Frequently Asked Questions

Debt Consolidation

Q: Why does the debt consolidation program work?

Q: Why is debt consolidation better than a loan?

Q: How will debt consolidation affect my credit?

Q: Can my credit be repaired through debt consolidation?

Q: Can I quit the program?

Q: What are unsecured / secured debts?

Q: Is this a loan? Do the creditors get paid in full?

Q: Who needs our service?

Q: I have debts prior to marriage, Can I do this alone?

Q: Will creditors still call me?

Q: How is my payment determined?

Q: Are creditors willing to work with your program?

Q: What is the difference between non-profit and for profit organizations?

Q: How do I get started on the program?




Q: Why does the debt consolidation program work?
A: Credit Cards are under a revolve credit payment plan. They are designed to keep you in debt, resulting in your paying an extraordinary amount of interest while trying to pay them off. Under these circumstances, most people will end up paying between 15 and 30 or more years. This means they will usually pay out 5 to 6 times
what they originally borrowed.



Q: Why is debt consolidation better than a loan?
A: Borrowing money to pay back borrowed money is economic suicide.
If you are able to qualify for an unsecured loan to pay off your
unsecured debt (most people do not) you are basically borrowing from Peter to pay Paul. If you take out a secured loan such as a home equity or second mortgage, you are attaching your current unsecured debt to something of value such as your home. The average interest rate in consolidation is 6 to 8 percent, which is usually less than most loans today.


Q: Can my credit be repaired through debt consolidation?
A: By using our program you restructure your debt. Your credit rating may improve by showing a positive payment history. No one can erase your true credit history, but the longer you stay in the program, the closer you will be to establishing a solid financial footing.

Q: Can I quit the program?
A: Yes. However, if you do decide to quit the program, the interest rates will go back to what they were before you started.

Q: What are unsecured / secured debts?
A: An unsecured debt is an account or monies owed that has no tangible property or product attached to it. Examples: Credit Cards, Medical Bills, Department Store Cards, Signature or Installment Loans, Repossessions, etc.  A secured loan has something physical attached, that protects the loan in case of default, such as a mortgage or a car note.

Q: Is this a loan? - Do the creditors get paid in full?
A: No. This is not a personal loan to you. There is no cash in hand. All your money is disbursed directly to your creditors at a lower or zero interest rate. The National Debt Adjusters and its servicing agents are hired by you to do three things.
1. To set up and establish a new payment plan with your creditors that suspends your original terms and will help you get out of debt by lowering or eliminating your current interest rates.
2. Handle all Creditor and Collection agency phone calls after you have joined our Debt Consolidation program.
3. Consolidate your bills into one monthly payment.

Q: Who needs our service?
A: Anyone who is experiencing problems keeping up with their bills or seeking to rid their life of financial burden.


Q: Will creditors still call me?
A: If creditors call you after you enroll in the program, simply direct them to our service center. We will advise them that you are enrolled in our consolidation program, and there is no reason to contact you further.

Q: How is my payment determined?
A: Each creditor requires a minimum payment to qualify you for the program. All creditors have different requirements for acceptance. The payment is based on your particular mix of creditors and your balances.

Q: Are creditors willing to work with your program?
A: Absolutely. Your creditors want to be paid. They also understand when a client contacts a debt consolidation company, they may also be considering bankruptcy.

Q: What is the difference between non-profit and for profit organizations?
A: There are many financial firms offering a debt consolidation program today. Many of these companies are "for-profit", unregulated businesses. If a company is not being subsidized by the creditors, they must collect all operating costs from YOU the client. This results in much higher monthly service charges that can sometimes be very close to the interest they claim to be saving you. Also many creditors will not work with for-profit companies or give the same concessions to their clients. When you enroll with National Debt Adjusters, your account is handled by our 501C non-for-profit servicing agent A New Horizon establishing a strong relationship with your creditors and receiving the lowest payment and interest rates without any negotiations.

Q: How do I get started on the program?
A: We offer an online creditor listing form for your convenience. Just click on the Free Quote link, fill out the requested information and submit it. You will be contacted by one of our Financial Consultants within 12 to 48 hours.