Top 10 Debt Relief Questions

What is debt resolution?

Debt resolution is not a loan and it’s not bankruptcy. It’s sometimes referred to as debt settlement, debt consolidation, or debt negotiation. The goal of a debt resolution plan is to pay back what you can afford and to resolve your debt in a reasonable amount of time. Debt resolution has many benefits. It provides short-term relief with a lower monthly payment and long-term relief by saving money and getting you out of debt in a shorter period of time than you could on your own.

How do I get started?

The debt relief process starts with a 20-minute free consultation with one of our certified debt specialists. They will be able to review your situation and customize a plan based on your unique circumstances. They will also be able to provide you with information about how the plan will help and answer any questions you may have.

How do I know if ClearOne is right for me?

Determining if ClearOne debt relief is right for you is a personal decision. It should be based on how you feel about your current financial situation. Are you happy with your current situation? Has your present situation caused you any problems to motivate you to make a change? Are there any financial goals that you are falling short on? Take a few minutes and think about your answers and what they mean to you. You should also consider the financial goals you want to achieve.

If you are happy and comfortable with your current situation - then why change? If you are also not willing to stay the course, you’re setting yourself up for failure. There’s nothing that ClearOne can magically do to make your debt problem disappear. It’s a process that takes 3 to 5 years.

How can I trust ClearOne?

We’re different from other financial firms. We do not charge upfront fees like bankruptcy attorneys, lenders, and credit counseling firms. Those firms earn fees when you can least afford to pay them. ClearOne only earns a fee when your debt has been successfully resolved and when you have saved money. This ensures our interests are aligned with yours. It also requires that we only offer our services to consumers that are a good fit. ClearOne Advantage has a proven track record with the highest industry ratings. Our Better Business Bureau rating is an A+ and we have an independent client rating of 9 out of 10 on TrustPilot.com.

Am I walking away from my debts?

Debt resolution is not walking away from your debts. It’s a solution where you pay back what’s reasonable and what we know your creditors will accept. It should provide you with immediate relief in the form of a monthly payment that is lower than what you are paying your creditors today. The plan should also allow you to resolve your debts in 48 months. Many consumers struggle with the idea of not paying their creditors back 100% of what they owe plus interest. Instead, they continue to make their minimum payments and will continue to do so for the next 15+ years. Others know that credit card companies don’t play fair and chose to change the game. If you are under the mindset that the credit card issuers are playing a fair game, we recommended you take a few minutes to watch the Frontline video online at PBS.com – “The Card Game.”

What are the pros and cons?

Debt resolution is a debt relief option for people who need relief from a serious amount of credit card and other unsecured debts (typically $10,000 to $125,000 or more). Debt resolution is sometimes referred to as debt consolidation or debt settlement.

ClearOne’s debt resolution program has short-term relief with a reduced monthly payment and long-term relief allowing you to get out of debt in approximately 48 months.

Pros

  • Offers one low monthly plan payment – significantly less than your current minimum
  • No upfront fees
  • Resolve debt faster than you can on your own - as little as 48 months
  • Cheapest option – consumers save $2.64 for every $1 in fees paid, an American Fair Credit Council report

Cons

  • Program primarily benefits those with high-balance credit cards
  • Success relies on your commitment to make timely and consistent monthly payments
  • Creditors could increase collection efforts
  • Negative impact on your credit report (but not as severe as bankruptcy)

How much can I save?

On average, our completed clients pay about 50% of their enrolled debt balance before fees, or 75% including fees. That’s a savings of 25%. But that is the quick computation and does not take into account time savings and interest savings. In other words, your true savings should be what you would likely pay to your creditors on your own and over time versus your ClearOne Plan.

The chart below illustrates this example based on a debt amount of $26,000 at an 18% interest rate and 3% minimum monthly payment.

Monthly Payment # Years Interest Total Paid
On Your Own $748 10 $21639 $47639
ClearOne Advantage $542 4 $0 $19,500

Both scenarios assume timely and consistent monthly payments. It’s also important to note that each client’s individual situation is different. Some clients can afford to pay more than the minimum payment. Other clients may have a more favorable creditor mix allowing for quicker settlements. Also, the ClearOne information is based on average estimates that could be subject to change.

When will my first account be resolved?

With ClearOne, it will take approximately 3 months before your first account is resolved.

Will debt resolution impact my credit score?

Debt resolution will have a negative impact your credit sore, but it’s not as bad as bankruptcy which stays on your credit report for 7 years. Also, what is your top priority - getting out of debt? Buying a home? Your total debt is the second most important factor in determining your credit score. Improving your debt to income ratio will ultimately open more doors for buying a car or house in the future than keeping an average credit score with unmanageable debt. Your credit score is also always changing and with some diligence can be rebuilt relatively quickly upon completing your plan.

Why would a creditor accept less?

When you enter into a debt resolution plan, we communicate to your creditors that there is a limited amount of funds to resolve your debt. Your debt specialist will work with you to determine that amount. A creditor will accept less because they now need to compete for those funds with your other creditors. Otherwise they will be the last to be paid or may not be paid at all if they sell your account to a third party for pennies. You should also know that the profits creditors make in interest and late fees far outweigh the cost of offering repayment concession to struggling consumers.