Priority Financial Managment

FAQ Table of Contents:

1.	How will my credit report be affected?
2.	How does Priority Financial Management stop creditor harassment?
3.	Is debt negotiation illegal?
4.	How will you reduce my debts?
5.	Can I do the negotiating myself, instead of paying someone to do it?
6.	Couldn't I just take the easy way out and file bankruptcy?
7.	Why Priority Financial Management instead of other debt negotiation companies?
8.	What is Debt Negotiation?
9.	Will my information be sold or given to anyone or any companies?
10.	What kind of debts do you handle?
11.	How do I enroll?
12.	Do I have to use debt negotiation for all my debts?
13.	Can debt negotiation help to improve my credit?
14.	When my spouse and I got divorced, the judge split our debts and gave both of us creditors to pay off. I am paying, but my ex-spouse isn't. Will that show on my credit records and will I still be responsible for paying his share of the debts?
15.	I went over the limit on all of my spouse's credit cards. Does he/her have to know and be involved in the program?
16.	Will I continue to get statements and other correspondence from my creditors?
17.	What are the tax consequences?

How will my credit report be affected?

After a debt is settled, it is reported to the credit bureaus. A settled debt has a more positive value compared to bankruptcy or bad debts. Debt negotiation will not scar your credit report because it will only show that you have managed to pay off your debts. When you are applying for credit in the future, the banks are only interested in one thing: Will this person be able to pay this back in a timely fashion?

2.	How does Priority Financial Management stop creditor harassment?
	Once started on the Debt Negotiation Program, we send out "Cease and desist" letters to all your creditors requesting that they ONLY contact us and NOT you. This is done through your power of attorney granting Priority Financial Management the status of your Attorney-In-Fact for debt negotiation purposes.

Is debt negotiation illegal?

DEFINITELY NOT! The banks and your creditors DEPEND ON and LIVE OFF OF your lack of knowledge about laws regarding debts and credits. The last thing your creditor(s) want you to do is start thinking on your own. It is your right to appoint a third party to represent you in debt matters, and that's exactly what we are: third party representatives. As your authorized representative, Priority Financial Management will guide you through the unchaining of your debt's ball and chain into financial/credit freedom

How will you reduce my debts?

Instead of negotiating to lower creditor interest rates, we actually go in and negotiate to minimize the total balance. We know that creditors want their money, and we use that knowledge to our advantage. When they are desperate enough, they will settle for YOUR terms. It is logical to aim for the total balance instead of the interest rates, because the point is to have the client debt free as soon as possible. By lowering interest rates, we are not making any progress because you will STILL be indebted, and it will take you even LONGER to pay off all your debts.

Can I do the negotiating myself, instead of paying someone to do it?

Of course. However, there is a good chance that the savings you gain will not be as great as the savings our professional negotiation associates can achieve. This is because our negotiation associates are trained to utilize special tactics, strategies, and concepts when negotiating and it is their job to get both QUALITY AND QUANTITY out of each negotiation session. In addition, when you are doing the debt negotiation yourself, you will have to carry ANOTHER burden (as if trying to juggle family, friends, school, a job, and a social life wasn't difficult enough!). Your additional burden will include many boring, exhausting, and frustrating hours spent to research and learn about negotiation strategies, laws and regulations of the industry, and to complete lots of paperwork, make lots of phone calls, and even meet your creditors over lunch to discuss your debts (do you REALLY want to meet your creditors, face to face?). Sounds fun. Why carry more than you should? Let us help you shoulder the burden. We GUARANTEE you that the savings you achieve with our program will outweigh the price you paid to be enrolled into our program.

Couldn't I just take the easy way out and file bankruptcy?

Sure. If you really want to damage your credit records for 10 years, and have it remain on other public records for 20 years, then go for it. Bankruptcy is not a good thing if you want to get a certain job, apply for loans, buy a house, or buy a car. Because once they check your records and discover that you didn't take care of your debts, but filed for bankruptcy instead, they are hesitant to trust you. And then, what happens a few years down the road, when you want to refinance? The bank may run a background check for liens or other encumbrances. Whoa! You just committed bank fraud and all you were trying to do is get a better interest rate. Why take the risk and suffer its consequences, when there are less painful ways to deal with it? The only good reason to file bankruptcy is if you are drowning in your debts, and there is no other lifesaver except bankruptcy. But, before you apply for bankruptcy, contact us HERE (link should lead to email application page) and we can determine if we are able to help you or not, free of charge.

Why Priority Financial Management instead of other debt negotiation companies?

Unlike many other credit repair companies, we take a personal interest in our clients and treat them like family. In our eyes, our clients are the priority. We have been there before, so we are genuine when we say we want to help others who are currently going through what we went though. Instead of having a client-representative relationship, we seek to establish a friendlier atmosphere. Our business started out with referrals, meaning our clients liked what we did for them and spread the word, and even nowadays, our business still operates mainly on referrals. For our clients, we are hardworking, persistent, dedicated, and perhaps most important of all, we understand your situation. We realize that sometimes life isn't exactly "Pleasantville" and unforeseen circumstances can cause financial conflicts. Therefore, we are flexible enough to tailor to your budget and your circumstances.

What is Debt Negotiation?

Debt Negotiation is a process that consists of cutting-edge and effective strategies of negotiation that were formulated by years of experience and trial-and-errors from our original founders and top executives. It has been perfected throughout the years to get the largest amount of savings for clients and to help them be on their way to a stable financial foundation again. Under our Debt Negotiation Program, our clients are the PRIORITY

9.	Will my information be sold or given to anyone or any companies?
	ABSOLUTELY NOT. We respect your privacy and honor our words. Our company signs a confidentiality contract with you stating that any personal information will not be released, under any circumstances.

10.	What kind of debts do you handle?
	We handle all UNSECURED debts, such as: credit card debts, medical and legal bills, retail debts, collections, and any type of unsecured or personal loans. We do not handle SECURED debts, such as: mortgages; vehicle, motorcycle, boat, airplane and motor homes that are not repossessed yet; IRS tax liens; government student loans; or child support and alimony.

11.	How do I enroll?
	You can fill out an online application here and once we receive and review your application and pre-qualify you, we send you a registration packet and set up an appointment, where we go over our administration fee in person or over the phone. We also set up a payment schedule for you.

12.	Do I have to use debt negotiation for all my debts?
	Of course not. Remember, we tailor our program and services to fit your needs. However, with your best interests in mind, we recommend allowing us to handle all your unsecured debts since we specialize in unsecured debts.

13.

Can debt negotiation help to improve my credit?

Yes, because we are not required to report our clients to the credit reporting agencies, so we do not. This is beneficial because our program helps to reduce the total principal debt you owe, which improves your debt-to-income ratio, which improves your credit. Most creditors will note on your credit report that you are participating in a payment plan and instead of showing up as late accounts, your accounts are shown as current after continuous payments to your creditors. This is a win-win situation because the creditors would like to collect at least a reduced balance instead of having the consumer declare bankruptcy. On the other hand, the consumer would rather have good credit for future purposes. By the way, when creditors are evaluating your credit worthiness, and they see your involvement with a debt settlement service, they see it as a bonus because you are taking responsibility by taking care of your debts.

14.	When my spouse and I got divorced, the judge split our debts and gave both of us creditors to pay off. I am paying, but my ex-spouse isn't. Will that show on my credit records and will I still be responsible for paying his/her share of the debts?
	All debts will be shown on your credit record until fully paid since it is a joint account. You can give your creditors a copy of the divorce decrees and see what they say and do, but most likely, if your former spouse neglects to pay his/her share of the debts, you will have to.

15.	I went over the limit on all of my spouse's credit cards. Does he/she have to know and be involved in the program?
	Yes, because it is a joint account now. Besides, by trying to hide this from your spouse, you'll always be feeling anxious as to whether the creditors call him or not.

16.	Will I continue to get statements and other correspondence from my creditors?
	No, we send out "Cease and Desist" letters to all your creditors asking them to correspond ONLY with us. If they still send you correspondences, let us know, and we will deal with them and let them know again, that you have granted us the "Power of Attorney" and we are your legal representatives.

17.

What are the tax consequences?

Banks are supposed to report cancelled debts exceeding $600 to the IRS and you are supposed to report the same as income on your annual tax return. However, the IRS permits you to write off any income from canceled debts up to the amount by which you were in debt at the time. So unless you have a positive net worth, which is highly unlikely if you're deep inside debt, then you ordinarily won't have to pay taxes on the forgiven amounts.