What is Debt Settlement?
Debt settlement involves negotiating with a creditor or creditors to pay off a percentage of your total debts at an agreed upon settlement amount. Often, people choose to utilize the services of a debt settlement company rather than attempting to do it on their own. As a Debt settlement company we employ various negotiation strategies to help settle your debts and can eliminate between 40-60% of your original balances.
Can you eliminate my debt completely?
There is no magical way to make your debt vanish altogether, but the debt settlement we reach for you will be a much more manageable amount and you won’t have to pay interest and penalties for decades or be crippled by the stigma of bankruptcy. Recent scams involve companies claiming to erase debts outright but there are no loopholes or secrets to help make your debt simply disappear. Our debt negotiation and settlement with creditors is a legitimate way to help you eliminate your debt. If you are not filing for bankruptcy, this is the fastest way to overcome your debt.
How much will I have to pay for Debt Settlement?
Our debt consultants negotiate with creditors on a settlement so that you will ultimately pay less than you owe now. Our customers repay an average of $.40 on the dollar of the total balance due.
How do I pay for Debt Settlement?
Each of our customers opens a new bank account in his/her own name. E-Limidebt will not be on this account. Having your separate account helps to keep settlement money separate from other personal funds. Each month, you will simply deposit a predetermined amount that fits within your budget. The money you deposit each month into your new bank account is used for two purposes: 1) Your own savings to be accumulated month-after-month and then, used to pay-off settled debts and 2) Service fee for your debt settlement program.
When our Settlement Associate reaches a verbal settlement agreement with one of your creditors, the creditor will deliver an official letter to the e-LIMIDEBT Settlement Associate and/or you. The letter is an offer, basically stating that if a certain amount is paid within by a specified date, then your debt will be considered settled-in-full. You will then write a check or authorize funds to be withdrawn from your personal bank account by the creditor. Upon receipt of your settlement payment, the creditor will send you a letter verifying that your account has been settled-in-full.
How long does Debt Settlement take?
Our staff of consultants will work dillegently for you, but time frames may vary based upon the particular situation. During the time negotiations are in process, you will be advised to save funds in order to repay the settled amount that we reach once the settlement process concludes on each account. Average debt sttlement plans resolve debts between two to four years, depending on each customers situations.
Do I need to file for bankruptcy?
Debt settlement offers an alternative to bankruptcy for most people. Those faced with overwhelming debt with no solvency, can end up in bankruptcy court, losing assets and even their homes. Debt settlement offers an alternative to bankruptcy. The process of debt settlement is less intrusive and less damaging to your credit than bankruptcy.
What do I have to do during the Debt Settlement process?
Taking action to finally eliminate your debt is the first step. By coming to us, we know you’re facing financial hardship and want to plan for a better future. During the negotiation process, we will advise you how to save enough funds so that you can begin pay-offs when a settlement is reached. Then, you will simply need to stick to the debt settlement program and pay the settlement amounts. You will also need to stop using all forms of credit as a preventative measure.
What’s the difference between going through Debt Settlement and going through Debt Consolidation?
A Debt Consolidation or consumer credit counseling agency will suggest a plan in which you pay off your debt through their service usually at the full amount. Many act as collection agencies for the creditors and a plan through a creditor-funded agency can take five to seven years. Generally, the monthly debt consolidation payments add up to the total of the amounts you are currently paying.
Debt Settlement will negotiate and settle your debt faster and more directly.
It’s important to be clear that Debt Settlement is NOT the same as Debt Consolidation, Credit Counseling or Bankruptcy. With regards to having to pay income tax on monies saved, some creditors will issue IRS Form 1099 showing your monies saved as income, which may possibly be subject to income tax. However, the consumer can fill out IRS Form 982 which indicates proof of insolvency. Based on insolvency, the income reported by the creditor on Form 1099 would not necessarily be taxed as income. It’s always best to consult a tax professional for accurate information as it pertains to your situation.
Will creditors stop harassing me?
It is important to remain aware of the fact that original creditors can still legally contact within the parameters the Fair Debt Collections Practices Act. However, our customer service representatives are knowledgeable about the Fair Debt Collections Practices Act and will use their knowledge to assist in reducing the illegal harassment.
The purpose of debt settlement is to complete the settlement process with your creditors and/or collection agencies. In order to do this, it is necessary for e-Limidebt, as your settlement company to have you formally authorize us to negotiate with your creditors on your behalf.
Debt settlement can help you get out of debt for the least amount of money in the shortest amount of time, without filing bankruptcy. Enrollment in a debt settlement program does not show up on your credit report, however, any time a creditor goes unpaid, there will be negative marks on your credit.
Should I know my Credit Score?
Only 33% of the American population knows their credit score. The other 67% are in for a surprise once they apply for new credit or when they find out that their Identity has been stolen.
It is important to know your credit score, because the higher it is, the more opportunities you will have at a better quality of living. The lower your score is the higher risk you represent for the lenders.
Having a high credit score can get you low APRs when financing a car or a home. It can also help you land your dream job. It saves you money so you can spend it on leisure or other investments.
What is a credit report?
A credit report is a document that comprises your Credit History in a nutshell. It shows: Who your creditors are, how punctual you are with payments, who is looking at your credit, the balances on your accounts, etc.
There are three (3) major credit reporting agencies and each one of them receives information from your past lenders, current lenders and potential lenders. They do not handle the same information; therefore you might have items that are being reported to one agency and not to the others.
The three major credit reporting agencies are:
Experian, Equifax and TransUnion
What is credit restoration?
E-limidebt now offers methods by which to restore your credit score. This third party Credit Restoration firm is dedicated to helping consumers improve their credit score by disputing inaccurate information on their credit history.
Can Consumers dispute inaccuracies on their own?
YES. Every consumer can exercise their consumer rights under the Fair Credit Reporting Act (FCRA) and proceed to dispute inaccuracies directly with the Credit Bureaus.
Why would an individual use a Credit Restoration service provider then?
Follow up with the dispute process with the bureaus is time consuming and many times frustrating. Additionally, most of the dispute sample letters available are not customized to the client’s particular issues. The Credit Restoration expert’s job is to make the client’s dispute process as effective and painless as possible. They have the expertise on the Fair Credit Reporting Act (FCRA) that enables them to ensure that clients exercise their consumer rights.
What is Foreclosure Assistance and Deferment?
Many homeowners have been the victims of unfair and abusive lending practices that have now threatened their homes and dreams. These violations can form the basis of a defense against the foreclosing lenders.
Laws are commonly violated by the banks and the mortgage industry in what is known as “PREDATORY LENDING”. Many individuals that have obtained a mortgage in the last 7 years have been victimized by predatory lending.
If you are in need of assistance to save your home or potentially eliminate the foreclosure process, help is here.
How do I start?
Fill out our form and one of our experienced debt specialists will contact you within 24 hours. The consultation is free and confidential, and there are no strings attached.
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