Frequently Asked Questions
Credit Card Debt FAQS
When it comes to credit card debt, there are plenty of ways available to eliminate it when traditional payment methods aren’t working. Two of those options involve personal loans.
In normal circumstances, you pay your credit card bills every month on a schedule that works for your budget. Ideally, this means paying more than the minimum amount requested, since sticking to minimum payments has a way of leading to debt problems.
When this kind of problem occurs, you need to find an alternative way to eliminate that debt as quickly as possible so you don’t start missing payments and facing defaults that damage your credit score.
When you take out a loan to pay off your credit card debt, it’s called a personal debt consolidation loan. Basically, you’re rolling all of those debt payments into one bill – hence the concept of “consolidation.”
You take out enough money to eliminate your other debts. So when you receive the loan, you immediately turn that cash around to pay off all of your outstanding credit card debt in full. This zeros out the balances on your credit cards, so as a result the only obligation you have to worry about is the loan, itself.
The difference between the two types of consolidation loans involves whether the loan is secured or unsecured. A secured loan requires some kind of collateral from the borrower, while an unsecured loan doesn’t.
Collateral is an asset that you borrow against; it protects the lender so in case of default, they can repossess the collateral to cover the remaining balance. For most secured debt consolidation loans, the collateral is your house. This is also called a home equity loan. You borrow against the equity you have built up in your home.
Student Loan FAQs
Most people think of bankruptcy as a completely clean slate – you take a credit penalty in exchange for a judge clearing your decks of all your outstanding debt. Unfortunately student loans don’t operate like other debt so bankruptcy may not fix your situation, even if the loans are private.
You work hard for every paycheck you earn and probably can’t afford to lose income because your wages are garnished. The same thing is true of your tax return. Understand what the government can do if you don’t pay back your student loans on time and keep up with the monthly payments.
Unemployment and even underemployment can make it impossible to keep up with the monthly payments on your student loans. If you can’t afford to cover your loan payments along with your other obligations, we offer options for finding relief so you can make a plan to avoid financial distress.
Tax Debt FAQs
If you know you won’t be able to pay your taxes, it might seem like a good idea to just not file until you can at least get back on your feet and have the money to pay. But really, this is the worst choice you can make when it comes to debt.
If you don’t file, then how does the IRS even determine how much you owe in back taxes and when to audit you? With today’s technology and our cultural dependence on databases, you’re going to have a hard time hiding forever.
If your spouse causes problems with tax debt, such as not filing, not paying on back taxes and even underreporting income, you may not find out until the IRS comes after you for the debt – even if you’re divorced. We help you understand your rights to claim Innocent Spouse Relief and tell you what you need to know to qualify.
Credit Correction FAQs
If you’re trying to maximize your credit score to help you accomplish a specific financial goal, then it’s important to understand how long the process generally takes so you can plan accordingly. Contact us to see what you can expect with credit repair and how soon you can expect a better score.
There are actually three basic level of service when it comes to credit repair, each with a different price range on how much you can expect to pay. We walk you three each level and the associated costs – from 100% free DIY to top-of-the-line concierge credit services for mortgage approval.
Federal law gives consumers the right to correct costly mistakes and errors in their credit profiles, regardless of where the consumer happens to live. However, that doesn’t mean that every service provider is licensed to work with anyone, anywhere.
If you need more information or are ready to get started, call us at (844) 334-1561 or complete the form to connect with debt specialists now.