Q:
Why can't I just negotiate with creditors on
my own?
A:
In some cases, you can negotiate with
creditors on your own to arrange payment or
have positive information reported to a credit
bureau. However, to get the benefits of lowered
monthly payments, lower interest rates, stopped
late charges, and waived over the limit fees,
you need Revive. As a non-profit organization,
Revive credit counselors can secure you these
benefits not usually available to credit consumers.
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Q:
Why can't I just keep paying off my creditors
on my own?
A: If you
keep paying just the minimum to your creditors
at the current interest rate, it will take you
much longer than if you paid off your debt through
Revive. A $10,000 debt usually takes 32 years
and $24,500 to pay off, if you are paying the
monthly minimum of 2.5% of the balance at an
average interest rate of 18.5%. Because we may
be able to reduce your interest rates, stop
over the limit fees, and so on, it will take
a lot less time to pay off your debt through
us. Chances are, in the past, all your debt
payments have just gone to pay off interest.
You probably haven't even reduced the balance!
On average, Revive clients pay off their debts
in 3 to 5 years, depending on individual circumstances.
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Q:
How much will it cost me to be on the Debt Management
Program?
A: Due to
the fact that Revive is a non-profit organization,
we do not charge any advance fees for our service.
We do request that clients make a monthly contribution
to our organization to cover the costs involved
in handling the accounts on a monthly basis.
As a non-profit organization, Revive depends
on these small contributions to meet our operating
costs. Our clients find that their increased
cash flow from lower monthly payments, interest
rate reductions and stopped late charges more
than covers the cost of the monthly contribution.
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Q:
How will joining Revive's Program affect my
credit rating?
A1: Do you
have a good credit history? If yes, then you
should be aware that your credit report may
state that you are working through Revive. We
can't guarantee how future creditors will interpret
this information, but we believe that it shows
you are trying to get help. Your credit report
probably states that you've been carrying balances,
made late payments in the past 7 years, or even
missed payments, so it may not be as perfect
a credit history as you think.
A2: If no,
then Revive can only help you. If you make your
payments in full and on time to Revive, then
many of your creditors will "re-age"
your account, which means they will show your
accounts as current after several payments.
In general, if you are paying off debt, that
can revitalize your credit report. Showing that
you are working through a credit counseling
service may show future creditors that you needed
help but wanted to pay off your debts in full.
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Q:
Can I send in more money once I have a better
cash flow?
A: Of course
- you can always increase your monthly payment.
The more you pay, the faster your accounts will
be paid off. Just let Revive know you want to
increase your payments beforehand so we can
figure out which creditors to pay more money.
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Q:
Should I pay my bills in the time before I send
you my first payment?
A: That's
your decision, however we recommend that you
do if you can. There is a brief negotiation
period of approximately 30 days after we receive
your first Revive payment. During this time
we make arrangements for future payments with
creditors. If you miss due dates for accounts
during the negotiation period, you are at risk
of penalties and negative information reported
to the credit bureau.
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Q:
After I pay off one account, can I just pay
less?
A: That's
your decision, but we highly recommend that
you pay the same amount and transfer whatever
you used to pay for the other account to a high
interest account. That way, as you pay off each
account, you end up paying more to the remaining
accounts, speeding up the process without changing
your monthly spending budget.
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Q:
Will I still receive harassing phone calls?
A: You might
the first several months on the program since
it takes time for your creditor's collections
department to find out you're with Revive. If
you get a harassing call, inform the party to
call Revive and speak to your account specialist.
If you get a harassing call from a collection
agency that is not part of your creditor's company,
we will provide you with a cease and desist
letter. 3rd party collection agents must obey
this letter, according to the Fair Debt Collection
Practices Act. Make sure you tell your account
specialist if you receive any such calls from
a collection agent.
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