Q1. Who does debt settlement work for?
A. The debt settlement program with Southwest Debt Services works for many people with many different situations. If you are struggling to get out of debt or to make your payment we can help. If your payments are current OR behind, your debt is NOT moving, you are making only minimum payments, and you feel there is no end in sight we can help. If you are feeling the strain from your credit cards and have asked what you can do then we can help.
Q2. How do you Apply?
A. Please call 877.287.0057 or if you prefer you can complete the form on our 'Contact Us' page by
clicking HERE. A Debt Analyst will review your situation and answer any questions you may have. RESPONSE TO ONLINE REQUESTS WILL BE WITHIN 24 HOURS.
Q3. How will Southwest Debt Services help me?
A. In your initial, free consultation your Debt Analyst will discuss the various options to you to make sure settlement is the best fit. If it appears our Program suits your needs the analyst will explain the program in more detail and prepare you to enroll. Our program will reduce the entire debt that you owe and allow you to become debt free in as little as 36 months (or possibly less). We work on your behalf to settle your debt by significantly reducing your balances and reducing your monthly payments (in most cases). We will prepare a savings plan for you, which will be used to permanently settle your accounts at the reduced balance. We counsel all our customers on how to respond to their creditors in ways that will improve their negotiating strength. When appropriate we contact the creditors on your behalf, sometimes by phone and other times by mail. At other times we provide information that will assist our clients to respond directly to creditors. The negotiation process takes place each time you accumulate the funds needed for each individual settlement. Over the duration of your Program the savings/settlement cycle is repeated until all of the client's unsecured debt has been resolved.
Q4. Does Debt Settlement have a negative impact on my credit?
A. If you do not make required minimum payments to your creditors you may be breaking the terms of your agreement with them and your actions will probably be reported to consumer reporting agencies as a late, delinquent, charged-off or past due balance. This is true whether or not you have enrolled in a Debt Settlement Plan. Depending upon the condition of your credit report at the time of enrollment, a Debt Settlement Plan may have an adverse effect on your credit report and credit score. After settlement, your creditor may report that the account was "settled for less than the full amount" on your credit report.
Q5. Should I put all of my credit cards in the program?
A. If you have one card or possibly two with low balances that you can quickly pay down to zero, then you might hold them open for emergencies. However, if the main goal is to become debt free as quickly and affordably as possible we advise enrolling the majority of your unsecured debt into the Program. This will eliminate a lot of small bills adding up and putting a damper on your budget. Your Debt Analyst will go over your creditors with you and offer input as to which accounts, if any, you should keep. You will work together to formulate a Program that best fits your needs.
Q6. How much will this cost me?
A. We have a 9% Enrollment fee that is based off the total balance of debt enrolled in our program. We also have a one time setup fee and monthly maintenance fee that one of our Debt Analyst's can explain further. All fees are included in the monthly payment which is designed to fit within your budget. There are no additional contingent fees, and no hidden or concealed fees. We do not have any prepayment penalties for getting yourself out of debt faster than anticipated and with our Program it can actually be less money for you.
Q7. Will I be totally debt free when I'm done?
A. Our program focuses on your unsecured debt only. We cannot help you with debt that is secured by collateral such as home loans, car loans, boat loans etc. However, after completing the program, all debt enrolled in our Program will be settled and you will no longer be responsible for those accounts. Many customers continue to use the savings plan that is part of your debt settlement program, and apply the savings to secured obligations. This can help you to pay off your secured debt ahead of schedule.
Q8. Will I receive phone calls from collectors?
A. Your creditors have every right to try and contact you in order to collect a debt. If you are not receiving calls now you will be soon and we will provide you with various tools to help you get through the process. We will tell you how to address your creditors when you receive their call and will provide you with our Creditor Relations number you can give to your creditors. Your creditors will be able to call in and talk with a representative about your Program
Working with the large number of clients we serve, we have learned a variety of responses for managing collection activities. We have also learned that there is no one method of responding to collection activities that is best for everyone. We have a staff of client relations personnel who assist our clients to handle these issues in ways that strengthen their negotiations.
Q9. Can Southwest Debt Services stop my creditors from calling?
A. NO. Your creditors have every right to try and contact you in order to collect a debt. However, we have been successful in eliminating most harassing telephone calls. If your account is in collections, collections agencies have to adhere to the FDCPA Guidelines. If you would like to learn more go to: Fair Debt Collection Practices Act.
Q10. Does Debt Settlement have a negative impact on my credit?
A. Depending upon the condition of your credit report at the time of enrollment, a Debt Settlement Plan may have an adverse effect on your credit report and credit score. If you do not make required minimum payments to your creditors your actions will probably be reported to consumer reporting agencies as a late, delinquent, charged-off or past due balance. This is true whether or not you have enrolled in a Debt Settlement Program. After settlement, your creditor will report the account having a zero balance and no longer past due.
Q11. Does Southwest Debt Services repair my credit?
A. Although our Program will not repair your credit it will put you in a better position financially to afford and obtain new credit. A credit score is comprised of many different factors with the two main components being your debt to income ratio and your payment history. The goal of our Debt Settlement Program is to settle your debt and have you debt free faster than making traditional monthly payments. This will improve your debt to income ratio by lowering the amount of outstanding debt you owe and in turn your credit will begin to repair itself.
There are companies out there willing to "fix" credit but always remember a legitimate debt cannot be fixed. Southwest Debt Services is not affiliated with any type of credit Repair Company.
Q12. Can a creditor sue me?
A. Although it doesn't happen often it can happen. There a number of things you can do if a creditor decides to sue you. If the creditor takes you to court and a judgment is issued we can still help you with settlement. We are able to settle judgments in the same manner as a credit card with the only difference being the amount. We settle judgments at a higher rate than a credit card and have been very successful in doing so.
Q13. What are the tax Consequences?
A. Your creditors will report cancelled/settled debts exceeding $600 to the IRS and you are required to report the same as income on your annual tax return. However, the IRS permits you to write off any "income" from canceled debts up to the amount by which you were "insolvent" at the time. You need to consult your own tax advisor for advice specific to your situation.
Q14. Can't I negotiate my debts with my creditors on my own?
A. You can negotiate your own debt but most consumers rely on the expertise of professionals to ensure they get the best settlement available. With most matters one can take care of things on their own but with certain matters you look to those trained with proven success. We have a staff of settlement negotiators whose only job is to negotiate settlement of unsecured debt, every day, five days a week. We settle more than 4.5 Million dollars of debt each month, and our settlement numbers are growing.
Q15. How can I get help?
A. Please call 877.287.0057 or if you prefer you can complete the form on our 'Contact Us' page by clicking HERE. A Debt Analyst will review your situation and answer any questions you may have.
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