Debt settlement is the fastest and least expensive way to get out of debt. Often referred to as
debt negotiation or
debt arbitration, Debt Settlement is a direct and ambitious approach to debt reduction and it is best suited for individuals that have considered filing for
bankruptcy protection.
How it works:
Debt settlement companies will negotiate with unsecured creditors (credit cards, retail store cards, medical bills, judgments, personal loans, etc.) on behalf of the client to settle for an amount much less than the balance owed. In return, the debtor will make a settlement payment for the balance owed. Once the
debt has been paid in full on the settled amount, the creditor will issue a letter to the credit bureaus stating the debt has been "Paid", "Settled", and/or "Settled for less than full amount."
Why would a creditor accept a settlement?
Oftentimes creditors are willing to settle the balance of debt owed if the debtor is under financial hardship. Debt settlement is an excellent
alternative to bankruptcy and in the creditor’s eyes if the debtor is under financial hardship and chooses to file bankruptcy the creditor would receive nothing.
Debt management professionals, working on your behalf, take advantage of the leverage they have in this situation and routinely eliminate 30-50% of the debtor’s unsecured debt. It’s a win-win situation for both sides in the sense that the creditor is able to get some payment towards the balance owed, and the debtor slashes his outstanding debt and avoids the long and drawn out process of
filing bankruptcy.
Complete the form to the right and find out if you can eliminate up to 70% of your
credit card debt!
We're happy to help you find the right
debt settlement program for you in your home state.
The decision to reach out for help with your debt is not one that's easy to make. You were raised to "do the right thing", but now it’s nearly unbearable. You struggle along while your creditors are turning up the heat. And now you’re at the point where the late fees, penalties and interest expense make it impossible to keep your head above water.
Ask yourself this. If you could eliminate your debt without permanently damaging your credit, why wouldn't you?
