» Debt Consolidation FAQ

Q.What type of debt can be handled through the program?
A.Any unsecured debt. The IRS and student loans can be worked, but outside of the program.

Q.How does it affect credit?
A.If credit has already been damaged, the program may make it worse, but not significantly. The
program is a bankruptcy prevention service, so credit must be a secondary concern. It must be
anticipated that a certain deterioration of credit will occur. The service includes free "Post Program
Credit Restoration", which will help restore the credit once the program is completed.

Q.How does this program compare to consumer credit counseling?
A.Credit counseling has no effect on principal at all. The purpose is to pay the debt in full at a reduced interest and/or monthly payment. The big problem with CCCS is the payments are often still too high and it will take 5 or 6 years to pay the debt off. Also, the creditors primarily fund these firms, so that is where their allegiance lies.

Q.How does it compare to bankruptcy?
A.Bankruptcy is designed to be the last straw. It has a lingering affect on the credit report for 10 years and has ramifications in many aspects of every day life.

Q.How do you know if someone is right for the program?
A.We do a detailed financial analysis to determine what all the options are. Our main focus to make
sure that the program is a realistic solution to the individual's predicament. The last thing we want to
do is put someone on a program that will only be a temporary relief.

Q. What happens to open accounts when they are put into the program?
A. Any account that is put on the program is automatically closed to future use. The idea is to stop the
cycle of charging and eventually eliminate the debt.

Q. Does debt have to be bad to be put on the program?
A. The program works for debt in all stages.

Q. Why would a creditor settle on a current account?
A. Creditors realize that 27% of the 1.4 million bankruptcy's last year occurred on debt that was never
late. Many people are surviving by borrowing from Peter to pay Paul. The only reason their credit is still
is because they have been using creditors to pay their bills. Of course, eventually they run out of
available credit lines and find themselves unable to make the payments. Another reason they settle is
that The Debt Reduction Program is designed to allow us as much time as we need for the debt to be
settled, so we can wait until the creditor makes the sensible decision and settles.

Q. Won't the creditors continue to harass the debtor while on the program?
A. The program includes the representation of the client by Edge's in-house legal department. This
representation makes it mandatory that the creditors only communicate with the debtor's legal
counsel. So, we keep the creditors communication with the debtor at bay until the debt obligation can
be resolved. The creditor may have to still put up with the calls for about 30 to 60 days while the
program is being set up.

Q. How much can the program save someone?
A. In some cases, as much as 80% of the principal balance can be eliminated, but creditors accepting
settlements is more the norm. The savings in some cases, can amount to tens of thousands of
dollars.

Q. How fast will someone get out of debt?
A. Depending on how aggressive the monthly payments by the client, the debt can be eliminated in as
little as 12 months. The longest we anticipate it will take is 32 months, though it varies from case to
case.

Q. Do you offer help if someone is having a problem managing his or her budget?
A. For those that need budget counseling, we offer a program that puts the debtor on a strict budget plan
and helps them map out their spending. This intended to be a life change program.

Q. Should a person think about paying for such things as insurance, education, etc. when they are
struggling to pay their debt?
A. One of the things we insist on is that the debtor keeps their entire future in mind. We help them not
only by eliminating their debt, but also help them map out their future. People in debt have the same
concerns and dreams as everyone else, such as college for kids, retirement, death, etc., and we will
help them in those areas as well.

Q. What can you do for someone if they have equity in their home?
A. If someone has equity the home, we will analyze the situation to determine if utilizing the equity to
pay the debt is the proper thing to do. If so, we will help them in that area as well. Sometimes, it is
the most logical way of getting a budget back in line. If necessary, we can arbitrate the debt as part of
the solution.

Q. What is an individual's option if this program does not work for them?
A. If we cannot determine a solution that makes sense, bankruptcy is always an option. The company's
in-house legal department can assist in that area.