Q. What is Debt Consolidation?

A. When you consolidate debt, you are combining of all your unsecured monthly bills into one monthly payment and with a single interest rate. America's Debt Choice LLC does not offer loans, instead, we work with our clients and their creditors to reduce their overall interest rate, monthly payments, and most importantly the time it takes to pay off their debt. At America's Debt Choice LLC our goal is to help you the client with excellent customer service.

Improve your credit rating (for most people)

Perhaps the most popular question that we hear is "How will this affect my credit?" The affect that our program has on your credit report is entirely dependent on your current credit rating. For the typical client who comes to us in need of our program, this will only improve their credit rating.

The best way to know the affect of our program is to understand how the credit scoring system works. Approximately 75% of the lenders judge your credit worthiness by your FICO score. And the two main things that factor into your FICO score are your Payment History (35%) and your Debt to Income Ratio (30%). So if you have been late on a payment within the last three months that is something that could bring your credit score down drastically. However, if you are current with your bills and have never missed a payment that does not mean that your credit is perfect. Another important factor to look at is your debt load that you are carrying. If this amount is high, then your Debt to Income Ratio may be high as well, thus bringing down your credit score. And if your total debt and your interest rates are high, then it will be extremely difficult to bring your debt to income ratio down on your own. Since we can lower your rates, you will see your debt load come down quicker therefore improve your overall FICO score (Length of Credit History, New Credit, Types of credit in use make up the other 35% of FICO score).

America's Debt Choice LLC does not report anything to the credit bureaus. Any reporting to the credit bureaus is done at your creditors' discretion. Some creditors may place a footnote on your account saying that you are using a third party to assist you in repaying your debt. And when you apply for any financing in the future, some lenders may frown upon the idea that you are in a program, but most lenders will not even care that you are in a program. Because as mentioned earlier, the major thing they will be looking at is your FICO score.

After enrolling into our program, America's Debt Choice LLC can provide two things that could increase your chances of getting financing in the future. First, we can provide you a letter of reference showing that you've been paying your bills on time.

Q. How does the program work?

A. Your certified, professional advisor will contact you after reviewing the submitted information to confirm your outstanding debts. After you signed up with us, we will contact your creditors to have your interest rate and monthly payments lowered so that that your monthly payments will be affordable. You will no longer pay your creditors directly, but will make monthly payments directly to the America's Debt Choice LLC. Each month, on a date that you specify, they send your payments to your creditors.

Q. Will I still receive harassing phone calls?

A. After agreeing to work with a America's Debt Choice LLC calls from collectors will gradually lessen as we begin to handle your debts. Generally, within a short period, the calls will stop as it becomes known that you are working to pay off your debts.

Q. Why do creditors agree to lower monthly payments?

A. Creditors agree to lower your monthly payment when you are working through America's Debt Choice LLC because you are, in fact, trying to pay your debts. Your creditors lose money if you default on your loan or file bankruptcy. If they compromise and accept lower interest, it is much more likely that they will be able to collect more of what is owed. America's Debt Choice LLC works with counseling offices that have an excellent working relationship with your creditors and because of that relationship, is able to work out an easily affordable credit card management plan.

Q. Will debt consolidation affect my credit rating?

A. Debt consolidation is often viewed by creditors as a positive, good faith effort on your part to repay your debts and can actually improve a damaged credit rating.

Q. Do my creditors participate in your Debt Consolidation Program?

A. We have an extensive list of creditors that will work with us to reduce your monthly payments. Among them are all major credit card companies, department stores, medical clinics and hospitals.

Q. How do I know if I qualify for your program?

A. You automatically qualify if you are carrying at least $3,000 in unsecured debt.