Frequently Asked Questions

We negotiate credit card debt and other unsecured debt between you and your creditors. We are a team of professional negotiators who are trained to effectively negotiate the largest possible reductions in principal and interest from your creditors.

To qualify for our program, you must have a legitimate financial hardship, at least $10,000 of unsecured debt and have a strong desire to become debt-free. At this time, we can only accept US Citizens and Permanent Residents.

We work only with unsecured debt. This includes:

• Credit Cards
• Retail Store Cards
• Gas Cards
• Medical Bills
• Personal Loans
• Prior Apartment Leases
• Other Non-secured Loans or Debts (check with our debt consultant if you have any questions.)

After signing up for our program, a special “debt settlement account” will be set up at a federally insured bank under your name. You will remain in control of this account until enough money accumulates, through monthly payments, to make a settlement with a creditor. All payments to the creditor will come out of this account. Since the funds are in your “debt settlement account” we can not dispense funds for a settlement without your approval. We will negotiate with each creditor, one by one, for the best settlement possible.

The answer to this question is primarily based upon how much money you will be able to set aside each month to eliminate your debt. Typically, the more money each month, the sooner you can be out of debt. One of our Debt Consultants will discuss your financial situation with you to determine how much money you will be able to set aside each month so you can get out of debt as quickly as possible.

Clients can typically be out of debt in as little as 36 months.

Please note that Clear Financial expressions about the outcome of any matter are its best professional estimates only, and are limited by your financial resources at the time settlements are obtained with your creditors and your creditor’s disposition toward proposed settlements. Individual results may vary.

Although it is possible, it can be very difficult to negotiate with a creditor on your own. They deal with thousands of people who are in your same financial situation every day and have refined procedures and sometimes harsh methods of getting money from you. Knowing how to deal with their methods and having in-depth knowledge about how these institutions work, Clear Financial can potentially save you thousands of dollars and free you from a considerable amount of stress.

We suggest consulting with an attorney for legal advice and to fully answer all your questions concerning bankruptcy. It may be best to try and resolve your debt situation through a debt settlement program, prior to making such a critical decision. The Clear Financial debt settlement program falls between bankruptcy and credit counseling services. Bankruptcy is a permanent decision that will stay on your credit report for 7-10 years and can negatively affect you in many different ways. Besides being a devastating hit to your credit ,it can also affect things like your ability to get a job. Home lenders are now asking, “Have you EVER filed for bankruptcy?” So even if the bankruptcy falls off your credit report, it could still potentially haunt you for the rest of your life. We strongly recommend that you consult with an attorney if you are considering bankruptcy.

Your credit profile may be negatively affected during the duration of the settlement program. There is the possibility of lawsuits by creditors and/or a credit score that will initially drop during the early stages of the program. Also, debt that is settled may be identified on a client’s credit report as “paid as agreed” or “settled for a lesser amount” rather than simply “paid in full”.

One of the biggest reasons a person has bad credit is NOT their payment history, but how much available credit they have and how much they use. Using more than 35% of the available credit can bring down your credit score.

Your creditors may try and threaten you with lowering your credit score and tell you that if you don’t make your minimum payment, you will have bad credit for 7 years. But, if you make just the minimum payments to your creditors, you can be in debt for 30 or more years. They WANT you to make payments for 30 years, since their profit comes from the compounding interest.

The focus of our program is to get you out of debt as quickly as possible and get you back in control of your financial situation. It will negatively impact your credit while you are going through the program, but it is much better than the alternative of being in debt for 30 or more years and continuing to work to pay the creditors. “I owe, I owe, so off to work I go” is completely relevant to most people’s debt situation.

The good news is, at the successful completion of our program, your debt will have been paid off faster and your number one credit problem, too much debt, will have been handled. With our program you can truly start repairing and building great credit.

Please note that non-payment of monthly minimum payments to creditors will be reported by creditors to the major credit reporting bureaus and such non-payments will have a negative impact on your credit score.

Legal action may be taken, but it is still possible your account can be settled before, during or after a suit. Legal threats are always scary but Clear Financial will continue to work toward the goal of a settlement. Litigation is a costly process and they would rather settle out of court than going into a legal action.

We will continue to work with you toward the objective of a settlement with the creditor.

Here are some facts: Right now in the United States there is between 200 and 300 billion dollars worth of uncollected judgment debt. The court does not require the loser to pay. The court may not even help to collect the judgment. We negotiate all types of unsecured debts, which include judgments, typically settling for as little as 50 cents on the dollar. In many cases debt can be negotiated down regardless of what stage of collections it is in.

Despite any legal action that may or may not be taken, it is still possible that your account can be settled before, during or after the suit. Just because an account goes legal does not mean that we cannot settle it. The threat of legal action can be the scariest threat of all, but in many cases, it can still be handled. Our program will not prevent legal action from being taken by your creditors.

Sometimes a creditor will send a 1099C statement for the amount they have written off when settled. The government calls this forgiveness of debt income. It may be possible to use the exception in the tax law; if insolvent you do not have to pay tax on it. We suggest that you check with an accountant to see if you qualify for this exception.

Once you have retained us for our services, your creditors will be notified immediately and Clear Financial will begin the settlement process. However, we can only settle a debt once there are sufficient funds available in your settlement account.

No. Simply call our customer service department and we will arrange for the payment over the phone. It is understandable that unexpected circumstances may arise and we will help you get back on track with your payment schedule.

No. We recommend that you keep open at least one credit card for emergency use only.

Program fees are based on a percentage of your debt and it is determined on an individual basis. Please call 866-659-7966 to speak to one of our counselors.

There are very few circumstances where a creditor will refuse to settle. As with any negotiation, there are offers and counter-offers. But, in the majority of cases a settlement will be reached. Creditors realize that reaching a settlement is in their best interest because if a debtor files for bankruptcy, the creditor may be left with nothing.

Clear Financial 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.

Your privacy is very important to us. In order to provide the necessary services promised through our contractual agreement, Clear Financial LLC will share non-public personal information with vendors and processing companies only when necessary. For instance, Clear Financial LLC will provide Global Client Solutions, LLC (our third-party processor) with the information necessary to set up your trust account. With regard to confidential information, only select Clear Financial personnel who have a need to know to serve our clients’ best interests, will have access to this information.

Our programs are designed so that the client is always aware of the funds available for settlement. Clear Financial employs a reputable, third-party processing service, Global Client Solutions, LLC to hold all client accounts until settlement. This Special Purpose Account is being held by global Client Solutions, LLC and if you choose to use this service your account is viewable by you 24/7 on line. Clear Financial will only deduct Fees as authorized and agreed upon by you in the signed Enrollment Agreement.

Important Disclaimer: Any Clear Financial expression about the outcome of any negotiation settlement are based on its best estimate only and are limited by a client’s financial resources at the time settlements are obtained and the creditor’s disposition toward proposed settlements. Individual results may vary. There are risks and potential negative consequences inherent in participating in Clear Financial’s, or any other, debt negotiation programs.