Need Debt Reduction?

1. I have a flexible monthly income. Can I still participate in the program?
2. Are my creditors going to continue to contact me?
3. Will this program have a negative effect on my credit?
4. Why should I use Prestige Financial Solutions to settle my debts as opposed to handling it myself?
5. Who do I call if I have a question about the program or a problem with a creditor?
6. Do I have to include all of my creditors into the program for settlement?
7. How long will it take for me to complete the program?
8. How much does this program cost?
9. What if my creditors won’t settle?
10. Will Prestige Financial stop late fees and interest from accruing on my account?
11. Is debt settlement the same as debt consolidation?
12. Can you settle your debt on your own?
13. Is Debt Settlement the same as Consumer Credit Counseling?
14. Will I owe money to the IRS for my reduced settlement?
15. Will your program stop legal action against me?
16. How much does the Prestige Financial Services PAYS program cost?

Q. I have a flexible monthly income. Can I still participate in the program?
A. Yes. Our fees and payment schedule are on a client-by-client basis. We will figure an affordable and simple plan for your unique situation.
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Q. Are my creditors going to continue to contact me?
A. Yes. You will be assigned a dedicated Debt Negotiator who will advise you on how to handle these calls. Please note the Fair Debt Collections Act can be a great resource when dealing with creditors.
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Q. Will this program have a negative effect on my credit?
A. The Debt Settlement Program will have an adverse effect on your credit during the program as creditors will be reporting late payments to your credit while we negotiate. However, we request that creditors remove any derogatory information they make to your credit while you are in the program. Once your accounts are settled, they will have zero balances and your credit should start restoring itself from there.
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Q. Why should I use Pay As You Settle to settle my debts as opposed to handling it myself?
A. Our team has an impeccable relationship with creditors and collection agencies, which are usually unwavering in negotiating with the consumer directly. We also have extensive knowledge in consumer debt and the Fair Credit Reporting Act, as well as the Fair Debt Collection Practices Act.
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Q. Who do I call if I have a question about the program or a problem with a creditor?
A. Upon enrollment, you will be given an account number and will be able to contact an account representative who will be handling your case.
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Q. Do I have to include all of my creditors into the program for settlement?
A. No. We recommend that you keep open at least one credit card for emergency use only. Any accounts that are included in the settlement program will have to be closed immediately.
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Q. How long will it take for me to complete the program?
A. It typically takes about 24-48 months. This includes all fees. However, it could be much sooner depending on your individual situation.
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Q. How much does this program cost?
A. The Pay As You Settle® debt settlement program does not charge until a settlement is reached by both parties and executed. After a settlement is reached PAYS earns 25% of the total amount of saved. For the residents of Illinois, PAYS only earns 15% due to state regulations.
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Q. What if my creditors won’t settle?
A. Creditors know that if they don’t settle for even a fraction of the debt, they will most likely get nothing. The Creditors know that if you declare bankruptcy they will get absolutely nothing and that is what they are trying to avoid. Also, the point of pre-qualifying your debt is to make sure that we are only accepting accounts from Creditors that we have a successful history negotiating with.
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Q. Will Pay As You Settle stop late fees and interest from accruing on my account?
A. PAYS cannot stop a creditor from adding interest or late fees to an account. However, your individual program will reflect those fees and/or interest, and is incorporated into the settlement program. Because we negotiate the debt down to a fraction of what you owe, your savings are far greater than any interest or late fees that could accrue.
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Q: Is debt settlement the same as debt consolidation?
A. No. The goal of debt settlement is to reduce the overall amount of the debt by negotiating agreed payoff amounts with your creditors. Debt consolidation involves obtaining a new loan to pay off the debt, which requires an excellent credit score and a low debt to income ratio.
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Q: Can you settle your debt on your own?

• Sure you can, but we would not recommend it. You may be able to make your own plumbing repairs or install your own computer network, but most people don’t have the time or expertise to deal with it.
• Creditors deal with thousands of people who are in financial difficulty every day and have a vast array of sophisticated (and some rather blunt) methods of intimidating you into financial arrangements you cannot keep.
• The settlement process is usually very emotional and stressful, especially when you are the one being attacked by collectors over the phone. Most people prefer to leave these tasks to experienced people who earn their livelihood doing that particular kind of work.
• We have a staff of debt negotiators whose only job is to negotiate the settlement of unsecured debt, every day, five days a week. By letting PFS do what we do best, you will get better settlements with a fraction of the stress.
• PFS knows how to deal with creditors and have in-depth knowledge about how these institutions work. We can potentially save you thousands of dollars and free you from a considerable amount of stress.

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Q: Is Debt Settlement the same as Consumer Credit Counseling?
A. No. Debt settlement does not work like consumer credit in most respects. The goal of the debt settlement is to reduce the overall amount of the debt, by negotiating agreed payoff amounts with your creditors. Debt Settlement can save you thousands of dollars and years of repayment.
Consumer Credit Counseling Companies typically have a non-profit status. Many consumers confuse “non-profit” with “no charge for services”, or charity. Non-profit Consumer Credit Counseling Companies generate millions of dollars each month and employ thousands of people. The way Credit Counseling works is that you typically meet with a Credit Counselor, who analyzes your unsecured debts, other obligations, and your monthly income. A credit counselor then formulates a monthly budget and presents a plan that includes lowering of credit card interest rates and sometimes, the monthly payment. The Credit Counseling Company then contacts all your unsecured debt Creditors of unsecured debt and requests that the consumer be permitted to enter the bank’s hardship repayment plan at a lower interest rate. Most hardship plans are for a 12-18 month period. Note: most Consumer Credit Counseling programs run 48 – 60 months. During the program a single payment is sent to the Credit Counseling company and they in turn make payments directly to all your creditors for the next 48 – 60 months.
The consumer credit counselor charges what seems like a relatively small fee. What you are not told is that the Credit Counseling companies act as a surrogate of the Credit Card Company. They make most of their money from “donations” from your Creditors based on the amount they “collect” from you while in the program. An arrangement very similar to how collection agencies are paid by creditors. So a credit counseling company may not have your best interest at heart. These donations are the primary purpose for these companies organizing under a “non-profit” status (for-profit companies cannot receive donations).

The downside to credit counseling is as follows:

• In a Credit Counseling program you pay the full amount of debt owed at a hopefully reduced interest rate.
• Payments are still high and it typically takes years to pay off the debt.
• Most Credit Counseling programs have a high failure rate.
• Many these companies are funded by your creditors – the very people to whom you owe money. In other words, they may not represent your best interests.
• Additionally, your credit will have a CC or Credit Counseling mark on it. This is viewed negatively by most lenders and may hinder your ability to refinance a home or get a loan.

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Q: Will I owe money to the IRS for my reduced settlement?
A. Creditors are required to report canceled 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 “Insolvent” at the time. Therefore, unless you have a positive net worth, then you ordinarily will not be obligated to pay taxes on the forgiven amounts. Additionally, if you do not qualify as insolvent non principal amounts such as fees accumulated on the account may be deducted from the amount reported. Refer to: www.IRS.gov Publication 982.
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Q: Will your program stop legal action against me?

• Creditors have the right to use legal means to collect a debt. Some creditors are more likely to file suit than others.
• It is a common tactic of creditors and collection agencies to threaten you with a lawsuit (which is illegal if they do not intend to sue). The reality is that creditors or collection agencies rarely ever sue. You should be aware that a creditor/collector can only sue you if they retain an attorney that is in your state. It takes time and costs money to file, if a creditor does take legal action, they can only collect what you have. A wage garnishment takes time and always hinges on your employment and may not be applicable in your state. If you own a home it is difficult for a creditor to attach the equity in your home and it may be protected by your state’s homestead act. In conclusion, it is typically more cost effective for a creditor to settle than to pursue legal action. While we cannot guarantee that legal action will not be taken, we are confident that our experience in dealing with creditors can reduce the possibility of this happening.
• Despite any legal action that may or may not be taken, your account can be settled before, during or after the suit. Just because an account goes to legal action does not mean that we cannot settle it. The threat of legal action can be the scariest of all, IT CAN BE HANDLED.
• Note: We cannot provide you with legal advice. We work with your creditors to find a solution that will satisfy everyone before legal action is taken.

Call us today to speak with a Debt Advisor and start reducing your debt in 48 months or less.
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Q: How much does the Prestige Financial Services PAYS program cost?

• Prestige Financial Solutions Pay As You Settle program DOES NOT charge upfront fees.The Pay As You Settle® debt settlement program does not charge until a settlement is reached by both parties and executed. After a settlement is reached PAYS will not earn more than 25% of the total amount of saved depending on state and licensing.

Call us today to speak with a Debt Advisor and start reducing your debt in 48 months or less.

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