Debt settlement is when your creditor agrees to accept less than you owe to satisfy your debt. This process usually involves negotiations between the consumer and his or her creditors to settle unsecured debt for less than the full balance. These negotiations are often conducted on behalf of the consumer by a professional debt negotiator.
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Debt settlement can be an outstanding debt relief option for people who cannot afford Consumer Credit Counseling The Whitelight Organization will customize a savings plan that fits your financial situation and help you set-aside funds to pay off settlements. Our skilled negotiators will speak on your behalf, While you deposit money into a savings account each month. Once enough money builds up in your savings account, W.L.F uses those funds to obtain a payoff settlement with your creditors for less than the outstanding balance.
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If you are up to date with your monthly payments, you should expect to pay roughly about 50% of the amount that your currently paying, But with our financial relief programs the funds will be paying off what you owe rather then just an interest rate or trumped up finance charge. This is a key factor in having you debt free in under 4 years.
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Accounts that have been settled appear positively on credit reports. Your credit rating will decline on the front end until the debts can be eliminated, whereupon your credit rating will improve again because the most important factor when determining a credit score is the "debt to income ratio". Clients generally experience an overall improvement in their credit score once the settlement process has been completed. Once you are free of the debts you have placed in our program, Whitelight Financial Services, Inc. will provide you with advice on remaining debt-free, improving your credit rating and building a financially secure future. If you have been unable to keep up with the minimum monthly payments to your creditors, then the debt has already been reported as delinquent, which has most certainly affected your credit rating. Generally this also means that you have a high debt-to-income ratio, further contributing to a poor credit score. Remember a lender looks at many factors to determine credit worthiness, your credit score is just one of them. The most important factor remains to be your debt-to-income ratio. If you eliminate the debt, your credit improves dramatically. Your future financial welfare remains the highest priority for Whitelight Financial Services, Inc.; our knowledge and experience can be relied upon in making this goal a reality.
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The length of time to complete your program will depend on the amount of your current debt and the amount of time you take to fund your Debt Free Savings Account. Whitelight Financial Services Inc. usually helps a client eliminate their unsecured debt within 12-36 months. Your Debt Consultant will advise you of the amount of time it will take when you request your free debt settlement consultation.
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Only unsecured debts, or debts without collateral, are permitted in our program. Examples of unsecured debts include: credit cards, medical bills, personal loans, department store cards, gas cards, apartment lease judgments, etc. A secured debt is one in which a creditor holds something of value as collateral, such as your home or car. We will not add these to your program. However, if the collateral is repossessed or foreclosed, we may be able to help you resolve what you still owe on the balance of the loan and help restore this damaging mark on your credit.
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Yes, secured loans such as automobile loans and home mortgage loans, as well as government sponsored debts such as student loans and tax debt.
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Yes, you will probably continue to see reminders from your creditors or debt collectors. Once you enroll in a Whitelight debt settlement program, your accounts will naturally fall behind because you will be saving as much as possible into your set-aside account. Because of you financial inability to pay your bills during this process, you will likely receive some calls and letters from creditors and debt collectors. If you find an increase in calls or letters, simply direct them to us and we will notify the creditors to cease and desist all letters and calls.
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Not everyone qualifies for debt settlement. Generally, debt settlement is an for people with overwhelming debt who have endured personal or financial hardships that prevent them from fully repaying their creditors. Typically, most debt settlement companies require that you have at least $10,000 in unsecured debt (debt that has no collateral, like a home or automobile, attached to it) and are experiencing a legitimate hardship, such as unemployment, illness or other situation that has compromised your ability to repay your debts.
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