I found debt relief - HOPE Debt Relief

Question: "I appreciate all the details and extra information. I have one last question... What is your rating with the Better Business Bureau?"

Answer:

Glad you asked. We have had a perfect "A" rating with the Better Business Bureau with zero complaints since May, 2007.

http://www.bbb.org/central-california/business-reviews/credit-and-debt-counseling/hope-financial-help-center-in-mammoth-lakes-ca-89045082

Note: Please do not confuse us for some of the other companies who use similar names and/or website addresses as ours.  Thank you.

Answer:

This strategy works great for the person or family who has had one of those life instances (hardship) that has affected their finances in a way that has now caused them to need reduced monthly payments.

This program is for someone who is either behind on payments already or who could get behind in the near future.

This program is for a person or family who either does not qualify for bankruptcy or who wants to try everything they can to avoid bankruptcy.

This Program is NOT for the person who can easily afford their payments but would simply like reduced balances. This is for people and families who need help. In order to maintain the integrity of our program and our symbiotic relationship with creditors we ask that you do not use this program if you do not need help.

There isn't necessarily any "magic" to what we do but over the years we have developed the structure of a program that works! We have a lot of experience, we have earned credibility, we have established beneficial relationships, contacts and strategy that will save you a lot of time and lots and lots of money. No magic - and it's not too good to be true. It just works because sometimes it can be the best win-win situation for the account holder as well as the creditors involved.

Question: "Regarding the percentage rate and fees: I've done my research and I realize that the fees are less than other similar programs but could you please explain exactly how the fees are charged and how will that affect my program payment?"

Answer:

The program that we offer is a non-profit program so we are able to keep the fees required as low as possible and quite a bit lower than most other similar programs. We do not have any upfront or "retainer" fees outside of the monthly payment amount, which are commonly associated with this type of program. But as a service, even a non-profit service, there is a certain percentage of ones total amount of enrolled debt that is required along with a monthly fee for the service provided.

The standard rate required as a fee is generally 15% (ranges between 13% to 18%) of the total amount of debt being enrolled, and this percentage is normally collected as part of the first 18-24 payments. This is NOT an annual percentage rate that your creditors charge but rather just a one time percentage rate that is applied and collected as part of your monthly payments.

There is also a monthly maintenance fees that typically range from $49 to $69. This is also part of the payment - not in addition to it.

Question: "Could you tell me how this may affect my credit?"

Answer:

*This program is for a person who needs reduced payments regardless of their immediate credit scores. This program is NOT for someone who intends on using their credit to get into more debt while going through our program.

For the person who needs a reduced debt amount and lowered payments several studies has shown a debt reduction program to actually improve one's credit profile, for several obvious reasons. (Please ask to see the N.E.R.A. (National Economic Research Agency) report.

However, be aware; that your credit scores may get worse well before they have a chance to get better.   Especially, if your credit is not already damaged.

Accounts enrolled into this program are generally considered as any other collection account up until a certain point.   The account holder will most likely get some collection calls, letters, etc.

Exactly how this affects your credit really depends on what your situation is like before you enroll - and what inevitably would happen to your credit if you did not enroll.

PLEASE UNDERSTAND: Debt Resolution is for someone who has high balances, limits that are close to being maxed out and for someone whose monthly budget is uncomfortably tight (debt-to-income ratio). In this case, this person has the overall financial PRIORITY of taking care of their debt issues and this priority far outweighs their concerns for their FICO score (credit score), at this immediate time.
BOTTOM LINE: Because this program will generally allow one to pay down their debt balances much faster and because it's affordable vs. not affordable - this will allow someone to realistically and responsibly get a handle on their debt and to pay off their high balances - THIS WILL BE THE BEST THING FOR THEIR OVERALL, LONG TERM CREDIT STANDING, AND MOST IMPORTANTLY THEIR OVERALL FINANCIAL WELL BEING!

         Question: "Why would my creditors give me 50%+ off?? I have a friend who went through a similar program and he tells me some of his accounts settled for 22%? What's in it for them? Why would they do this and what's the catch."

Answer:
No catch. Creditors cooperate because it makes 'business sense' for them to do so (period) -nothing else.    This is a structured hardship assistance program that helps people who otherwise may not be able to pay their bills at all – through this reduced payment plan creditors get something in a structured and timely way...

It costs creditors money if they have account holders in default.   They would much rather work something out than to have account holders struggling to make payments month after month.

Chasing someone around trying to collect will cost a creditor money, manpower and time!   If they have to sue in order to make contact with an account holder that has stopped paying this will costs them money, manpower and time!

If they sue or push a defaulting account holder too hard they may give this poor account holder no other option but to declare chap. 7 bankruptcy - in this case the creditor loses all.

AND - worst scenario (and unfortunately the most common scenario) is when an account holder gets in trouble and doesn't do ANYTHING.   In this case the creditor expends money, manpower and time and they end up losing all.    So, creditors’ will openly cooperate because it’s a winning situation for all involved.

Question: "Should I close my checking and savings account with my bank since I'm enrolling a credit card that I have with them?"

Answer:
Yes, it is strongly advised that you switch banks. There are 2 different reason that you should do this. The first reason is because they may take money out of your account in order to keep your payments current. They will not do this every time and in some cases it is NOT legal for them to do this but it's much better to be safe than sorry.

The second reason is because if they were to check your bank account and see that you have funds in there this may make our job of negotiating with them more difficult.

So we advice our clients to take the money out of any checking or savings accounts, with banks or credit unions, that they have an account with that is being enrolled into our debt resolution program.

Question: "Will my creditors attempt to collect the full balance?"

Answer:
Yes, at least initially creditors will make attempts to collect the balance in full even after you are enrolled in the program and until settlement arrangements are made.    Of course a creditor would rather have an account holder pay the balance off in full but this program is for the person or family who just CAN NOT.

So you will have to have a plan in place as to how you are going to cope with collection calls and letters.   You are not obligated to answer or respond to the calls AT ALL, but you do not have to hide either.

You may tell the collectors exactly what you are doing and why. We do not want you to feel as though you are hiding or doing anything wrong because you are not! - you are doing what is best for you and your family.

After you tell them once and have asked them politely to stop calling and to please delete any work or cell phone numbers that they may have, then you will want to ignore their calls and just let us deal with them for you.     We will contact your creditors as soon as possible and we always attempt to come to the best terms with creditors as soon as we possibly can! But, some creditors/collectors take longer than others and some creditors will not be accepting of the terms we want or require from them until a certain time.

Once we have made arrangements for you to pay a fair percentage of the debt back a collector will not be allowed to attempt to collect any more.    The 'settlement' arrangements are always legally binding and final.