Common questions about our Debt Settlement services:

1. How does it work?
   We first qualify you for the program. If you qualify, we enroll you into the debt reduction program. At enrollment, we set up a bank account in your name, where you will be making monthly payments.  Instead of making your monthly minimums to your creditors, which usually only cover interest and fees anyway, you make one monthly payment into your settlement account, which could be significantly lower than your old monthly minimums.  The funds are actually automatically set up to transfer from your existing checking account and into your new settlement account.
   
   When funds accumulate, month by month, our experts will then approach each of your creditors one by one and negotiate settlements, typically saving you over 50% of the amount you owe on each account.
   
   We are able to qualify you for these settlements due to our scale, relationships, and knowledge of the creditors' own processes.
   
   Then over the next two or three years, we will have negotiated settlements with every one of your creditors so that at graduation you are totally debt free.



2. When will I receive an exact quote on my monthly payment?:
   In order for you to receive an accurate quote we need you to send in your statements.



3. How much money can you save me?:
   We can save you money in two important ways:
   

   First, we can usually cut your monthly payment in half immediately.
   
   Secondly, over the life of the program we typically save our clients over half of the total enrolled debt.




4. What makes you different from your competitors?
   This industry is relatively new and many of the players in this business are small and unsophisticated.  Our team has a long history in financial services and in building companies.
   
   The 3 most important differences with our service relative to our competitors are:
   
   

   First, we will provide you with an honest assessment of your situation. If we do not think our program is right for you, we will let you know.
   
   Second, our ethical standards are among the highest in the industry.
   
   Third, we are one of the few companies in the industry that provides a real money-back guarantee if your case is accepted.




5. Why do you need to see my statements?:
   To prove the debt & be sure no large balance transfers or cash advances have occurred recently�you may black out any sensitive data like account numbers or whatever you want to black out.  We just need these for our underwriters to get you an accurate savings quote. 



6. How does First Freedoms program compare to Consumer Credit Counseling (CCC)?
   There are two important distinctions between our program and Consumer Credit counseling:
   
   

   First, we work for you whereas CCC gets paid by the creditors.
   
   Second, Our program will save you about half your money whereas with CCC your payments will stay about the same.
   
   Another point to consider is that our debt free program lasts about 2 years whereas CCC will take about 5 years.




7. Can I do this on my own?
   Yes you can. However, since creditors have a vast array of sophisticated (and some rather blunt) methods of getting you to pay your debts, you can have comfort knowing that First Freedom Debt Solution has a team of experts with many years of experience, who do nothing all day long but negotiate on behalf of our clients.



8. Do you stop creditors from harassing me?:
   We do several things to minimize any harassment that you currently receive, or may receive, from your creditors.  The first thing that we do is to send Cease & Desist forms to almost all of your creditors.  This usually halts most collection harassment immediately.
   
     We also provide to you several easy to use scripts that you can use to quickly get off the phone, and have the creditors contact your representatives at First Freedom Debt Solution directly.
   
   The goal is for FREEDOM DEBT to handle almost all of the communication with your creditors from this point forward.



9. What will happen to my Credit Rating?:
   it is highly possible that while you are in this program your credit score may go down in the short term.  If you currently have a perfect credit rating, missing your monthly payments will hurt your credit score.  So, therefore, if your number one objective is to not have your credit score go down, keep doing what you are doing.  Generally our clients are in a financial situation in which their credit rating has been or will be negatively affected, regardless of what they do.  If you can afford to keep paying your payments on time and keep your credit rating high, then our program may not be the best option for you.  If you are truly in a state of financial hardship, your credit rating will be hurt one way or another.  Our program is designed to get you out of debt as fast as possible so you can rebuild your credit rating as quickly as possible.
   
   So what you need to do is to determine your priorities.  Is it more important to cut your payments in half, get out of debt in usually 24 months, and reduce your debts by over 50% or for you to maintain your current credit score? If you want to get out of debt, our program is a good fit for you, and in the long run being debt free will be the best thing for your credit profile.



10. How are you able to negotiate with creditors?
    Creditors know that with First Freedom Debt Solution representing you it is very difficult to collect on their delinquent unsecured accounts, which is why they are willing to settle with our clients.  They also know that we only select clients who are experiencing a serious financial difficulty in paying their debts, so it is in their best interest to take a reduced settlement. Because we deal with a volume of people, we make the process efficient and economically beneficial for creditors.  



11. Who is eligible for the Program?
    we accept individuals who are in a state of financial hardship and are struggling to keep up with their monthly payments. A �hardship� is broadly defined and could be any number of financially damaging events, such as loss of employment, injury, job downsizing, sudden loss of income, catastrophic theft, medical problems, and much more.  Our program is NOT intended for people who want to do nothing more than avoid paying their debts. In addition, we are stricter with respect to enrolling consumers who have done fraudulent transactions; including recent, large balance transfers (BTs) or cash advances (CAs).  In both cases, creditors are less willing to negotiate a reduced settlement on their balances if the consumer recently did BTs or CAs.If you have considered Consumer Credit Counseling, a Debt Consolidation loan, or Bankruptcy, we may be able to help you.



12. Are there exclusions on certain types of debt?:
    Yes, we cannot include secured debt of any kind, including auto loans and mortgages; child support and alimony debts; federal credit unions; student loans; payday advances; public utility bills; and military accounts (Star, Omni).
    
    However, We can accept most types of unsecured debt.  This includes credit card accounts, department store cards, personal loans, medical bills, and accounts with collection agencies.



13. How are the payments made to the creditors?:
    Once an acceptable settlement has been reached with a creditor, we will authorize payment from your Special Purpose Account for the settlement of that account.  We execute a check-by-phone, receive a confirmation letter that the account is settled in full (or paid in full and closed), and your account will now be considered settled in full.



14. Will the creditors take legal action against me?:
    Creditors do have the legal right to pursue a debtor in a court of law to collect the debt. Usually this is a last resort after much effort to collect the debt without response or satisfaction. Taking a client to court is a costly and time-consuming activity which most creditors would prefer to avoid if given an alternative.  If a creditor does take legal action, we continue to try to negotiate a settlement or payment plan; we also attempt to slow down the legal proceedings.  While we cannot appear in court on your behalf, or provide legal advice, we can suggest legal representation to file the correct papers so we can continue the negotiation process.



15. What is the effect on my taxes?:
    We are not an accounting firm, so for advice please talk to a professional accountant on this matter.In some instances, the creditor will deduct the loss as an expense, in which case you must record it as income.  If the creditor is expensing the lost debt, you will get a Form 1099 from the creditor and you must file this with your income tax return.  However, most of our clients are technically insolvent (meaning assets < liabilities).  If this is the case, you can file a Form 982 with your tax return and exclude the discharged debt from your income.  In order to make sure you qualify for the Form 982 exemption, please visit www.IRS.gov, or speak with an accountant.



16. Will I be able to take out a loan while on the Program?:
    No, you will not be able to take out a loan until all of your debts are settled.



17. Do all creditors settle?:
    Assuming that you meet our criteria and are able to accumulate settlement funds, creditors will almost always be willing to settle your unsecured debts.  The amount that they settle for varies depending on the creditor and on your particular situation.



18. The Debt Reduction Agreement says you can terminate if I miss a payment?:
    We do expect you to call us and let us know ahead of time if you need to change your payment arrangements.  Only if you fail to make multiple payments and do not notify us before you miss those payments will we exercise our right to terminate the contract.  Also, it should be noted that multiple missed payments will negatively impact our ability to settle.



19. I have read that Debt Settlement is bad for consumers and that it is as bad as Bankruptcy on your Credit Report?:
    A lot of what you read is negative publicity created by the credit card companies who want to limit the number of people who use this service, for obvious reasons.The only times Debt Settlement is bad for consumers is if they are in such good shape that they can pay their debts in full and preserve their credit rating.  We use a qualification process to determine if you are an ideal candidate for our Program and we will let you know if you are not.It is absolutely untrue that Debt Settlement is as bad as bankruptcy on your Credit Report.  Bankruptcy stays on your credit report for 10 years.  With Debt Settlement, you could be eligible for a loan within 2-3 years or less, depending on how quickly you complete the program.



20. Should I tell my creditors that I am thinking of joining this program?:
    We encourage you not to discuss this with your Creditors until you are officially enrolled.  Until we have your signed Cease and Desist letters, we will not be able to get the Creditors off your backs, so it is better not to mention anything to them until we have accepted your application.Once you are officially enrolled in the program, we will give you specific instructions on how to deal with your creditors if they do continue to call.  Generally, however, the best advice is to share nothing with your creditors.