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 reduce 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 qualify for debt relief from your credit card debt! We're happy to help you find the right debt settlement program for you in your home state.
Debt Settlement Information
Debt Arbitration – This is the process of negotiating with creditors to accept payment that is less than the original full amount owed. The process is also known as Debt Negotiation or Debt Arbitration.
Debt Management – A strategy developed to help a consumer manage his or her debt. This is usually developed and implemented by an outside company or organization.
Debt Problems – Any number of problems and negative situations caused by carrying credit card debt and debt in general.
Debt Settlement Qualifications - Find out the most common qualifications for enrolling in a debt settlement program
Consumer Debt - Learn about the various struggles with consumer debt and what can be done to help
Credit Settlement - Settlements can affect credit , but in the long run consumers can benefit
Debt Negotiation - The debt negotiation process takes some time and patience. In order for a compromise to met both sides must have an in depth negotiation
Do it Yourself Debt Settlement - In some cases consumers in debt can actually settle debt on their own. Learn aboout the best practices
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?
