Frequently Asked Questions (FAQs)
How do I know if Debt Settlement is the best option for me?
Debt Settlement is a disciplined and strategic approach to resolve the debts and while there is financial freedom at the end of this journey, but the customer has to be absolutely certain about his goals and be willing to walk the tight rope.
We strongly encourage you to ask yourself the following questions before you consider debt settlement:
- Do you have a real financial hardship and are you really committed to being debt free?
- One can get trapped in debt due to loss of income, medical issues, living beyond means or any other reason. These are legitimate financial hardships that can happen to anyone for little to no fault of their own, and any of these situations can cause turbulence in your financial life.
- Debt Settlement is not a walk in the park, it requires goal setting, resolution and discipline to get back your finances in track and regain your financial freedom. FREED offers you a fast and ethical way to become debt free.
- Are most of your debts unsecured, mostly from credit cards and personal loans?
- Most types of unsecured debts (without collateral) can be settled. If majority of your debt load comprises of personal loans, credit card debts, consumer loans, pay day loans, peer-to-peer loans, and education loans; you can expect good outcome from the debt settlement program.
- Do you have a monthly budget that you can set aside for the Debt Settlement program?
- You are required to build up savings for a Debt Settlement program. Your ability to quickly accrue funds in your special purpose account will determine how quickly you are able to eliminate your debt. We encourage our customers to aggressively contribute towards their settlement funds so we can help them resolve their debts in the shortest possible time.
What types of debt can you help me with?
How does Debt Settlement affect my Credit?
The good news though, is that credit scores tend to improve quickly once a debt settlement program has been completed. By engaging in good credit behavior, anyone’s credit score could recover over time. Moreover, as set out on your path to rebuild your credit, you would rather like to see “Settled” against your accounts than a “Willful Default”.
How much will I save?
How much does debt relief cost?
Will I be totally debt free, when I am done?
Do you offer a money back guarantee?
Can I continue to use my credit cards or take money out of my personal line of credit?
However, at FREED we know it’s difficult to make do without at least one credit card for emergency expenditures. To that end, it may be advisable for clients to maintain one card account that has a clean payment history and preferably low outstanding balance.
Your Counsellor at FREED will help you decide the best plan of action based on your current financial situation
Should I keep paying my credit card bills?
Whether you settle your debt on your own or work with FREED, the most effective way to get creditors to negotiate is by showing them you are unable to pay your debt in full due to a financial hardship. Letting your payments go into default is a good way to do this. Once your creditors understand that you are unable to pay in full, they are more likely to accept a reduced amount as settlement. If you are able to save money in this program and make payments to your creditors at the same time, then you probably don’t actually have a legitimate financial hardship.
Do interest and late fees accrue on my accounts?
Do you guarantee that you will settle all of my debts for a certain percentage?
Will debt collectors call me, will they harass me?
Can a creditor sue me?
In an unlikely scenario that you get sued by a creditor, we have the experience and are prepared to handle these types of collection strategies. We are not attorneys or are licensed to practice law, but we have engaged a Consumer Advocacy Law firm that specializes in consumer debt litigation cases. If a creditor files a lawsuit, we will consult with the law firm to determine the best course of action. The cost of an initial legal consultation is included in the program and is available to all qualifying customers. The clients will be responsible to pay for the legal representation and other court fees, as applicable.
Can I negotiate on my own?
Debt Settlement is complex and time-consuming, also, many people may just not have the mental strength and the perseverance to haggle with the creditors. The average customer is on the backfoot when interacting with the creditors due to the embarrassment and shame he feels for having fallen back on the payments. Most people will find it difficult to deal with the pressure tactics, tricks, threats and traps used by creditors. Also, like any other business, there are tricks of the trade and leverage that a professional is able to apply to get the best results, this is where FREED comes into play. Our knowledge and experience give us the leverage and the strength to represent you to your creditors and negotiate the best settlement and outcome for you.
Is debt settlement legitimate/is it legal?
Who controls the account where my funds are held while I await settlement?
We love to engage with customers and are there to handhold you throughout this journey of financial freedom.