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For a FREE consultation, call
1-800-388-0141 or start by filling
in the form below and one of our specialists will contact you.
Resources
Our Success Depends On You!
We have studied thousands of cases of successful clients and summarized their habits into three main concepts. Our "Client Success Principles," if followed, can help you achieve financial freedom.
•Be Informed - To be a successful client, you need to understand all aspects of your mediation program and make sure the program is right for you.
•Spend Less Than You Make - No debt mediation program will work unless you are able to save more than you spend.
•Have Patience And Perseverance -It takes time to resolve your debt. You have to be focused on the long term relief you will get by staying focused on the end goal – financial freedom.
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How it Works
Your financial standing does have a second chance, so put the pressure of debt into our hands and start building a better life for yourself.
- Contact CreditArbitrators by calling 1-800-388-0141 or fill in the form to the left.
- We will customize a debt mediation plan designed to fit your budget and time frame and also explain the other options you may have at your disposal.
- We will send you formal agreements prior to enrolling, so you can make an informed decision.
- Fill out the enrollment forms and return with your recent creditor statements.
- Budget and save monthly in order to successfully complete the debt mediation program.
- Accept offer from your creditors until all accounts are resolved and you achieve financial freedom.
We are familiar with most creditors' policies regarding debt mediation. Leave the worrying to us.
Creditors may tell you that they do not work with debt mediation companies. By and large that is not true and we settle accounts every day of the week with all of the major creditors. Even when this may be true in some circumstances, a collection agency the creditor retains may work with a debt mediation company. CreditArbitrators does not send out proposals to your creditor because we negotiate on your entire debt, not just the interest, such as consolidation companies.
CreditArbitrators has a process for notifying the creditor at the appropriate time and we may not contact your creditor for some time. Most accounts are charged off by the creditor in about 6 months from the time you last made a payment to a particular creditor. This is typical of the collection process and can actually work to your benefit during the negotiation process.
When you have accumulated sufficient funds, a settlement will be negotiated and we will instruct you on how to fund the payment from your accumulated savings. Your savings budget, which has been set for you, is the minimum amount of funds that you will need to save monthly in order to complete the program schedule. CreditArbitrators encourages you to save more money each month if you are able to. The more money you save each month the faster we can begin negotiations for you.
| Dealing With Creditors |
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What You Need To Know
CreditArbitrators understands that it can be very stressful and frustrating to receive an excessive amount of collection calls on a daily basis. Creditors know that an excessive amount of collection contact attempts can wear people down. A collector may be pleasant or rude but they all have the same purpose - to try and convince you to make a payment.
It is important you understand your rights as a consumer. Although creditors can legally continue to contact you, they may not harass you.
With the CreditArbitrators program we encourage you to send all correspondence from your creditors to us, such as collection notices, demand letters, statements, letters and settlement offers.
Creditor Call Scripts
What to say when a creditor calls.
Do's and Don'ts of Dealing with Creditors
Things to remember when speaking with creditors.
Original Creditor Calls vs. Third Party Collection
Determine who is calling you.
Legal Threats
What to do when threatened with legal action, we always suggest you meet with an attorney.
Offers
What to do when you receive an offer.
Interest, Late Fees and Penalties
What happens to these charges from creditors.
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| Offers |
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| Once you have saved up enough funds, CreditArbitrators can begin to mediate on your accounts. We generally will work on one account at a time unless you have a lump sum available. Your advisor will work with you to determine which accounts should be resolved first.
Believe it or not, bad credit can actually help a debt negotiation expert in negotiating better resolutions. Creditors are generally more willing to negotiate when they see that most of your accounts are delinquent and they would gain very little if they sue you or force you to file for bankruptcy.
We Pick An Account To Mediate Based On The Following Criteria:
- Severity of collection efforts.
- Balance of account.
- How much you have saved.
- How low a certain creditor is willing to go.
Your Account Is Turned Over To A Collection Negotiator
- A CreditArbitrators negotiator will get firm offers from a creditor agreeing to resolve the account and stop collection efforts.
- You will be notified by an advisor of the offered amount and you can either accept, reject or make a counter offer.
- You may be asked to provide a detailed hardship letter describing your current circumstances.
You Submit Funds Based Upon The Agreed Amount
- Funds go directly to creditor from you
- The creditor will provide you written documentation that the account is resovled. The creditor will usually agree to update the credit reporting agencies that the account is "resolved for less than the full amount" and send you a confirmation letter.
Resolving An Account
CreditArbitrators will work with you to determine which of your accounts to mediate and when to negotiate on these accounts with your creditors.
Credit Score Education
Your credit score is used by anyone loaning you money. Credit card companies, home equity lenders, auto loan lenders and finance companies all use a model created by Fair, Isaac and Co. (FICO), who pioneered credit scoring 40 years ago. FICO serves as a snapshot of your credit history. Having a low credit score can raise the price of your loan and a very low score can mean denial of your loan completely. CreditArbitrators will help you understand the ins-and-outs of your credit score along the path to your financial freedom.
Charge-off Accounts
A "charge-off" is the point where your creditor is required to write the debt off their books. This typically takes place once the account has been delinquent for 180 days. The lender is expressing that they don't expect to collect the debt and are not willing to claim it as an asset of the company any longer.
Tax Consequences Of Debt Mediation
Financial institutions are generally required to provide a Form 1099-C in the event that a forgiven debt amount exceeds $600.00. Please understand that if you receive a Form 1099-C showing income in the form of canceled debt, this does not necessarily mean that you owe taxes on the forgiven portion of the debt. In most cases clients can legally and ethically exclude forgiven debt from their income through the "insolvency exclusion" provided by the IRS code.
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For a free consultation, call 1-800-388-0141. We’re here to help you.
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