|
 | Information |
 |
|
- What is Debt Consolidation?
Debt consolidation is the process in which a Debt Consolidation Specialist contacts your creditors and negotiates a reduced balance which may be paid over time to satisfy that debt and ultimately leave you debt free.
Back to top
- Who qualifies for this program?
GMA's Debt settlement programs are for people who are late on paying their debts or have little or no ability to pay their debts in the future and are possibly facing bankruptcy. This proactive approach is the most cost-effective option for people facing hardships including but not limited to:
Reduced income
Job Loss
Divorce
Poor money management
Underemployment
Medical Expenses
Back to top
- How will GMA settle my debts?
GMA will set you up with an affordable monthly payment in line with your income and expense budget and based on your total amount of debt. This payment amount is determined on a client-by-client basis between you and a Debt Consolidation Specialist. Based upon what you are able to pay each month into your settlement account, we can determine approximately how many months you will be part of the program, and ultimately be debt free. Your payments are put aside in your settlement account on a monthly basis. GMA will begin the negotiation process once you have accumulated enough settlement funds to make a reasonable offer to your creditors to settle the debt. Debts can be settled in two different ways. They can be paid either in one lump sum or a term settlement paid over an extended period of time. GMA settles each of your accounts individually until all of your debts have been paid and you are debt free.
Back to top
- Is bankruptcy a better option for me?
Filing for bankruptcy has serious consequences and should not be entered into lightly. Having your debts erased doesn't miraculously solve your long-term financial problems. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made major changes to bankruptcy laws, making it more difficult for many people to erase debts by filing for bankruptcy. These changes were prompted by years of complaints by banks and other financial institutions who believed that the bankruptcy laws had been abused by many consumers. Many people now will not be able to eliminate their debt by simply filing for Chapter 7. Many may now be required to file Chapter 13, which requires you pay back a portion of your debt under the supervision of the court. Filing for Bankruptcy, regardless of whether you file Chapter 7 or Chapter 13 will have long lasting negative effects on your credit history and public record for up to 10 years. The negative marks of bankruptcy on your credit may make it difficult to apply for future credit, secure jobs that require a positive credit profile, rent an apartment, purchase a vehicle, etc.
Back to top
- Does debt settlement have a negative impact on my credit?
Your credit score will be negatively affected upon entering this program. The level of effect will depend on your original credit profile. If you are already delinquent on your accounts, a debt settlement program may not have much effect since the accounts are already reporting derogatory on your credit report. If you have delinquent unpaid accounts, debt settlement may be an excellent option to resolve the unpaid balances. If your accounts are still in good standing, debt settlement will have a negative effect on your credit score. Your creditors will continue to report your accounts as "past due", "charged off", or "in collections" until the debt is settled. Settled accounts with a zero balance are positive compared to unresolved delinquent debts or bankruptcy. After all the debts have been settled and paid, your credit score should begin to improve since the negative items have been resolved. There are several factors used to determine your credit score including your debt amount, balance to limit ratio, payment history, length of credit history, and types of accounts. As each of your accounts are settled throughout the debt settlement program you are then free to rebuild your payment history on your new or existing accounts and rebuild a solid credit profile. A high credit score is desirable to have, but if you are facing a financial hardship and are unable to pay your accounts, then your first priority should be to pay your delinquent debts and get back on your feet financially.
Back to top
- Can I still use my credit cards if I use this program?
Any account that you enroll in the program will no longer be active. Any cards you do not put into the program should only be used for emergency purposes. This program is for you to get out of debt to get you back on your feet financially.
Back to top
- Can my wages be garnished by my creditors?
Creditors have the right to pursue legal action and perhaps ultimately a wage garnishment to recover their money, using a debt settlement program such as GMA's will allow you to avoid any garnishment or legal action.
Back to top
- Is there an upfront fee for the Debt Settlement service?
No. There is absolutely no upfront cost to establishing a debt settlement program with GMA. The attorney fees are paid through the monthly payment amount and is ultimately a deduction from the amount you saved.
Back to top
 |
|
