Most common debt settlement questions :

Q. When will US DSP begin relieving my personal debt ?

A. Once you have completed all the steps and enroll into our program, US DSP instantly goes to work for you. Your creditors are notified and we begin the settlement process. Nonetheless, we can only settle debt when all of the appropriate funds are available in your personal settlement account.

Q. What can I do to see the progress taking place on my account ?

A. First, you do receive monthly reports that keep you up to date on the activity on your account. If in between reports you are curious as to what is happening you can give us a call at (888) 311-1431, Monday thru Friday from 8am – 8pm PST nd speak with a customer service representative.

Q. Will my flexible monthly income prevent me from qualifying and participating in the program ?

A. No. Our program is based on a client-by-client basis. The fees and payments are figured by what is most affordable for your specific situation.

Q. Will my creditor still call me after I enroll in the program ?

A.Most often creditors will continue to call you, but once they are notified instantaneously after you are enrolled into our program that we are representing you. Within about 30-60 days they should stop contacting you. We do recommend you keep a call log for your creditors and every call or letter you receive you record it, and report it to us.

Q. Will Does debt settling negatively effect my credit ?

A. There is no pain free way our of debt and during the program there will be a short term negative effect on your credit. Because minimum monthly payments are not being made to your creditors the can report you as late on your credit bureau until your account is settled. US DSP would not be settling the balance on your account but the entire account and once an agreement is made creditors will report your account as “paid in full” or “paid as agreed” with a balance of $0. Also as part of the agreement, we can get any derogatory information taken off your report that was reported on your account.

Once the program is completed, in 36 months or less you are completely debt free. Remember by taking care of you debt, the credit and ultimately take care of itself. Even with a high credit score a high debt to income ratio will offset your good credit score.

Q. Why would using US DSP to settle my debt benefit me more than trying to do it myself ?

A. Our negotiations team has extensive experience with working alongside creditors. Our impeccable relationship with creditors and collection agencies, gives us the advantage in negotiations. Our knowledge in consumer debt, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act also allows us to benefit you most.

Q. Do I have to include all of my creditors into your program ?

A. No. We actually recommend that you keep open at least one credit card for emergency purposes. Included accounts in the settlement program will need to be closed upon enrollment because creditors will not settle open accounts.

Q. How long will it take before I am completely free of my debt ?

A. Most often our program runs between 18 and 24 months after we’ve negotiated the total amount of your debt down to 40%-60%. This time frame includes all fees. The program could be shorter though, depending on your personal situation.

Q. How much does your program cost ?

A. Monthly payments are based on your own personal situation and are determined by what you can comfortably afford. It is also based on how much debt you have, your income, and your living expenses. The details are worked out between an US DSP Compliance Officer and you.

Q. What happens if my creditors will not settle ?

A. Creditors are aware that if they do not settle they will most likely get nothing. Most creditors settle very quickly and take what they can get. If they will not settle with our first offer, they will return with a counter offer that will still benefit you. In the case of you declaring bankruptcy Creditors know that they will receive absolutely nothing, so they will do as much as possible to avoid that.

Q. Will US DSP prevent late fees and interest from piling up on my account ?

A. US DSP can not stop interest or late fees from occurring onto an account. But, your personal program will reflect the two, because they are incorporated into the Settlement Program. Your savings here, due to our negotiations to a fraction of what you owe, are far greater than any fees or interest that could be added onto your account.

Q: Are debt consolidation and debt settlement the same ?

A. No. Debt settlement works with your individual creditors to reduce your overall amount of debt by negotiating specific payoff amounts.

Debt consolidation is a process in which you acquire a loan in order to pay off all of your unsecured debt by making it secured debt. But, qualifications for these loans become complicated and you will not qualify if you don’t have 20%-30% LTV in equity or if you have too much debt. It has been proven that about 70% of people have found that they are pushed deeper into debt than they were to being with. So, why would anyone want to make unsecured debt secured debt, and pay it off over a longer amount of time? And the most troubling aspect is if any payments are missed on your debt consolidation loan there is a possibility of losing the asset in which your loan is secured to, which is most often your home.

Q: What is the difference between debt settling and Consumer Credit Counseling ?

A. Debt Settlement and consumer credit counseling are different in most respects.

Most credit counseling companies have a non-profit status. Most consumers believe “non-profit” with “charity” and believe there is no charge for services. But, Consumer Credit Counseling Companies employ thousands of people and make thousands of dollars each month.

Debt Settlement will reduce the overall amount of debt one has by negotiating agreed payoff amounts with each creditor. It can save you thousands of dollars and years of repayment.

In Credit Counseling you typically meet with a Credit Counselor, who analyzes your unsecured debts, other obligations, and your monthly income. The credit counselor then devises a monthly budget and presents a plan that will lower credit card interest rates and occasionally, the monthly payment. The Credit Counseling Company will then contact all your Creditors and request that you 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, but most Consumer Credit Counseling programs run 48 – 60 months. 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.

It seems that the counselor charges what seems like a small fee, but you are not told that to Credit Counselors act as a stand-in of the Credit Card Company. Most of their money is made from “donations” from your creditors based on the amount they “collect” from you while you are in their program. The donations are the reason that the companies operate under the “non-profit” status because profit-status companies can not receive donations. Nevertheless credit counseling companies may not have the individuals best interest at heart.

Downsides to credit counseling are as follows :
• In a Credit Counseling program you will still pay the full amount of debt owed, but at a reduced interest rate. Credit counselors don’t always make timely payments, which often results in late fees and a derogatory credit history. And not all of your Creditors will agree to reduce your interest.
• You will not even be able to enter a hardship program unless you are a minimum of thirty days late on your payment history.
• Your payments will still be high and it usually takes 5 or 6 years to pay off the debt. Credit Counseling companies often advertise 50% lower monthly payments, but this almost never happens. But, the smaller monthly payments only string out the program period and do not get you out of debt any faster.
• Many these companies are funded by your creditors – the very people to whom you owe money.
• Your credit will also have a CC or Credit Counseling mark on it. This is viewed negatively by most lenders and may hinder your ability to refinance a home or get a loan.

Q: What if I’m sued and they get a Judgment ?

A.Right now in the United States there are between 200 and 300 billion dollars of uncollected (Money Judgment debt). The court does not require the debtor to pay, and will not even help collect. Very few people know how to find these assets or what to do when they are found. The result is that millions of Judgments are just sitting in files.

We negotiate all unsecured debts, which include judgments. Regardless of what stage of collections a debt is in, it can be negotiated.

Q: Will your program stop legal action against me ?

A.Creditor lawsuits are not common, but they do occasionally happen. All creditors do have the right to use legal means to collect a debt. It is a common tactic of collection agencies to threaten you with a lawsuit (which would be illegal if they really do not intend to sue). But, in reality collection agencies rarely ever sue. The creditor can only sue someone if they retain an attorney from your state. It also takes time and costs a lot of money to file a lawsuit against someone.

Lastly, a creditor can take legal action, but they can only collect what you have. Wage garnishments take time always hinge on your employment and may not be applicable in your state. If you own a home it is difficult for a creditor to attach the equity in your home and it may be protected by your state’s homestead act.

In conclusion, it is typically more cost effective for a creditor to settle than to pursue legal action. We cannot guarantee that legal action will not be taken, we are confident that our experience in dealing with creditors can reduce the possibility of this happening.

Despite any legal action that may or may not be taken, your account can be settled before, during or after the suit. Just because an account goes to legal action does not mean that we cannot settle it. The threat of legal action can be the scariest of all, IT CAN BE HANDLED.

Note : We cannot provide you with legal advice. We work with your creditors to find a solution that will satisfy everyone before legal action is taken.