FAQs (Frequently Asked Questions)
Q. How can I qualify for your program?
A. In order to qualify for our debt settlement program, you must be in a legitimate financial hardship. A financial hardship occurs when a debtor cannot afford repayment on a credit contract because of illness, unemployment, or other reasonable causes.
Q. What is debt settlement?
A. The term “debt settlement” is commonly used to describe the process of negotiating with creditors in order to adjust the total amount of debt owed. It is used by people in financial hardships as an alternative to other debt reduction methods such as debt consolidation, consumer credit counseling service, and even bankruptcy.
Q. When does Burden Free begin to settle my debts?
A. Burden Free cannot settle any debts unless a sufficient amount of funds have been saved for settlement. The amount of funds needed for settlement can and will vary drastically. Sufficient amounts of funds do not, by any means, guarantee that a settlement will be achieved.
Q. Are you consolidating my debt?
A. No! Debt settlement is not a “consolidation”. Our clients are setting funds aside to settle with their creditors while Burden Free negotiates the terms of those settlements.
Q. Is entering your program like filing for bankruptcy?
A. No! Debt settlement is not the equivalent of filing for bankruptcy, although debt settlement does have a negative affect on credit reports and credit ratings. Going through the debt settlement process does not guarantee that you will not have to file for bankruptcy in the future.
Q. Will this hurt my credit?
A. Yes. Debt settlement does have a negative affect on credit scores and credit reports. There are many possible derogatory marks, including but not limited too late payments and charge offs, that could be placed on your credit report as a direct result of going through the debt settlement process.
Q. How do I know you are settling my debts?
A. All settlements require approval from our clients. We never issue any payments to creditors without first receiving the approval of our clients. Your approval is given to us either verbally over a recorded line or through a signed agreement saying that you approve the settlement.
Q. Will my creditors call me?
A. Creditor and collection calls are common during the debt settlement process. Your creditors have the right to contact you; however, it is in our experience that creditor phone calls decrease during the course of the program.
Q. What happens if I miss a payment?
A. In the event that a payment has been missed, a representative of Burden Free will contact you in an attempt to reschedule the payment. If payments are constantly skipped and/or missed, we may need to reevaluate whether debt settlement is truly right for you.
Q. Do I have to enter all of my credit cards into the program?
A. No. It is not necessary to enter all your credit cards into the program. But you must stop charging on your existing cards, unless there is an emergency. If your creditors see that you can afford to use and pay some of your debts, but not theirs, they will not be willing to provide settlement offers. In reality, it is advisable that all of your cards, except one for emergencies, are enrolled in the program.
Q. Will you lower my interest rates?
A. No! Burden Free does not work with creditors to lower interest rates. Burden Free works on settling your accounts through negotiations. Lowering interest rates is a technique used by Consumer Credit Counseling agencies, a related industry, but very different business model.
Q. Is there a penalty for saving funds more quickly than the program calls for?
A. No. There is no penalty for saving more funds than initially scheduled on our program. In fact, Burden Free encourages its clients to try to accumulate funds as quickly as possible in order to reach settlements quicker. The more you save, the quicker Burden Free can start negotiating.
Q. Does Burden Free provide any guarantee?
A. No. Burden Free cannot guarantee that any account can or will be settled.
Q. Does Burden Free settle all my credit cards at once?
A. No. Burden Free can only negotiate settlements when funds are available, therefore the settlements typically are settled one at a time.
Q. Can I be sued while going through the debt settlement process?
A. Yes. Creditors do have the right to sue to collect on a debt. However, it is in our experience that creditors would rather settle an account than to commence with legal action. In the event that you are sued during the program, Burden Free will attempt to settle the account so that the legal action doesn’t continue, however the account will most likely be settled at a higher amount. It is possible that anyone entering our debt settlement program could be sued and it should be taken into consideration prior to entering the program.
* Individual results for each program may vary based on ability to save funds and creditors willingness to negotiate. Program does not assume any debt or provide credit score assistance. Program not available in all states, so please review all terms and conditions of program prior to enrollment.