- How long does the New Leaf Debt program take?
- What is secured debt versus unsecured debt?
- What kind of debts can't be negotiated?
- Do I qualify for your program?
- What does it cost and how does New Leaf Debt make money?
- Will I really be debt free at the end of the program?
- What if my spouse (current or former) is on some of my accounts? Will he or she have to be included in the settlement process?
- What happens to my S score?
- Will I be able to use any of my cards during the settlement process?
- Will I be able to get credit cards, a loan or a mortgage in the future?
- Does New Leaf provide credit repair services?
- Why can't I negotiate my own debts?
- Is debt consolidation and debt settlement the same thing?
- What happens during bankruptcy?
- Will collectors continue to call me during New Leaf's program?
- What if I miss a settlement program payment?
How long does the New Leaf Debt program take?
The length of the program is primarily
dependent upon the size of your monthly payment. You can contribute funds beyond
your monthly payment in order to accelerate the process, but this is not necessary.
One of our Debt Relief Specialists will help you determine an affordable payment level
given your budget.
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What is secured debt versus unsecured debt?
Secured debt is any debt that is collateralized by another asset. The most common
examples are car loans, home equity loans and credit cards secured by a bank account.
When a debt is secured the creditor can obtain the right to sell the asset in order
to fully repay the debt. New Leaf Debt can negotiate unsecured debt only, however there
are some occasions, such as a car loan balance left after repossession, where secured
debt becomes unsecured and is then negotiable. New Leaf Debt frequently negotiates credit card debt,
medical bills and personal loans. Occasionally tax debt can be forgiven.
Only in very dire instances can student loans be forgiven.
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What kind of debts can't be negotiated?
Mortgages and any debt secured by an asset such as a bank account, securities account,
RV or boat loan. Usually we cannot negotiate car loans or government insured school
loans.
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Do I qualify for your program?
You must have $10,000 or more in unsecured debts and be able to demonstrate enough
monthly income to make regular payments towards settling it. Your debt settlement
payment is often less than what you are paying monthly now. You must also be committed
to becoming debt free and understand how our debt reduction program works.
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What does it cost and how does New Leaf make money?
New Leaf charges a flat fee based on the amount of debt you enroll in the program.
We also charge a small monthly banking account maintenance fees. For a full explanation
of the settlement program please call us at 1-800-337-1838.
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Will I really be debt free at the end of the program?
All accounts you entered into the program will be reported "settled" with a zero
balance and you will be released from any further obligation. You will be completely
free of them!
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What if my spouse (current or former) is on some of my accounts? Will he or she have to be included in the settlement process?
Your creditors will probably not agree to free either of you from the account, even
the spouse entering the debt settlement program. Occasionally we can enroll one
spouse without the other, however you should speak to one of our debt specialists
to find out what is possible in your situation. Call us at 1-800-337-1838.
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What happens to my credit score?
All accounts you entered into the program will be reported "settled" with a zero
balance and you will be released from any further obligations regarding them. Several
factors affect your overall credit score and you should consider the long-term affect
of all your debt relief or debt help options. The debt settlement process may create a short-term
negative affect on your payment history, however, if you have been late or are behind
with recent payments, then it may have little impact, if any. This said, settlement
typically has a positive affect on another part of your credit score and that is
the amount you owe. Clients sometimes experience an improvement in their credit
score by the end of the settlement process because they are left with fewer or zero
debts outstanding.
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Will I be able to use any of my cards during the settlement process?
We strongly encourage you to put all of your unsecured debt into the negotiation
process and use debit cards instead credit cards. Occasionally, we allow a client to keep a low
limit card open for emergencies, but using that card can undermine the negotiation
process. Consider how a creditor would react to taking less than full payment, when
they know you are keeping another account current.
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Will I be able to get credit cards, a loan or a mortgage in the future?
If you're asking this question then you are the type of client that is best suited
for our program, one committed to getting their finances back on track as soon as
possible! At the conclusion of our program, you should have what many creditors
find most important, the ability to pay, along with minimal other commitments. You
may have to go to several financial institutions to find acceptable lending terms.
As you near completion of our program we will refer you to companies that can help
you re-establish your credit and provide consumer credit counseling.
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Does New Leaf provide credit repair services?
The only form of legitimate credit repair is removing outdated remarks from your
credit history. To this extent we protect our clients throughout the settlement
process and promise that all debts we settle are reported truthfully.
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Why can't I negotiate my own debts?
You can! You can also sell your own house, repair your own car engine or fix your
own plumbing. Most of us are experts at some thing, but not everything. At New Leaf
we are experts in negotiation, specifically debt negotiation. We know the credit
and collections industry very well--its cycles, its internal policies and procedures,
and the federal and local laws applying to all parties in the industry. Most importantly,
we are not you! Keep in mind that the credit industry is also an expert at making
people pay. Simply put, the tactics they use on you don't work on us. They know
this and typically start at a much lower negotiating point with us than they would
with you. Even though we charge for our service, the end cost to you is lower than
you could likely negotiate yourself. And you won't have to take creditor calls at
all--that's our job.
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Is debt consolidation and debt settlement the same thing?
No, absolutely not! In debt consolidation program all of your current debts are rolled into
one new debt, which is often either at a much higher interest rate or guaranteed
by your home. When you secure a loan using your home, you convert unsecured debt
into secured debt, giving up hard earned equity in your home. These programs typically
only create more debt instead of moving you towards debt relief. Their goal is
very different, and often without the client's knowledge, debt consolidators are
paid by both the client and by lenders who make or service the loan.
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What happens during bankruptcy?
At New Leaf we believe that debt negotiation is a better solution. Bankruptcy can
be the start of a long-term crippling of your financial well-being. It is the last
of all resorts. There are two kinds of bankruptcy, Chapter 13 and Chapter 7. The
consequences between the two differ financially, in terms of debt freedom, continued
obligations and the loss of assets, including your home. In both cases the long-term
implications both financially and psychologically are devastating. No one should
file for bankruptcy without first considering debt negotiation. New Leaf' program
is an excellent alternative to bankruptcy. Click here for more information on bankruptcy.
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Will collectors continue to call me during New Leaf's program?
We make every attempt to stop creditor calls because we want them talking to us,
not you. Legally they have to stop contacting you if you tell them to. We cannot
stop creditors operating outside the law, but we do have specific ways to encourage
them to stop. If a creditor passes along your account to a collection agency, that
agency has the right to contact you in writing and by phone to let you know about
the change. Again, New Leaf Debt will take every possible step to bring them into conversation
with us, not you.
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What if I miss a settlement program payment?
While we would like every client to take their monthly settlement payment as seriously
as they do their rent or mortgage, we know that there are emergencies that take
priority over your debt management payments. We will continue to work with clients who have
legitimate reasons for missing payments and who demonstrate commitment to the success
of our settlement programs.
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