How does the Debt Relief Program Work?
Debt relief programs have been around for many years in one form or another. However, they’ve gained in popularity in recent years as more and more Americans have fallen into serious problems with their debts. One recent study reported that the average American household now has more than $16,000 just in credit card debt – not including personal loans, medical debts, mortgages and so forth. Also, the way that our economy has transformed from manufacturing to more of a service economy has caused a disruption that, in turn, has left many people unemployed or underemployed. And the harsh truth is that many people are knee-deep in debt because they badly mishandled their credit.
There are a number of ways to achieve debt relief. The most popular of these are debt negotiation (also called debt settlement), consumer-credit counseling, debt consolidation loans, balance transfers and the most serious of all declaring bankruptcy.
Each of these options has the same goal, which is to provide debt relief. However, consumer credit counseling, debt consolidation loans and bank transfers have one serious negative in common. They cannot reduce anyone’s debts. The only option capable of doing this is debt negotiation when it leads to debt settlements.
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Would You Qualify?
As noted above, to qualify for a debt relief program, you must be able to make a monthly payment into a settlement fund, which will be used to settle with your creditors. For many consumers, this monthly payment will be lower than the total monthly payments on their credit cards. This can help provide much needed financial relief to help with their debt problems.
You must also owe more than $7500 and be several months behind in your payments. This is because if you owe less than this and are only a month or two behind on your bills your creditors will have no incentive to negotiate. At this stage they would rather keep harassing you with the hope that they will ultimately be able to collect the full amount of the your debts.
One last criteria for our debt relief program is that you must be going through a financial crisis with no quick end in sight. This could be due to a recent job loss or reduction in hours, a separation or divorce which caused a reduction in income, death of a spouse, unexpected medical or hospital bills, student loans, or IRS taxes to name a few.
We have to demonstrate a financial hardship to your creditors to show that you qualify for a debt relief program. Once we can demonstrate a financial hardship, your creditors will be more likely to listen to our offers for settling your debts for less than the full balance because you cannot afford to pay off the full amount or afford their monthly payments anymore for the time being.
The Debt Settlement Process
Our debt settlement process begins when we accept a person into our program. He or she then begins sending Arete Financial money to fund an escrow account over which they have total control. When a sufficient amount of money has accumulated in the escrow account we begin contacting the client’s lenders to negotiate settlements. The way it works is that one of our debt counselors will offer to settle the debt with a lump sum payment but for less than the debt’s face value. As an example of this, our counselor might negotiate with a credit card company to get our client’s debt reduced from $10,000 to $5000. In the event the lender agrees to our settlement offer we will then ask our client to release enough money from his or her escrow account to pay the settlement. Of course, not all lenders will agree to settle for less than the total amount of the debt. However, we will never give up. We will continue contacting that lender until we are able to successfully settle the debt or it becomes absolutely clear that the lender will never negotiate.
Are You Ready for a Change?
Qualified Types of Debuts
- Major Credit Cards (Visa, MasterCard, Discover Card, American Express, etc)
- Department Store Cards Including Furniture (Sears, Macy’s, Gap, Paypal Store Cards)
- Gas Cards
- Bank Loans from Prior Banks
- Installment Loans
- Finance Companies
- Unsecured Personal Loans (American General, CitiFinancial)
- Repossession Deficiency Balances – you must have the current statement
- Business Debts – We do prefer for your business to already be closed. Also, you cannot have anything secured tied to any of the business accounts.
- Bank, Overdraft, and Associated Fees (you must have a statement and the debt must be with a collection agency)
- Cell Phones (Not Current)
- Credit Unions whose members are not Federal or Military employees
- Veterinarian Bills over $500
- Abandoned Time Shares – You must have current statements provided for them
- Judgments 6 months or older must be provided with documentation
- Back Rent (if you are not the current resident any longer)
Qualified with Circumstances
- Student Loans – Private And Federal
Please contact us to discuss your situation in order to qualify
Unqualified Types of Debts
- Mortgage Loans
- Auto Loans
- Child Support
- Back Taxes
- Speeding Tickets and/or Fines
- Current Cell Phones, back rent (current residence)
- Current litigation accounts (less than 6 months)
- NSF (Insufficient Funds) Checks
- Gambling Debts – There are exceptions, must pre-approve
- Newly taken/high cash advances, Balance Transfers and Large Luxury Purchases where 3-6 payments have been made (case by case depending on amount and timing of the transaction)
- AAFES or STAR (military)
- Car Repair bills
- Rent-a-center bills
- Warranty Contracts
- Insurance Policies
- Check Cashing Establishments
- Bail Bonds
NOTE: This list is not exhaustive, we have outlined the majority of the debts that do or do not qualify for a debt relief program. If you have a question about a debt you are not sure about, please do not hesitate to give us a call and we’ll see if we can help with that particular debt.
Our debt relief experts are here to help you discuss your specific situation and let you know how and if we can help you get out of debt and get your life back. We know how suffocating a mountain of debt can be. The constant worry about checking the mail, the dread of another debt collector phone call…there is help and hope available.
Why Choose Arete Financial
Here are some of the benefits that you will enjoy with a great debt relief company. Through Arete Financial’s help, you will:
- Get financial counseling and guidance from experts
- Be helped with a budget plan that addresses your bad spending behavior
- Have a lower monthly payment that will better fit your tight budget
- Get payment charges and fees waived
- Have a sizable portion of your debt forgiven
- Focus on one payment alone that funds your FDIC-insured account, which is where Arete Financial will get the money to pay off your debts
- Settle your debts without compromising the other financial obligations that are needed for your basic necessities.
- Live a less stressful life that is free from harassing creditors
Free Debt Relief Quote
Get A FREE Debt Relief Quote! See how we can help you become debt-free