How will joining debtoff.com's Program affect my credit rating?

Do you have a good credit history? If yes, then you should be aware that your credit report may state that you are working through debtoff.com. We can't guarantee how future creditors will interpret this information, but we believe that it shows you are trying to get help. Your credit report probably states that you've been carrying balances, made late payments in the past 7 years, or even missed payments, so it may not be as perfect a credit history as you think.

If no, then debtoff.com can only help you. If you make your payments in full and on time to debtoff.com, then many of your creditors will "re-age" your account, which means they will show your accounts as current after several payments. In general, if you are paying off debt, that can revitalize your credit report. Showing that you are working through a credit counseling service may show future creditors that you needed help but wanted to pay off your debts in full.

Will I still receive harassing phone calls?

You might the first several months on the program since it takes time for your creditor's collections department to find out you're with debtoff.com. If you get a harassing call, inform the party to call debtoff.com and speak to your account specialist. If you get a harassing call from a collection agency that is not part of your creditor's company, we will provide you with a cease and desist letter. 3rd party collection agents must obey this letter, according to the Fair Debt Collection Practices Act. Make sure you tell your account specialist if you receive any such calls from a collection agent.

Why can't I just negotiate with creditors on my own?

In some cases, you can negotiate with creditors on your own to arrange payment or have positive information reported to a credit bureau. However, to get the benefits of lowered monthly payments, lower interest rates, stopped late charges, and waived over the limit fees, you need debtoff.com. Working with our non-profit organization, debtoff.com credit counselors can secure you these benefits not usually available to credit consumers.

Why can't I just keep paying off my creditors on my own?

If you keep paying just the minimum to your creditors at the current interest rate, it will take you much longer than if you paid off your debt through debtoff.com. A $10,000 debt usually takes 32 years and $24,500 to pay off, if you are paying the monthly minimum of 2.5% of the balance at an average interest rate of 18.5%. Because we may be able to reduce your interest rates, stop over the limit fees, and so on, it will take a lot less time to pay off your debt through us. Chances are, in the past, all your debt payments have just gone to pay off interest. You probably haven't even reduced the balance! On average, debtoff.com clients pay off their debts in 3 to 5 years, depending on individual circumstances.

Can I send in more money once I have a better cash flow?

Of course - you can always increase your monthly payment. The more you pay, the faster your accounts will be paid off. Just let debtoff.com know you want to increase your payments beforehand so we can figure out which creditors to pay more money.

Should I pay my bills in the time before I send you my first payment?

That's your decision, however we recommend that you do if you can. There is a brief negotiation period of approximately 30 days after we receive your first debtoff.com payment. During this time we make arrangements for future payments with creditors. If you miss due dates for accounts during the negotiation period, you are at risk of penalties and negative information reported to the credit bureau.

After I pay off one account, can I just pay less?

That's your decision, but we highly recommend that you pay the same amount and transfer whatever you used to pay for the other account to a high interest account. That way, as you pay off each account, you end up paying more to the remaining accounts, speeding up the process without changing your monthly spending budget.