If you are have experienced difficulty in paying off what you owe, or are close to maxed-out on your credit cards or are paying too much interest or just want to find out what you can do to pay off your debt faster, we at Credit Repair Financial offer several options aside from Credit Report repair or that may enhance the Credit Restoration process. These options include:

Debt Settlement/Debt Negotiation   And     Debt Consolidation/Credit Counseling

Debt Settlement/Debt Negotiation :

Our debt settlement program is the fastest way to eliminate unsecured debt that is at least 90 days old, such as: collections, judgments and liens while avoiding bankruptcy. We can reduce the total amount you owe - not just your interest rates, as in credit counseling. By negotiating a debt settlement, your money problems can become a thing of the past. Our debt settlement method is designed to help you avoid bankruptcy. We are not funded by credit card companies like most Credit Counseling Services. At Credit Repair Financial , you are our client, not the creditor, and our client always comes first. Many of our clients are looking to purchase a home or going through a re-finance and are required by the bank to pay off certain debt and we make it possible by lowering the debt amount so that you can afford it. Please give us a call for your free analysis.

What is the settlement Process?
How will this appear on my credit report?
Are there any Tax consequences?
Will settling the debt remove it from my credit report?
What will the settlement process cost?
Will all of my creditors agree to settle for less than the amount I owe them?
What should I do if the creditor calls me?
What will this legal help cost me?

What is the settlement Process?

When negotiating the settlement of old debts, Credit Repair Financial will contact your creditors and negotiate the best possible arrangement for you... we treat your money as if it were our own.

When your creditor agrees to a specific amount, we will require that the creditor sign a statement that the debt will be considered fully resolved and that no additional money will be owed... ever. You will be provided with a copy of this statement. It is vital that you keep this signed declaration in a safe place where you will be always be able to find it should an unscrupulous collection agency ever attempt to collect the funds that you were not required to pay.

How will this appear on my credit report?

Your credit report may indicate that the debt was "settled" or "settled for less than the full amount owed" rather than stating that the debt was "paid in full". Each potential future lender will choose to interpret this in a different way; some more favorable than others. With the passage of time, the impact of this notation will lessen until the notation and the debt are removed from the report as required by statute.

Are there any Tax consequences?

The IRS considers the amount of the debt that is forgiven to be taxable income and you are required to report it on your tax return for the yea in which the debt is settled. If the amount of money "saved' is greater than $ 600, you r creditor is required to submit an IRS form 1099 to both you and your creditor. If the "savings" is less than $ 600, your creditor may, or may not, present you with an IRS Form 1099. It has been our experience that third party debt collectors often fail to do this. Regardless of your receipt/non-receipt of a form 1099, the IRS considers this money to be taxable as income and you are required to report it when filling your taxes. We STRONGLY recommend that you discuss this with your tax advisor .

Will settling the debt remove it from my credit report?

Payment of the account, whether paid in full or settled, will not remove an account or that account's past history from your credit report. The fact that an account was past due, charged off, or sent to collections is historical fact. Paying the debt will not change the historical facts. Rather, your goal today is to demonstrate that the debt has now been satisfied so that you can get on with your financial life and realize your financial dreams.

What will the settlement process cost?

Credit repair Financial has no "up-front" fees and no monthly maintenance expenses. Credit Repair Financial is paid solely on the results we obtain for you, our client. The fee you pay will be calculated on the basis of the money we save you; nothing more.

Will all of my creditors agree to settle for less than the amount I owe them?

Credit Repair Financial cannot guarantee that all creditors will agree to accept a settlement. Your creditors are business people with their own policies and procedures. Only they can decide if they are willing to accept a payment that is less than the full amount owed. We will do everything within our power to help your creditors see the wisdom of resolving the debt under terms that are favorable to you.

What should I do if the creditor calls me?

Should this occur, please firmly, but politely, instruct the representative to contact our offices. Advise the creditor /collector that our office is representing you and is authorized to discuss the debt with them. By doing this and refusing to talk with them yourself, you minimize the possibility that you might inadvertently say or do something that can be used to your detriment I the negotiation process.

What will this legal help cost me?

In many immediate debt settlement programs, creditors will work more cooperatively with an attorney. In cases where Credit Repair Financial believes that it can obtain more favorable terms for you by doing so, it will retain our attorney as you legal representative. All legal costs are born by CRF and our attorney's services cost you nothing.

Debt Consolidation:

If you answer "yes" to most of the following questions, our "Debt Management Program" is designed especially to you:

• Do you owe more than $2,000.00 in credit card and unsecured debts?
• Are you being charged late fees, over limit fees or other punitive charges?
• Can you afford your regular monthly payments, but not past due amounts?
• Are you getting calls or dunning letters from collectors.
• Are you usually falling behind on your payments?
• Would cutting your monthly credit payments by 15% to 40% help?
• Do you worry about paying your bills?
• Do you want to pay off your credit cards faster and get out of debt?

Can I Keep my Credit Cards?
Is there fee to enroll?
How can our Program help you?
Is there any effect on Credit Reports?
Can you reduce Interest Payments?
Will my monthly payment be reduced?
What is a "fixed monthly payment"?
Benefits of the program?

Can I Keep my Credit Cards?

All credit cards from accounts placed in our Debt Management Program will be closed and the cards should be destroyed and returned to the creditor. This should be regarded as a prudent course to take. It was probably the ease of using these credit cards that caused the current financial situation. In most circumstances, however, clients may be allowed to retain one credit card and not place it in the program.

Is there fee to enroll?

Our program is designed to save our clients money. There is a basic monthly service fee of $7.00 per debt enrolled (depending on the creditor). For our typical client, however, this fee is insignificant when compared to the overall savings our program provides. These savings are achieved through the process of re-aging accounts, thus eliminating expensive late fees, and with reduced or waived interest charges.

Additionally, clients need only draft one check each month, reducing the cost of checks, money orders, envelopes, stamps and other miscellaneous expenses. Since each client has a different mix of creditors and debt structure, the actual savings vary among clients. For our typical client, however, these savings greatly exceed our service fee. During the entire enrollment to liquidation process, our program can save clients thousands, and for heavy debtors, tens of thousands of dollars.

Note 1: There is no cost for our Debt Counseling Services and we offer a FREE financial analysis. There are no fees unless an applicant qualified for our Debt Management Program elects to enroll.

Note 2: Depending on a client's income and/or other factors, our service fee may be reduced or completely waived.

As a non-profit charitable organization the major costs of our services are voluntary funded and supported by participating creditors. Some creditors will donate a small percentage of each payment to us. Creditors contribute because we are assisting our client to better manage their financial affairs, thereby allowing clients to fulfill their payment obligations, thus saving the creditor expensive collection costs and legal expenses. Also, we are an IRS designated 501(c) (3) non-profit charitable organization. Any donation that a creditor grants to our organization is tax deductible. Bear in mind that while some creditors donate a percentage of each payment to the organization, the client is always credited the full amount of their payment. While we are always working in the best interest of our clients, our program is a win-win-win situation, where all parties, our organization, the creditor, and our client all benefit.

How can our Program help you?

Debt Management Programs are primarily designed for those who have accumulated a fair amount of unsecured debt and are unable to make the required monthly payments. What usually happens is that some people fall behind on some of their payments, which tends to increase their minimum payment. Interest charges build up and then, when you go into arrears, late charges are added monthly, increasing your debt. Due to insufficient funds, it becomes impossible to catch up. Our organization can help by contacting all of the unsecured creditors and notifying them that the client has enrolled in our Debt Management Program.

Creditors must accept that the client has enrolled in our program, but need not grant any relief from the debt. However, realizing that the client is financially over-extended and is seeking professional help from a qualified non-profit consumer credit counseling organization, most creditors will work with our organization and offer some form of relief. Usually, we can stop late fees and other punitive charges, reduce or stop interest charges, lower the required monthly payments and re-age accounts to bring them current. We negotiate only unsecured debt, such as credit card accounts, medical bills, service charges, personal and signature loans, and some installment loans. Once enrolled, correspondence from creditors regarding past due accounts are directed to our organization. In addition to these benefits, our program puts an end to upsetting collection calls and offers our clients a new financial lease on life.

In analyzing an applicant's financial profile we determine whether or not you have sufficient income to sustain an acceptable budget based on a "revised" payment plan. If you qualify for enrollment, we set up a contingent budget which accommodates all of your creditors. Only unsecured debts, however, are placed in our Debt Management Program. We do not contact secured creditors, utilities, or insurance companies . These expenditures, however, are accounted for in determining an acceptable budget. This budget includes a "fixed monthly consolidated payment" to cover accounts placed in the Debt Management Program. Upon enrollment, based on this budget and our experience negotiating with creditors, we draft and mail proposals to each creditor placed in the program. We are recognized by virtually every major bank and finance company nationwide and regularly develop affirmative relationships with new creditors as our client base expands and new unfamiliar creditors become an issue. In nearly every case, our organization is accepted for the benefit of our clients

Is there any effect on Credit Reports?

This varies in relation to our client's current credit rating. For our typical client, enrollment in our program improves their credit rating. Most creditors will "re-age" your account which means they will report delinquent accounts as "current" after receiving one to three consecutive payments as arranged by and paid through our agency. The process and time frame varies with each creditor and type of account. Some creditors, however, do not re-age accounts and may continue or begin to report accounts as delinquent. This is most often true on personal loans, note accounts and lines of credit. Of course, accounts that have already been reported as "charged off" or "written to profit and loss" may not change.

Some creditors may report accounts as being paid by debt management, credit counseling or under arrangement. Although this does not lower your credit score, such a report may be considered derogatory on accounts in good standing; however, on delinquent accounts it may be considered more favorable than being reported as delinquent or past due. How this is regarded by potential lenders in the future is entirely dependent on the client's financial situation at that time, the client's payment history, and the particular views of the lender. While some lenders may regard such status as derogatory, others may regard it as a sincere and professional means of satisfying the client's financial obligations. You should also note that any such notation or status should be removed once the account is paid off. Some creditors will even re-open the account with a small line of credit for those clients who successfully pay off the account as arranged by our agency.

Our organization deals with hundreds of creditors nationwide, each creditor maintaining their own policies and procedures. Therefore, we have no control over, nor can we make any guarantee, regarding how creditors my elect to report a client's account.

In general, however, assuming past due accounts are re-aged and the client remains current in our program, the only time a creditor's report may be less favorable to our client is when their accounts are current or marginally past due upon enrollment. This is true when it is assumed that the client would have the ability to maintain a current status without seeking the relief that our program offers. In any case, clients should be aware that consumers have a legal right to add a short explanation to their credit report which may help clarify the circumstances. One must always remember, however, that there is no substitute for perfect credit.

Can you reduce Interest Payments?

Creditors' policies regarding interest reduction vary dramatically, ranging from no charge to freezing interest. With interest rates typically at 15% to 21% or higher, interest reduction can save a client thousands, and for heavy debtors, tens of thousands of dollars. Obtaining interest reduction on just one or two accounts my warrant enrollment in our program. Let's look at the following example:

A credit card account with a $3,000.00 balance at 18% interest with a "fixed" monthly payment of $85.00 will take 4 years and 4 months to amortize. The total interest paid over the interim will amount to $1,303.48. Typically, creditors will allow interest reduction to one of the following rates: 12%, 10%, 8%, 6%, or 0%.

If a client has two accounts, each with a $3,000.00 balance and one creditor allows an interest reduction to 12% and another stops interest, over the interim the client will save a total of $1,888.21 ($584.73 + $1,303.48)

The information is presented only to illustrate a possible scenario. It does not take into account service fees, nor does it consider other savings and benefits a client may gain. You should also remember that the above calculations are based on "fixed" monthly payments, as is the case for clients enrolled in our program. However, debtors experiencing financial hardship typically only pay the "minimum" payment due required by the creditor.

When consumers only make the "minimum" payment due, liquidation could easily exceed 10 years, and in some situations, the account may never liquidate. This is especially true when late fees, over-limit charges and annual fees are assessed. In reality, the actual interest paid by the typical debtor making "minimum" payments is vastly greater than the amounts listed above. The combination of "reduced" interest and "fixed" monthly-consolidated payments is the real benefit of our Debt Management Program. Exactly how much our program saves a client depends entirely upon the client's mix of creditors, debt, and other circumstances.

NOTE: Creditors typically initiate reduction after receiving one to four consecutive payments as arranged by and paid through our agency. The process and time frame varies with each creditor and/or type of account. Also, some creditors will only stop interest, or offer interest reduction, by special request by the debtor under a special hardship plan

Will my monthly payment be reduced?

Some creditors will not allow a payment reduction, although the majority will. In addition, sometimes the current payment is already substantially low and to place the account in our program (in accordance with a creditor's policy on minimum payments) the payment may actually increase. When this happens, however, the creditor often makes other concessions. Nonetheless, a client's total monthly debt service can usually be reduced by 15% to 40%.

A payment reduction, incidentally, may or may not be important to a client. Some clients, for example, are not interested in a payment reduction. They are more interested in a fixed monthly consolidated payment, bringing their accounts current, stopping late fees and/or interest reduction. Some clients even prefer a higher payment, thus accelerating liquidation. For most clients, however, a payment reduction is crucial and, in fact, may be necessary to qualify for our program. In any case, the amount an importance of a payment reduction is dependent on the client's circumstances and objectives.

What is a "fixed monthly payment"?

The "fixed monthly consolidated payment" is perhaps the most powerful aspect of our program. It is specifically calculated to provide the client with an affordable budget, while allowing the client to sustain a reasonably comfortable standard of living. It also provides the client with a consistent dollar amount on which to base their monthly budget. Clients need only draft a single check each month to ultimately liquidate all their accounts placed in the program. There is no hassle, no worry, one envelope, one stamp, and one payment! The fixed monthly-consolidated payment provides the quickest means of liquidating the client's debts. When accounts, small or large, are paid off, we then systematically apply the excess amount to other debts remaining in the program. This method not only accelerates liquidation, it can result in reduced interest charges, benefiting our clients with additional savings.

Benefits of the program.  

This depends on your particular circumstances. For example, while a debtor may be currently meeting their monthly debt obligation, it may be a continual struggle to do so. In fact, such an individual is often robbing Peter to pay Paul. This individual may come to realize, however, that the battle is about to be lost, because Peter has run out of money. If not in this predicament, there may simply not be sufficient income to meet the client's financial obligations. Once payments are missed, with late charges, over-limit fees, accrued interest charges and the increased minimum payments needed to bring past due accounts current, it may become extremely difficult to get back on track. Unless immediate action is taken to resolve this hardship, it is likely that the client's financial condition will continue to worsen.

SURVIVING DEBT AND CONSUMER OPTIONS

The process of dealing with financial problems is mostly about making the best available choices. This excerpt from our educational text is organized to inform and guide you through those choices.

Debt Danger Signals:

By looking at your spending patterns, you can tell if you have a problem:

·  Are you using credit more often?

·  Do you borrow to pay current bills?

·  Are you regularly late at paying bills?

·  Do you have to choose which bills to pay and which to put off until later?

·  Do you often pay only the minimum amount due?

·  Has your standard of living remained the same but checkbook and savings balances gone down and credit balances gone up?

·  Are you being contacted by creditors?

·  Have you just given up on some bills?

If you answered "yes" to most of these, it is time to take action NOW.

Planning Away Debt:

When you see financial problems coming, the first step is to take stock of your financial situation. Counselors say consumers tend to overestimate the seriousness of their financial problems. Most problems can be remedied with planning and budgeting:

·  Make debt reduction your #1 priority.

·  Determine all sources of income now and for the next few months.

·  Face up to how much you owe and the cost of monthly payments.

·  Determine which bills are essential (rent, utilities, food, car payments, etc.) and which are avoidable.

·  Quit charging and apply extra cash to reducing balances.

·  Find ways to generate extra income (overtime, baby-sitting).

·  Cut back on nonessentials (eat out less, ride share, bargain shop).

·  Track spending, balances and minimum payments due.

·  Watch debts melt. It happens fast.

         PLEASE CALL US TO RECEIVE A FREE COPY OF OUR COMPLETE   EDUCATIONAL TEXT: "SURVIVING DEBT".