Frequently Asked Questions

Q. How does the Debt Settlement Program work?

Q. How much does this program cost?

Q. How is the fee paid; is it paid upfront?

Q. How long will it take for me to become debt free?

Q. Will I be totally debt free when I’m done?

Q. Who pays my Creditors?

Q. Will this program have a negative effect on my credit? 

Q. Will entering your Debt Settlement Program repair my credit? 

Q. Who is an ideal candidate for Debt Settlement?

Q. What is the difference between unsecured debt and secured debt?

Q. Do I have to include all of my creditors into the program for settlement?

Q. What if my creditors won't settle?

Q. Is Debt Settlement the same as Debt Consolidation?

Q. Is Debt Settlement the same as Consumer Credit Counseling?

Q. How does Debt Settlement compare to Bankruptcy?

Q. When does Mach 3 Debt Solutions begin settling my debt?

Q. Why should I use Mach 3 Debt Solutions to settle my debts as opposed to handling it myself?

Q. Are my creditors going to continue to call me?

Q. Will my creditors continue to contact me by mail?

Q. If I miss a monthly payment to Mach 3 Debt Solutions, will I be dropped from your program?

Q. How do I find out the progress of my debt settlement?

Q. Who do I call if I have a question about the program or a problem with a creditor?

Q. Will Mach 3 Debt Solutions stop late fees and interest from accruing on my accounts?

Q. Will a Debt Settlement Program stop legal action against me?

Q. Will I owe money to the IRS for my reduced settlement?

Q. Who controls the funds in my Special Purpose Account?

Q. Will I have to take out another loan to cover my current debts?

Q. Will my debts be sent to a law firm? Will this result in a lawsuit?

Q. Do you guarantee that you settle all of my debts for a certain percentage?

Q. Is Mach 3 Debt Solutions a member of the Better Business Bureau?

Q. I have debt but how do I know if I am really in trouble or not?

Q. What options do I have if I am unable to make the minimum monthly payments on my credit card bills?

Q. How does the Debt Settlement Program work?

A.            (1) A Mach 3 Debt Solutions Debt Specialist will customize a program that is affordable for you based upon a detailed hardship, budget, and creditor analysis.

                (2) You commit to your new monthly payment and these funds are deposited in a Special Purpose Account and are left there to accumulate each month.

                (3) Your designated lead negotiator will monitor the balance in your account to determine when sufficient funds have gathered to initiate negotiations with your creditor.

                (4) Aggressive negotiations are conducted on your behalf between our negotiators and the creditor to reach a settlement offer on your debts to pay less than what you owe.

                (5) Once the settlement is reached, with your authorization, the necessary funds are withdrawn from your Special Purpose Account and paid directly to your creditor. Your account is now considered paid in full.

Q. How much does this program cost?
A. Our Debt Settlement Program costs are determined on an individual basis. The cost is based upon the total debt being enrolled as well as the selected program length. After a comprehensive financial analysis of a client’s budget, creditors, and hardship, your Mach 3 Debt Specialist will work diligently with you to determine a monthly payment that works for you.

Q. How is the fee paid; is it paid upfront?
A. Our fees are not charged upfront – instead they are withdrawn from your Special Purpose Account each month. By incorporating fees into the monthly payment, this concern is alleviated. Typically our fees are spread out over a period spanning 15-18 months. The fee is typically broken into a Retainer fee which is paid out over the first 3 or 4 months and then a Service fee that is paid out over the following 12-15 months. All fees are included in the one monthly savings payment that our Debt Specialists will quote to you.

Q. How long will it take for me to become debt free?
A. The time to complete the debt settlement program varies from case to case and is primarily based upon how much money you will be able to set aside each month to eliminate the debt of your enrolled accounts. Every situation is different and we will be happy to discuss this during your free confidential phone consultation.

Q. Will I be totally debt free when I’m done?
A. Our program is focused on dealing with only unsecured debts (credit cards, medical bills, unsecured personal loans, etc). We cannot help you with debt that is secured by collateral (such as mortgages or auto loans). After completing the program, however, the money that you are no longer paying towards your unsecured creditors can now be used to pay down secured debts, as well as to save for your financial future.

Q. Who pays my Creditors?

A. Mach 3 Debt Solutions DOES NOT disburse funds to your creditors during the program. The purpose of our Debt Settlement Program is to create a savings plan for you and negotiate settlements on the balances you owe. Those in a Debt Settlement Program are financially unable to make regular payments to creditors and instead set aside money in savings to pay a settlement once negotiated.

Q. Will this program have a negative effect on my credit? 
A. If you do not make required minimum payments to your creditor you may be breaking the terms of your agreement with them and your actions will probably be reported to consumer reporting agencies as a late, delinquent, charged-off or past due balance. This is true whether or not you have enrolled in a Debt Settlement Plan.

Any program will have a negative effect on your credit profile during the course of enrollment. However, once negotiated and settled, your creditors will report the accounts as "settled" or "paid in full". Our goal is to get you out of debt for the lowest cost, in the shortest period of time without declaring bankruptcy. Once you are out of debt, we will be able to enroll you in our credit restoration program.

Q. Will entering your Debt Settlement Program repair my credit? 
No. Any Debt Settlement Program will fail to repair or restore a client’s credit. However, after the completion of the program, clients are encouraged to enroll in our Credit Restoration Program to boost their credit rating.

Q. Who is an ideal candidate for Debt Settlement?

A. Debt Settlement is a hardship based program which means that any candidate must be facing current or foreseen hardship (illness, divorce, job loss, disability, pay cut). An ideal candidate would be having difficulty in paying their bills and has unsecured debt of $5000 or more.

Q. What is the difference between unsecured debt and secured debt?

A. Unsecured debt is any debt that has no tangible assets or property attached to it. The most common types of unsecured debt are credit cards, medical bills, utility bills, and personal loans. Should you fail to make timely payments, the lenders’ only recourse is to pursue legal action.

Secured debt is debt for which the creditor has collateral in the form of a security interest in personal and/or real property. Should you fail to make timely payments on secured debt, the creditor is entitled to repossess the property and sell it. Secured debts CANNOT be enrolled in a Debt Settlement Program. 

Q. Do I have to include all of my creditors into the program for settlement?
A. No. We recommend that you keep at least one credit card open. Any accounts that are included in the settlement will be closed. Creditors won't settle accounts that are still open. You should keep one credit card open for emergency use only.

Q. What if my creditors won't settle?
A. There are very few circumstances where a creditor will refuse to settle. As with any negotiation, there are offers and counter-offers and in the majority of cases a settlement is reached. Creditors realize that settlement is in their best interest because if a debtor files for bankruptcy, the chances of the creditor receiving nothing are increased dramatically.

Q. Is Debt Settlement the same as Debt Consolidation?

A. No. The goal of debt settlement is to reduce the overall amount of the debt by negotiating agreed payoff amounts with your creditors. Debt consolidation requires you to take out a loan to pay off your unsecured debt with secured debt.

Debt Consolidation loans transfer the debt from one account to another and typically takes unsecured debt(s) and changes it into secured debt (usually your home). If you do not have enough equity (typically 25 - 30% LTV), bad credit, or too much debt, it is not likely that you will be approved for a debt consolidation loan.

Q. Is Debt Settlement the same as Consumer Credit Counseling?

A. No. Debt Settlement does not work like Consumer Credit Counseling in most respects. The goal of Debt Settlement is to settle the overall amount of enrolled unsecured debt, by negotiating payoff amounts with your creditors. Consumer Credit Counseling fails to reduce the total debt amount because it only reduces a client’s interest rates. Using Credit Counseling, you will pay the full amount of your debts plus interest.

Q. How does Debt Settlement compare to Bankruptcy?

A. Filing for Bankruptcy has many negative implications, and is usually considered only as a last resort. Bankruptcy may seem to be the quickest solution to removing your outstanding debt but even bankruptcy attorneys will tell you it will remain on your credit for 10 years. Debt Settlement allows you to responsibly repay your debts to your creditors but at a reduced rate while avoiding the detrimental 10 year stigma of Bankruptcy.

Note: Anyone considering bankruptcy should contact a bankruptcy attorney.

Q. When does Mach 3 Debt Solutions begin settling my debt?
A. Once you have fully retained our services, you will be assigned a personal negotiator. Your negotiator will use their expertise to determine the best time to contact your creditor to begin the settlement process.  This timeframe can be from a few weeks to several months. Negotiations begin once your negotiator is confident that you have sufficient funds in your special purpose account so that a meaningful settlement can be obtained.

Q. Why should I use Mach 3 Debt Solutions to settle my debts as opposed to handling it myself?
A. Our team has extensive experience in negotiating debt and working with creditors. We have an impeccable relationship with creditors and collection agencies, which are usually unwavering in negotiating with the consumer directly. Our team consists of licensed negotiators and a nationwide attorney network and they have broad knowledge in consumer debt, the Fair Credit Reporting Act, as well as the Fair Debt Collection Practices Act.

Q. Are my creditors going to continue to call me?
A. We notify your creditors of our representation and inform them that they should contact us with respect to settling your debt. If you continue to get calls, call our customer service department and they will again contact the creditor informing them of our representation. In all cases, you should keep a log of all calls you get from creditors with respect to the debt you put into our program.

See your rights under the Fair Debt Collection Practices Act & Debt Collection Laws for your State.

Q. Will my creditors continue to contact me by mail?
A. Your creditors may also attempt to correspond with you by mail; however, you will then immediately contact us and report this correspondence. We encourage you to send us copies of this correspondence so that we can notate them on your file. We will handle all of your creditors and collectors on your behalf.

See your rights under the Fair Debt Collection Practices Act & Debt Collection Laws for your State.

Q. If I miss a monthly payment to Mach 3 Debt Solutions, will I be dropped from your program?
A. No. We understand that financial circumstances can fluctuate and so we offer our clients the ability to adjust their payment terms accordingly. Simply call our customer service department and we will arrange payment over the phone. It is understandable that circumstances may arise and we will help you get back on track with your payment schedule. You can call us at 866-996-2243, Monday thru Friday from 9am - 6pm PST to speak with a representative.

Q. How do I find out the progress of my debt settlement?
A. You can call us at 866-996-2243, Monday thru Friday from 9am - 6pm PST to speak with a representative.

Q. Who do I call if I have a question about the program or a problem with a creditor?
A. You can talk directly with any account representative whenever you need to discuss a problem or concern. You can call us at 866-996-2243, Monday thru Friday from 9am - 6pm PST to speak with a representative.

Q. Will Mach 3 Debt Solutions stop late fees and interest from accruing on my accounts?
A. We cannot stop a creditor from adding interest or late fees to an account. However, during the course of the negotiations, these accrued costs are included in the settlement amount. Because we negotiate the debt down to a fraction of what you owe, your savings are far greater than any interest or late fees that could accrue.

Q. Will a Debt Settlement Program stop legal action against me?

A. No - creditors have the right to use legal means to collect a debt. In our experience, a small minority of consumers are involved in lawsuits. However, it is a common tactic of third-party creditors or collection agencies to threaten you with a lawsuit (which is illegal if they do not intend to sue).

While we cannot guarantee that legal action will not be taken, we are confident that our experience in dealing with creditors can reduce the possibility of this happening. Despite any legal action that may or may not be taken, your account can be settled before, during or after the suit. Just because an account goes to legal action does not mean that we cannot settle it. IT CAN BE HANDLED.

Note: We cannot provide you with legal advice. However, we work with your creditors in an attempt to make a settlement even when legal action is pending.

Q. Will I owe money to the IRS for my reduced settlement?

A. Original creditors are required to report canceled debts exceeding $600 to the IRS and you are supposed to report the same as income on your annual tax return. However, the IRS permits you to write off any "income" from canceled debts up to the amount by which you were "Insolvent" at the time (debts exceed assets).

Note: You should consult a tax advisor for advice specific to your situation. This should not be considered tax advice.

Q. Who controls the funds in my Special Purpose Account?

A. While Mach 3 Debt Solutions may recommend a bank to help protect your money your personal savings account is a bank account that you control. This account remains your property and under your control. You will receive a bank statement monthly to monitor your account. Even when a settlement is agreed upon, Mach 3 Debt Solutions cannot access the funds in your account without your authorization.

The reason why we recommend opening a new account that is separate from your existing bank accounts is that in our experience, this separation dramatically increases the probability that you will succeed in a Debt Settlement Program. Fees are deducted from this account each month, according to the Agreement that you sign with us but the accumulated savings in the account are owned by you.

Q. Will I have to take out another loan to cover my current debts?
A. No. Our Debt Settlement Program is not a new loan. It is important to understand that Debt Settlement is not the same as Debt Consolidation. The funds that accumulate in your Special Purpose Account will be used to pay your creditors upon agreement on a settlement offer.

Q. Will my debts be sent to a law firm? Will this result in a lawsuit?
A. Creditors do have the right to send debts to third party collection agencies and/or law firms in order to collect a debt. If this happens, we will continue to negotiate on your account and will treat the debt as a priority creditor (meaning we will try to resolve it first, before moving onto your other accounts). Based on our actual experience, it is a small percentage of cases on which lawsuits are actually filed. When this does happen, usually the purpose of the lawsuit is to force a settlement. We will continue to negotiate to settle the debt, although the settlement percentages are often higher than typical “non-legal” settlements. If a lawsuit is filed before you have saved up enough funds to negotiate a settlement, we will seek to resolve the account by putting it on a long term payment plan for 100% of the balance.

Note: We are not a law firm and cannot provide legal advice or legal representation.

Q. Do you guarantee that you settle all of my debts for a certain percentage?
A. No. Every case is a negotiation, and there is no guarantee how the negotiations will wind up. Furthermore, the success of our negotiations is highly dependent on your ability to save a specified amount each and every month you are in the program.

Q. Is Mach 3 Debt Solutions a member of the Better Business Bureau?

A. This used to be a must for any debt settlement company that is until the BBB downgraded the entire debt settlement industry. Regardless of business operations, facts and integrity, even the most reputable debt settlement companies were being graded as D’s and F’s. Instead, Mach 3 Debt Solutions is a member of an industry specific watchdog organization called The Association of Debt Settlement Companies (TASC). This organization oversees member companies to ensure that they remain compliant to FTC requirements and acts similar to the BBB in that consumers can check on member status and even file complaints where TASC will seek immediate remedy.

Q. I have debt but how do I know if I am really in trouble or not?

A. If you think you are getting into debt trouble, you probably are. If you are spending more money then you are taking in each month, you are accumulating debt that will quickly add up. And, if you haven't saved for those unexpected occurrences that happen to all of us you may have incurred large debt. Some common symptoms of debt trouble include paying only the minimum due, paying late, or missing payments altogether.