1Source Financial Solutions, Inc. - FREQUENTLY ASKED QUESTION

What is the cost of your program?
Who is eligible to participate in your program?
Which of my debts can I include in your program?
Can I choose to leave some of my unsecured debt out of the program?
What do I do when creditors call me about late payments?
Should I tell my creditors that I am saving money for negotations?
What part does the client play in the ongoing process?
What if an aggressive creditor makes demands or threats?
Can I get legal advice from any representative of 1 Source Financial?
How do I contact Nationwide if I have questions about my account?
Where is my money held as it accumulates prior to settlement?
Can I put more than my scheduled payment into my account?
When does the negotiation process start?
Do I get notified of pending settlements?
What about ongoing interest and late penalty charges?
Do you guarantee specific results for your clients?
Why couldn't I just negotiate with my creditors without the services of 1 Source Financial?
What effect will your program have on my credit?
Do I get to keep my credit cards?
What if I need to keep a credit card for business purposes?
If I have irregular income, can you help me?
If I had a co-applicant on a card, can I go on the program without their permission?
What if one or more of my creditors currently takes their payment out of my checking or savings account by automatic draft?
If I have a secured loan and an unsecured loan with the same bank or credit union, is it okay to put the unsecured loan on the program?
Where can 1 Source Financial/Nationwide do business?
If you still have unanswered questions, please contact us.

What is the cost of your program?

All fees are included in the monthly payments you will be making, which are usually less than the combined minimum payments on your credit cards. Included in those fees are your enrollment fees, paid with your first three monthly payments, Settlement fees, which equal 29% of the amount we save you, giving us incentive to achieve the best settlements possible, and a small monthly administrative fee in the amount of $12.

Who is eligible to participate in your program?

The vast majority of applicants are accepted into the program. Your Consultant will review your financial picture and make a preliminary determination as to your eligibility. Poor credit history will not keep you off our program. On the other hand, many people with perfect credit history are often under tremendous financial strain, and could be eligible. Final underwriting decisions are made by the corporate office within 2 working days of receiving your returned enrollment packet, and at that stage no one will be disqualified without first being contacted by the underwriter for more information on their financial situation.

Which of my debts can I include in your program?

We are able to deal with all unsecured debt. We do not handle secured debt such as mortgages and car loans, purchase contracts, nor can we get involved in government-backed student loans. Business debt will be considered on a case-by-case basis. Although NAS does not negotiate IRS and tax debts, we do have an option available if you are in this situation. Click here for more information.

Can I choose to leave some of my unsecured debt out of the program?

Creditors have access to your entire financial picture through the credit bureaus. If some of your accounts are being paid, they will want to be paid also. By continuing to pay select creditors, you will make the negotiation process more difficult, and satisfactory settlements will be harder to attain.

What do I do when creditors call me about late payments?

It is important that you use the Client Instruction Sheet we will provide in your enrollment. We will give you options on how you would like to deal with the calls. We will work with you to help stop harassment by collection agencies. When you pass information regarding harassment on to us by fax, email, or mail, we will take steps to enforce your rights. If collection agents call you at work, they must stop calling once you have informed them that they cannot call you there. If they do not, we need to be informed as to who is in violation of your rights, and we will take further steps.

Should I tell my creditors that I am putting money away for negotiation?

Never, under any circumstances, should you discuss with your creditors the details of your program. You should merely follow the script and make notes as instructed. This makes it easier for you and for us. The more you talk to creditors, the harder it is for our negotiators to settle with them.

What part does the client play in the ongoing process?

Your only part is to make your monthly payments consistently and to communicate with us if you receive letters or harassment from your creditors.

What if an aggressive creditor makes demands or threats?

Immediately contact our Customer Service Department. The Customer Service Representative will direct your call to the appropriate department if necessary.

Can I get legal advice from any representative of 1 Source Financial?

No. 1 Source Financial is not a law firm, and if you think you need advice on a legal matter, we encourage you to speak with an attorney. Our representatives are qualified only to list the benefits of our program and to explain how it works.

How do I contact you if I have questions about my account?

You can e-mail or phone our Customer Service Department to have specific questions answered. Their contact information will be in the enrollment packet you receive after speaking to your Consultant.

Where is my money held as it accumulates prior to settlement?

You will receive forms in your enrollment packet to open a dedicated account in your name at a specified financial institution. After enrollment fees are paid, that account will be opened and monthly payments will accrue in your new account.

Can I put more than my scheduled payment into my account?

Yes. The faster the balance in your account accumulates, the sooner we can make offers to your creditors and the sooner you will become debt-free. Larger monthly payments or lump sum payments would accomplish that goal.

When does the negotiation process start?

Once your enrollment fee has been paid, funds will start to accumulate in your bank account. The order in which accounts are negotiated depends on your mixture of creditors. When there is a sufficient amount available, 1 Source Financial will begin making offers on certain accounts based on our knowledge of which ones will need attention in order to avoid excess pressure from the banks. We may have to allow smaller accounts to wait, even though there is plenty of money to negotiate them, because we need to accumulate enough funds to settle a larger account with a more aggressive creditor. The negotiation department will determine the best pace at which to submit settlement offers. Remember, the longer an account ages without payments, the better chance there is of a lower percentage settlement. Time is on your side, so be patient. Your Consultant estimated a time frame for your program, and it could take more or less than that for you to finish. In most cases, actual settlements begin 6-12 months after enrollment. However, it's not unusual for most of a client's accounts to get settled in the last 8 months of a 30 month program, with terrific savings for the entire portfolio. You win by waiting.

Will I be notified of pending settlements?

Because of the way the creditors work, settlements often have to be paid on the same day that the arrangements are made. We have your written permission authorizing us to make settlements with your creditors, and payments will be made that we feel are within the parameters of our program. You will be advised of settlements after they have been made. Our target is 60% or less, as an overall average of your debt load. That means some of the settlements will be higher than 60%, and some may be lower.

What about ongoing interest and late penalty charges?

The creditors will continue to add any fees that they can to your account. We have no power to stop this process, which will happen whether or not you are on our program. Our fees are based on the amount we save you relative to the original balance.

Do you guarantee specific results for your clients?

We guarantee that the amount of your monthly payment will not go up after you have been accepted into the program, unless you add more debt to the program after the fact. We also guarantee that the total you pay will not exceed the total of your original debt owed, including all fees. The time frame in which you will complete the program is an estimate only, based on previous experience. However, since all accounts are negotiated individually after the fact, we never know in advance exactly how long it will take. If you complete the program in less time than originally estimated, which often happens, you are finished early and the payments stop. After the final settlement is made, any amount left in your account belongs to you.

Why couldn't I just negotiate with my creditors without the services of 1 Source Financial?

In most cases, creditors will not settle for less than the balance owed when dealing with the borrower. When they do, the settlement will probably not be as low as it would be with our negotiators. They know that most people will give in to their pressure and threats. As a third party, we can step in on your behalf and achieve better results. In addition, our program has two other advantages: 1. We help absorb the harassment that often comes with being late and 2. We put you on an affordable plan that gives you the discipline necessary to achieve your goals.

What effect will your program have on my credit?

Being on our program will have a negative effect on your credit. Delinquent payments can show on your credit report for up to seven years. Most people do not realize that making payments on time is only one factor in their creditworthiness, and that excessive debt is also considered bad credit.

Upon completion of the program your credit rating is enhanced by the following factors: Part of our negotiation process is that the creditor must agree in writing that your account is paid or settled, with no further obligation on your part. You can use this to update your credit reports if the creditor fails to do so. Keep in mind that our objective is not just to get you out of debt, but to keep you out. We will give you the financial capacity to pay as you go, and you will find life is much better the "debt-free" way. In addition, your creditworthiness is helped by the elimination of your unsecured debt, because it drastically lowers your debt to income ratio. That fact alone may allow you to qualify for a larger mortgage or a better car than you might otherwise.

Do I get to keep my credit cards?

No. If you have a zero balance card, you may keep it to make reservations for hotels or car rentals. However, you should make the actual payment in cash or with a debit card, not with the credit card. Our program should enable you to save money so you will be able to pay as you go.

What if I need to keep a credit card for business purposes?

A debit card or stored value card can substitute for a credit card, and we also suggest opening a secured credit card account, and putting money that you save each month into the account, so you can use your secured card for your business expenses. Until enough money builds up in your secured account, you can continue to use one card that you will keep off the program until you can begin using your secured card.

If I have irregular income, can you help me?

Yes we can. We would average your income for the past year in determining your ability to pay.

If I had a co-applicant on a card, can I go on the program without their permission?

No. Since it will affect their credit, you should get their permission in writing. If that is not possible, you can go on the program without that joint account being included.

What if one or more of my creditors currently takes their payment out of my checking or savings account by automatic draft?

We suggest closing your current checking or savings account and opening a new one. The reason for this is if you put a stop payment on the draft, the creditor can just run the draft for a different amount. For instance, if you have agreed to have $20.00 taken out of your account each month, and you put a stop payment on the $20 draft, your creditor may just run the draft again for $19.99 or $21.00. It will then go through, since your stop payment was for $20.

If I have a secured loan and an unsecured loan with the same bank or credit union, is it okay to put the unsecured loan on the program?

You need to examine the paperwork on both loans to see whether the security is cross-collateralized. A car loan with a credit union, for instance, is often tied to an unsecured loan at the same credit union, and if the unsecured loan is not paid, the car automatically becomes security for the unsecured loan.

Where can you do business?

If you live within the United States and have US debts and a US bank account, you are eligible for our program.

If you still have unanswered questions, please contact your Consultant.