Frequently Asked Questions

A. No. The monthly amount will be placed into an FDIC-insured trust account to begin saving up towards your estimated debt settlements and pay all program fees. Funds are accumulated to settle your debts. Then, one by one, you authorize the payment of the debts in a lump-sum or short-term payment fashion.

A. Please have patience. We find that sending out letters in the beginning sounds like a great idea, but may stimulate litigation with certain creditors. Common Cents Credit Solutions, via its partners, will contact your creditors to initiate the debt negotiation process when it is in your best interest to do so.

A. It is entirely up to you to decide how to handle creditors’ telephone calls. Common Cents Credit Solutions will provide you with coaching and support pertaining to your legal rights; however, we do not provide legal advice. Creditors that harass you or otherwise violate the FDCPA (Fair Debt Collection Practices Act) can be stopped from calling you. Legal action may be taken against creditors who do not follow the FDCPA regulations through our third-party relationships.

A. In order for debt settlement to work, creditors must recognize your account has a financial hardship. By the time most clients contact Common Cents Credit Solutions; they are already delinquent or have problems paying their debts on time. Legally, we cannot advise you to stop making payments to your creditors — the decision must be entirely yours.

A. The use of our service does not appear on your credit report. Creditors have the right to report a lack of regular receipt of payments on delinquent accounts. After a settlement is paid to your creditor, it may take about 30-60 days for the account to no longer reflect an outstanding, past-due balance on your credit report.

A. We suggest spending within your budget and saving money for an emergency. Items such as an airplane ticket or car rental may be acquired using a debit card or pre-paid credit card, provided the cash is available. Remember, using current credit cards will only serve to accrue more personal debt, extend time to pay off creditors, and prolong your journey to financial freedom.

A. The first debt settlement may not take place for 6-9 months or longer. The ability to reach a settlement depends on the amount owed to a creditor, your financial hardship, and the amount of money you save each month.

A. Any debt more than $600 written off by your creditors will be reported to the Internal Revenue Service as taxable income. A tax liability could be incurred anytime a creditor offers debt forgiveness of more than $600. Common Cents Credit Solutions suggests consulting a certified personal accountant about your personal situation.

A. Most creditors want to collect any money toward delinquent accounts, and will cooperate with us. Often, they are overwhelmed with delinquent accounts, yet it’s nearly impossible for them to serve lawsuit summonses on everyone who does not pay their debts. Although Common Cents Credit Solutions cannot stop creditors from taking legal action against you, they must first serve you with a summons and attend a civil court trial before any judgment can be entered against you.

A. No, but many creditors will accept a significantly reduced, lump-sum final payment to remove an unsecured, delinquent debt from their books. However, credit card companies and other unsecured creditors are not obligated to accept any debt settlement we offer them on your behalf.

A. Common Cents Credit Solutions offers a very viable alternative to declaring bankruptcy, and a great vehicle by which to get you on the road to freedom from debt. If you wish to avoid bankruptcy, we will assist you to fairly pay back qualified past-due debts, but you must learn to live within your means in order to remain free of unsecured debt.