Financial Services New Hampshire
Why can't I negotiate with creditors on my own?
Why can't I keep paying off my creditors on my own?
How much will it cost to be on the Debt Consolidation Program?
How will joining a Debt Consolidation Program affect my credit rating?
Can I send in more money if I get a better cash flow?
Should I keep paying my bills in the period before I send you my first payment?
After I pay off one account, can I pay less?
Will I receive harassing phone calls?
Q: Why can't I negotiate with creditors on my own?
A: In some cases, you can negotiate with creditors on your own to arrange payment or have positive information reported to a credit bureau. However, to get the benefits of lowered monthly payments, lower interest rates, stopped late charges, and waived over the limit fees, you should get help. As a non-profit organization, our credit counselors can secure you these benefits not usually available to credit consumers.
Q: Why can't I keep paying off my creditors on my own?
A: If you keep paying just the minimum to your creditors at the current interest rate, it will take you much longer than if you paid off your debt through our debt consolidation program. A $10,000 debt usually takes 32 years and $24,500 to pay off, if you are paying the monthly minimum of 2.5% of the balance at an average interest rate of 18.5%. Because we may be able to reduce your interest rates, stop over the limit fees, and so on, it will take a lot less time to pay off your debt through us. Chances are, in the past, all your debt payments have just gone to pay off interest. You probably haven't even reduced the balance! On average, our clients pay off their debts in 3 to 5 years, depending on individual circumstances.
Q: How much will it cost me to be on the Debt Consolidation Program?
A: Due to the fact that this is a non-profit organization, we do not charge any advance fees for our service. We do request that clients make a monthly contribution to our organization to cover the costs involved in handling the accounts on a monthly basis. As a non-profit organization, we depend on these small contributions to meet our operating costs. Our clients find that their increased cash flow from lower monthly payments, interest rate reductions and stopped late charges more than covers the cost of the monthly contribution.
Q: How will joining a Debt Consolidation Program affect my credit rating?
A1: Do you have a good credit history? If yes, then you should be aware that your credit report may state that you are working through a counseling service. We can't guarantee how future creditors will interpret this information, but we believe that it shows you are trying to get help. Your credit report probably states that you've been carrying balances, made late payments in the past 7 years, or even missed payments, so it may not be as perfect a credit history as you think.
A2: If no, then we can only help you. If you make your payments in full and on time, then many of your creditors will "re-age" your account, which means they will show your accounts as current after several payments. In general, if you are paying off your debts, that can revitalize your credit report. Showing that you are working through a counseling service may show future creditors that you wanted to pay off your debts in full.
Q: Can I send in more money if I get a better cash flow ?
A: Of course - you can always increase your monthly payment. The more you pay, the faster your account will be paid off. Just let us know you want to increase your payments beforehand so we can figure out which creditors to pay more money.
Q: Should I keep paying my bills in the period before I send you my first payment?
A: That's your decision, however we recommend that you do if you can. There is a brief negotiation period of approximately 30 days after we receive your first payment. During this time we make arrangement for payments with creditors. If you miss due dates for bills during the negotiation period, you are at risk of negative information reported to the credit bureau.
Q: After I pay off one account, can I pay less?
A: That's your decision, but we highly recommend that you pay the same amount and transfer whatever you used to pay for the other accounts to a high interest account. That way, as you pay off each account, you end up paying more to the remaining account, speeding up the process without changing your monthly spending plan.
Q: Will I receive harassing phone calls?
A: You might the first several months on the program since it takes time for your creditor's collections department to find out you're with a debt consolidation service. If you get a harassing call, inform the party to call our office and speak to your account specialist. If you get a call from a collection agency that is not part of your creditor's company, we will provide you with a cease and desist letter. 3rd party collection agents must obey this letter, according to Fair Debt Collection Practices Act. Make sure you tell your account specialist if you receive any calls from a collection agent.
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