Frequently Asked Questions

1.How can I budget effectively to get out of debt and ensure that I make better financial decisions in the future?

There is no “one-size-fits-all” budget for consumers. Sound financial planning requires effort and education–even for the mathematically inclined. The purpose of a budget is to track your spending habits more precisely. The idea is that, the more specifically you can analyze where your money goes, the more accurately you can affect positive changes to your money management skills. Set aside a few hours every month to review your bills and bank statements.

2.What are some good habits to adopt to manage my money more effectively?

• Budget conservatively. If, for instance, you guess that child-care will cost you between $500 to $1,000 per month, expect to spend closer to $1,000 per month. By estimating “high,” you’ll develop a more flexible budget.

• Get professional help with planning. There is no need to reinvent the wheel. A savvy and experienced financial planner can help you save over the long term far more than the cost of his or her consultations.

• Avoid reacting to financial news when you hear it. Often, in the heat of the moment, we make desperate decisions to right our financial ships. Allow yourself time to process news (both good and bad) relating to your money situation, so you don’t make impulsive and potentially dangerous decisions.

3.What’s the point of enrolling in a debt settlement program?

The objective is to resolve outstanding debts and problems with creditors. No program can absolutely guarantee results–success depends on a variety of factors.

4.What are some factors that control the rate at which a debt settlement company can resolve my problems?

• The degree to which your creditors may be willing to negotiate with you.
• The amount of money you have available to pay down debts.
• The number of accounts/debts you have outstanding.
• The condition of your debts (e.g. size of balances, age of debts, associated fees and interest rates, the existence of past due notices, etc.)
• Your ability to bring in more money and/or cut costs to accelerate the process.

 5.What if one of my creditors sues me for defaulting on my debt?

A settlement company like CDF Group cannot provide legal advice. But a competent attorney can help you minimize risks to your assets and good name. It’s also possible to negotiate with creditors in the midst of legal action; in fact, in some cases, being sued by one creditor can give you leverage to settle with other creditors.

6.How does this give me leverage?