Frequently Asked Questions – DebtBlue (2023)

So let's start this answer by asking, "What is your credit score today?" Of course, if you are one of the top borrowers with a credit score of 750-850, debt resolution will have a negative impact on your credit score.

However, our typical customer has a credit score of around 620. And often we consider 600-660 to be the worst credit score you can have. That's because this score gets you approved for credit cards that charge the highest interest rates, which range from 25% to 40%, or give you something like a payday loan.

The name FICO comes from the company that developed the sheet music. It comes from its original name, The Fair Isaac Company. It's not a credit bureau. He developed this score so lenders could understand the financial risk of the people they are considering lending to.

You are entitled to a free copy of your credit report every 12 months. You can get a free report from any of the credit bureaus. The only website eligible to receive your free report is annualcreditreport.com. Or you can call and request your report at (877) 322-8228. This report is absolutely free from Equifax, Experian and Transunion. Be careful when signing up for services that charge you for them. It really is a free report. It is estimated that 20% of consumers have an error on their credit report that can affect their credit score. So order your report and check if it is correct.

Your FICO score is influenced by five factors that are weighted according to specific criteria.

You must understand that the debt solution is not a loan program. And the only way a creditor will be willing to take less than is owed, or to reduce and eliminate some of the principal balance, is this: The creditor must have a reason for doing so.

If you continue to make payments, there is no reason or motivation for a creditor to take less than the principal amount. If you can afford your minimum monthly payments or are able to pay off your debt, you probably do not qualify for our debt restructuring program.

A debt solution is only for those who are struggling and just can't keep making their minimum monthly payments or can afford to pay off their debts. We will not make payments to creditors until we have reached a successful agreement with your creditor and then, with your consent, a payment will be made from your Special Purpose Savings Account directly to your account holder.

This is one of the most negative effects of a debt-reduction program: calls from creditors.

Any time you owe someone money, they have every right to call you. However, there are many laws and statutes about how creditors can collect and when they can make those calls. This includes when, what to ask on that call, and who to contact about their accounts.

The beauty of handling creditor calls is that we'll tell you to just pass them on to us. DebtBlue has direct relationships with most creditors and collection agencies, and we can often reduce or eliminate these calls on your behalf. Generally, if you actively participate in our debt-cleaning program, creditors will stop collection efforts because they know you're saving with DebtBlue to pay off that debt.

In other situations, we use the CLG Plus Plan, the Veritas Plan, or the Fortress Legal Plan to ensure that creditors and collection agencies do not violate your rights under the Fair Debt Collection Practices Act (FDCPA). If violated, CLG Plus, Veritas or Fortress will take legal action against it. And in some cases, our clients receive a substantial sum of money when their rights are violated. So be sure to work with our customer success team if calls from creditors get overbearing. We help ensure you use all legal means to reduce calls from creditors.

The typical length of our program is approximately 32 months, and our typical client completes their program approximately one to two months early. The specific dates will depend on whether there have been any changes in your program or whether there has been a change in your participation in funding your savings account.

Therefore, the most important part of your debt resolution program's success is staying committed and making your scheduled deposits.

Our fee is typically around 25% of the debt you have declared at the time of registration.Remember: there are no upfront payments.We do not charge anything until we have provided the service and until payment is made to the creditor, then DebtBlue will collect its fee, but only for that paid account.

In addition to the fee that goes to DebtBlue, there is the fee you would pay if you signed up for the CLG Plus plan, the Veritas Legal plan, or the Fortress Legal plan, which is $39.95 per month. There is also a fee of less than $10 per month for your deposit account. There are other additional charges, e.g. B. When DebtBlue writes a check to a creditor over the phone to make a payment. DebtBlue does not charge these bank fees; they will be debited from your special account.

You don't have to owe $10,000 to sign up. We accept some customers with debts below this figure. However, you must have enough debt for the debt solution to be of any real use. Let's look at it this way:

If you sign up for a $10,000 debt-reduction program, once your fees are paid and your account age expires after the program completes, you'll likely see little savings. However, if you signed up $20,000 for a debt resolution program, your savings would range from $6,000 to $8,000. Ditto if you sign up for $30,000... You'll probably end up saving $9, $10, or $11,000.

So there is a greater benefit if you have a larger amount of debt written up. It also depends on the time value of money. If you owed $10,000 today and I told you that you could pay off that debt for only $7,000 or $7,500, you would probably think that the $2,500 to $3,000 in savings wasn't worth it.

However, if that $7,500 didn't have to be paid back immediately but could be paid off in 30 months, the time value of money is now changing. This is because there is no interest or penalty to pay on the debt and you can make that payment over a 30-month period. NOW the program becomes much more attractive. So it's not just the fact that you're saving on that $10,000 balance that's going to go down, but also the time it may take to cash it out.

The reason we have this $10,000 limit is for the benefit of the customer.

The short answer is no. However, can you pay taxes on debt relief? Yes, and this is done on a Form 1099. The IRS views debt forgiveness as follows: If someone cancels part of their debt, they must report it as income.

You must report that as 1099 income because you paid no taxes on that income. However, the most common way to pay taxes under a 1099 under debt forgiveness is if you have good credit status. Ability to pay means you have more assets than liabilities. Typically, even after graduation, our clients are considered neutral, meaning they have no more assets than liabilities. Sometimes they find themselves in a situation of negative liability known as bankruptcy.

Will this affect your taxes? No, it will not affect your taxes. Do you get a 1099? yes you will That's what you get from your creditors. Do you have to pay taxes for this? You must consult a CPA, but the vast majority of our clients do not have to pay taxes on the debt forgiven.

Liquidation, bankruptcy, credit counseling, home equity loan, debt consolidation and debt resolution.

Unsecured debt is debt that is not secured by an asset such as a home, land, or car. Unsecured debt is the type of debt where creditors do not ask for collateral before giving you access to the money. These typically include credit cards, medical bills, department store cards, and utility bills.

Yes, if you are more than 60 days late on a credit card payment, the issuer can levy a penalty of up to 29% APR. In this case, the issuer may apply the 29% APR to your outstanding balances. In most cases, credit card law prevents credit card companies from increasing the interest rate on the balance owed; However, in the case of a payment more than 60 days late, they can do so. You can also increase your interest rate if you've had your card for at least a year. They must give you 45 days' notice. If your credit rating has dropped significantly, the issuer may also choose to raise your interest rate.

Yes, and they can do it without notice.unlesswill create a fee and a penalty for exceeding the limit.

You can find out if someone owes you money for free at www.missingmoney.com. Missingmoney.com is a database of government records of unclaimed property. You can find money from things like:

This page connects you to unclaimed properties in participating states and provinces. Searches and complaints are always free on this site. The page is updated weekly. He searches by name and quickly gets the money owed to him.

The DebtBlue program has proven itself. We develop an individual reduction plan with you. You are free from the stress and pressure of dealing with your creditors as we work directly with them on your behalf. You get fast, friendly service from DebtBlue, backed by over 20 years of experience.

DebtBlue designates creditors who threaten legal action as a "preferred account." Think of it like a believer trying to skip the line...like someone getting a fast pass at an amusement park and saying, "Hey, I don't want to wait in line...I want to go right after go ahead, so I'm going to take legal action."

Creditors know that legal action, or perceived legal action, that threatens you or puts you in a fear-based mindset is a tactic that leads a customer to want to pay that creditor faster.

So what happens when you receive a subpoena? First call your DebtBlue Customer Success Team and second send the notification to DebtBlue and we will take care of it. We are very successful in resolving our priority accounts and have experienced negotiators specifically assigned to these accounts.

Typically, aggressive legal action is taken against less than 1% of all registered accounts. That's why we have the CLG Plus Plan, Veritas and Fortress Legal Plans: to increase our clients' confidence in these unique and rare situations.

In short: yes. Debt resolution companies must be licensed, mortgaged and registered in every state in which they do business and are also fully regulated by the federal government.

Here's how to tell if a debt settlement company is legit or not:If a debt processing company charges you up front, it is not a legitimate processing company.

This is because federal law requires that services be performed before fees are charged. Another way to find out if the company you are working with is reputable is if they are a member of the American Fair Credit Council. The AFCC audits all of its members annually to ensure they are complying with all state and federal laws and regulations.

So, is paying off debt legitimate? Yes, debt settlement companies are not only regulated by the federal government, but are also subject to state licenses.

Absolutely. And many of our clients have reached resolutions directly with creditors. However, we compare this to self-defense in court. It is highly recommended to have an attorney with you. What we emphasize when it comes to solving debt yourself is this: make sure you have the right paperwork.

Proper documentation states that your accounts are fully settled and there is no way you will owe this debt to anyone else in the future. Also, when you close accounts, you typically close one account at a time.

When DebtBlue closes accounts, we close multiple accounts at once. This allows you to benefit from a volume discount. For example, DebtBlue may offer to settle 100 accounts with a specific account holder.

These hundred accounts can total $50,000. And out of that $50,000, DebtBlue can offer $20,000 for immediate settlement. This way we can achieve much better solutions for our customers. In other words, DebtBlue is like Costco to creditors, and you WIN!

Credit card companies are experts at increasing your credit card debt using tactics like monthly minimum payments, low introductory interest offers escalating to very high interest rates, late fees and more, and fines. With minimum deposits, interest and fees quickly add up. Before you know it, you owe more than what you originally loaded onto your card.

No. Credit card companies can't take your home to pay off your debt. However, if you received a home equity loan and you fail to pay your payment or default, lenders may foreclose on your home. If you have equity in your home, the lender may want to recover that equity to pay back the loan. They don't usually want to, but it's possible.

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