Debt Settlement

Pay your debt for once for all and regain control of your financial situation

Debt settlement can help you re gain your financial freedom. If you’re already in debt, you know it can feel as though you’ll never get out. With the help of a supportive and proven debt settlement company, you’ll find the same solution thousands of others have: peace of mind.

What is Debt Settlement

Debt settlement is the approach of negotiating a settlement of the debt with each creditor, instead of filing bankruptcy. The amount settled for can often be much less than the balance owed or claimed to be owed. However, going down this route may require you to hire an attorney, as this can get tricky, quickly. Through a debt settlement process, you (or ideally a professional firm) negotiates with creditors to settle a debt for less than what is owed. This method is most commonly used to settle a large debt with a single creditor, but can be applied to multiple creditors as well.

The benefits of debt settlement is that you will be paying less of what you initially owed. However, it is a risky and a non-guaranteed way to approach your debt. In order to be successful at it, you have to come with considerable negotiation skills wit lenders. Debt settlement can negatively impact your credit score, as well as drag on for up to 36-months before you see results. However getting our of debt is also important to start increasing your score and achieve a healthy financial status.

Debt settlement only works for debts without collateral. It can be used in the case of unsecured credit card loans and consumer accounts. As a recommendation, pursue it when you are currently behind on payments and your credit rating is low.

How to Choose a Firm

It’s important to be responsible when looking for companies, so always look for—at a minimum—accreditation from the AFCC and the IAPDA so you know you are handing your money over to someone who is legitimate. A reputable company will offer you dedicated, human support throughout the process, charge only a reasonable fee, and give you options to help tailor your program to terms that make sense.

According to the FTC, debt settlement companies must be transparent with you and tell you how long and how much money you need before you can settle. Settlement companies must also disclose “the possible consequences if the customer fails to make timely payments to the creditor’s”. They cannot force a creditor to accept a settlement offer. Arguably, the most important thing to look out for is whether the company guarantees to settle with all of your creditors.

We’d recommend you to choose a company which is transparent and open with you about their processes and the outcomes.

Finding a Debt Settlement Company

A debt settlement company will assess how much you owe to work out an amount for you to pay every month. Once you’ve accumulated a larger amount of money before contacting creditors to negotiate a settlement. It’s important that you perform your own research to ensure you work with a high-rated and reputable company who will help you settle your debt.

To help you with finding a legitimate company who can help with your debt, we have reviewed top 5 firms for you. Start to regain control of your financial situation by settling your debt to look forward to a brighter financial future.

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