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Answers to common questions handled by our
support staff.
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Who is qualified for our debt settlement program?
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Who does not qualify for our debt settlement program?
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Do credit card companies treat their customers fairly?
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Will debt settlement have a negative effect on my credit?
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Will the ADS Program repair my credit?
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Can your
program stop my creditors from calling?
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What are the legal ramifications of the debt settlement
process?
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When should I consider Bankruptcy?
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What is secured debt vs. unsecured debt?
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How long will
the debt settlement process take?
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How does debt
settlement compare to debt consolidation?
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What is consumer credit counseling?
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How does the ADS Debt Settlement solution work?
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What will I pay for a membership to the ADS Program?
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Can
I receive additional help and use your online program?
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Our program is for
only those who are experiencing legitimate financial hardships due to a
layoff, death in the family, medical crisis, loss of employment hours,
divorce or separation, or other unforeseen problems that disrupts even the
best of financial plans and prospects. If you find yourself at your
wits end and overwhelmed by the collection process, your payments are late,
have little or no way to pay your debts in the future and are facing a
possible bankruptcy then Debt Settlement is a legitimate, ethical, and sound
business decision made between you and your creditors.
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If times are currently
tough, but you feel this is a temporary situation, we encourage you to fight
through your short term situation and pay your debts. Our program will
show you several ways to deal with your creditors to help you out of your
current delinquent status and return your account to good standing. Our
program is not for those who wish to scam the system by running up high
debts, especially cash advances, knowing they could not repay. Our system
is especially not for those who want to default on their alimony or child
support.
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Most people want to do
the right thing and handle their debts in a fair and honest way. However,
unforeseen circumstances can often derail even your most sincere intentions.
Debt Settlement is not for everyone; and ADS does not advocate that anyone
default on their obligation by running up high balances and walking away
from their responsibilities. If, however, you are truly experiencing
difficult financial times, Debt Settlement can help you achieve financial
relief for you and your family.
Let’s discuss the
fairness of the credit card banks and the system they have fostered which is
rigged against you the customer. While the undisciplined actions of the card
holders are a huge factor in the debt explosion Americans are now
experiencing, the policies of the credit card banks are increasingly
responsible for much of the problem. They bombard you with easy to start
applications (even college kids can get credit 5, 10, or $15,000 and they
don’t even have a job) with attractive interest rates and generous limits.
You sign up for this new card, for example at 9% APR, and from day one the
intention of the company is to either increase this interest rate or catch
you with a late fee or over the limit charge.
Here are some examples
of how the credit card companies manage their business to achieve maximum
profit:
a)
Late payments
on your card. First of all what is late? You could have sent your payment
a week in advance, but unless it is processed by their processing center
in time, it is considered late. Many companies now have a fixed time on the
due date that the payment must be processed by or the payment is considered
late. Miss the time or date and your 9% interest grows to 25% or higher and
you have a $30.00 late fee. A shocking statistic that the credit card
companies don’t want you to know is that 30% of their annual revenue is from
late fees and over the limit charges.
b)
If you are late
on any other card or loan, the “universal default penalty” found in the
small print kicks in, allowing them to raise your rates since this pattern
of delinquent payments makes you a higher risk account. Remember these
companies spend millions to monitor their
customers spending and financing patterns.
c)
If you
consistently make only the minimum payments, even though you are their most
profitable customer, they will label you as an account experiencing
financial difficulties and a default threat. So what do they do to help you
through your financial hard times, they raise your rate.
d)
If you consistently
“max out” your card, you are considered overextended and a potential
problem. Your rate goes up.
e)
You apply and
receive another card. Now they determine you have too much credit. An
interest rate adjustment upward is possible. You should read the fine
print on the back of your agreement.
f)
Suppose any of
the above happens to you, and your status with your company is lowered to
potential credit risk. They now have the option to reduce your credit
limit, i. e. the amount you are able to borrow say from $5000.00 to
$3500.00. Since many customers do not keep up with the numerous notices
from their creditors, they borrow over their new limit and incur an over the
limit penalty.
So how does the system
protect and help you? It doesn’t! The banks hold most of the cards and
they dictate the rules. The more difficulty you show in paying your
obligations the harder they make it for you. It doesn’t make much sense,
but they get away with it. In 2006 , there were over 6000 companies
licensed to issue credit cards. The industry made a profit of $79 billion
dollars with late fees and over the limit charges totaling $23 billion
dollars.
Look at the 4th
quarter 2006 profits announced by the largest credit card banks:
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Bank of America/ MBNA |
$5.26 Billion in Profits |
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Citigroup |
$5.13 Billion in Profits |
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JP Morgan Chase |
$4.53 Billion in Profits |
To be fair, not
all their profits are from their credit card business; but even if only 25%
is credit card profits, it exceeds a billion dollars a quarter. To
answer the original question, fairness should not be a consideration in your
decision. You must approach your debt reduction strategy in a
business- like approach. Debt settlement is an alternative to bankruptcy
where you and your creditor can both make the best of a difficult situation.
http://www.donotcall.gov
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Yes it will. As with
any debt relief program your creditors will realize you are having financial
difficulties and are seeking a way to resolve your burdensome debts. If you
currently have a high credit score your numbers will decline substantially.
If, however, your score has already suffered, the effects of debt relief
will not be as severe. You must consider, however, that unlike unmanageable
debt, which will take years if not decades to pay off, your credit rating
can be repaired in a reasonable amount of time, usually 12 to 18 months.
A question you should
ask yourself “Can I Afford Good Credit At This Time”? We have been told by
industry experts (usually highly paid banking lobbyists) that you should
protect your credit rating at all cost. It’s obvious they know that the
average citizen does not understand the true meaning of their credit
standing. If they were honest with you, they would answer the question that
should be asked. What good is a high credit score when you are drowning in
debt. Your debt is killing you. Your debt keeps you awake at night. Your
debt prevents you from planning for your future. Your debt is costing you a
fortune. Your credit score is not important if your debt is out of
control. Your ultimate goal should be to get rid of your debt first, then
work to repair your credit.
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Not completely. We will give you
suggestions on how to negotiate with your creditors to assure the best
possible report to the credit report agencies. Your credit score should improve upon the successful completion of our
program, since these debts are paid and your debt-to-income ratio will
improve. Although debt-to-income ratios are not part of a credit score they
are an important measurement to mortgage and auto lenders.
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No, your creditors
have the right to contact you by mail and
phone. Our program will show you how you can eliminate most of these
harassing calls. You will also learn your rights and how to deal with any
illegal collection activity.
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Can I be sued? Yes,
but any action will be limited to collecting this particular debt. The
threat of a lawsuit is usually just that, a threat. A recent study shows
that only about 1% of these types of debts end up in court. If, however, you
are sued and lose, your creditor has the right to several recourses
including levies, liens and wage garnishment, but these are extremely rare
occurrences, and should not discourage you from seeking debt freedom. We
again will show you how to deal with all these scenarios, such as are you
judgment proof, does arbitration work, what is debt validation, and can you
work with your creditor to resolve your debt. Our program will discuss this
in great detail and offer strategies to gain the best solution all the while
protecting your rights.
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With its long lasting
effect both emotionally and financially bankruptcy should be your option of
last resort. Yet for those who have debts they cannot possibly pay back,
have the legal system working against them and have exhausted all other debt
elimination options then bankruptcy can work for you. Just be sure you
approach this option with a full knowledge of its costs both upfront and
hidden.
Our program will spell
out all the advantages and disadvantages of Chapter 7 and Chapter 13
options, and how the new 2005 bankruptcy laws could affect your decision.
Plus the long and short term affects on your credit and purchasing power for
the 10 years a bankruptcy filing stays on your credit report. Our
experience is that many people tire of the collection process and harassment
and use this option to solve a short term inconvenience without considering
the long term ramifications of bankruptcy.
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Secured debt is
defined as debt backed or secured by a mortgage or pledge of collateral or
other lien in order to reduce the risk associated with lending and which the
creditor has the right to pursue upon default. Examples of secured debt
would be home mortgages, auto loans, and student loans. Unsecured debt is
defined as debt not secured by collateral in which the creditor holds no
special assurance of payment. If the borrower defaults, the creditor
has no assets to back up the loan. Only unsecured debt can be involved
in the debt settlement process.
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Secured
loans: |
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Unsecured
Loans: |
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(Not Eligible) |
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(Eligible for debt
settlement) |
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Home Mortgage |
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Credit Cards |
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Auto Loans |
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Medical Bills |
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Car Payments |
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Department Store Cards |
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Student Loans |
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Oil/Gas Credit
Cards |
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Secured Loans |
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Personal Loans (unsecured) |
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Income Tax Payments |
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Overdue Rent |
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The length of time necessary to complete the debt settlement process varies
from case to case but on average, it takes between 12-36 months. Our online
program offers multiple calculators on your dedicated home page so you can
adjust your payments for all your credit cards to find the best way to pay
off your debts. We also show a complete debt settlement chart using your
credit card data so you can see exactly how the debt settlement process
works.
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The goal of debt
settlement is to reduce the overall amount of the debt, usually between 40 –
60% of the total.
Debt
Consolidation loans transfer the debt from one account to another and
typically takes
an unsecured debt and changes it into a secured debt (usually your home).
If you do not have enough equity, bad credit, or too much debt, it is not
likely that you will be approved for a debt consolidation loan.
Statistics show that about 70% of the people who obtain a debt consolidation
loan find themselves in deeper debt than they were originally within a two
year period. You
cannot borrow your way out of debt.
Ask yourself why you would want to go from an unsecured loan to a secured
loan over a longer period of time?
The main
problem with consolidation loans is that once you have paid off the credit
cards you have a whole new source of spending power, that is your zero
balance credit cards. If your spending habits do not change It does not take
long before these cards are “Maxed Out” again leaving you in a worse
financial situation. You end up not only having to pay back the cards but
also the consolidation loan. If you start missing payments on the
consolidation loan,
you stand to lose the
asset (usually your home) that the loan is secured against.
Be
careful of these debt consolidators, especially those that advertise as
non-profit or not for profit companies. The FTC and the IRS are
investigating these claims and have shut down or fined dozens of these
companies for misleading their clients.
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Consumer Credit
Counseling Companies typically have a non-profit status. Many consumers
confuse "non-profit" with "no charge for services", or charity. Non-profit
Consumer Credit Counseling Companies generate millions of dollars each month
and employ thousands of people. The way Credit
Counseling works is that you typically meet with a Credit Counselor, who
analyzes your unsecured debts, other obligations, and your monthly income. A
credit counselor then formulates a monthly budget and presents a plan that
includes lowering of credit card interest rates and sometimes, the monthly
payment. The Credit Counseling Company then contacts all your unsecured
debt creditors and requests that the consumer be permitted to enter the
bank's hardship repayment plan at a lower interest rate. Most hardship
plans are for a 12-18 month period.
During the program a single payment is sent to the Credit
Counseling company and they in turn make payments directly to all your
creditors for the next 48 – 60 months. The
consumer credit counselor charges what seems like a relatively small fee.
What you are not told is that the Credit Counseling companies act as a
surrogate of the Credit Card Company. They make most of their money from
"donations" from your Creditors based on the amount they "collect" from you
while in the program. An arrangement very similar to how collection
agencies are paid by creditors. So a credit counseling company may not have
your best interest at heart. These donations are the primary purpose for
these companies organizing under a "non-profit" status (for-profit companies
cannot receive donations.)
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ADS Financial has
created a complete online debt settlement website that gives you all the
tools and information necessary to settle your unsecured debts. There are
no monthly fees, no setup charges, no hidden charges, only a one time
membership fee that gives you complete access to our online debt settlement
program, with training and coaching, charts, calculators, sample letters and
scripts, interactive forum, and fully explained 5 options to help you stay
out of bankruptcy. Once you log-on to our website, you will have access to
your own dedicated homepage where you can manage your credit card accounts
online and compare your progress with other members anytime. You will have
access to our entire debt settlement program that guides you through the
process from start to finish. Our online program will show you how to get
started and what steps to take in order to verify your agreements We have
given all members access to our online forum where you can chat with other
members or in house professionals regarding your individual situation. If
necessary, we have attorney referrals to help with any legal issue at
reduced costs. Once you have finished our online debt settlement program,
you will have more information than most leading professionals in the
industry today.
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We built this website to help consumers
get out of debt at a reasonable and affordable price.
You will receive a membership to our
interactive self-help website which includes forum membership, instructional
training and coaching audio sessions, downloadable forms, multiple
calculators, charts, graphs plus much more. See our 5 reasons why the
ADS Approach vs. other debt settlement companies makes sense. You can settle your debts at
the lowest cost and in the quickest time. Most of all you will not pay
the industry standard professional fees.
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Yes. ADS is now offering you the
option of sending your information to all of our exclusive partner companies
that are using our program. All of our partners offer additional
services along with our program to help you reduce your debt. This way
you can see if their additional services will help you feel more comfortable
resolving your debt. Just click on the link below and fill out the
submission form and a representative from our partner companies will contact
you shortly.
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