit report?
A. Your accounts will often read "settled," "paid as agreed," or "balance 0."

Q. Can you guarantee settlements?
A. While we will submit the appropriate information to each creditor to highlight your financial capabilities, FAD cannot guarantee the results of any settlement agreements until final settlement offers have been reached accepted by all applicable parites.

Q. Will enrolling in your debt settlement program preclude me from obtaining new credit?
A. Absolutely not. However, please be aware that you may and should only obtain new credit for necessities of life or for allowable expenses.

Q. How do find out the progress of my program?
Give us a call from 11:00 PM-9:00 PM MST to speak to a customer service representative.

Q. How much does this program cost?
A. All of our fees are based on an individual basis. However, we are VERY fair with our costs because we know how financially strapped you already are. Therefore, your monthly payment will be determined by what you can comfortably afford and is based upon your level of debt, income, and living expenses. We GUARANTEE that you will save money every month in your payment and we GUARANTEE that your pay-off term will be reduced

Q. Do you have any suggestions for me n the program?
A. Yes. Our senior financial supervisor has written a few published articles that you may find useful. Please find them below:

*The Do's and Dont's of Credit Counseling and Debt Negotiations

*Choosing a Debt Consolidation Company

Call Us Now to Learn More!

888-485-3328

Testimonials:

"I would like to thank you for settling my debts without any of the problems I had before. Mark was really nice and knew exactly what I needed. Tell him that I still owe him that dinner! Thanks again."
-Mary K.

"I really like that you offered both options. I was confused about my situation but your analysis was right on the money. Thanks for the help Joseph."
-Jon A.

"I'm writing this to say thanks for helping me out with my loans. I was getting charged huge interest and just lost my job. I'm now only a month away from paying off the debt completely. If you guys need me for anything, don't hesitate to call."
-Ralph T.

"Mark was a great help to me. He knew the ins and outs of each option and was very sincere. I'm now more than a year into the program and I am more than satisfied with the settlements so far. I even saved an additional $600 on my MBNA card. Thanks a bunch."
-Sarah B.