FAQs Archive - Page 2 of 6

Q: What does a credit counsellor do?

As they say, always use the right tool for the right job—but, how do you know what the right tool is? You ask someone who not only understands the tools available to you but also what exactly you are trying to build with them.

Q: Will I qualify for a debt settlement?

You have been directly offered a settlement by a creditor (or) You cannot afford to repay your debt in full, even in installment payments over several months or years based on income (or) You have other reasonable and justifiable need of a settlement You have the funds needed to settle debt in a single lump sum or in limited installment payments (usually less than 4)

Q: If I settle, will it damage my credit score?

Settling your debt will not damage your credit score, but it will also not repair any damage (lates, missed payments) that took place before you settled.

Q: What happens to the portion of the debt that isn’t settled?

When a debt is settled the difference between the offer amount and the remaining balance is forgiven. For example, if you owe $1000 and settle for $800, the remaining $200 is forgiven but the whole debt is considered paid.