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Debt Settlement
What is Debt Settlement and Can it Help Me?
Debt Settlement is the process of helping our clients save money while paying off creditors they owe who they can no longer meet minimum payments with due to real life hardships. This allows the debtor to over the time of a program to end their outstanding debt while allowing the creditor to gain a portion of what was owed.
Debt Settlement is a process of negotiating with creditors through moneys they have saved in a “Special Purpose Account” over time. If a debtor is able to pay minimum monthly payments they should and we suggest they do so.
How Does It Work?
As a client, you will be making a monthly payment into an FDIC insured “Special Purpose Account” that is in your name not ours so you will have complete control over it. As the money in the account builds, our back end IAPDA certified Debt Negotiators will use it to negotiate and settle each creditor one by one.
When we receive a fair offer from a creditor OR when you have saved an anticipated settlement amount (30% - 60% with an average of 50%) of any creditor balance, we will begin negotiations on that account. Our trained professionals will then negotiate on your behalf and when an acceptable offer is made we'll obtain a confirming letter from the creditor. We’ll then pay, settle and close that account. This cycle will continue to repeat with each creditor.
Unlike credit management no monthly payments are made to creditors by us. If a debtor can pay their minimum payments we recommend they do so. If a debtor is not paying their creditors their credit rating will naturally be effected.
Our back end negotiating team is a member of our industry's trade association known as TASC (The Association of Settlement Companies) as well as IAPDA (International Association of Professional Debt Arbitrators) certified and trained.
Who/What Qualifies:
- Have at least $5000 in debt
- Individual debts must be at least $200
- Can no longer make minimum payments due to hardships
- All major Credit Cards
- Medical Bills
- Store or Gas Cards
- Unsecured Personal Loans
- Repossession Deficiency Balances
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