Performance Settlement is your guide in the debt resolution process. Below are some of the common questions we hear during the process. If you have additional questions you can contact us anytime. We are happy to help!
What is Performance Settlement and how does it work?
Financial freedom makes life good 🙂 We help you chart a course which will free you from debt by enrolling you in an easy to follow program that settles your debt which allows you to take control of your finances, emerge free from debt, and take control of your life. Our program is designed to get you out of debt as quickly as possible. Our program fixes your debt to income ratio.
What does the program consist of?
The Performance Settlement Financial Freedom Course provides guidance, tools, and resources. We help you stay on track.
What do I need to do?
First you will need to establish hardship, then setup a monthly budget. Call us in order to learn more about how to get started.
What does being free from debt look like?
Being free from debt and in control of your finances means that you are in control of your debt and more in control of your life.
How many people have you helped?
We have helped thousands of people like you achieve financial freedom and live debt free.
Am I alone?
No, over 80% of Americans are in debt. Don’t be ashamed, you are not in this alone. Contact us to learn more about how we can help!
What can I see on my members dashboard?
When you are enrolled in the Performance Settlement program you will have access to the members dashboard. In the dashboard you can see the status of your accounts including what is completed, in progress, pending, and not enrolled.
What is a hardship letter?
A hardship letter shows that you are unable to pay debt. The team at Performance Settlement can help you get started with a hardship letter and the process of debt resolution.
Why do I need to update my address with my creditors?
Your creditors may call the address on file for collection.
Who needs to participate in the program?
You and your team. Your team is anyone involved in creating or managing the debt you are currently in.
Why should I get out of debt?
Earning more than you spend, paying off your debt, and following a monthly budget leads you to living debt free.
How does the average person get in debt?
Debt happens when you income is less than monthly payments. Taking out loans, trips to the store, and using your credit cards to make unnecessary purchases is easy to do and if you don’t keep it in check you end up in debt!
How do I get out of debt?
Define your monthly budget and have a budget meeting every month. Stick to your budget!
Why do I need a monthly budget?
It’s the most important part of the program because it helps you manage money that is coming in and money that is going out.
What is an accountability partner?
A person that you feel comfortable enough to ask questions. They should be good with their own money and be prepared to provide sound financial advice and input to help you stay on track!
What are the keys to get out of debt?
Be strict and don’t spend more than is in your budget. Monthly income all your income after taxes. Monthly expenses be as detailed as possible. Pull out last months checking statement, credit statement, and anything you use to pay your bills. Get this done and updated every month.
What is the Performance Settlement client portal and how do I get access?
Overview budget and resources. Free tool for anyone in the program. Accounts. You will receive an email after your welcome call. Current creditor accounts and enrolled balance. Reminders from settlement advisor updated daily showing date and amount of next savings draft. Shows cash flow, total income, total expenses, and total assets. A guide to show you how to spend less than you earn.
Will establishing hardship hurt my credit?
Yes. It’s the first step in getting out of debt. It will most likely hurt your credit score. Making monthly minimum payments signals to creditors that you are not in a hardship and are fine making payments.
How often should I update my budget?
You should update your budget monthly.
Why do I need a power of attorney?
The team at Performance Settlement may receive collection calls and respond on your behalf.
What is the settlement amount you negotiate?
Typically 50% of what you owe.
What are financial freedom points?
Rewards you can claim for taking control of your finances. Once you have accumulated enough points you can trade them in for gist cards and other rewards. Turn into real cash value rewards. Welcome call, submitting change of address, completing first budget coaching session. List of tasks to complete and milestones to complete, track existing points in your member portal.
Where does Performance Settlement operate?
We currently do not service clients in the following states: CO, CT, DE, GA, HI, IL, IA, KS, KY, LA, ME, MA, MN, MS, MT, NV, NH, NJ, ND, OH, OR, PA, RI, SC, TN, UT, VT, WA, WV, WI. As we are currently working on credentials to service a number of these states, please check back periodically to see if your state has been added for service.
How long do I need your services?
The length of your settlement depends on how much debt you have and the monthly payment you can afford to allocate towards that debt.
Should I have you work on all of my debts, or can I pick certain?
Yes, you should work on all of your debts. Contact the team at Performance Settlement in order to learn more about how to get started.
Does Performance Settlement contact my creditors?
Yes, we may contact your creditors during the debt resolution process.
Does Performance Settlement make monthly payments to my creditors?
We make monthly payments through a term settlement or a lump sum if we have enough to pay in total from the clients trust account.
How will debt resolution affect my credit?
The purpose of debt resolution is to get you out of debt at a substantial settlement, not to improve your credit. There are many factors that need to be considered when assessing credit worthiness, including your total amount of debt, payment history, available credit, number of creditors, etc. For more information on how your credit score is determined visit www.myfico.com .
How will Performance Settlement LLC resolve my debts?
Our debt resolution consultants will carefully analyze your financial situation and work with you to determine a monthly amount that is in line with your total debt, income, and expenses. If you qualify, Performance Settlement will:
- Establish a Trust Account for you (set up for you when you enter into our program)
- Advise you on a recommended savings level for the Trust Account
- Advise you on how to build enough savings in the Trust Account that will allow us to negotiate a resolution with one of your account creditors
- Usually, starting with the smallest balance, then work up
Who is eligible to enroll in the debt resolution program?
If you are currently meeting your monthly debt obligations and are able to continue to do so, then our debt resolution program is NOT for you.
Performance Settlement LLC debt resolution program is a hardship program. This program is only for people who:
- Have a financial hardship
- Are late paying their unsecured debts
- Have no ability to make payments in the future
- Bankruptcy is the only other option
Examples of qualifying hardships are loss of income, medical emergency, death of a member of the household who provided financial assistance, or a divorce
When will my debts be paid off?
The average debt resolution program lasts 2-4 years. The speed at which you complete the program depends entirely on how much money you apply to your program. You can only pay off debt when you have the money to do so, which makes it essential that you build up your resolution account fund as fast as you can. Missing payments to your debt resolution program will hinder the negotiation process because there will be less funds to negotiate with. The more money you add to your account, the quicker your debts will be resolved.
What are the tax consequences?
You can expect creditors to report debts – either cancelled or resolved – to the Internal Revenue Service (IRS) if the amount exceeds $600. You are required to report this amount to the IRS in your tax return. However, the IRS will permit you to write off income from your cancelled debts up to the amount by which you were insolvent during that tax period. It is recommended that you consult your tax advisor in order to analyze your specific tax circumstances.
Can I negotiate with my creditors on my own?
Yes, you can. However, know that the debt resolution process is complex and can be time consuming. Most debt-ridden consumers greatly benefit from enlisting the help of experienced debt resolution professionals. Performance Settlement LLC has had years of experience dealing with creditors and overtime we have built relationships that help us negotiate your debt down to a fraction of what you owe.
Performance Settlement LLC debt resolution consultants have the experience necessary to negotiate with creditors on your behalf and successfully obtain reasonable and fair debt resolutions. With the comprehensive, professional debt resolution services available at Performance Settlement LLC, there’s no need for you to waste time and effort trying to self-negotiate with your creditor for a sufficient debt resolution. Rest assured, your concerns are our concerns. Learn how Performance Settlement LLC can help you resolve your debt.
Can creditors garnish my wages?
Yes, in all states except for North Carolina, Pennsylvania, South Carolina and Texas. Even if you are in a debt resolution program, your creditors are able to garnish your wages. However, this can sometimes be a long process for creditors. First, the creditor must sue you, obtain a successful judgment, and then file for a garnishment action. When a person is working with a creditor to resolve their debt, wage garnishments can sometimes be avoided. At Performance Settlement LLC, we negotiate with each creditor as part of your debt resolution program.
Will the calls from my creditors stop coming?
No, Performance Settlement LLC cannot stop your creditors from contacting you. However, there are laws enacted to help with harassment by third by collection agencies. It is important to remember that all collections agencies must adhere to principals laid out by the Fair Debt Collection Practices Act.
Can I be sued?
Yes. Your creditors have the right to sue you to recover their funds. However, lawsuits are usually meant to force a resolution of the debt. It is our experience that most creditors would rather negotiate a resolution than go to court. When you participate in the Performance Settlement LLC debt resolution program, you will have experienced debt resolution consultants on your side.
Can I still use my credit cards?
No. Financially challenged consumers who participate in the Performance Settlement LLC debt resolution program can no longer use credit cards. All credit cards that have been included in the program will not be active.
In addition, any credit cards that are not entered into the program should not be used. When implementing your debt resolution program, our consultant’s primary concern is getting you out of debt. Until this process is complete, credit card use will only compound your debt problem.
Is bankruptcy a better option for me?
Debt resolution does not guarantee that you are safe from bankruptcy now or in the future. It is strongly recommended that anyone considering the Performance Settlement LLC debt resolution program also seek advice from a bankruptcy attorney.
Once your Trust Account has enough funds saved, Performance Settlement LLC will:
Reach out to your creditors and begin the debt negotiation process
Once your debt resolution is reached with your creditor, Performance Settlement LLC will:
- Present you with the offer
- Thoroughly discuss it with you
If you approve the resolution offer, we will have your creditor send the agreement to Performance Settlement LLC and you in writing.