Clear Debt Financial FAQs
What do you want to know?
Program
Following enrollment you set-aside and save a fixed amount of money each month. The amount you save each month is determined during your initial consultation and is based on the total amount of debt you enroll. As your savings builds, we work with your creditors and collectors to reach agreeable settlements on each of your accounts. Once a creditor settlement has been negotiated you will be contacted to authorize it prior to payment. This process repeats until you are debt free!
The program is designed for anyone in financial hardship who is falling behind or having problems making minimum payments to creditors on their unsecured debts. You must have a minimum of $10,000 in total unsecured debt and a minimum of $500 of unsecured debt with each individual creditor.
The average time it takes for each client is 24 48 months; however, it really depends on your ability to save the funds that will satisfy the amount of your settled debts. The program length is an estimate and not a guaranteed time frame.
No! We work through your accounts one by one until they are all settled, collecting our fee as they go. As a general principle we don’t collect any fees until an account has been settled.
We advise enrolling all qualifying unsecured debt accounts into the program. If you leave an active credit card outside of the program it will be more difficult to negotiate with your creditors.
We will do our best to negotiate satisfactory settlements on every account that is enrolled in our program. Unfortunately, our program does not have any effect on debts that remain unenrolled. The most important advice we can give our clients is to adhere to the program payment plan and work towards an on-time graduation.
Alleviate Financial debt settlement programs can enroll most credit cards, store cards, medical bills, and other unsecured debts. We cannot assist with collateralized debts such as mortgages, debt held at federal credit unions, and federal student loans.
Creditors
No, we do not make monthly payments to your creditors. The purpose of the debt resolution program is to negotiate down the balance of your debts.
It is our understanding that you have enrolled in this program because you are in financial hardship and are unable to make payments to your creditors. If you are able to pay your creditors every month, then it is in your best interest to do so and this program may not be the right program for you
Receiving calls is normal when you are in hardship and behind on your payments. It would happen whether you are on the program or not. A creditor has a right to call you to collect payment, and there is no way for anyone to make the calls stop completely. However, we provide all our clients with information in our Welcome Package which will help in dealing with collector calls.
All collectors must abide by the FDCPA guidelines. These are rules put in place to make sure you are not being harassed. If you feel this is happening, make sure to call our account manager team. If we determine collectors are violating collection law, we can transfer you to one of our partner attorneys who specializes in debtor’s rights.
Since you are in true hardship and cannot afford to pay your creditors, the best thing to do is to inform them that you wish for them to send all communications to you in writing. There is no law that says you have to talk with your creditors. The main thing you should do if you are being bothered by a collector is call our account manager team and they will explain the best way to handle the calls.
Negotiations
Each situation is unique; therefore the time in which we begin to negotiate settlements will be different depending on various factors (amount of debt, stage of delinquency, type of creditor, your income, etc). In some cases, we will contact them right when the program begins and in some cases we will contact them some months later. Our staff is trained in knowing when the best time to initiate negotiations on the account is. Keep in mind that if we call too soon, it can have a negative impact and cause escalated collection activity.
Individual results always very. Your monthly savings plan is based on the average settlement. If your total settlements average lower than the initial estimate, then you will have money left over in your account or you will finish the program sooner. However, if your total settlements average higher than the initial estimate, then you will either be in the program longer or be asked to add additional funds to your account.
You can absolutely attempt to settle debts on your own. The downside of self-settlement is that you likely have no experience in dealing with creditors and may be unable to optimize a settlement strategy
Account
The account you open is with an FDIC insured bank account and it is administered by Debt Pay Gateway. Keep in mind that the only way to access it will be through the administrator however you will receive bank statements on a regular basis.
Once we have reached an acceptable settlement with one of your creditors, we will fax, mail or email you the settlement offer to get your final approval. Whether you accept or decline will be up to you.
Yes, you will receive a Welcome Pack from Debt Gateway which provides your account username & password.
Lawsuits
Yes, it is possible to be sued by one of your creditors. If you receive a summons or any other legal document from any of your creditors, make sure that you fax it to us immediately. While we are not able to stop a creditor from suing you, we will do everything in our power to expedite settlement and reduce any stress or problems associated with litigation.
If you receive a summons or any other legal document from any of your creditors, make sure that you fax it to us immediately. We have established a relationship with a nationwide law firm who will handle your case and assist with expedited negotiations.
It is impossible to accurately pinpoint the exact chances of being sued because each person’s situation is different however in our experience only a small handful of clients end up in court. The chances of litigation vary depending on your income, employment, hardship, and many other factors.
Collections
A debt collector may contact you in person, by mail,telephone, or fax.
You have the right to bring suit against a collector in certain cases. We will be monitoring your creditor contact and evaluating the correspondence sent to you. If a law has been broken we have a relationship with a debtor’s rights firm that will file an action for you.
A collector has five days after initial contact to provide written notice detailing the debt owed, creditor, and what you can do if you feel they have made an error.
A collector may only contact third parties to find out how to contact the debtor. They may not identify themselves to third parties as debt collectors nor may they indicate that you are in debt.
Other
Yes. The debt resolution program will have a negative impact on your credit. Credit bureaus are notified throughout the settlement process. If you are experiencing a financial hardship your priority should be to pay off your debts as this will set the foundation for rebuilding your credit.
No, legitimate negative marks on a credit report cannot be removed. Your credit rating will begin to heal once the program is completed, provided your credit history is good on all the other accounts on your report.
Under IRS rules creditors are allowed to report settled debts exceeding $600 as a loss. In this event the settlement must be reported by you as income. You should consult with your tax preparer for specific advice on the tax consequences of forgiven debt and how it applies to your financial situation.
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DISCLAIMER: Read and understand the program before enrollment. Our program is not available in every state and fees may vary from state-to-state. We do not guarantee your debts will be resolved within a specific time or for a particular amount or percentage. Not all clients are able to finish their program for various reasons, including an inability to save enough funds. Estimates are based on actual prior results, which will always vary depending on your specific circumstance, including your enrolled creditors and program terms. Using debt settlement services will likely adversely affect your credit, may subject you to collections or lawsuits by creditors or collectors, and may increase the overall balances of your enrolled accounts due to accrued interest and fees. We do not assume your debts or make monthly payments to your creditors. We do not provide tax, bankruptcy, accounting, legal advice or credit repair services. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution.
*These results may vary on an individual basis.