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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 firstname.lastname@example.org. One of our Certified Credit Counselors will be happy to answer your questions and put you on the right path towards financial freedom.