Q: How does this affect my credit? Can I still use my credit cards?
- A: By reducing your interest rates, you do not damage or negatively impact your credit rating in any way, shape or form. All of your credit cards remain open and you continue to make your payments to your lenders. The major difference is that by reducing your interest rates more of your monthly payment is applied toward your principal balance. Therefore, you will be paying the account(s) down faster. Although your accounts are still active, it is not recommended that you use them, except for emergency situations.
Q: Is this a loan?
- A: This is not a loan, there is no collateral required, and you do not need to be a home owner. We simply and aggressively negotiate with your creditor(s) to provide you lower rates!
Q: Am I required to pay more each month to my creditors for each of my accounts?
- A: No, you can continue to make your minimum monthly payments but by reducing your interest rates more of your monthly minimum payment will go toward your principal balance rather than excess interest. However, we do recommend if you have the means whenever possible that you pay extra toward your accounts in an effort to expedite the payoff!
Q: Is this considered credit counseling?
- A: No, we are simply attempting to negotiate a lower interest rate for each unsecured account you currently have while at the same time providing you a budgeting plan to help you improve your financial position by showing you ways to increase your disposable income and plan for your future. We do not close any of your accounts or impact your credit in any way.
Questions and Answers
You may be asking yourself:
