Debt Settlement

Debt Settlement Program Details

Here are just some of the things we discovered that most creditors and collectors don’t want you to know.

1. The average interest rate on delinquent credit cards is 25%!
2. A customer making minimum monthly payments on a $5000 balance at 25% interest may have over 75% of the payment applied to the interest. At that rate, it is practically impossible to get out of debt in this decade just by making the minimum monthly payments.
3. Debts delinquent for more than 120 days are often packaged with other debts and sold by the primary creditor for a significantly reduced amount.
4. Most collectors buy debt for an average of 5 to 15 cents on the dollar.
5. If a collector can get you to pay anything without a written agreement, they can apply the money any way they want. It is usually applied to interest first.

By using this information, we negotiate with creditors to accept a lower amount than what they tell you is actually owed. If you have been a good and loyal customer, you have probably already paid more than what you have originally charged. Based on your financial hardship and payment history, we are able to negotiate on your behalf for the best settlement possible.

In addition, we ask for everything in writing before the debt is settled. We make sure the creditor sends a letter stating that the payment will fulfill the debt obligation and that they will report the account to the credit bureaus properly. We also negotiate to have the creditors and collectors report the account to the credit bureaus as, “Settled”, “Paid” or “Paid as Agreed”.

In cases where your relationship with the creditor has not been good, we may use alternate methods of negotiation. One method is to “reset” your account showing you as current again. As part of the “reset”, we may negotiate a reasonable interest rate!

Lastly, everything we do is in writing. Every month we send letters to both you and your creditors. The letters summarize our offers to creditors with the amounts based on the program you created. The letters we send to the creditors clearly state who you are and what funds you should have available based on your personalized plan. It is this clear and documented process that separates us and our competitors and allows us to get the best debt settlements.

Our program allows you to achieve savings of up to 50% or more of your credit card balances!

Get a FREE Consultation with a Debt Settlement Specialist!

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Get The Facts on Debt Settlement!

Repossessions, wage garnishment, property seizures and foreclosures are words which strike fear into the heart of every consumer.

The general assumption is that overdue debts will result in these drastic measures. Sure, if you've put up property as collateral on a loan which you are unable to pay, it will typically be seized or repossesed. But the same does not necessarily hold true for unsecured debts. In reality very few creditors will ever push for garnishment on small unsecured debts. Garnishment and seizure are a creditor's most effective weapons to collect an outstanding debt, but they are also very expensive and time-consuming to the creditor. While it is within the creditor's legal rights to pursue collections through any of these means, the cost of recovering a debt often exceeds the amount of the debt itself, and so it's not always cost efficient to force a collection.

Sadly enough, in the United States alone thousands of bankruptcies are filed every week in response to collection efforts on unsecured debts under $5000. Consumers are so intimidated by creditors that they fold under the perceived pressure, resorting to bankruptcy as a means of escaping an unsecured debt. If these same consumers had simply ignored the threatening letters and intimidating phone calls, they would have discovered that most creditors are all bark and no bite. Bankruptcy is arguably the worst type of negative listing you can have, and it is almost certain to wreak havoc on your credit report for the next ten years. You should therefore consider bankruptcy only as a last resort, and possibly never as an option to escape a relatively small, unsecured debt.