Debt Settlement Program

What is Debt Settlement?

Debt Settlement is a far more aggressive approach to eliminating debt. We strongly advise against entering into a debt settlement program unless you absolutely cannot afford to make the minimum payment required in a debt repayment plan through credit counseling and have a moral problem with filing bankruptcy. The way debt settlement works is you would contact a debt settlement agency and open an account with them. They would arrange a payment plan that would fit better with your budget and you would send a payment to them every month to begin amassing a lump sum of money into a trust account. Simultaneously, the debt settlement company would send out power of attorney letters to the creditors (that you want to include in the program) letting them know you have entered a debt settlement program. Once you have amassed enough capital in your trust account to begin offering settlements to your creditors, the debt settlement agency will attempt to negotiate a reduced settlement on the balance you owe them. Debt settlement can and usually will work adversely against you if you do not follow through with the program from the beginning to the end. The reason for this is that typically creditors will continue to charge the maximum interest rate allowed by law once you stop paying them. They also can charge late fees and penalties on the balance owed during the settlement program. Debt settlement also has a derogatory impact to your credit rating and there is no guarantee it will work.

Did you know: Some creditors are willing to take off up to 50% of your debt during negotiations?

Click here and join the millions of consumers across America and use our Debt Consolidation program. Your other options are Credit Counseling, Debt Settlement, and Bankruptcy as a way of getting out of debt!

You may call us 24 hours a day at (800)-CUT BILLS® (800-288-2455) for your free consultation.

DebtConsolidation.com has partnered with The Credit Exchange for Debt Settlement program.