Here are some questions that new clients regularly ask when contacting Affinity.

How do you define debt consolidation?
Debt consolidation plans restructure your existing debt with your existing creditors. Loans are not taken out, and creditors remain the same. What changes is the terms and conditions under which the debt can be repaid. With the Affinity Debt Consolidation plan, the expected monthly payment lowered and, interest due to creditors is lowered or in some cases, absolutely eliminated.

Once you qualify for our program, your repayment progress increases on a monthly basis through quite affordable payments. And because most creditors report payments received under the Affinity plan as "prompt payments" your credit report is usually improved by the time your debt is paid down.

Can medical and hospital debts be included in a debt consolidation plan?
Yes. We have negotiated with numerous health care organizations in the past, with excellent results.

Why shouldn't I consider bankruptcy? Isn't it an easier route?
Although bankruptcy may seem easy on the surface, it can dramatically damage your credit report. In fact, a bankruptcy appears on your credit report for a period of at least ten years. Additionally, a bankruptcy can be reported for the rest of your life in instances when you are applying for certain jobs, licenses or loans. So before you consider filing bankruptcy, please give yourself a last chance to obtain financial freedom.

Basically, I am at my wit's end. I have applied for credit counseling, but have been turned down. What can I do?
Clients with extremely high debt levels may want to try to obtain a debt reduction settlement, a different type of consolidation that Affinity does not perform. Click here for information on debt reduction.

What about a "debt consolidation" or "home equity" loan?
Most people like this idea, as in cases where they are actually approved, they receive a check to pay off their creditors almost immediately. At the same time, loan companies tell them that interest payments are tax-deductible.

However…
In a majority of cases, people who apply for these loans end up in deeper financial trouble than they were before. This often happens because these loans do not actually reduce the amount you owe, only the interest rate. But the most critical thing about these loans is that they jeopardize your home. Foreclosure is a dangerous side effect of these loans, especially if payments are not kept up. Because our program cuts both interest rates and principal, and includes an educational aspect which shows you how to keep yourself out of debt, it is far superior to a loan.

Who is best suited to a debt consolidation plan?
A debt consolidation plan is ideal for someone who has so much debt that they can only afford to make minimum monthly payments on their debt obligations. There are many important signals of potential financial trouble, but the real question you should ask yourself is, "what impact is this having on my life?"

If your bills are beginning to worry you, or you are behind on your payments, it is best to get a professional opinion as to your options. Many creditors make your accounts current shortly after you begin a consolidation program. In fact, in most cases one or two consecutive payments will make an account current - no matter how "past due" the account.

What types of debt qualify for debt consolidation?
Most debts can be included in a debt consolidation program, as long as they are unsecured. Some examples of unsecured debts include credit cards, medical bills, department store cards, non-government sponsored student loans and bank lines of credit. All of these can be consolidated.

However, secured loans like house payments or car loans usually cannot be consolidated successfully. As well, a loan that has been cosigned by another person cannot be consolidated either. Secured debt is always secured by a tangible object or property - so if payments are not made, the security (such as a car or house) can be taken away. Secured debt should always be paid before unsecured debt.

Contact an Affinity representative for a free, confidential consultation today.