FAQ about Debt Rolldown Plan:

What is a Debt Rolldown Plan?

Our Plan program is a system of debt accelerators designed to help homeowners get rid of debt. It's that simple. We are simply using age old, proven concepts to accelerate and pay down debt combined with sophisticated computer analysis. Then we provide the support and the discipline necessary to accomplish the task of becoming debt free. We can run a full color, personalized analysis for you. Find out just how quickly you can be debt free. To view a sample analysis, please click HERE.

How does the Debt Rolldown Plan work?

The Debt Management Program works, by applying margin payments to a debt rolldown theory to pay off your creditors faster.

What is Debt Rolldown?

Debt Rolldown starts by focusing on paying off one debt as soon as possible while making minimum payments on all other debts. When the first debt is paid in full, then that payment is added to the minimum payment on the next bill. As the next debt is paid off the margin becomes like a snowball rolling down hill which gets larger and larger as it accelerates. This goes on until you are completely debt free. Anyone can do this, it just takes discipline and patience.

What are Margin Payments?

Margin Payment is the amount paid to an account that is more then the required minimum payment on that account.

Can I do this myself?

Certainly, but consider human nature and your personal financial spending habits. We have found that only 3% of individuals gain adequate financial education combined with the discipline which allows them to achieve the necessary savings for a comfortable retirement. We are here to provide the education and assistance to help you succeed.

What happens to my Plan if I purchase another car, add another payment, or sell my home and move to another state in the future?

The nice thing about this program is its flexibility. You may add or change accounts anytime you want with no additional program fees. Since this program is not tied to any piece of property, you are free to relocate. Please be sure to keep us up-to-date with your contact information. 

I have an adjustable rate mortgage and need to refinance before my payment goes up.  How will that affect my Plan?

We encourage our clients to call us to reanalyze your Plan whenever you are considering changes to their current debts.  Whether it is a mortgage refinance or transferring a balance on a credit card we want to help you make the best choices to further accelerate debt repayment and investment growth.  Remember that it isn't just about the interest rate of a loan, it is just as important to evaluate the new payment and how changes may affect your credit scores.

How will being in this Plan affect my credit?

Total Debt Solutions is not a creditor and we do not report to any credit bureaus. Your Debt Rolldown Plan is completely different from other debt management programs.  This is not credit counseling or a credit repair program.  However, we are forwarding payments to each of your creditors on time every month, so over time your credit scores will improve as the debt load decreases.

Will I lose control of my finances?

Definitely not! Unlike some programs you will receive all of your monthly statements from your creditors. You will also receive a statement from us every month that shows what bills we paid on your behalf. All you need to do is check your monthly statement from your creditors with the statement you receive from us to make sure they match, file them away, and you are done for the month.

Can I really get completely out of debt including my mortgage in less than 10 years?

Yes! The majority of our clients become debt free in just 7 to 12 years, including their mortgage, without raising their current monthly payments now or in the future.

FAQ about Credit Arbitration:

What can be removed from my Credit Report?

Anything inaccurate can be removed from a credit file including bankruptcy, judgments, collection accounts, liens, foreclosures, and late payments. Federal law requires that your credit report be ACCURATE, COMPLETE, and VERIFIABLE. Accurate means exact and precise. If it is not accurate, we will challenge everything in question with the ultimate goal of having erroneous negative information removed from your report.

Is this legal?

Yes. Everything done the Credit Arbitration Program is based on the Federal Fair Credit Reporting Act (FCRA) which was enacted by congress on October 26, 1970 with amendments from the Consumer Credit Reporting Reform Act of 1996, the Fair and Accurate Credit Transactions Act of 2003 (FACTA), and the Financial Services Regulatory Relief Act of 2006. This act was written to protect the consumer from abuse by the credit reporting agencies and to ensure accurate and complete credit reporting.

View the FCRA

How long does negative information remain on a credit report?

Most negative information may remain on a credit report for seven years. Bankruptcy may remain on a credit report for 10 years. We say ‘may’ because there is no law that requires creditors to report you to the credit bureau to begin with. Both federal and state courts do not report you to the credit bureaus. Instead, the credit bureaus hire companies to go to the courts on a regular basis to retrieve information so that they might sell it to their subscribers. The credit bureaus are in the business of selling negative information. Credit bureaus have as many as 102 separate negative ratings and as few as 4 positive ones.

How long does this Program take?

The average client is in the Credit Arbitration Program from five to nine months. This is not an overnight process. The actual timetable will depend upon your specific circumstances.

Is there a guarantee?

Credit Arbitration works extremely well in removing unverifiable, inaccurate items from your report. While no organization can guarantee an improvement in your credit score, most of our clients see a significant improvement. Crednology's Credit Arbitration specialists are extremely skilled at finding the negative items and resolving those that cannot be verified.  Here are their current statistics.

Interesting inside credit information:

Do you know that if you pay off a four-year old collection account you just bought seven more years of bad credit. Surprise! Now the creditor will report you as having a paid collection and the SEVEN-YEAR PERIOD FOR REPORTING BEGINS ALL OVER! If you hadn’t paid it, it would have been automatically removed in three years.

Do you know that if a doctor reports you to the collection agency and his name appears on your credit report, the doctor-patient privilege is broken, and we can force him to remove it and forgive the bill?

One more tidbit – consolidating your credit cards onto a new card may give you an initial low interest rate, but whenever your credit card balance exceeds 50% of the limit on the account your credit score will be negatively impacted. If the outstanding balance exceeds 80% of the card’s limit, then the negative impact is significantly greater!

What makes up my credit score?

These percentages are based on the importance of the five categories for the general population. For particular groups – for example, people who have not been using credit long – the importance of these categories may be somewhat different.