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Why do I need credit counseling or credit counselors?
Why can’t I just keep paying off my creditors on my own?
How much will it cost me to use American Financial and have credit counseling and counselors?
How will joining the American Financial Program affect my credit rating?
Can I send in more money once I have a better cash flow?
Should I pay my bills in the time before I send you my first payment?
Will I still receive harassing phone calls?

Why do I need credit counseling or credit counselors?

In some cases, you can negotiate with creditors on your own to arrange payment or have positive information reported to a credit bureau. However, to get the benefits of lowered monthly payments, lower interest rates, stopped late charges, and waived over the limit fees, you need American Financial Representatives and counselors.

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Why can’t I just keep paying off my creditors on my own?

If you keep paying just the minimum to your creditors at the current interest rate, it will take you much longer than if you paid off your debt through American Financial. A $10,000 debt usually takes 32 years and $24,500 to pay off, if you are paying the monthly minimum of 2.5% of the balance at an average interest rate of 18.5%. Because we may be able to reduce your interest rates, stop over the limit fees, and so on, it will take a lot less time to pay off your debt through us. Chances are, in the past, all your debt payments have just gone to pay off interest. You probably haven’t even touched the balance! On average, American Financial clients pay off their debts in 3 to 5 years, depending on individual circumstances.

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How much will it cost me to be on the American Financial Program?

The consultation is FREE to everyone. If you are comfortable with our recommendations there is a one time organization fee. There is also a small monthly service charge to cover the costs of handling accounts.

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How will joining American Financial affect my credit rating?

Do you have a good credit history?

1. How does this affect my credit rating ( if current)?
The banks judge your credit in two ways: Your payment history and your debt to income ratio. Right now you have a great payment history, the problem you are running into is that you are a little over-extended. By consolidating your bills, we will keep your payment history right where it is, and by reducing the interest rates the banks are charging you, more of your money to go towards your balances. This will bring your debt to income ratio down in line to exactly what the banks are looking for.

2. How does this affect my credit (if behind)?
Right now you are considered a slow pay on your credit report. By consolidating we will be able to re-age your accounts back to a current status after only three payments into our program. This will show the bank that you are back on track with your finances.

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Can I send in more money once I have a better cash flow?

Of course - you can always increase your monthly payment. The more you pay, the faster your accounts will be paid off. Just inform American Financial that. credit counseling and counselors know you want to increase your payments beforehand so we can figure out which creditors to pay more money.

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Should I pay my bills in the time before I send you my first payment?

That’s your decision. We recommend that you do if you can, because there is a brief negotiation period, after we receive your first American Financial payment, when we make arrangements for future payments with your creditors. If you miss due dates for accounts in the meantime, you are risking penalty fees and negative information being reported to the credit bureau.

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Will I still receive harassing phone calls?

You might the first several months on the program since it takes time for your creditor’s collections department to find out you’re with American Financial. If you get a harassing call, inform the party to call American Financial and speak to your representatives. If you get a harassing call from a collections agency that is not part of your creditor’s company, we will provide you with a cease and desist letter. 3rd party collection agents must obey this letter, according to the Fair Debt Collection Practices Act. Make sure you tell your representatives if you receive any such calls from a collections agent.

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