Debt Settlement

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Are you worried about debts continuously piling up?

Need help with the settlements?

Consider opting for a debt settlement program.

A debt settlement is an agreement negotiated on your behalf by a debt relief company like us, Fresh Start Fast, with the creditor you owe money to. The debt relief company convinces the creditor to settle for a reduced amount than what is originally owed. Upon reaching an agreement, the creditor is paid the decided lump sum amount and all of your debt is deemed settled.

While you may try to negotiate with your creditors by yourself, instead of hiring a debt relief company, chances are that you lack the persuasion skills that a company representative holds. And you may not be able to convince the creditors to accept a much lesser settlement amount a professional negotiator can.

How the Process Works

But before you choose to go for a debt settlement program, you first need to understand how the process works so there aren’t any confusions.

You are often required to open an account and put money in it on a monthly basis. In some cases, you may also be asked to stop making payments to your creditors and let the amount you owe pile up. Once your account has saved up significant amount of money, the debt relief company will negotiate with your creditors to settle for the saved up amount while discounting the rest of it.

Although, you are required to pay taxes on the amount that was discounted or forgiven by the debtor.

Eligible Debts

Not all debts are eligible to the settlement process. But the most common ones that are, include the following:

  • Supermarket Charge Card

  • Credit Card
  • Private Student Loans
  • Medical Debts
  • Personal Loans

Debts that are secured against any tangible asset cannot be settled through or get a waiver. These debts include:

  • Lawsuits
  • Home Loans
  • Utility Bills
  • Overdue Taxes
  • Federal Loans

A few business debts can also be settled with the help and assistance of a debt relief company like ours. But it is only possible for small business to utilize such services and only in case if the business expenses are handled through a personal credit card.

Business debts of a more regular nature are also not eligible for debt settlement.

Pros and Cons of Opting for Debt Settlement

While debt settlement can help you get out of certain debts, it does hit your credit ranking hard. So, you need to understand the pros and cons attached to debt settlement, before you make the decision.

Pros

  • Debt settlement is a more affordable option when compared to other alternatives

  • It helps you resolve most of your debts without the creditors conflict of interest

  • Streamlines all your debt payments as a single monthly payment

  • Opting for debt settlement is far better than declaring bankruptcy

Cons

  • Debt settlement badly impacts your credit standing and scores

  • Creditors may force collection agencies on you during the negotiation periods

  • Creditors may threaten you with or even take legal action to collect their dues

So, is debt settlement right for you?

It all depends on your circumstances. However, if you wish to maintain a high credit ranking and your debts fall under $8,000, it may not be for you. But if your situation is otherwise, the team of experts at Fresh Start Fast is ready and willing to assist you.

Call us now for more details!