Debt Settlement
 Consumer Credit Counseling 
 San Diego, California, Texas, 
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"I cannot begin to express my gratitude for saving me several court appearances, garnished wages, and about $30,000."
- Mike Barrett
You handled this debt in a fast and cheap way after years of bill collectors trying to make us feel guilty of something we didn't create.
- Cesar Gomez
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debt settlement

Debt Settlement

If you fell behind or feel you will fall behind making the minimum payments to your creditors, your financial hardship may qualify you for our Debt Settlement service. Debt settlement is known as the practice of ‘debt forgiveness’, which has grown in popularity after the mortgage lending crisis. Banks hate bankruptcy, which is why each year, they settle billions of dollars of unpaid consumer debts. Debt Free League positions our customers to take advantage of this unique opportunity utilizing a bankruptcy alternative that can help you minimize creditor harassment and create a ‘win-win’ solution with creditors. Our debt settlement process allows you to get out of debt within your budget and creditors to recover money they might lose if you declared bankruptcy.


Debt Negotiation and Settlement Process


When you hire us to settle your debts, we negotiate with your creditors to convince them to forgive a large portion of what you owe. Upon negotiating a favorable debt settlement on your behalf, for your protection, we get the creditor to send you a written settlement offer, which includes the terms of the settlement and the amount money you will save on the actual debt. Generally, the creditor will request a lump-sum payment and in special circumstances, they may accept several monthly payments to satisfy the settlement.


Your Money is Secure


Depending on your budget, we customize for you a manageable savings plan for you to save up the settlement funds needed to repay your debts. As a safeguard, your savings is maintained in a personal, dedicated FDIC-insured savings account that you manage and control. This way your money is secure and you can readily disburse funds from your savings account to satisfy future settlements. As you continue to save, we continue negotiating your debts, settling one account at a time, until you are 100% debt-free.


How Much You Can Save


Unlike debt consolidation or a debt management plan, our debt relief process no only reduces interest rates. It is intended to produce for you a major substantial debt reduction on both principal and interest charges. Our customers conveniently make a low monthly payment that is spread out over a 12-48 month term and generally save thousands of dollars with an average savings of 60% on the entire debt. For example, on a balance of $30,000, the general forgiven amount is $18,000 (60%) and the general settlement amount is $12,000 (40%).


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Debt Settlement Examples

Frequently Asked Questions (FAQ)

1. What happens to my credit?
2. Is debt settlement LEGAL?
3. How can I stop collection calls?
4. How does debt settlement rival credit counseling?
5. Can I negotiate with my creditors?
6. What types of debt do you work with?
7. Do I have to include all of my debts?
8. Do I have to pay taxes on the amount I save?
9. How long is the debt relief program?


a 1. What happens to my credit?

If you stop making your regular minimum payments to creditors, your credit will decline due to eventual late payments, collection accounts and charge offs. However, reaching a zero balance on your outstanding debts helps improve the debt-to-credit ratio, which composes about one third of the FICO credit score.

a 2. Is debt settlement LEGAL?

Debt settlement is 100% legal in most states. You have the right to hire a debt relief professional to assist you with your financial affairs.

a 3. How can I stop collection calls?

The Fair Debt Collections Practices Act (FDCPA) allows you to send any third-party debt collector a written request to stop calling you. Afterwards, the debt collector may contact you one more time, but only to inform you of what, if any action they intend to take. I’ve you’re getting harassed by collection calls, please call us for assistance.

a 4. How does debt settlement rival credit counseling?

Credit counseling debt management plans are generally ineffective because they merely reduce interest rates. In contrast, debt settlement reduces principal and interest and accepts accounts that are generally not approved by debt management plans, such as medical debts and certain credit card and collection accounts.

a 5. Can I negotiate with my creditors?

Hiring a professional debt negotiator saves you the frustration and endless hours in communicating with nasty debt collectors and can ensure you more productive results.  

a 6. What types of debt do you work with?

We work with a variety of unsecured debts, such as:

● Credit cards
● Department store cards
● Collection accounts
● Bank signature loans
● Hospital and medical bills
● Business debts
● Finance company loans
● Mortgage foreclosures
● Vehicle repossessions (‘repos’)
● Collection lawsuits
● Creditor judgments

We do not accept auto or mortgage loans, IRS or state debt, or student loans.

a 7. Do I have to include all of my debts?

You may be eligible to exclude certain accounts. We recommend leaving out an account if it has a low balance and is needed for emergency purposes.

a 8. Do I have to pay taxes on the amount I save?

The forgiving creditor must give you an IRS tax form 1099-C tax on the forgiven or canceled portion of the debt that exceeds $600, which you must generally report as taxable income. However, if you were insolvent at the time of the settlement, you may be able to waive the income reporting requirement by filing IRS Form 982 (“Reduction of Tax Attributes Due to Discharge of Indebtedness”). Please consult with a tax professional regarding this matter.

a 9. How long is the debt relief program?

The estimated time to finish the debt settlement program is dependent on your financial situation, the types of accounts enrolled, and your monthly budget. We typically structure a 12-48 month monthly payment term.


Debt Settlement Questions? CALL: (800) 380-4094


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**Estimates are examples of past performance, which will vary depending on specific circumstances. We do not guarantee to settle any debt for a specific amount or percentage or within a specific time frame. Clients that are able to complete all program payments generally pay 50% of their enrolled balances before fees, or up to 75% including fees within a period of 24 to 48 months. In some cases, clients are unable to complete program for various reasons including the inability to save the funds needed to settle enrolled accounts. Creditors are not obligated to accept any settlement offer. We do make monthly payments to creditors, or provide legal, tax, bankruptcy, or accounting advice. Enrolled account balances may increase due to the accrual of fees and interest. A negotiated settlement resolves the entire account, including all accrued fees and interest. Please consult with a tax professional regarding the tax consequences of settling your debt for less than the full balance. Read and understand all contract terms before enrolling. C.P.D. Reg. No. T.S. 12-03825


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