Frequently Asked Questions
How to Get Out of Credit Card Debt
Why choose Achieve Security?
Achieve Security has years of experience and proven success. We are the honest debt
settlement company and always work in the best interest of our clients. We provide
the best value with the most competitive fees available.
How do I get started?
Getting started is easy. Call one of our experienced Debt Consultants to discuss
your situation and various debt resolution options. If debt settlement is right
for you, we will customize a personalized plan based upon your debt and ability
to pay. We would be happy to discuss your questions and concerns during your free,
initial consultation.
What debts qualify for settlement?
Achieve Security negotiates only unsecured debts. Unsecured debts include credit
cards, department store cards, gas cards, medical bills, personal loans, balances
owed after repossessions and accounts in collection. Debt secured by collateral
such as your home or automobile does not quality for our program because creditors
will repossess the collateral for nonpayment rather than negotiate. Federally insured
student loans are not negotiable.
Is there a minimum eligible debt amount?
Yes. Achieve Security generally requires $5,000 of unsecured debt to enter the program.
Individual debts enrolled must equal or exceed $500.
Do I continue to pay my credit cards?
No. By enrolling in a debt settlement program you indicate that you are not now
or soon will not be able to continue making your minimum monthly payments. Neither
you nor Achieve Security will make monthly payments to creditors. Payment is made
only after creditors agree to accept a partial payment on the full balance owed.
Creditors will not negotiate reductions on accounts that are current and receiving
monthly payments.
Does Achieve Security pay my credit cards?
No debt settlement program pays your debts for you. A debt settlement program is
separate from any debts that you owe your creditors. Debt settlement programs negotiate
with your creditors. They also help you help yourself by providing experienced support
and encouragement.
How is debt settled?
Based upon your unique financial position, we personalize a savings plan with one
affordable monthly payment which may be less than the amount you are currently paying
to creditors. Our fees are included in this monthly payment. The savings portion
of your payment can be placed in a settlement savings account that you control.
The settlement savings account ensures the availability of funds as time sensitive
settlement offers are received. A third-party administrator disburses funds to your
creditors only upon receipt of proper documentation of final settlement.
Can I settle debt on my own?
Yes, but settlement can be a long and complicated process that is better left to
professionals. Achieve Security has many years of experience dealing with creditors
and collectors that may benefit you.
What if a creditor says they do not work with Achieve Security?
Most creditors work with debt settlement companies but may not admit the fact. Many
of our clients join because creditors would not work with them directly. These same
clients have been known to receive a letter shortly after the creditor receives
our power of attorney. The letter states that the creditor does not work with Achieve
Security but now can suddenly accept 50 cents on the dollar as a settlement in full.
Months later, this same creditor often accepts an even lower settlement offer from
our office. Creditors have been known to temporarily suspend negotiations with all
settlement firms. However, settlement firms continue to negotiate with the third
party collectors employed by these same firms. After a short period of time, these
original creditors will change their position and again negotiate to increase their
collections and profits.
Don't I need an attorney?
Creditors and collectors negotiate daily with debt settlement firms as well as law
firms. Achieve Security is not a law firm and does not give legal advice.
Does interest continue to accrue on my accounts?
Enrollment in a debt settlement program does not freeze or otherwise stop the accrual
of interest on debts you owe. After a period of nonpayment, an original creditor
may charge off and assign or sell an account to a collector. An account held by
a collector may or may not continue to accrue interest. Our clients inability to
pay minimum payments means that interest was already constantly accruing on their
ever increasing balances.
Will creditors and collectors continue to call?
Yes. No debt settlement company can stop creditor calls. Original creditors can
call until paid but cannot harass you. Third-party collector calls can be stopped.
The Fair Debt Collection Practices Act grants you cease and desist rights whereby
you can stop third-party collector calls after a written notice.
Can I be sued by creditors or collectors?
Some creditors defer aggressive collection for accounts in debt settlement programs.
However, enrollment in any debt settlement program does not change the rights of
creditors to pursue legal action. Generally, creditors exhaust every effort to collect
prior to incurring litigation costs. Smaller balances often do not cost justify
litigation which is why most of our accounts avoid such actions. Creditors will
pursue debtors holding sufficient assets to pay but debt settlement clients should
not have such assets. If an aggressive collector receives a judgment, the creditor
may still negotiate the balance of the judgment, depending on the financial situation.
What are the tax consequences of settling debt?
Debt settlement clients seldom pay tax on the amount of debt reduced through a settlement
program. The general rule is that the forgiveness of debt creates income. Therefore,
creditors may report debt reductions to the Internal Revenue Service. However, tax
is only paid on forgiven debt to the extent that an individual is solvent. Individuals
are only solvent if their assets exceed their liabilities. Most debt settlement
clients have debt far in excess of their assets so they pay no additional tax. Form
982 is attached to an individual's tax return to report insolvency and avoid tax.
If a debt settlement client is solvent, tax may be due on all or part of the forgiveness.
However, it is better to settle debt and pay the tax. For example, a solvent client
in the 25 percent tax bracket receiving a $1,000 debt reduction will pay an additional
$250 in tax. Since debt is reduced by $1,000, the client still saves $750.
What other debt alternatives are available?
Individuals carrying unmanageable debt should consider all of their options even
though debt settlement is in many cases the most flexible, private and cost effective
alternative. A brief discussion of your options follows:
Do nothing. Many consumers are denying their debt problem hoping
for the best and doing nothing. Continuing to pay minimum monthly payments at high
rates means it is virtually impossible to ever pay off your debt. Go to our Debt Calculator to see how long it will take you
to pay your debts. More and more we hear the comment "I'm not worried because I
dont have anything for the creditor to take." A creditor might receive a judgment
and garnish your wages or seize property not exempted by State law. In general,
judgments last until paid. Creditors can surface years later to collect after you
receive an inheritance, get a new job or win the lottery. It is always best to take
care of a problem sooner than later.
Get a loan. If you are delinquent on payments, your credit score
may make it impossible to qualify for any loan. Secured loans mean you could lose
your collateral if you miss a payment. After the recent real estate collapse, new
home equity loans are difficult to obtain.
Consumer Credit Counseling Services (CCCS). CCCS can be most advantageous
for those with low debt amounts that are suffering a temporary setback. CCCS plans
only reduce interest, not the principal balance. Therefore, paying off your entire
debt in a CCCS program can take seven years or more during which time your credit
score is adversely affected. CCCS plans charge monthly fees even if the plan is
run by a not-for-profit entity. CCCS plans do provide the benefit of avoiding collection
action but you sometimes can't even join a plan if you are 60-days past due on your
payments. CCCS plans are inflexible meaning you can't miss a payment. More than
75 percent of those enrolling in CCCS will not complete their plans.
Bankruptcy. Bankruptcy remains on your credit report for ten years.
However, most job and credit applications ask if you ever filed for bankruptcy so
the stigma of filing lingers for much longer. Bankruptcy filings are a matter of
public record so none of your financial information is private. With recent changes
in the law, many consumers are not able to quickly eliminate debt by filing for
a simple Chapter 7 bankruptcy. Most consumers are now required to file under Chapter
13. Chapter 13 can be expensive and requires satisfaction of a means test and credit
counseling prior to filing. A plan requiring monthly payments for up to five years
is submitted for court approval. You have no control in bankruptcy. A judge decides
who is paid and how much. Filers are often surprised to learn that they can be required
to pay back sometimes 60, 70 percent or more of debt depending upon their situation.
Bankruptcy is not flexible meaning you can't miss even one payment. More than
two-thirds of Chapter 13 filers never finish their plans. Anyone considering bankruptcy
should contact a bankruptcy attorney.