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Debt Settlement
Debt Settlement, the practice of “debt forgiveness”, has been around for many years. The debt management solution was primarily used for the settlement of unpaid business debts. However, over the past 30 years, the rampant rise in personal bankruptcies and consumer debt “charge-offs” has motivated the financial industry to increasingly work with debt settlement organizations. This collaboration has helped consumers and small business to mutually work with financial institutions in settling billions of dollars of outstanding unsecured debts each year!
How debt settlement works…
Applying the debt settlement process, you will hire a professional debt negotiator to negotiate with your creditor to reach a settlement of your unsecured debt. Based on your financial hardship and the negotiated settlement terms, the creditor will submit a written settlement offer allowing you to physically pay off your debt at a substantial reduction of the outstanding balance.
The beauty of reaching a mutual settlement agreement is that it allows you to quickly become debt-free and for the creditor to recover the funds that they might lose if you filed bankruptcy, the creditor declared the debt as a “charge-off”, or their debt recovery efforts seemed too costly, or time-consuming.
Superior to consumer credit counseling debt management plans…
Debt Settlement is far more aggressive than the debt consolidation benefits of consumer credit counseling. While a consumer credit counseling debt management plan (“DMP”) only provides basic interest rate reduction, a debt settlement program can reach a superior reduction on the debt principal, interest, and any associated fees. To execute on the creditor’s settlement offer, you may be required to do a lump sum payoff or short-term installment-payoff of the debt.
Our Debt Liquidation Program has applied the debt settlement practice to help hundreds of Debt Free League clients to payoff collection accounts, credit card accounts, medical accounts, and business accounts. Many of our clients have also saved as much as 70% on their debts. Applying this benefit, you can also become debt-free in a much shorter period of time than through a consumer credit counseling Debt Management Plan (“DMP”), or debt consolidation loan.
Click here to see actual Debt Settlement Examples. To learn more about our Debt Settlement Program, please call 1-800-213-9968.
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