Debt Aide

 

Why do you need to know my Social Security Number?

Your Social Security Number (SSN) assists us in communicating with your creditors and helps to ensure proper posting of your payments to your credit accounts. Also, because Debt Aide is a subsidiary of a bank, we must be able to verify your identity to comply with banking regulations.

How do I track my progress?

You will receive monthly statements from us showing your payment disbursements. You will also receive monthly statements from your creditors showing balance reductions, payments and any concessions.

Remember, it is your responsibility to review your credit statements and confirm that payments have been properly credited and that any and all concessions offered by your creditors (which may include interest rate reductions, late charge waivers and/or other benefits) are reflected on the statements. If you have questions or there appear to be inaccuracies on your statement, it is your responsibility to call us. We do not receive copies of your statements from your creditors, and we will not know about any problems unless you bring them to our attention.

What does the monthly service fee provide?

The monthly service fee pays us for the implementation and general administration of your debt management program, for processing your monthly payments and tendering payments to your creditors each month in accordance with the terms of your program, thereby enabling you to receive the agreed-upon creditor concessions and avoid bankruptcy and/or other problems associated with unmanageable debt, for providing you with toll-free customer service to answer your questions and resolve issues that may develop from time to time as your program progresses, and for providing you with monthly statements showing disbursements and missed payment notices.

What kind of concessions do creditors offer?

Concessions vary depending on the creditor. Many creditors offer concessions such as reduced interest rates, removal of late fees and/or re-aging of accounts to debtors on debt management programs that we administer. However, not all creditors will offer concessions and the concessions offered by some creditors are limited. Also, please keep in mind that most creditor concessions do not go into effect until you have made at least three to six consecutive monthly payments. The creditors want to know that you are serious about eliminating your debt and that you intend to make consistent, on-time payments. If you still are not seeing concessions on your statements from your creditors after you have made several payments under your debt management program, please contact our Customer Service Department so we can contact your creditors.

How much will I save from my debt management program?

It is not possible to provide you with the exact amount you will save. It depends on a number of factors, such as the concessions actually granted by your creditors, the amount you pay in excess of the minimum amounts that would otherwise be payable on your credit accounts, whether you timely make your payments and whether you complete the program. Some debtors do not experience any savings. We have provided you with an estimate of your savings, but the estimate is based on assumptions and should not be viewed by you as a representation by us or any form of guarantee that your savings will be equal to the estimate.


Can I do this on my own without paying you a fee?

Yes, but you may not succeed. Many debtors find it difficult to negotiate with their creditors and carry out the administration of a debt management plan over an extended period of time. This is our business, and we have developed the organization and the methods to assist you in doing this and improving your financial condition. However, in the final analysis, your success depends on your willingness to stick with and complete your debt management program. Many debtors in your circumstances find this is easier to accomplish when their program is structured and executed with the assistance of an organization like Debt Aide. We believe we deliver valuable assistance to you that is worth the fee you pay us.

How does my debt management program affect my credit report and FICO score?

We do not report to the credit bureaus. However, through creditor reporting or otherwise, a notation may appear on your credit report stating that you are in a debt management program. We suggest you check with your creditors to determine how such a notation may be interpreted and whether it will affect your FICO score. More information on this topic may be available at www.myfico.com.

How long does the debt management program status remain on my credit report?

This depends on your prior credit history and how your creditors report to credit bureaus. Therefore, it is difficult to give a definite answer to this question.

When will the collection calls stop?

When we are in receipt of your completed enrollment packet and we distribute your first payment to the creditors enrolled in your debt management program, we will notify those creditors of your participation in a debt management program administer by us. Once notified, some creditors will stop collection efforts immediately, while others may want to see between three (3) to six (6) consecutive payments before stopping. If you receive a call after you have made your first payment, please refer the collector to us and we will attempt to get the creditor to talk to us and stop calling you. However, there can be no assurance that all creditor calls will stop because creditors have the right to continue calling.

Will the credit accounts that I enroll in my debt management program be closed?

Yes, all credit accounts included in your debt management program will be closed by your creditors and will no longer be available for your use. We recommend that all of your unsecured debt be placed in your program and that you avoid incurring additional debt.

Can I make a one-time payment that is more than my usual monthly payment?

Yes, in most cases. However, please contact our Customer Service Department to make arrangements before doing so.

How will my ability to buy a home, buy a car or refinance my existing mortgage be affected?

Because various lenders view debt management programs differently, we suggest you contact your lender for additional information about their policies. For major loans, some lenders require that you be in the program for at least twelve months and that all payments be made on time.

Is this a loan?

No, this is not a loan. Our goal is to help you pay off your existing debts as quickly as possible without incurring additional debt. We work with your creditors to obtain the concessions they are willing to offer you. This allows more of your monthly payment to go toward reducing your outstanding balances.

Can I include secured debts (home, car, boat, etc.) in my debt management program?

Unfortunately, we do not accept secured debts at this time.

Can you help me if I am close to bankruptcy?

Yes, implementing and executing a debt management program offers you a positive alternative to bankruptcy. Remember, bankruptcy remains on your credit report for at least seven (7) to ten (10) years and can have many adverse consequences. Debt Aide does not provide and, therefore, cannot issue certificates to debtors for bankruptcy credit counseling.

What if I am unable to make my minimum payments directly to my creditors and at the same time make my first monthly payment under my debt management plan?

If you are unable to make the minimum payment to your creditors, they may charge you a late fee and consider your account delinquent. We understand this may be difficult, but we encourage you to manage your credit accounts during this period as best you can. Keep in mind that you are not officially enrolled until we have received your completed enrollment packet and your first payment.

What happens if my payment is late or I cannot make a full payment?

If you are going to be late with your monthly payments or if you cannot make the full amount of your payment to Debt Aide, you should advise our Customer Service Department immediately. Most creditors require payments in accordance with your debt management plan every thirty (30) days or concessions may be lost or suspended. Our Customer Service Department may be able to contact the creditors and have your concessions reinstated depending on the circumstances. However, there is no assurance that reinstatement will happen, so you should use every means possible not to be late.

What happens if I terminate my participation after I have started making payments under my debt management program?

We cannot control what your creditors may do if you terminate participation in your debt management program before your outstanding balances are paid off. Some creditors may increase your interest rates, reinstitute late charges or enforce other penalties, some or all of which may be retroactive to the date you started the program. Also, we do not know when or if you would be eligible to participate in another debt management program. We suggest you contact your creditors with any questions you have regarding the effects of termination.

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When your debt struggles are dominating your life, it is time to find an answer now.  Debt Aide is a team of professionals that  can provide you with the solutions you been looking for.