Debt Settlement 

   Many Americans are experiencing the financial burden of unsecured loan and credit card debt, but more and more are finding debt relief through debt settlement. Debt settlement, also known as debt negotiation, is a legal process whereby a consumer retains the services of an attorney to represent them in debt negotiation services with that individual’s creditors. This flexible debt relief option leverages the client’s income, existing debt, and financial hardships to assist the client to get out of debt in the shortest amount of time, and for the least amount of money without filing for bankruptcy. Debt settlement is an ambitious approach to debt reduction for clients experiencing the strains of too much debt and considering bankruptcy as an option. Debt settlement can provide immediate cash constraint relief and allows the client to save money over the long term by settling the debts for less than the full amount.

Benefits of debt settlement:

• Clients usually end up paying back only 40 – 60 %* of their current balance (*Based on past experience and historical data. Individual results may vary.)
•  It operates on the idea that we negotiate based on the principal balance the clients enrolled in the program.
• These programs are not backed by the credit card companies, they have your interest at heart,  not your creditors!
• Fees are broken up during the length of your program term. You determine the monthly payment affordable for you and the shortest most aggressive term to build up funds quickly enough to pay off the debt as soon as possible.
• Programs can range between 12 - 36 months.
• Quickly becoming the most popular method of eliminating unsecured debt.
• Excellent program for clients who are months late on their debts.

  Why creditors settle:

     Creditors are usually willing to settle the balance of debt owed if the debtor is experiencing extreme financial hardship and is seriously considering filing for bankruptcy. If the debtor chooses to file for bankruptcy, then usually the creditor would receive a severely reduced amount of the balance owed or even possibly nothing, determined by the BK Trustee. Therefore, it is in the creditors best interest to find an agreement that works for both parties. With consumer debts increasing, banks have established debt settlement departments staffed with personnel authorized to negotiate with defaulted cardholders to reduce the outstanding balances in hopes of recovering funds that would otherwise be lost if the cardholder filed for Chapter 7 bankruptcy. Typical settlements range between 25% and 65% of the outstanding balance.