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Debt Management-
Debt Consolidation: Frequently Asked Questions
What does speaking with a Certified Credit Counselor typically
involve?
The Certified Credit Counselor will discuss your financial situation
with you in a respectful and professional way. You should not
be asked for personal information like Bank Account #, Credit Card
Account #’s, SS#. Your conversation will be kept strictly
confidential with no obligation. The Counselor will help you develop
a workable budget tailored to your needs and financial situation.
Possible solutions to your current debt management issues will be
reviewed. You will learn about different types of debt and the best
way for you to pay down your debts. If appropriate, the Counselor
will discuss our Debt Consolidation Debt Management Program with you
to find out if A Debt Management plan will work for you. All
disclosures and plan will be provided to you in writing for you to
review prior to making a decision. If you speak to a representative
who does not follow the above you should end the conversation and
call Mystar Financial Solutions Inc. at 317-284-6500
or Toll Free 1-877-284-6545.
What is the Debt Consolidation/Debt Management Program?
Debt Consolidation through a Debt Management Program enables you
to get help from your creditors in significantly lowering or
eliminating your interest rates, stop late fees/or over limit fees
on Credit Cards. Lower interest rates translate into more of your
monthly payment going towards your principal balance instead of
finance charges. This means that you will be out of debt much more
quickly. The Mystar Program consolidates your bills into one
convenient monthly payment, which is disbursed to all of your
creditors on the program. Debt Consolidation is an alternative to
bankruptcy. In almost every single case, enrolling in our DMP will
end harassing phone calls from creditors and collection agencies,
usually within the first three months. In addition to the lowered
interest rates and the convenience of one monthly payment, you will
also receive support from our Client Care Dept. as you move along on
your journey to financial freedom.
Is Debt Consolidation a Loan?
No. Debt Consolidation is not a loan; it is a debt repayment
program, which is better than a loan. Why borrow more money at high
interest? Your current debt to income ratio may make it difficult to
get a loan at a reasonable interest rate or you may not get one at
all. A Debt Management plan with Mystar makes more sense because we
can help you lower the interest rates on your current debts and get
you debt free faster than you thought possible. Note: You do
not need to own a home or have good credit in order to enroll.
Will the Mystar Debt Management Program affect my Credit Rating?
Mystar Financial Solutions does not report information to any of
the Credit Bureaus. If you are current with all of your bills and
you have a satisfactory credit score, your rating should remain
virtually unchanged. As long as you make your monthly payments to
the Program on time, your payments to your creditors are considered
to be on time as well. If your credit rating has been poor, once you
join the Program, make timely monthly payments and reduce your debt
more quickly, your credit worthiness can soon improve.
Please refer to the website
www.myfico.com for further information about how Credit
Counseling programs are not considered
when credit scores are calculated.
Can My Credit Rating Be Repaired by Enrolling in the Debt
Consolidation Program?
No. No one can remove or wipe out your previous credit history.
But by staying on a Mystar Program, you effectively restructure your
debt. Your credit rating may actually improve because you will be
establishing a positive payment history. Your balances on your debts
will decrease and this will demonstrate that you are closer to
achieving financial stability. Mystar Financial Solutions is
not a Credit Repair Company and does not do Debt Settlements.
What kind of debt can I consolidate?
Most forms of unsecured debt can be included in our Program.
What is unsecured debt?
Unsecured debt is money owed that has no property or collateral
attached to it. Examples include credit card debt, department
store debt, medical bills, personal loans, student loans. When
on a Mystar Program it is best to refrain from applying for more
unsecured debt, especially Credit Cards. Credit Cards listed on your
program will not be available for use by you. Getting more
debt is not a way of getting out of debt.
Secured debt is money owed
that does have collateral attached to it which protects the lender
in case of default. Examples of secured debt include mortgages and
car loans.
How do I qualify for the Program?
Any Consumer who is having difficulty paying their bills on
time, juggling bills, struggling to make the minimum payments due,
charging routine living expenses on credit cards, or seeking to get
relief from their financial burdens can be considered for our
Program. You do not have to be a Homeowner. You do not have to be
delinquent with your payments.
How do I
know if a Debt Management Plan is what I need?
Ask yourself the
following questions, if you answer Yes to any of them then a
Debt Management Plan is definitely an option –
• Are you
struggling to meet your minimum payments?
• Does it seem that Balances are not going down?
• Are your Interest Rates and Minimum Payments being raised
by your creditors?
• Do you have good income, pay on time, but need to get out
of debt faster?
• Are you getting charged Late / Overlimit Fees and High
Interest?
• Are Creditors Harassing you?
• Call 317-284-6500 or Toll Free 1-877-284-6545
Once I enroll in the Debt Management Program, will creditors still
call me looking for payment?
Within three months of making three consecutive, on-time
payments on our Program, most accounts will “re-age” and will be
brought current. This puts an end to those stressful phone calls. In
the meantime, if your creditors should call you, you should simply
state that you are enrolled in our Program, and direct the caller to
Mystar’s Client Care Department.
Will
I continue to receive statements from my creditors while I am on A
Mystar Debt Management Program?
Yes. You will also receive a statement from Mystar showing the
payments made to your creditors. This allows you to verify that
payments are being made and watch your balances going down each
month.
Why are the creditors willing to lower my interest rates?
Creditors know that when a Consumer enrolls in a debt consolidation
program, they could also be considering bankruptcy. Simply put,
creditors want to be paid, and so they would rather lower your
interest rates to enable you to pay them. They may also feel
confident knowing that you are receiving help on all your debts,
especially credit cards, at Mystar.
How is the Debt Consolidation Debt Management Program different than
bankruptcy?
When you declare bankruptcy, you Do Not pay your bills
and your credit rating gets ruined. In contrast, with the debt
consolidation Debt Management Program, you DO pay your debts
and with discipline and commitment thereby safeguarding you and your
family’s financial future.
How do you calculate my monthly payment?
Different creditors have different minimum payment requirements
for acceptance onto a debt management program. The payment is
calculated based on your individual combination of creditors and
each of your balances. Initially, your Certified Credit Counselor
will not require your account numbers, but the names of your
specific Creditors and Balances are required. Also you need to have
an income to support a Debt Management Program.
Will I be able to send in more money than the minimum payment if I
want to?
Definitely. You are always free to make higher payments than the
minimum amounts required, and there is never a penalty for early
repayment. In fact, we encourage you to do so whenever it is
financially possible. The higher payments will help you get out of
debt faster, and that is our shared goal for you.
What kind of educational information do you provide?
At Mystar Financial Solutions, our mission is to provide
education and counseling in order to assist consumers to become
debt-free while maintaining a stress free lifestyle. We provide FREE
Counseling and Education to consumers, whether or not they enroll in
the Debt Management Program. Counseling is done by ongoing in-person
meetings when possible, and/or ongoing telephone conversations,
seminars, budget planning, written educational packets, website
information, At Mystar Credit Counseling, our mission is to provide
education, counseling and on time payments to creditors in order to
assist consumers to become debt-free with care, compassion and
commitment.
How can I find out more?
If you want to find out how much money you can save every month
and learn new ways to manage your debt, Call 317-284-6500 or Toll
Free 1-877-284-6545. Click here for a
Free Information Request Form.
If you have
other questions that have not been addressed in this Debt FAQ,
please call or E-mail info@mystarhelp.com. One
of our Certified Credit Counselors will be happy to answer your
questions and put you on the right path towards financial freedom. |
