About Us

Even if you are watchful of your budget, life happens and added expenses occur. The large majority of people in financial duress have added expenses or a sudden loss of income. Since credit is a measure of your ability to pay on time and in full, it makes sense how easy it is for your credit to drop. Fortunately, there are great opportunities to pay down your unsecured debt in short time frames with a monthly payment that works for you.

Debt negotiators may be able to help you come to equitable settlements for your debts. Professional debt negotiators can work with your creditors to explain the situation and to negotiate on your behalf. Even if your creditors refuse to offer a repayment plan that suits you, don't jump to the 'bankruptcy' mind set. Recent federal laws now require credit counseling before proceeding into bankruptcy. But there are also federal laws to help protect you from unscrupulous collection agencies.

The primary reason creditors may accept a settlement is because it is cost effective for the creditor. The older your debt is, the less they are willing to accept since there is a seven year statute of limitations on unsecured debts like a credit card or personal loan. They calculate the probability of recouping the debt; either by a collection agency or via legal action, versus the amount of a settlement offer. Before they agree to any settlement, they will often consider your income, state of residence, age of the debt, type of debt, and your assets. Professional negotiators will appeal to your creditors that it is in their best interest to settle the debt if you have a legitimate financial hardship.

What is the major difference between Debt Management and Debt Settlement?

Debt Management

In a debt consolidation program, also known as a Debt Management Plan (DMP), the debtor pays back 100% of their debt plus interest. Interest is commonly reduced to the 0% to 9% range. Additionally, most debt management companies have a monthly service fee tacked on to the monthly payment but in most cases your monthly payment is much less than what you are paying. Debt Management credit counseling programs repay your debt back in full which accounts and on time which accounts for 65% of your overall credit score. Our counselors are here to help discuss your financial situation to see if a DMP is right for you.

Debt Settlement

In a Debt Settlement program, most clients pay back an average of 40-50% of their total debt, including all legal fees. Most companies settle for 40% of the original debt amount. Our attorneys are averaging 30% and only went over 40% twice in 2009. Debt Settlement has a major impact on good credit but will improve credit for people that already missing payments as their accounts are settled, which accounts for 30% of your credit score. This improvement in credit profile is caused by bringing outstanding balances down to a ZERO balance.

Is debt settlement right for you? Some consumers get so deep into debt, that bankruptcy seems their only way out before debt takes over their lives. Unlike bankruptcy, debt settlement is a far simpler process in comparison, and has less of an impact on your credit score.

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