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How does Federated Financial, obtain lower payments?
We have established relationships with many of the major lending institutions and credit card companies who have agreed to either reduce or eliminate an individual’s interest charges and late fees. It should be of interest to you that we may be able to lower your monthly payments by as much as 50%.
Can medical and hospital bills be included in a debt consolidation plan? We work directly with these types of creditors on an ongoing basis. We contact them immediately, and are usually successful in negotiating much better terms including lower payments and rates.
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Should I consider filing for bankruptcy instead of joining your
program? Filling bankruptcy should be your last resort in solving your financial difficulties. Although it may help you now, it will hurt you in the future. If you choose to file bankruptcy, be prepared to accept the unfortunate consequences. It will appear on your credit report for at least ten years. In addition, it can be reported for the rest of your life when applying for certain types of state licenses, jobs, and loans. Before you consider filing bankruptcy, give yourself one last chance to obtain financial freedom.
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Why shouldn’t I apply for a home equity loan or debt consolidation loan to pay off my creditors? Most people like this idea, as they receive a check to pay off all their creditors almost immediately. In addition they are told that the interest payments are deductible.
What these companies don’t tell you is as follows: There is an important difference between "Debt Consolidation" and a " Debt Consolidation loan". Debt consolidation loans turn unsecured debt into secured debt. Debt consolidation loans usually require some form of collateral, such as the family home. A very large majority of people who apply for these types of loans end up in deeper financial trouble than they were before. The reason this happens is because these loans do not reduce the amount you owe. In addition, you jeopardize your two most valuable assets - your house and your family. It won’t be long before your credit cards are maxed out to their limit once again. The only difference is that this time you will have two types of loans to pay off: your credit cards and the home equity loan. You will then be facing several unfortunate possible consequences, including bankruptcy and foreclosure.
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If I miss several payments after consolidating, how do I get back on to the debt reduction program? If you fall behind on your payments contact our customer service department, and our counselors will explain the steps necessary to bring your account to a current status. Please note that it is very important that you continue to make consistent and timely payments when on a debt reduction program. Failure to do so can jeopardize your position with your creditors, resulting in late fees, interest charges, collection calls etc.
Who should consider a debt consolidation plan? In general, anyone who can only afford to make the minimum monthly payments on their obligations should consider a debt consolidation program. There are many other signs of potential financial trouble, but the real guideline should be the impact it has on your life. If you are worried about your bills, you should get a professional opinion about your financial options. If you are currently behind on some or all of your payments, there is hope for your financial situation! Many creditors will bring your accounts current shortly after you begin a consolidation program. Usually one or two consecutive payments will bring an account current --- no matter how far past due it is. If your account has already been charged off, is in collection, or even has a judgment filed against it, we can still set up reasonable payments.
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Will My Creditors Work With You? Our answer in most cases is a resounding YES!
What kinds of debt qualify for debt consolidation? Many debts can be included in a debt consolidation program. Generally, most unsecured debt can be included. For example, credit cards, medical bills, department store cards, student loans, taxes and bank lines of credit are examples of debt that are frequently consolidated. Secured loans such as house payments or car loans usually cannot be successfully consolidated. (Note: Secured debt is debt that is secured by something tangible, like a house or a car. In other words, if payments are not made, the house or car can be taken away. In general secured debt should be paid before unsecured debt.) Also, any loan that has been cosigned by another person will require that the other person pay on the loan if you do not meet the original terms and conditions.
Who Participates? All major creditors participate in consolidation programs. Master Card, Visa, Discover, department store cards, hospitals and medical clinics, student loan bureaus and state and federal revenue departments are just a few examples.
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