Frequently Asked Questions

Why should I hire Renaissance Debt Solutions to help me?

Unlike most companies in this industry, we have a number of products providing a number of solutions, based specifically for your situation. Most companies offer one or two solutions and claim those solutions are appropriate for everyone. We take the time to get to know you so we can be sure the program you enter into will actually solve your problem and match your lifestyle and goals. If you enter one of our Debt Management programs you do so knowing it is the right choice for you.

Who does Renaissance Debt Solutions work for?

We work entirely for you, our client. We go to great lengths to assure that you make the right decision in dealing with your debt problem. If we need to negotiate with your creditors, we do so with only your interests in mind. Many companies can’t say that.

How much can I expect to save with Renaissance Debt Solutions?

We typically are able to help our clients get out of their current unsecured debt for around 55% of the total balance and have them totally debt free in 12 to 36 months. For example, a person with $20,000 in credit card debt will pay around $60,000.00 over a period of 15 to 20 years if they make normal payments, and that's IF they never use the cards again! With our program that same person can become totally debt free for around $11,000.00 in 12 to 36 months, and generally for a lower monthly payment than they're making now! As you can see, our programs can literally save you and your family thousands of dollars!

Should I consider Bankruptcy?

In some cases, Chapter7 Bankruptcy makes sense for unsecured debt. If you are unable to make a reasonable deposit toward your debt each month, Bankruptcy may be the answer. Keep in mind that Bankruptcy will remain part of your credit history for 10 years and carries a much greater stigma in other aspects of your life. Also, in October 2005, changes in the law made declaring Chapter 7 Bankruptcy more difficult. We feel that it should only be considered a last resort.

Can you guarantee results?

Because we actually negotiate with creditors and do not have pre-arranged terms, every case is different. We can use our experience to give you an estimate of what we think will occur. Actual results will vary due to many considerations. The only guarantee we will give is that after allowing us to negotiate and settle each one of your accounts as well as fees, you will not pay more than 90% of the original amount on your debt. To date, we have never had to refund money to anyone.

How long before I start seeing results?

In some cases we may be able to settle your first account within 3 months. In other cases, it can take as long as 9 to 12 months. It really depends on the amount of your debt and the particular creditors you have on the program.

Should I make payments in the meantime?

Based on program qualifications, you have indicated and demonstrated an inability to make contractual payments to your creditors. That being true, it is not wise to payless than agreed or pay some and not the others, since it will lead to the same or similar place if you did not pay at all. Also, if our efforts are unsuccessful or you are unable to keep your end of the program, Bankruptcy may have to be considered an option. It is never smart to “throw good money after bad”. All that being said; the ultimate decision is up to you. If you can’t resist making payments and find you can without hardship, another program may be a better solution.

What will the creditors do if they don’t get payments?

They won’t be happy. They will likely call and write letters. They may make outrageous statements in an attempt to get you to pay them or fire us and deal with them directly. One of the most significant parts of this program is to allow us to deal with them exclusively. Remember, they are professional collectors and know exactly the things to say to get you to react. You hired us because you want a professional dealing with this matter with you, so it is imperative that you allow us to do our job. We will show you the best ways to defuse them and re-direct them to us. Just keep in mind, no matter what they say or how they say it, they are not your friends and their only motive is to separate you from your money.

Can they sue me or garnish my wages?

In rare cases, the accounts will be referred to an attorney for possible lawsuit. We will work very hard to avoid this and do our best to resolve it should it get that far. Lawsuits occur on less than 1% of accounts and even fewer ever get collected.

Does the fee have to be paid all at once?

No. You pay the fee over the course of your program, usually 18 to 30 months. We have designed a schedule system that allows us to work with your money in the most efficient way possible.

With a flat fee arrangement, what is your incentive to achieve the best results?

Our company can only be successful if we do a good job for our clients. Also, our negotiators are largely paid based on the results they achieve for you. We want you debt free, with settlements that will make you happy, as quickly as possible. There is no benefit to us to keep you on the program longer than you need to be. Companies that charge based on results often charge a monthly maintenance fee and may benefit by extending the program or dragging their feet. That is not the case with us.

Will I have to pay income taxes on the money I save?

It is possible that you will have to pay taxes. This is a complicated issue but the short answer is – creditors may send you a 1099 for any discount they give over$600. The IRS calls this discount- Debt Forgiveness. Debt Forgiveness is taxable to the extent of your solvency. It may also be possible to offset some of the fees paid for services provided. You should discuss this with a tax adviser should it occur. The good and the bad of it is that you will still always save significant money compared to other alternatives.

How will my money be handled through the program?

You will determine with your Financial Counselor, an amount that is right for you to set aside each month. We recommend that a bank account be established for this purpose that is kept separate from your every day money. Each month, as a convenience, we arrange for the pre-determined funds to be taken from your regular checking account and set aside on your behalf. When a settlement agreement is reached and accepted, we draft a check from your program account and issue it to your creditor. In essence, funds go from your personal checking account to your program account and upon settlement, to your creditor.

Are there any advantages to using the Bancorp Account you recommend?

The big advantage is that it allows us to have our finger on the pulse at all times with regards to your program balance which allows us to deal with your creditors in real time. If you set up your own program account, the only way we know your program balance is if you tell us. This gap in communication can cost us a settlement. Another advantage is that it allows us to manage your deposits for you and make it automatic so you don’t have to worry about it.

How do I know what is happening with my money and my program in general?

Every client is issued secured access to our on-line Client Website. There, you can get up to the minute detail of your program balance as well as other important information and data regarding your program. The other way to find out is to call your Program Advocate.

Who has control of my money?

Ultimately you do. We provide services as a convenience specific to the program, but only under your direction. The money being set aside each month is yours and you are free to take it and leave the program anytime you wish. Simply, contact your Program Advocate and you will be directed on how to access the funds.

What is a Program Advocate?

Unlike most companies that let you deal with a customer support department, we assign every client their very own Program Advocate. The Program Advocate is responsible for your welfare while on the program and is judged based on your results and satisfaction. Even if you deal with someone else within the company, the Program Advocate is ultimately responsible. We have received accolades from many clients over the efficiency of this system.

Do I get fees that I paid back if I drop from the program prior to completing it?

All fees paid are non refundable. Settlements do not happen overnight and we spend a great deal of time and effort getting to the point of settlement. Remember, unlike Debt Management, there are no pre-determined settlement arrangements made. We have to strategically negotiate with creditors to allow your money to work best for you. In some cases, we are stalling and keeping creditors at bay until you have accumulated a sufficient amount to reach a settlement. In fairness, we ask that you allow us the time to do our job. If you don’t we consider our fee earned, therefore all fees are non refundable.

I heard I can do this myself, is that true?

Over the years, we would often stay in touch with individuals that decided not to participate in our program and instead do it on their own. In almost all cases, the results were disastrous and these people often found themselves on our program or in some cases, Bankruptcy court. You can also represent yourself in a court of law yourself but would you? So can anyone do this? Technically, anyone can do this, but in reality, it’s not for everyone. In doing this yourself, you need to be prepared to deal with professional collectors yourself. Another thing you will need to be able to do is discipline yourself to set aside the funds on a regular basis. This is a key ingredient in making this program a success.

Does Renaissance Debt Solutions offer credit repair?

We do not offer credit repair. Our sole function in your life is to help you achieve debt freedom in a way that is right for you, regardless of the impact on credit. Our clients understand the tradeoff. What we will do is work with you after the program is completed to assure that your accounts accurately reflect a paid status. This is often sufficient to begin reestablishing credit.

Do you help me make sure this problem never happens again?

Throughout the program, we provide an optional coaching service, FREE OF CHARGE, which can help you in matters involving your financial life. We provide education as well as one-on-one discussions. Once you complete the program, we make these services available for life. We are successful if you never have a debt problem in your life again.

What if my goal is to buy a home?

It would not be wise or practical to purchase a home with debt issues hanging over your head. If buying a home is your goal, joining the Debt Settlement program or utilizing other means to eliminate debt is your wisest first step.

This process sounds easy. Is it?

We wish we could say it is. In life, there is no free lunch. You may have uncomfortable moments during your time on the program. Perhaps creditors are calling or you are receiving threatening letters. Coming up with the deposit each month may be painful, especially when an obstacle is thrown in front of you. Our hope is that our handholding and professionalism makes the process a bit easier. We also hope that when you finish the program, you will feel a sense of great accomplishment, yet at the same time, remember the pain just enough to assure that you avoid depending on debt in the future.

How do I begin?

The first step is to participate in a fairly brief consultation with one of our Debt Counselors so a plan and program can be designed. We will walk you through the rest of the process from there.