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Frequently Asked Questions about Debt Consolidation
What can Phoenix Financial Services do for me?
We provide services that will educate you about consumer credit and provide you with confidential budget and credit counseling and debt repayment plans. Our accompanying brochure lists all of our available services.
What are the benefits of working with you?
We can analyze your financial situation to help you determine your options. If one of the options is our Debt Liquidation Program, you can reduce the number of phone calls from creditors. After you have successfully worked toward repayment of your debts, we can assist you in reestablishing your credit.
What is a Debt Liquidation Program?
Your Debt Liquidation Program will set you up on a specific schedule to repay your creditors. By voluntary arrangement, you will deposit funds into a trust account each month. We send those funds to your creditors based on our arrangement with them. If collectors call you, you are to direct them to us. You may also receive a reduction or waiver of financial charges and other fees. When you have completed the program, we can assist you in reestablishing you credit.
How will this affect my credit?
Several factors come into play. How did your credit look before entering the Debt Liquidation Programs? How consistent were you in making your payments? Did you increase payments over time? When you complete the program, we can assist you in obtaining credit through one of our credit recovery programs.
How much do your services cost?
Sometimes clients are not charged for the various services or advice that we offer. Generally we pass on our costs to you the consumer. These nominal charges help cover the overall costs of the services provided.
Can you stop legal action and collector calls?
In a majority of cases, we are able to work with creditors to develop a solution that will satisfy everyone and generally stop any legal actions. If you maintain your payment arrangement with us, the majority of the phone calls will stop. Since you are still responsible for you debts, some calls may continue.
Are most creditors willing to work with you?
Yes, most creditors support the services that we provide.
Why will creditors reduce payments through you, but not work with me?
We have a trained, professional staff to evaluate your overall financial situation. Assist you through us.
Will my creditors be informed that I have an appointment?
Provided that you inform your creditors that you have an appointment with us, we may receive calls to verify your appointment . If a creditor calls us, we will verify the day and time of your appointment.
What happens in my counseling session?
We will review your financial situation in a non-judgmental manner and provide you with possible solutions. If possible, we will assist you in developing a spending plan that covers not only your expenses, but payments to your creditors.
Is my appointment kept confidential?
Absolutely! Our professional counselors do not discuss your situation with anyone that you have not authorized us to. All client records are kept in a secure environment.
Will you give me legal advice?
No. Only a properly licensed attorney can give you opinions on legal matters. At your request, we may refer you to an attorney who can assist you.
How does your program differ from Chapter 13 bankruptcy?
Our Debt Liquidation Program is a private voluntary plan for both you and the creditor. While many creditors may waive interest and late fees, not all of them do. When you have repaid your debts, our credit recovery programs can help you regain your credit. In contrast a bankruptcy becomes public record. Your name and total debt may be published in the newspaper. The courts will administer the plan and most interest will be stopped. You may have difficulty getting credit in the future. Since our program is voluntary, not involuntary, it has a much gentler impact on your credit than bankruptcy.
How long does a bankruptcy remain on my credit?
Under the Fair Credit Reporting Act, a Federal Law, and depending upon where you live, a bankruptcy can stay on your credit for up to 10 years.
