Frequently Asked Questions
1) How will this program affect my credit?
Enrolling on a debt settlement program will cause current accounts on the program to become delinquent, which will have a derogatory impact on your credit score. However, if you are already falling behind, your credit has already been impacted. Thirty percent of your credit score is based on your debt to income ratio, which is a numerical comparison of your total debt to your total income. So while your payment history will be negative, settling your accounts will lower your debt to income ratio, in turn, positively affecting your credit.
2) Do I have to close all account enrolled on the BorrowBoost program?
Yes. On your credit report, it is better for the account to read "Closed by Consumer," than "Closed by Creditor." Closing your accounts will also remove the temptation to charge on the accounts.
3) Can I keep an account off the debt settlement program?
Yes, you can pick and choose which accounts to upload. By leaving an account off, it can portray to a creditor that you have the ability of making monthly payments to creditors, which can also affect the settlement process.
4) Is debt settlement the same as bankruptcy?
No, bankruptcy has far wider credit implications than a debt settlement program. Bankruptcy is for those consumers who do not have any income and can no longer afford to pay for secured items such as car notes, mortgages, etc. A bankruptcy will remain on a credit report for 7-10 years.
5) Can I be sued while on the debt settlement program?
While a creditor does reserve the right to pursue legal action against a client, this is typically the last resort. On our program, if you are summoned to go to court, we will attempt to negotiate a payment plan or settlement prior to the court date. If creditor suits start to become overwhelming, we can file a bankruptcy petition for you, assuming you have been on the program for 12 consecutive months.
6) Can you get the collection calls to stop?
While we will make attempts to reduce collection calls, we cannot stop all calls. Be polite and courteous to the collector, log the call on your log sheet and give the creditor the number to customer service.
7) Is it possible for one of my creditors to not accept a settlement?
While a creditor may ask for more money, rarely do they entirely reject a settlement offer. Our Law Firm will continue to negotiate with the creditor until we reach a fair and equitable settlement. If a settlement is not reached by the end of the program term, you will be refunded pro-rated fees for that particular account plus any balance left in your escrow account.
8) Can I pay more than my scheduled payment and accelerate my time to settle?
There is no pre-payment penalty fee and we strongly encourage you to pay as much as possible each month. This will help you pay off your debt faster, shorten the length of your program and allow you to start rebuilding your credit.
9) Will my accounts be sent to a third party collection agency?
Most accounts will be sent to collections due to non-payment. This is much more favorable than the account remaining with the original creditor. Third Party collection agencies must adhere to the Fair Debt Collections Practices Act which will minimize collection calls and produce very equitable settlements.
10) What are my options when negotiating the settlement term
