Debt Settlement, also commonly called Debt Arbitration or Debt Negotiation, is an ideal solution for those with a serious amount of unsecured debt ($8,000 or more) and are looking for a way out that does not involve bankruptcy. This is an aggressive approach with aggressive results. Debt settlement companies can negotiate your debt with your creditors to a lower amount than previously owed.

Debt Settlement Benefits

• Reduce/Eliminate Interest and Late Charges
• Reduce payments by a significant amount*
• Reduce creditor harassment
• Set up one monthly payment
• Manage embarrassing calls by creditors and debt collectors
• Become debt free in as little as 12-60 months

Debts That Can Be Settled

• Credit Card Debt
• Medical Bills
• Department Store Cards
• Unsecured Loans
• Overdue Rent
• Local Merchant Accounts
• Past Due Utility Bills
• Automotive Repossession Balances
• Oil/Gas Credit Cards
• Personal Loans
• GYM Memberships

Debts That Can’t Be Settled

• Secured Loans
• Tax Debts
• Auto Loans
• Mortgages
• Federally Secured Student Loans
• Government Loans
• Military Star Card

The debt negotiation process

Debt negotiation is the process of reducing your overall debt into a lump sum, and once paid, your creditor releases you from your obligation. For example, if you have a credit card with a $10,000 balance and it is entered into the program your debt settlement company will vigorously negotiate your total balance down a significant amount of what you owed.  What happens is after your debt is negotiated is you then authorize the release of funds from your client reserve account in order to pay the settlement amount with the creditor. The settlement company cannot transfer any funds from this account without your permission. It is your money and you have to give permission in order for the funds to be released.

What are the benefits of debt negotiation?
Debt negotiation benefits are obvious, you pay less. Another major benefit is you don’t deal with long term negative hits to your credit as compared with Bankruptcy.

Debt Settlement is a great option for some-
Debt Settlement will never be mistaken for a gold star on your credit history. However, it does have several advantages.  You save a significant amount of money, and debt settlement companies themselves don’t actually report to the credit agencies. Although the creditors have the right to report your delinquencies your debt settlement company won’t actually report anything. Many clients are able to re-establish themselves in 6 to 18 months after their programs have been completed. This type of program is great for those that might be able to afford minimum monthly payments but see no end in sight and don’t want to file for bankruptcy.