A: By not making your minimum monthly payments to your creditors, you are breaking the terms of your agreement and most likely will be reported to consumer reporting agencies as a delinquent account. This is the case whether you are currently enrolled in a debt settlement program or not. Upon enrolling in a Debt Settlement program, your credit score will probably get worse before it gets better; however, this may be a better alternative than not having to file for bankruptcy!

Once we set up debt consolidation relief, you should receive a certificate from your creditors stating paid to the satisfaction with a zero balance owed. However, it is important to remember that if you want to maintain a “good credit rating”, you need to pay your bills on time; anything else will cause your credit score to suffer. Find out how to improve your credit score.

A: Financial Rescue, LLC (FRLLC) affiliates have programs to fit your needs between 12-48 months. However, it could be sooner depending on the individual situation.  With debt settlement programs, there are no pre-payment penalties so, the faster you save, the faster you'll become successful in the program.

A: Financial Rescue LLC evaluates each client’s situation on an individual basis. While the programs work aggressively to reduce your debt balances, creditors are under no contractual obligation to negotiate or accept debt settlement programs offers. Estimates are based on historical results and individual results may vary. Financial rescue rod Mercado affiliates have been successful in negotiating for our client's unsecured national debt support with an average settlement of 40 to 60%.

A: A debt management program differs from a debt relief solution in a few ways. The debt amount owed is not reduced with the debt settlement program but with a simple interest rate reduction program. You will combine all your debts and make one payment each month. The average rate reduction can vary between 6-10%.

This type of program has a lessened effect on your credit score because monthly program payments will still be distributed among all of your enrolled accounts. However, your credit rating may have an adverse effect.

A credit and debt relief program has a similar approach where your debts will be combined with one monthly program payment but your debts are negotiated for less than what you owe. The average settlement ranges between 40-60% debt reduction.

In debt resolution, your account will be handled by an attorney, paralegal, and legal assistants. A creditor tend to treat an account differently when they know they must obey all of the laws governing them, and an attorney is going to be familiar with the pros and cons of credit consolidation and laws of your state, which can definitely give you an advantage.

A: A secured debt is a debt in which the creditor maintains a security interest in an item or piece of personal property such as a house, automobile, boats, etc. With secured debts, if you fall behind on payments, the lender can repossess the property that originally secured the debt. An additional drawback to secured debt is the fact that you may remain liable for the deficiency balance owing on the debt after your property has been repossessed and sold. However, the laws vary from state to state.

Unsecured debt is debt in which you borrow from a creditor to obtain goods or services on credit in exchange for your promise to repay the debt. The primary difference between secured and unsecured debt is that unsecured debt is not collateralized by personal property. Unsecured debt is commonly given in the form of credit card debt, commercial debt, medical debt, automobile repossessions, utility collections, and some personal loans. In many cases, these accounts can be successfully resolved through a debt resolution program.

A: A credit report is a record of your credit activities. It lists any credit card accounts or loans you may have, the balances, and how regularly you make your payments. It also shows if any action has been taken against you because of unpaid bills.

A: You are entitled to receive one free credit report every 12 months from each of the nationwide consumer credit reporting companies—Equifax, Experian, and TransUnion. This free credit file can be requested through Annual Credit Report or by contacting the companies directly by phone or by mail as listed below.

To process your request, you will need to provide specific information, such as your name, current and previous addresses, telephone number, social security number, and date of birth. Also, to verify your identity, other information such as a copy of your driver's license, utility bill(s), or bank statement may be required. Keep in mind that the three large bureaus do not necessarily share information with each other.

The content of your credit report can be different at each bureau, so it's a good idea to request copies from each one.

To contact the three major credit bureaus:

Equifax
P.O. Box 105873
Atlanta, GA 30348
https://www.equifax.com
(800) 685-1111

Trans Union
Consumer Disclosure Center
P.O. Box 1000
Chester, PA 19022
https://www.transunion.com
(800) 916-8800 or (800) 888-4213

Experian (formerly TRW)
P.O. Box 2104
Allen, TX 75013-2104
https://www.experian.com
(888) 397-3742

A: There are usually four types of information:

1. Identifying Information: Your full name, any known aliases, current and previous addresses, social security number, year of birth, current and past employers, and, if applicable, similar information about your spouse.
2. Credit Information: The accounts you have with banks, retailers, credit-card issuers, utility companies, and other lenders (accounts are listed by type of loan, such as a mortgage, student loan, revolving credit, or installment loan; the date you opened the account; your credit limit or the loan amount; any co-signers of the loan; and your payment pattern over the past two years).
3. Public Record Information: State and county court records on bankruptcy, tax liens, or monetary judgments (some consumer reporting agencies list non-monetary judgments as well).
4. Recent Inquiries: The names of those who have obtained copies of your credit report within the past year (two years for employment purposes).

A: Credit bureaus collect information from the best debt settlement companies that have previously extended credit to you, such as a department store that issued you a credit card or a bank that granted you a personal loan.

A: A Loan Modification is not based on credit. The banks are trying to make a good loan out of a troubled loan. The loan modification will not hurt your credit; generally, only late payments or foreclosure will negatively affect your credit score.

A: A Loan Modification is when the bank allows a change in the terms of your existing mortgage. The purpose of a modification is to significantly lower your monthly payments, for either a temporary or permanent period of time.

A: Anyone who is having trouble paying his/her existing loan may qualify for a loan modification. In today’s housing market, banks are willing to work with mortgage holders who are having trouble paying their mortgages. However, homeowners with a high probability of getting a loan modification are those currently in an adjustable-rate mortgage, who have a high-interest rate, and/or are experiencing any kind of debt settlement hardships.

A: The government has asked for ALL lending banks to help in the foreclosure epidemic and modify mortgages for all troubled homeowners. Going to your lender with the representation of an Attorney will make a scary debt consolidation relief process seem simple.

A: While it’s difficult to negotiate your debt on your own, it is possible.  Financial Rescue LLC and its top-rated debt relief companies have the expertise and knowledge to handle such matters and can guide you in the right direction. Financial Rescue Rod Mercado will review and discuss with you your debt settlement options. Our debt resolution technique involves assessing your individual financial situation and determining what option is in your best interest. Many different options and payment structures allow you to customize your debt relief program. Our Debt Arbitrators can help ensure that you get the best settlements possible.

A: With a debt consolidation relief program your debts will be combined with one monthly program payment but your debts are negotiated for less than what you owe. The average settlement ranges between 40-60% debt reduction on completed debt settlements. In most cases, you may complete the program within 12 to 48 months. Once a settlement has been completed on your behalf, you will no longer owe the debt and your credit report will reflect a zero balance.

Bankruptcy should be your last resort. Depending on which type of Bankruptcy is filed, you may still have to repay your debt and a monthly payment may be established. Bankruptcy is public record and will appear on your credit report for a number of years. There are pros and cons of debt consolidation but, in some cases, debt consolidation may be a better alternative than Bankruptcy!

A: In some cases, delinquent tax relief request can be filed with bankruptcy, however, there are a few rules to determine if you qualify. Please consult one of our tax professionals to review your options.

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