Frequently Asked Questions
Why should I use Angren Financial?
Angren Financial and our employees care about your Future! Our employees must complete a comprehensive training program emphasizing consumer ethics. In addition, each representative is familiarized with the Fair Credit Reporting Act (FCRA U.S.C. § 1681 et seq.) to ensure that your best interests are served. When you choose Angren Financial, you choose a company that holds integrity and ethics in the highest regard and one that operates under a value system that is anchored in commitment and trust.
We believe in the principle of being debt free. We believe that interest rates should be reasonable and below the level commonly referred to as usury (loan sharking). We believe that credit card companies have gone beyond the legal definition of lending and engage in such practices that commonly default a consumer into a usury agreement that has become an acceptable business practice. Our mission is to assist the consumer by interrupting these agreements and settling them at the lowest level possible. That is why our motto is “Your Best Interest Is No Principle”.
How will my credit score be affected while I am enrolled?
You will experience a reduction in your credit score. But this will only be temporary. As your debt is retired and the total debt ratio that you have accumulated dwindles, you credit score will improve. You must be committed to being debt free. This involves adopting a lifestyle change that will have a temporary negative effect on your credit score, but will ultimately free you of debt and improve your future. Future credit score improvement will be gained because your overall credit score is derived from three main factors:
- Total amount of debt owed compared to total annual income (Debt to Income Ratio) 30%
- Total amount of negative credit (i.e. Charge Offs, Delinquencies, Collection Accounts, etc.) 30%
- Total amount of credit used compared to total amount available (i.e. your credit cards are at their limit every month). This is called “total debt exposure” or “total exposure” and indicates how much you are a credit risk. This makes up 40% or your total score.
As Angren Financial retires your debts, the total amount of outstanding is reduced. Because this is the single greatest factor in your credit score, your score will improve. It is recommended that you do not seek any new credit accounts, car loans, mortgages, or incur any kind of debt whatsoever while enrolled in your debt retirement plan. We recommend that you live on a cash basis with the exception of one credit card for emergency purposes. Thus the aforementioned commitment to being debt free, and the change in lifestyle.
On the surface, allowing accounts to fall behind is disconcerting, but it is actually part of the settlement strategy. In order for an account to become eligible for settlement, an account must be at least 120 days delinquent. This delinquency will naturally be reflected on your credit bureau. However, as noted above, late payments are of less importance in determining your overall credit score than total debt exposure. Late payments only reflect a “snapshot” of a point in time in which you may have had trouble. If this troubled timeline is corrected and the accounts indicate that they were paid with a zero balance, the snapshot will be of very little importance as it moves further and further into your credit history. In other words, the older the particular “dun” is on a credit report, the less significant it is to your score.
If you were to formally enroll into a Consumer Credit Counseling Service (CCCS) or a Debt Management Plan, then a stamp reflecting this enrollment will be placed on your credit report for 7 years. To future creditors, this is no different than filing Chapter 13 Bankruptcy (financial reorganization).
If you are prepared to commit to aggressively retiring your debt, you may have to temporarily experience a poor credit score while we execute a retirement strategy. Upon its completion and as time passes, your credit score will begin to increase. To discover your best applicable options, please speak with one of your non-commissioned representatives or fill out our quick contact form by clicking here.
How long will it take to be debt free?
Angren Financial does not recommend programs that are longer than 36 months. Dependent on the individual case, the program term can be much shorter, even less than 12 months. It is in your best interest to enroll in a program that is as short as possible. However, this is sometimes not feasible if the debt is exceptionally high. Each case is analyzed individually and it is best to speak to a representative who will provide the best options for you.
How does debt affect my credit score?
The amount of debt you have weighs heavily upon your credit score. Your "debt to credit" limit is approximately 40% of your Credit Score. When you reduce the level of your revolving debt, not only will your credit score increase, your interest rates will drop. According to the credit scoring formula, you should not use any more than 30% of the available credit limit per credit account.
If your debt is mostly charge offs or collections accounts, your debt is destroying your credit score. Each account that is designated as such is coded with a number 9 on your credit report. The number 9 signifies that not only do you have a debt, but you are also not paying as you agreed in the credit contract. The only way to get a charge off removed from credit report is to pay off the debt.
The best way to get the number 9 removed is to have Angren Financial retire the debt with the creditor. Angren Financial will get at least 40% of the debt eliminated and obtain as part of the settlement an agreement to reflect the debt as paid in full with a $0 balance. The number 9 coding will also be removed from all three credit bureaus.
How much will this cost me?
In reality, nothing. We make money on the total amount of debt that we manage, and the total amount of debt we settle. There are no upfront fees paid by you to begin a debt retirement plan. There is a small monthly enrollment fee of $9.00 for support maintenance. All of the details of our plan can be explained by contacting a non-commissioned support rep.
Is debt settlement legal?
Debt Settlement is not only legal, it is highly ethical. While it does involve aggressive and unorthodox tactics, it is legal, ethical, and effective.
Is debt settlement and debt negotiation the same?
No, they are not. Debt Settlement is the practice of negotiating a debt to the lowest level possible after the typical monthly payments have ceased to be paid by the consumer. Debt negotiation is a general term that could be applied to any endeavor to reduce a debt, an interest rate, or the complete restructure of a debt. Debt Settlement is the act of retiring debt completely.
Is debt settlement the same as consumer credit counseling?
No, a Debt Settlement Plan and Consumer Credit Counseling is not the same thing. The goal of debt settlement is to retire your debt by negotiating a one-time payment with a creditor. Under a Debt Settlement Plan, the consumer is able to eliminate about 60% of the debt, vs. reorganizing / restructuring debt under Consumer Credit Counseling Services (CCCS). CCCS does not try to reduce the total amount of debt, but will instead employ a debt management plan to reduce your interest and lower you monthly payment.
Downsides to CCCS include the length of time a consumer must be enrolled, more permanent degradation to credit scores, and no reduction in the total amount of debt owed. The term length of a CCCS plan accounts for a 70% cancellation of enrollments. The average term under CCCS is 60 to 72 months. All the while the interest on the principle amount of debt (total amount owed) continues to accrue, albeit at a reduced rate.
Another adverse effect of CCCS is the manner in which it must be reported. A CCCS plan must legally be reported to all three credit bureaus. This remains on a credit report for seven (7) years after the last payment has been made by CCCS. A CCCS enrollment is viewed by creditors the same way they look at Chapter 13 Bankruptcy.
While deploying a Debt Settlement Strategy is aggressive and unorthodox, one is able to reduce principle (total amount owed) and retire debt within 36 months. A Debt Settlement strategy that is carefully executed can have freedom from debt free in half the time of a well executed CCCS plan, at less than half of the overall cost.
How does debt settlement compare to bankruptcy?
Filing for bankruptcy should be considered only as a last resort. In order to familiarize yourself with Bankruptcy options, please see our page on avoiding bankruptcy.
Is my information kept confidential?
In the era of identity theft, you can never be too careful when it comes to your credit card account numbers, banking information, and your private information like social security and drivers’ license numbers. Angren Financial keeps your information off-line on a secured intranet (internally secured network). It is utterly impossible to access externally because it is simply not connected to the internet in any way. Internal access is strictly limited and must have double password entry by both representative and management. Therefore, each time a record is accessed, the time, date, representative name and management name is recorded.
Whenever you submit information through our website, that information is sent directly to our management team to review and import into our database. We collect only enough information that allows us to begin discussions with you.
To further help our clients against identify theft, Angren Financial shreds all documents with sensitive or personal information on it. Angren Financial exceeds State and Federal compliance laws pertaining to document and information destruction laws.
When you enroll into a Debt Settlement Plan, you will be required to complete a limited power of attorney. The limited power of attorney allows us to correspond with your creditors. It is only valid for the accounts in which you have enrolled with our Debt Settlement Services and is only used for the purpose of settling your debts. Since it is a “Limited” Power of attorney, we are limited to the accounts expressly enrolled into your program. We will only disclose the information relevant in order to provide the services which we are contracted.
Angren Financial does not sell or rent any of your information with any third party affiliated or unaffiliated with our organization. Please review our Privacy Policy so you will obtain clarity in how we collect and use information.
What type of debts cannot be enrolled into a Debt Settlement Program?
There are very few categories of debt that cannot be enrolled into a debt settlement program. Debts that are classified as secured debts will not qualify. A secured debt is any type of debt that has collateral assigned to the credit card or loan agreement. Secured debts do not qualify for a debt settlement program because the creditor will typically seize the collateral and heavy penalties will be assessed to the consumer pertaining to its recovery.
If collateral has been repossessed and its’ assessed value does not meet or exceed the total remaining amount of debt owed, a deficiency balance can be assessed to make up the difference. This deficiency balance does qualify for debt settlement as it is no longer a secured debt. It is best for you to consult a Debt Specialist so they may review your financial situation and advise you as to which debts are considered secured and unsecured. In general, secured debts include auto payments, mortgage payments, student loans, taxes, jewelry accounts, and any type of real estate. Again, if the collateral has already been seized (i.e. auto repossession) the debt is no longer considered secured and will qualify for debt settlement.
Almost all unsecured debts qualify for a Debt Settlement Program. Unsecured debts qualify because the creditor cannot seize any of your property that was purchased with your loan or credit agreement. Unsecured debt is any loan or debt that has no tangible assets or property attached to it. The most common types of unsecured debt are credit cards, department store cards, medical bills, collection accounts, and utility bills.
Be advised; just because a creditor cannot seize property does not mean there is no recourse action that can be pursued. It is highly advisable to obtain representation when engaging in debt settlement strategies. Angren Financial is an excellent choice to assist you in the achievement of debt retirement. Start by clicking here and completing a free consultation.
Will I continue to get calls and collection letters from my Creditors?
If you are receiving collection calls, demand letters, or other collection activity, you should contact a Debt Specialist immediately so they can advise you of your rights. Angren Financial can stop the collection agencies from calling you and redirect all of their calls to our office.
Based on customer satisfaction surveys, you will see a reduction in creditor phone calls within the first week and the remaining calls should cease within 30 days. Please contact us if you continue to receive collection activity on a direct basis. We are very proactive in dealing with your creditors and work with them, not against them.
Most original creditors are cooperative and will update your records to indicate that you are participating in a debt settlement program and abide by the documents that we will forward to them. Another tactic we use is changing the address and phone number the creditor has on file to Angren Financial. We do this so all communications are sent to us.
Remember that when you have a debt problem and creditors are calling, you need to work quickly to resolve this problem. Procrastinating only makes matters worse. Angren Financial can take care of your debt problems if you complete our free confidential consultation form.
Will interest and late fees continue to accumulate on my credit report?
Late payment fees and interest will continue to accrue on your accounts until they are charged off (typically 120 – 210 days from the day of last payment). No matter what type of debt plan is chosen, interest will always accrue when the accounts are kept in current or pre-charge off status. In most cases, Angren Financial will only negotiate on the principle balance of your accounts, thus making all of the added frivolous charges irrelevant.
Even though you are investing in your debt settlement account on a monthly basis, funds are not distributed to creditors on a monthly basis. If monthly payments are made on the debt, the creditor will not agree to settle the accounts. This is the sole intent of your special purpose account. Your money accumulates on a monthly basis until enough funds are available to retire the first of your debts. Each account is subsequently retired as the necessary funds become available. Each account is settled individually; typically the smallest balance will be settled first unless there is ample reason to deviate from the schedule.
The advantage to enrolling your debt into an Angren Financial program is a 40-60% reduction in your debt. Even if you pay 6 months of interest, late fees, and over the limit fees; that will only add up to an extra couple of hundred dollars compared to the thousands of dollars that you will save by executing a Debt Settlement strategy.
Will your debt settlement plan stop legal action against me?
The motivation of a creditor to pursue legal action is based on several factors including, but not limited to the following:
- The size of the debt or the dollar amount (total debt exposure)
- How recent the debt was acquired, and the circumstances of the debt
- The total amount of debt owed in contrast to the total legal expense
- The likelihood of debt recovery
- The Small Claims limitation statutes in your State of residency
Law suits, no matter how small, are expensive. The pursuit of legal action is a simple business decision for a creditor. If it costs less money to pursue the action legally than the amount of money that will ultimately be collected, then the probability of a law suit is good. If the reverse is true, then the probability is not. If legal action can be avoided altogether, then it is in everyone’s best interest.
A Debt Settlement Strategy can defuse legal action because the total net amount that will be recovered by the creditor, is in most cases equal to or greater than the total amount that will be recovered from Small Claims or Civil actions, after legal fees are paid. And the money will actually be received in less time. It is our experienced opinion that one should develop some kind of strategy as quickly as possible, even if we are not involved.
Who is an ideal candidate for Debt Settlement Program?
Debt Settlement is a strategy for consumers who want to get out of debt and want to avoid bankruptcy. Although anyone who is burdened with unserviceable debt can qualify, a candidate would ideally have experienced some kind of hardship that contributed to the inability to service their debt. Additionally, the only type of debts that can be included in a debt settlement plan are unsecured debts such as credit cards, personal loans, automobile repossessions, utility bills, collections accounts, etc…
If you are struggling to make your payments, current on your payments but falling behind, or if you are already delinquent, Angren Financial can provide you with debt relief. Our trained counselors will listen to your specific situation and then customize a Debt Settlement Strategy that will retire your debt.
When I consolidate my bills, who pays my Creditors and when?
When enrolled into an Angren Financial program, Angren Financial never releases funds directly to the creditor, but only schedules the release of those funds. The payments always come from the special purpose trust account established in the name of the client. By doing so, Angren Financial protects the client from adverse credit effects. If Angren Financial made the payments for you, we would have to update your credit report with a comment that you are enrolled into a Debt Management Plan. If this occurred, the coding would be viewed in the same manner as a Chapter 13 bankruptcy (reorganization of debt).
Debt Settlement is not a loan and it is not a service that pays your bills. Debt Settlement is the act of negotiating a settlement to retire your debt with a reduced principle.
Do I have to include all of my debts in my Debt Consolidation Plan?
No, and you should keep at least one credit card in good standing. It is recommended that this card carry the least annual percentage rate of interest. This is because it is necessary to have a credit card for certain necessities that may be incurred in the future. These include airline tickets for bereavement, car rentals after an accident, etc. Therefore, it is not recommended that you enroll all outstanding debt.
Contact us so we may assist in strategizing your total debt enrollment. We will ensure that your best interests are served.