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1. Can you please briefly explain your differences between settlement and management?

There is a distinct difference between credit counseling and debt settlement

Debt Management

1. Credit consolidation, more commonly called credit counseling, simply reduces the monthly payment and interest rate on the amount of debt you owe, and you pay back 100% of the full principal plus interest.

2. Creditors can offer concessions to consumers such as a lowered interest rate and/or reaging of the accounts for clients on a debt management program.

3. The Creditors created this program for consumers having financial difficulty and proposals must be approved by the creditors in order to receive benefits and concessions.

4. Consumers will make a monthly payment to their debt management agency and the agency will send payments to the creditors each month on the client’s behalf.

5. This is typically a 3-5 year program.

Debt Settlement

1. Monthly payments that are deposited into your special purpose bank account instead of sent to the creditors until there are sufficient funds to negotiate with your creditors.

2. Clients can expect to receive an increased amount of collection calls since the creditors are no longer receiving monthly payments while funds are accruing in the special purpose bank account.

3. Negotiators will attempt to reduce the principal balances that you owe, along with any interest and fees that you may accumulate during the program.

4. Monthly program payment is normally lower than it would be with credit counseling, our program takes a much shorter time to get you out of debt.

5. This is typically a 18 – 36 month program

2. How does your credit card debt settlement program work?

Our primary objective is to negotiate with your creditors to settle each of your debts for less than the amount you otherwise would owe. Negotiations normally continue until an agreement is made with the creditor, at which time the settlement amount if paid from your Rocky Mountain Bank and Trust special purpose account. Then we repeat this process with each debt that you have brought on the program. We also can help with any calls from creditors that you may be receiving.

3. What is the process for getting started with your debt settlement service?

After we complete a debt assessment and budget with you, we’ll send you a welcome packet that contains documents you need to sign. For your convenience you can sign them on-line, fax them back to us or mail them in.

4. Does your debt settlement service deal with debts other than credit cards?

We can work with most unsecured debt which is debt that isn’t secured by personal property like a home, car or Jet Ski.

5. Is there a minimum total debt amount in order to be eligible for your debt settlement program?

Yes, you must have at least a minimum of $7,500 total unsecured debt and each creditor debt must be at least $500.

6. How will your credit card debt settlement program affect my credit?

In most instances your credit score will get worse before it gets better because regular monthly payments are not being made to your creditors. Once you complete your program your lower debt to income ratio and the beginning of regular monthly payments should help to increase your score.

7. What are some signs that I may need credit card debt settlement?

1. Unable to make minimum monthly payments

2. Receiving past due or late fees

3. Receiving overlimit fees

4. High Debt to Income Ration

5. High interest rates

6. Receiving harassing collection calls

8. Can I keep an account out of my credit card debt settlement program?

Yes, however, I would watch the interest rates. We recommend you put all your credit cards in the program to help you on your way to become debt free. We can help you with a budget and ways to avoid using your credit cards.

9. Should I close my credit card account after enrolling in your debt settlement service?

You can but it is not necessary

10. What is the difference between credit card debt settlement and credit counseling?

SEE QUESTION #1

11. What is the difference between credit card debt settlement and debt consolidation?

SEE QUESTION #1

12. If credit card debt settlement is not debt consolidation, will I have to make more than one monthly payment each month?

No, when your credit counselor does your debt assessment, they will be able to determine what your monthly payments will be.

13. Can I get a home equity loan to fund my credit card debt settlement program?

Although this is an option, we don’t recommend moving your unsecured debt to secured debt. In the event you couldn’t make that payment, they could take your house.

14. Is credit card debt settlement the same as bankruptcy?

No. Bankruptcy is defaulting on your debt and debt settlement is paying back your debt and will allow you to become credit worthy in a much shorter period of time.

15. Can I be sued in a credit card debt settlement program?

It does happen on occasion. No company can promise that you will not be sued, as creditors do have the right to attempt to collect on their debt.

16. What happens if I am sued while working with your debt settlement company?

In the unlikely event that it does happen, our Priority Department can usually work with the attorney to reach some form of agreement on the account. A lot of times your hardship may be important to explain to them. We also on a daily basis are building working relationships with attorneys.

17. How much does your credit card debt settlement program cost?

The fees never exceed 18% of your overall debt which is nothing compared to how much we can save you. Call one of our credit counselors to see how much you can save.

18. Who qualifies for your credit card debt settlement program?

There are a few requirements; you must have an income, have over $7,500 in unsecured debt on the program with a minimum of $500 per creditor balance.

19. Can you get the collections calls to stop?

While you may face collection calls when enrolled in our debt settlement program and no company can stop all calls, we have made it our mission to seek out the best to assist in this matter and have retained the services of a consumer advocacy firm, the United Consumer Advocacy Network or “UCAN”, to specifically assist you in alleviating the chance for this burden to occur. UCAN organization works with thousands of consumer-clients to level the playing field between creditors and consumers, specializing in combating debt collection harassment. We have included UCAN in your program and will pick up the check for this each month you are enrolled because we recognize the value in reducing your stress and showing we care.

20. What laws do you take advantage of to reduce creditor calls?

The Fair Debt Collections Practices Act, the law that can protect you from collector violations/calls.

21. Can I apply for other credit while enrolled in your debt settlement program?

Although, you may receive an application for a credit card, we do not recommend that you get one. Our credit counselors will help you with a budget to avoid spending on a credit card.

22. Is there any tax implications associated with enrolling in a credit card debt settlement program?

We are credit counselors, not tax advisors so we recommend you contact a tax professional for advice.

Settlement of your debt for less than the full amount owed may have tax consequences. Indebtedness of $600 or more that is discharged as a result of a settlement may be reported by the creditors to the IRS as taxable income to you pursuant to IRS Code 605(p) and related federal law, although you may qualify for exemptions to the extent that you have negative net worth. (See IRS Form 982 at www.irs.gov). You should consult your own tax and/or legal advisor about these issues.

23. What are my responsibilities throughout the credit card debt settlement program?

Continue to make timely payments and contact us with any creditor communication.

24. Can I include accounts into the debt settlement program that have authorized users or coapplicants?

Yes, with the co-applicants consent.

25. What is the difference between credit card debt settlement and credit repair?

SEE QUESTION #1

26. Do you make payments to each of my credit cards every month?

No. You’re payments are processed through Rock Mountain Bank and Trust who are a third party administrator that will draft your checking account monthly and hold your funds that are available for settlement. Once we settle an account, they will issue payment to the creditor. You can access your account 24 hours a day through their website so you know exactly how much money is in your account.

27. How do you decide which credit card companies get paid first?

The ability to finalize a settlement is dependent upon a few different factors, such as the amount of each debt, the creditor and of course the amount of funds available to send to a particular creditor.

28. Will I still be eligible for bankruptcy? If I do debt settlement, will I lose my job or income down the road?

Bankruptcy is an option, I know that may hinder government employees and military personnel; however, we are credit counselors not financial advisors. If you are concerned about that, I would seek this information from your employer and/or financial advisor.

29. Is it possible that an account will not settle?

It is possible; however, our Priority Department can usually work with the creditors to reach some form of agreement on the account. We are also building working relationships with creditors on a daily basis.

30. How does your debt settlement company come up with an estimate of how much I will have to pay the credit card companies?

We negotiate with your creditors for a discount of approximately 40% of the total you owe.

31. Do I have any incentive to pay these accounts off faster?

You will be out of debt in a shorter period of time.

32. Is there any prepayment penalties associated with your debt settlement program?

No, there are no prepayment penalties; we actually encourage you to make additional payments to get you out of debt faster.

33. Can I pay more some months and less other months in your debt settlement program?

You should at least pay the payment your credit counselor determines as your monthly payment’ however, we always encourage you to make additional payments if possible.

34. What is the longest debt settlement program possible?

The program usually takes 18 to 36 months to complete; however, if you decide to add more debt later, it could take a little longer.

35. Is debt settlement legal?

Yes

36. How will debt settlement affect my spouse's credit rating?

The same way it will affect yours if your spouse is a co-applicant on the accounts you are entering on the program,

37. Will my accounts be sent to collections while I am enrolled in your debt settlement service?

It is very possible your accounts will be transferred to a collection company and this can help us in negotiating with your creditors for more of a savings.

38. Is it moral to settle my debts?

You are still paying back a portion of your debt but not the high interest rates, late fees and over-the-limit fees. Alternately, if you filed for bankruptcy, you are essentially escaping debt that you legally owe.

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