We settle your debt, pure and simple!
If it has gotten to the point where you are unable to make all of your monthly payments each month, or cannot pay more than the minimum monthly amount on your credit cards or other forms of unsecured debt, then Debt Settlement may be right for you. If you are considering bankruptcy because of your debt, and want to avoid it, then Debt Settlement is something to consider.
There are many reasons that can cause even the most financially responsible individual to get into overwhelming debt, including loss of a job, salary reduction, divorce, medical bills, revolving mortgage and many more unforeseen circumstances. If you are one of the many struggling with ever-increasing bills and credit card balances, collection letters, or worse, lawsuits, despite your best efforts to pay your debts, you may qualify for Debt Settlement. If any of the above is affecting your finances, this may be the best alternative form of debt relief: Debt Settlement!
For those who aren’t completely insolvent, debt settlement could be the best option. As long as you have over $10,000.00 in debt, you may qualify.
Here are the kinds of debts we can help with:
- Credit Card Debt
- Unsecured Loans
- Medical Bills
- Veterinary Bills
- Hospital Bills
- Repossession Balances
- Attorney Fees
How does it work?
Debt Settlement is often confused with credit counseling or debt consolidation. With debt consolidation, the consumer makes monthly payments to the debt consolidator, who takes a small fee and passes the rest on to the creditors; this way, creditors continue to receive payments each month.
Debt Settlement is quite different! Essentially it is a process in which we will work with each one of your creditors to arrange for you to pay only a percentage of the principle amount owed. The actual settlement percentage we work out for you depends on a number of variables including, how old the debt is, how large the balance is, and how eager the creditor is to get paid. Typically the payment to the creditor is made in one lump sum or less than three payments. The standard percentage to settle can range anywhere from 40%-60% off the principle. For example, if you owe $20,000 on a credit card and we settled it for 40%, you only paid $8,000 with a savings of $12,000.
When a creditor accepts a settlement offer, he forgives a part of your debt. Why should a creditor agree to such an offer? Creditors understand that a consumer can go bankrupt if his financial situation is poor and in some cases hardly recover any money from the consumer. Creditors lose money in bankruptcy cases; therefore they are more inclined to agree on a settlement. Debt Settlement is a better deal for a creditor since he gets back a considerable part of the original debt (around 50% in most cases). Therefore, settling debt is beneficial for both the creditors as well as the debtor.
Advantages and Disadvantages to Debt Settlement
The noticeable advantage to debt settlement is paying less money than you originally owed; however, there are some important factors to keep in mind before proceeding with Debt Settlement. Is this the right choice for you? Below are some important facts to keep in mind while choosing your choice in financial relief.
-It will lower your credit score: Unless you have a significant financial hardship and are already currently behind on your debts, your credit score will be affected. Anytime that you are not paying your bills on time it will lower your credit score. Debt settlement is no different. However, it should improve throughout or upon successfully completing the program. What is more important to you: getting out of debt as quickly and cheaply as possible, or preserving your credit rating?
-You will get calls from your creditors: If you are not already receiving calls from creditors, you could start getting them. Contrary to what anyone may tell you, the creditor has a right to call you. We cannot guarantee that we can stop all the calls. After all, the creditors want their money and are entitled to it. However, our company has a Creditor Services Department which specializes in handling the barrage of phone calls while our Customer Service Representatives also work with you to better understand how to deal with the calls from creditors.
- You will pay taxes on the savings: The law states that any debt above $600, when forgiven, is subject to tax. Any money you save will be treated as income for tax purposes. In most cases this is still far less than the amount you would have paid towards principal and interest, so you will probably still end up ahead. But it is another expense to factor in when deciding whether or not Debt Settlement is right for you.
Why sign up with us?
Before you start – this is not an easy solution and anyone who tells you that they can make it ‘painless’ is lying to you – you need to know what you are up against and how to handle it. Most people these days do not have the time, know how or energy to dedicate themselves successfully to complete the process and achieve favorable results. Some might think all it takes is a quick phone call to your creditors and they will just reduce your balances significantly. We wish this were the case, but it is not. Negotiating skills and knowledge are a must for Debt Settlement. Every creditor and collection agency has its own procedures and policies regarding how they handle settlements. You must know each of these companies’ procedures and guidelines to be successful at settling.
Let our agents do the work for you! The benefit of having a respected and trustworthy company greatly helps the communication with the collectors and the success of achieving very favorable settlements. My Debt Company prides itself on a higher ethical standard toward customer service and ultimately puts the customer’s needs first. Our mission is to help you regain your financial well being while also educating you throughout the process, ultimately leaving you with the tools to continue to succeed long after our services.
