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Debt Relief FAQ
How long can I expect to be enrolled in the WCCD Reduction Plan?
The length of the WCCD Debt Reduction plan is determined primarily by how much money
you pay into your settlement account each month. Although not required, you can
shorten the program’s timeline by making additional payments above and beyond your
monthly commitment. Based on your circumstances and budget, a Debt Reduction Specialist
will help you arrive at an affordable payment.
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What about secured versus unsecured debt?
Secured debt refers to debt for which another asset serves as collateral. Common
examples of secured debt include car loans, a home equity loan or credit cards
that are secured through a bank account. In the case of secured debt, creditors
can resort to selling the underlying asset to achieve full repayment of the debt.
WCCD is only able to negotiate unsecured debt as part of a settlement program.
In some cases, for example, an outstanding car loan balance remaining after the
car is repossessed, secured debt can be converted to unsecured debt and may become
negotiable. DRO routinely negotiates agreements on credit card debt,
personal loans and outstanding medical bills. Tax debt is only occasionally forgiven.
Student loans are forgiven only in cases of exceptional financial hardship.
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Are there debts that can't be negotiated?
WCCD cannot negotiate mortgage debts or any debt secured by a bank
account, securities account or a loan on a recreational vehicle or boat.
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Am I eligible for your program?
To be eligible, your unsecured debts must equal or exceed $10,000 and you
must earn enough each month to settle the debt through regular monthly payments.
Clients often discover that their monthly debt settlement payment is less
than the monthly payments they currently make. You must also have a strong desire
to become debt free and demonstrate a fundamental understanding of the WCCD debt reduction
plan.
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How much does it cost and how does WCCD make its money?
WCCD charges a flat fee determined by how much debt you enroll in our debt reduction
plan. A small monthly fee is also levied for bank account maintenance. Complete
details about the reduction plan are available by calling 1-800-374-1088.
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Will I truly be debt free when the program ends?
Credit reporting agencies will mark all accounts enrolled in our program as “settled”
with no outstanding balance, leaving you completely debt free!
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What if a current or former spouse is listed on one or more of my accounts? Must
he or she be included in the settlement process?
Generally, creditors will decline to free either a current or former spouse
from the account and will even exclude the spouse enrolling into the debt reduction
plan. In some cases, however, we may be able to enroll only one spouse.
To learn more about your specific situation, contact our debt specialists
at 1-800-374-1088.
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What about my credit score?
WCCD s' debt reduction plan will affect your credit score in several ways.
As mentioned earlier, credit reporting agencies will report all of your accounts
enrolled in the program as “settled” with no outstanding balance, releasing you
from all further obligations. Several other factors will also influence your global
credit score, making it important to think about the long-term impact of the debt
reduction plan and debt help options available to you. In the short
term, for example, the debt settlement process may negatively impact
your payment history. However, the impact may be negligible if you’ve been late
in making recent payments. Nevertheless, settlement usually has a positive impact
on another component that makes up your credit score: the amount owed. By the time
the settlement process ends, clients sometimes see their credit score improve
because they now have fewer debts or no outstanding debts at all.
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Can I use my credit cards during the settlement process?
WCCD strongly recommends that clients enroll all of their unsecured debt in
the negotiationprocess. We also recommend the use of debit cards instead
of credit cards. Clients are sometimes allowed a low-limit credit card to
deal with emergencies, but using such a card can seriously undercut the negotiation
process. Obviously, creditors may be unwilling to settle for less than the full
amount owed if they discover a client has a current credit card account.
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What about the future? Will it be possible to get credit cards, a loan or a mortgage?
Clients who ask these questions are usually ideal candidates for our program because
of their commitment to reclaiming their financial future. Once you complete our
program, you’ll have two characteristics considered important by many creditors:
the ability to pay your debts and a minimum number of other commitments. You may
still need to shop your interest in new credit to several banks or financial institutions,
but this process will be made easier by our post-program referral service to companies
that offer consumer credit counseling and help with re-establishing your
credit.
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Does WCCD provide credit repair services?
The removal of out-of-date entries in your credit history is the only truly
legitimate form of credit repair. WCCD not only protects client interests
during every phase of the settlement process, we also promise truthful reporting
about any and all debts we settle.
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Why can't I negotiate my own debts?
You actually can negotiate your own debts! But in the long run, it pays to have
an expert do the job, just as it usually pays to have an expert sell your house,
repair your car, or fix a stubborn leaky faucet. At WCCD, we’re experts in a specific
type of negotiation called debt negotiation. We’re on intimate terms
with the collection cycles, internal policies and Federal and State laws that drive
the credit and collection industries. Most importantly, the credit and collection
industries know us! Even though the credit industry is an expert at getting
people to pay their debts, their tactics don’t work on us. As a result, entry-level
negotiations start at a much lower point than is typically the case when the industry
negotiates with people like you. And even though WCCD is a fee-for-service company,
overall costs for our clients are lower than they can reasonably expect to negotiate
for themselves. And forget about taking those harassing calls from creditors, at
WCCD, that’s our job!
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Are debt consolidation and debt settlement the same thing?
Definitely not! A debt consolidation program rolls all of your existing debt
into one new debt. This new debt either has a significantly higher interest rate
or uses your home as collateral. Using your home to secure this kind of debt converts
your unsecured debt into secured debt, surrendering the home equity you’ve worked
so hard to build. Instead of providing true debt relief, these programs generally
create more debt and have a very different goal than a debt relief program.
For example, debt consolidators often receive compensation from the client as well
as the lender who issues or services the loan — something the client may know nothing
about.
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What should I know about bankruptcy?
WCCD firmly believes debt reduction to be a much better alternative than bankruptcy.
Bankruptcy should be the last resort because of its potentially crippling
effect on your long-term financial future. Most people have already heard about
the two types of bankruptcy, called Chapter 13 and Chapter 7. These differ
in terms of their financial impact on your debt freedom, the obligations you must
continue to meet, and the assets they may cause you to lose, including your home.
From a financial and psychological standpoint, both types of bankruptcy have ruinous
implications. That’s why we strongly advise against filing for bankruptcy before
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Will collectors still call and harass me during the WCCD program?
WCCD makes every effort to stop creditor harassment. After all, we want them to talk
to us and not you. While the law stipulates that creditors must stop if you instruct
them to no longer write or call, WCCD cannot stop creditors who operate outside the
law. However, we do have specific strategies to discourage further contact with
you. You should also be aware that a creditor may give your account to a collection
agency and that this agency can legally contact you, either in writing or by phone,
to inform you of this change. Here, too, DROwill leave no stone unturned
in our efforts to engage them in a meaningful conversation with us, instead of harassing
you.
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I represent a debt settlement company, can I work with WCCD clients?
WCCD works with SharpNET Solutions to provide our internet marketing resources. If
your are interested in debt settlement leads or aged debt leads, then please contact SharpNET directly.
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What happens if I miss my settlement payment?
As a WCCD client, you should take your monthly settlement payment just as
seriously as paying your rent or mortgage. That being said, WCCD realizes that emergencies
may occur that take precedence over debt management payments. Our policy
is to continue working with clients who miss payments for legitimate reasons, providing
they show a serious long-term commitment to our settlement programs.
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I represent a debt settlement company, can I work with WCCD clients?
WCCD works with SharpNET Solutions to provide our internet marketing resources. If
your are interested in debt settlement leads or aged debt leads, then please contact SharpNET directly.
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