Your Options
FAQs
How do I know if I am a good candidate for Wise Up Financial?
To qualify for our program you must have a financial hardship of at least $ 5000 or more in unsecured debt and committed to the idea of being debt free. You must also be dedicated to putting away a calculated amount of money monthly.
What effect will settling my debts have on my credit?
If you are already falling behind with your minimum monthly payments to your creditors, then your credit is already being negatively impacted. If you are struggling to stay current not yet missing a payment, then in the beginning your credit rating will decline until the debts can be eliminated. When your debt is gone, your credit rating will improve again because the most important factor when determining a credit score is the "debt to income ratio". A good question to ask yourself is, "Which is more important; getting out of debt, or protecting my credit rating?"
How much does the program cost?
Wise Up Financial charges a flat fee based on a percentage of the unsecured debt you place into our program. During your initial consultation, one of our Debt Management Consultant will help you determine what you can comfortable afford based upon your level of debt, income, and living expenses.
Will all my creditors settle?
Occasionally there are circumstances where a creditor will refuse to settle. As with any negotiation process, there are offers and counter-offers and given time a settlement can be reached. Creditors realize that recovering a portion of the money that's owed to them is better than recovering nothing at all.
Will Wise Up Financial stop interest and late fees?
Wise Up Financial cannot stop a creditor from adding interest or late fees to an account. However, we do take all of this into consideration when settling your accounts. We negotiate the amount that you have to repay down to the lowest possible point. The amount of money you save is significantly greater than the interest and late fees that might be added. No settlement company has the ability to stop interest from accruing.
Can Wise Up Financial prevent lawsuits?
No settlement company can prevent a creditor from exercising their legal right to take action against you should they choose. However, most creditors would much rather come to an agreeable compromise than go through the process of litigation. Once an account has been assigned to a collection agency, it is rare that the creditor will take legal action against you to recover their monies, If there is an alternate solution available, such as debt settlement, a creditor typically chooses the avenue that will allow them to minimize their losses.
Can my wages be garnished?
This is a common scare tactic used by aggressive debt collectors. Collectors try to make it sound like wage garnishment will happen on your very next paycheck if you don’t send a check immediately. It does not happen that quickly. First the creditor has to sue you, obtain a judgment, and then file for a garnishment action. Wage garnishment can normally be avoided if you’re willing to work with your creditors.
When does Wise Up Financial begin settling my debts?
Upon enrollment your creditors will be notified, and the process will begin. Your debts will be settled as funds become available.
Can I settle my debts on my own?
You could, but without the experience and expertise that Wise Up Financial offers, it would be extremely difficult. Remember you are emotionally involved. Handling debt settlement yourself would be like repairing your own automobile; it can be done, but only if you have the expertise and tools.
How long will the program last?
This is dependant upon the amount you can save on a monthly basis, and how much debt you have. Typically, Wise Up Financial can get you out of debt in 12 to 36 months or less.
Will there be tax consequences?
According to the IRS, once you have settled a debt, creditors are required to report any forgiven amount that exceeds $600 to the Internal Revenue Service (IRS). Additionally, you are supposed to report the same as income on your federal income tax return. Creditors that have forgiven debts at or above the required amount will send you and the IRS a Form 1099-C at the end of the tax year. The 1099-C will be filed along with your other tax-related documentation. However, the IRS will allow you to write off any income from canceled debts up to the amount by which you were insolvent at the time of settlement. Consequently, if you did not have a positive net worth at the time of your settlement, you most likely will not be required to pay taxes on the forgiven amount. If you do not meet insolvent requirements of the IRS, amounts other than the principal balance may be deducted from the amount reported in your annual return. For additional information, please refer to: www.irs.gov under publication 908.
Insolvent: You are considered insolvent when you have liabilities in excess of a reasonable market value of your current assets.
Note: This should not be considered tax advice. WUF does not provide legal or tax-related advice. If you need any type of legal or tax-related advice, you must contact a licensed attorney or a qualified accountant.
Debt Consolidation Loan
This is not a way of eliminating debts, but merely a transfer of debt by borrowing funds to pay off your existing creditors. You must be credit worthy to secure a loan through a financial institution.
Credit Counseling Service
While many counseling services disguise themselves as non-profit, this does not mean free to you, they do charge you for their services! The vast majority of people that sign on with counseling services never become debt free. These companies do not settle debt, but rather make payments to your existing creditors through funds which you furnish them. In order to complete the program, your creditors need to be paid in full. No accounts are settled, no savings are realized, and the program tends to run longer than is usually planned. The worst part is that these companies work for, and are compensated by the creditors, so they do not have your best interest at heart.
Bankruptcy
While bankruptcy may appear to be the easiest solution to eliminate your outstanding debt, it also carries with it the most severe ramifications. It is a life altering event, and recent changes in the bankruptcy laws have made it more difficult to eliminate your debts through bankruptcy. Most people end up paying their creditors through bankruptcy reorganization and suffer the stigma that bankruptcy brings. Bankruptcy should be used only as a last resort!
Debt Settlement
Debt settlement is the quickest and most effective way to become debt free and regain financial freedom once again, improving your quality of life! With the excessive interest rates being charged by most financial institutions, you will be paying your existing creditors for many years to come. Through Wise Up Financial, you become debt free in 12 to 36 months, reducing the amount of debt you owe and avoiding years of hardship. Your creditors are happy because your accounts are resolved, and more importantly, you and your family are happy because you can get on enjoying your lives once again. It's a win-win situation!!
Continue doing what you are doing
• Making minimum payments each month
• Paying high interest rates & outrageously high late fees and over-limit fees
• Transferring balances between credit cards all the time
“I used to lie awake nights worrying about how I was going to pay my bills off. Now I sleep like a baby. Thank you!”
Tina S. - Brooklyn NY.
Call us today 602-235-0153 / Toll free 888-948-3328
Effective Solutions at Discount Savings
Credit and Debt Services
