FAQs

WHAT DOES USA DEBT AID DO?

 

USA Debt Aid is a leading debt negotiation company. We negotiate with your creditors to get a reduction of your outstanding credit card balances. We get your creditors to agree to a lump sum payoff amount and they will forgive the rest of your balance. Debt negotiation is one of the most effective choices available to consumers. It’s a great choice if you have more debt than you can pay off in a 2 – 3 year time frame or are experiencing a financial hardship that has you falling behind, or just about to be, on your monthly payments.

WHAT DOES IT COST?

First of all, there are no upfront fees and second, we only get paid when your debt is reduced. We only get paid for delivering results. Having said that, the fee varies by debt amount and the state you live, and normally ranges from 20-25% of the total debt enrolled.

DOES THIS AFFECT MY CREDIT?

Yes, debt negotiation will negatively affect your credit temporarily and it can be improved after you have completed the program and you are debt free. Your scores will improve after the program is complete, as long as the credit bureaus are notified. The severity of your credit score will depend upon various factors, including your baseline credit score. The effects are not as severe as bankruptcy. If you are already behind on your bills, your credit score will already be lower so the effects of our program may not be as severe.

Unlike a bankruptcy or a credit counseling program, USA Debt Aid’s settlement program will not show up directly as a notation on any of your credit reports.

IS THIS A DEBT CONSOLIDATION LOAN?

No, we do not offer debt consolidation loans. We can consolidate your debt into one low monthly payment. If you have bad credit, you will not qualify for a debt consolidation loan in the first place.

HOW LONG WILL IT TAKE TO GET OUT OF DEBT?

It depends on how quickly you can build up your settlement funds and save for the settlement offers. The program length varies between 24-48 months, the faster you can save, the quicker you can get out of debt.

It is our goal to settle your enrolled debt with your creditors within 24 months from the time you enroll in our program.

However, your actual debt settlement timeline will vary on whom your creditors are, how much debt you enroll, the size of your monthly program payments, and other individual factors.

CAN I CONTINUE TO USE MY CREDIT CARDS?

No, you will not be able to use your credit cards that are enrolled in the program. Creditors will usually close your accounts after you have missed a few payments anyways. You may choose which debts you would like to enroll in the program. Your debt consultant will help you decide the best plan of action based on your current financial situation.

HOW WILL DEBT SETTLEMENT EFFECT MY TAXES?

That depends. Your creditors will issue you a 1099-C form for any debt forgiven over $600. The forgiven debt counts as income. But, if you are insolvent (you have more liabilities than assets)at the time we settle with your creditors, you may not have to pay any taxes on the forgiven debt. IRS Form 982 permits for certain persons to avoid having to pay taxes on forgiven debt due to economic hardship.

“A taxpayer is insolvent when his or her total liabilities exceed his or her total assets. The forgiven debt may be excluded as income under the ‘insolvency’ exclusion. Normally, a taxpayer is not required to include forgiven debts in income to the extent that the taxpayer is insolvent.” – IRS.gov

You need to speak with a CPA or tax professional for help in this matter.

DO YOU OFFER A MONEY BACK GUARANTEE?

We offer a 100% satisfaction money back guarantee. Our Guarantee: By joining our program, you will be on your way to reducing your debts. If you are unsatisfied with our program you can cancel at anytime without any penalties or fees.

WHAT MAKES ME A CANDIDATE FOR DEBT NEGOTIATION?

A debt negotiation program is certainly not for everyone. Qualified candidates are those who have a legitimate financial hardship, which has caused them to fall behind on their payments to creditors, or will cause them to fall behind in the near future. USA Debt Aid does not welcome anyone into the program that has the intentions of defrauding, deceiving, or swindling their creditors. We only represent consumers who are truly in need of our services and stand to significantly improve their financial situation.

DO I HAVE TO INCLUDE ALL OF MY DEBTS IN THE DEBT MEDIATION PROGRAM?

No. Your consultant can assist you in deciding which accounts are best suited for the program and your current financial situation.

HOW DOES DEBT MEDIATION AFFECT MY CREDIT?

Debt Mediation has an adverse effect on your credit during the process as your enrolled accounts are in a delinquent status during the negotiation process. Your actions will probably be reported to the Credit Reporting Agencies as late, delinquent, charged-off, or past-due balances. Our goal, however, is to resolve your debts for the lowest cost in the shortest amount of time, without having to declare bankruptcy.

ARE THERE TAX IMPLICATIONS?

Any debt that is forgiven over the amount of $600 at the time of settlement, the creditor reserves the right to send a 1099-C claiming the forgiven debt to be taxable income. You may have to pay taxes on the forgiven amount. There is a form on the IRS website (Form 982) that is available for consumers with certain hardship situations that may exempt you from this tax. Please contact a tax advisor to discuss this issue further.

CAN I BE SUED?

Creditors do have the right to send debts to third party collection agencies and/or law firms in order to collect a debt. If this happens, we have a dedicated team that will negotiate on your account with the goal of resolving the debt for you. Based on our actual experience, it is a small percentage of enrolled debts on which lawsuits are actually filed. When this does happen, usually the purpose of the lawsuit is to force a settlement. As part of your Legal Service Plan, your legal team will respond and represent you properly, so your accounts will be paid off.

WHAT ARE THE BENEFITS OF A DEBT MANAGEMENT PROGRAM?

Typically, your interest rates are reduced, your monthly obligations are consolidated into one payment, and the time-frame in which it would normally take to pay your creditors is drastically less.

HOW IS DEBT NEGOTIATION DIFFERENT FROM BANKRUPTCY?

Bankruptcy is an option that is generally treated as a last resort. It will remain on your credit report for approximately 10 years & you can be denied employment, state licenses, insurance, as well as tenancy of an apartment. Most importantly, you can be denied virtually any type of credit with a bankruptcy on your report for several years. In addition, since the bankruptcy laws have changed recently, it is even more difficult to qualify for Chapter 7, the method of liquidating assets to eliminate your debt. You will not be allowed to discharge alimony, child support, taxes, student loans, judgments, or any loan on the bankruptcy petition. Under Chapter 13 bankruptcy, your debt payments are simply restructured meaning you will still have to pay a percentage of your debts while you suffer the consequences of bankruptcy. Debt negotiation is an alternative to bankruptcy.

WHO IS HOLDING MY MONEY WHILE I’M WAITING ON A SETTLEMENT?

Your funds will be held at Global Client Solutions, which is an FDIC insured trust account. This account will be opened in your name with you having ultimate control over its funds. The monies collected in this account get disbursed only at the time a negotiation is reached with the creditor and you agree with the settlement offer.

WHAT IS DEBT SETTLEMENT?

In a debt relief program, companies negotiate with creditors to lower the outstanding balance of the enrolled debt. However, the company creates an offer letter, not negotiate lower interest rates and do not distribute a monthly payment to creditors.

HOW DOES IT WORK?

After starting in the debt relief program, a client will make a monthly deposit into a special purpose savings account. As the balance of the fund increases, the debt relief service provider will reach out to your creditors to negotiate settlements for less than what is owed. After the negotiations have concluded and a new settlement reached, the funds in the special purpose savings account will then be transferred to the creditor, settling the debt between the client and creditor.

WILL I HAVE TO TAKE OUT ANOTHER LOAN?

No. Unlike a debt consolidation program, USA Debt Aid’s settlement program does not result in another loan.

HOW MUCH DEBT COULD BE RESOLVED?

The purpose of The debt settlement program is to negotiate the enrolled debt for less than what is owed at the time the debt settlement agreement is reached. However, the actual debt settlement amounts will vary depending on various factors, such as your payment history, the size and type of each debt that is enrolled, and other variables.

Although we do our best to negotiate the best possible debt settlement offer with each creditor, we cannot guarantee that any creditor will agree to resolve the outstanding account for less than what is owed.

WILL MY CREDITORS CONTINUE TO SEND CORRESPONDENCE TO ME VIA MAIL?

Even though you are enrolled in USA Debt Aid’s debt settlement program, your creditors may continue to correspond with you by mail.

Once you are enrolled in USA Debt Aid’s debt settlement program, we strongly suggest our clients should request a change of mailing address for all future creditor correspondence to be forwarded to us. We will handle all correspondence with your creditors and/or debt collectors on your behalf.

SHOULD I KEEP PAYING MY CREDIT CARD BILLS?

If you have a legitimate financial hardship, it would be difficult to pay your loan payments and this program at the same time.  If you are able to save money in this program and continue to make payments to your creditors at the same time, then you may not have a legitimate financial hardship and may not be in need of these services.

WILL I RECEIVE PHONE CALLS FROM CREDITORS?

USA Debt Aid’s goal is to get your creditors to contact us and not you. We do this by sending a Limited Power of Attorney and Cease Notices requesting your creditors to contact us. There are Federal and State laws designed to protect you from creditor harassment. However, your creditors do have the right to contact you and most of our clients do experience some collection calls, especially for the first 90 days. We will work with you to minimize any calls you may receive.

DO INTEREST AND LATE FEES CONTINUE TO ACCRUE ON MY ACCOUNTS?

Your creditors reserve the right to add late fees and additional penalties on to your existing balance if you choose to go delinquent on your accounts. Typically, your balance will continue to increase until a settlement is reached. Bear in mind, however, that your interest is going to accrue whether you were in the program or you opted to continue to make minimum payments. Our goal is to negotiate the lowest possible settlement even after the interest and late fees have accrued.

CAN I NEGOTIATE ON MY OWN?

Absolutely. You can also represent yourself in a court of law or diagnose an illness, but it’s typically best left to the lawyers and doctors of the world. We go to specialists for a reason. They spent years educating themselves in their specialty and possess certain skills that we laymen do not. The same can be said for negotiators. Though you can certainly contact your creditors and attempt to settle your accounts, you may not get the same results that we can. Our negotiators are savvy, aggressive, and sometimes even a bit ruthless with your creditors. They will work tirelessly until they get you the best possible result. That’s the kind of people you want representing you when it comes to this multi-billion dollar conglomerate.

WHAT EXACTLY IS TAX SETTLEMENT?

A tax settlement is a financial service in which an arrangement is made with the IRS or state taxing authorities that allows a taxpayer to retire an outstanding tax debt for less than the original amount owed. Taxation authorities sometimes allow this type of tax settlement when extenuating circumstances exist that would prevent the taxpayer from honoring the full debt. This is typically based on current tax regulations and the circumstances of the taxpayer.

HOW DOES A DEBT MANAGEMENT PROGRAM WORK?

When enrolling into a debt management program, a consolidated monthly program payment is disbursed to your creditors on your behalf.

CAN I FINISH THE PROGRAM SOONER THAN THE DATE GIVEN/ESTIMATED?

Yes. Just as you can make more than your minimum payments on your credit cards, you are able to pay more with your program, however, as a Debt Management Program is a hardship program it is recommended by most organizations to follow the structured program.

I'VE BEEN TOLD THAT THERE IS NO REASON TO HIRE A COMPANY AND THAT I SHOULD DO THIS ON MY OWN?

Yes, you can do the work yourself.  However, if you feel that you do not have the experience and/or time to take on this task by yourself, we are willing to help. Some companies will try to discourage you from doing it on your own, or may not disclose this to you. Federal law states that credit repair companies MUST advise you of your consumer rights, and that you can do this yourself. 

IN REGARDS TO THE CREDIT RESTORATION PROGRAM, CAN YOU GUARANTEE TO REMOVE MY NEGATIVE ITEMS?

No company can guarantee results in any fashion. The law does not allow for companies to guarantee removal of negative information and falls under false claims and deceptive advertising, a clear violation of the Credit Repair Organizations Act.  We have been successful in helping clients remove inaccurate, unverifiable and incomplete information from their credit file, thus improving their credit profile.

CAN YOUR DEBT NEGOTIATION CONSULTANT STOP THE PHONE CALLS I AM RECEIVING FROM CREDITORS AND COLLECTORS?

We cannot guarantee that they will stop, but we will assist in anyway we can to cease the phone calls.

Creditors and debt collection agencies may become more aggressive in their effort to collect their debt when you they find out you are enrolled in a debt settlement program. After all, creditors do not appreciate the idea to writing off debt and collecting less money from you than what you owe. However, there are federal and state laws that protect you from collectors who cross the line and resort to harassment and threats.

I'VE HEARD THERE ARE SOME NEGATIVE LISTINGS, SUCH AS BANKRUPTCIES AND FORECLOSURES THAT ARE SAID TO BE IMPOSSIBLE TO REMOVE FROM THE CREDIT REPORT?

There are no type of negative listings that have not been able to be removed from a credit report if it is unverifiable, inaccurate or incomplete. Public record information falls under the same guidelines as other negative listings. If it cannot be verified or if it is inaccurate, it must be corrected or deleted from the report.

CAN MY CREDITORS SUE ME FOR NOT MAKING PAYMENTS ON MY DEBTS WHILE I AM ENROLLED IN THE USA DEBT AID DEBT SETTLEMENT PROGRAM?

There is a slight possibility that any creditor can sue you. However, lawsuits are expensive and creditors try to avoid them. We aim to complete the program as quickly as possible to avoid any lawsuits. If there is a need for legal help, our affiliate legal team will step in to assure you are protected.