Why should I choose Priority?
Let’s get straight to the facts. Our credentials speak volumes. Our face to face credit counselors hold multiple certifications including but not limited to, Certified Debt Specialist, Certified Student Loan Specialist and Certified Credit Counseling Specialist with the NACCC and IAPDA in order to effectively educate our valued clients, helping guide them to a better financial future. Our team has been assembled with one priority in mind, to be the leading innovator in the face-to-face debt resolution arena for our valued clients.
What happens when I enroll in the Priority Program?
Priority Capital provides representation to all of your enrolled accounts through our “Limited Power of Attorney” which clients authorize with the signing of our Client Service Agreement. Once they have been successfully enrolled into our program, our client services team gets to work. While your debt repayment funds build in your savings account used to negotiate with your creditors, we field the creditor correspondence you forward us in our mail room, searching to identify the best opportunities for settlement. Of course this process takes time as you MUST become fully delinquent in order to receive a settlement. While this occurs our doors are always open and Priority clients often visit their representatives at our offices for program updates, advice or to drop off paperwork. Our doors are always open to you.
What happens when I receive a settlement?
Normally it takes AT LEAST 6 months to reach your first settlement. There are two reasons for this. (1) You need funds to accrue in your savings account to make a settlement. (2) You must become fully delinquent on your account in order for a creditor to settle with you. When a settlement is reached by Priority, you are contacted by the negotiator working on your file, and the transaction is approved by you before the account is formally settled. Paid settlements usually reflect a zero balance on your credit report. We settle each account in a domino effect until the entirety of your enrolled debt is settled at which point you are graduated from the program. With the educational resources we provide along with our debt resolution program, we aim to help you keep it that way for good.
Will I still receive creditor phone calls?
All creditors reserve the right to attempt to collect on a debt and initially we fully expect your creditors to contact you. This can be unnerving for some clients and we totally understand that nobody wants to receive these kinds of calls, but you have to remember the alternative may be remaining in revolving debt. In our view that is no alternative. While we help you navigate this initial phase of the program, we will be here to help educate you on your consumer rights, teaching you how you can use consumer protection laws such as the Fair Debt Collections Practices Acts (FDCPA) and the Fair Crediting Reporting Act (FCRA) to help curb creditor harassment and misreporting. Keep in mind that once your account has been transferred from the original creditor to a third party, it becomes easier to reduce and eliminate creditor phone calls.
Does all of my unsecured debt have to be included?
No, but we recommend it. Still, we will assess your personal credit-debt situation and give you a thorough breakdown, from most severe to least severe revolving credit debt accounts that you are responsible for. We will assess where you are cross-collateralized with your lender and attempt to de-collateralize certain accounts where you wish to keep lines of credit and/or bank accounts open. In many cases our clients wish to keep a credit card outside of the program in case of an emergency. As long as it seems to be a reasonable card for exemption, we understand the utility of keeping that lifeline as long as possible.
What effect will settling my debts have on my credit score?
First you should ask yourself, “Am I planning on purchasing a large ticket item or financing a personal asset in the near future?” If you answered “no”, a reduction in your credit score should not change your lifestyle. You should also know that revolving credit debt, even with timely payment to your creditors, can decrease your FICO score if not corrected. Your debt-to-income ratio is a major component of your FICO score, as well as your utilization of the credit line. Therefore our program may expedite a process already occurring if you have revolving credit debt. Our clients may see significant decreases in their FICO score. The good news is that once you start to receive settlements from your creditors, these settlements aggressively pay down the principal of your revolving debt, which improves your Debt-to-Income (DTI) ratio. When our program is completed you will be in a much better position to permanently repair your credit rating. FICO scores generally trail DTI’s and this means that once your DTI improves through successful resolution of your revolving credit debt, you may have the opportunity for true organic growth in your credit rating. Priority calls this the “Destroy and Rebuild Effect”.
How much does the Priority Program cost?
If you would like to calculate your estimated total payments over the course of the Priority Program, use this simple formula. Your level monthly payment amount (ex. $600.00) multiplied by the number of months you are estimated to be in the program (ex. 36 months). $600 X 36m. You will never write a check to Priority and we do not accept funds directly, instead you will put aside monies in your secured escrow account as a part of your savings plan to resolve your debts. All program fees are built into your monthly payment amount and collected in structured installments throughout the course of your program. With our program fees included, we provide our clients with a “limited performance guarantee” and a reduction in the principal amount of enrolled debt after all fees have been applied. Our program fees cover all services provided to you through Priority. In other words your Priority package is ALL INCLUSIVE with your selected monthly payment. Simple.
By becoming delinquent, will I incur interest charges and late fees?
Yes, this is unavoidable. Priority, and no other debt negotiation provider, can stop this from occurring as your accounts become delinquent. With this in mind, we estimate that most accounts can be settled for about half before fees are applied. It’s important to provide a reasonable estimate when dealing with a consumer’s financial affairs. Most importantly we are professionals who want to make sure the program works for our clients, and that it works well. Budgeting is everything when trying to eliminate revolving credit debit. It’s crucial that your monthly payment amount is affordable to you. If we misquote this amount, it could jeopardize your ability to be as successful as possible through our services, and that is certainly not an option.