What is Debt Settlement?
“Debt settlement (also called “debt negotiation” and sometimes mistakenly referred to as “debt consolidation”) simply means that you negotiate a lump sum to pay off a debt that's too large for you to pay back otherwise. The ads that say you can “pay off debt for pennies on the dollar” are a bit misleading. You may be able to settle debts for anywhere from 10 to 75 cents on the dollar, but 50 – 60 cents is a more realistic settlement amount.
This approach may work if you have more unsecured debt than
you can pay off in 3-5 years or if you have fallen significantly
behind on your bills. Creditors know that if you get to the
point where you can’t keep up with your payments, you may decide
to declare bankruptcy. They may be willing to let you pay a
smaller amount than risk getting nothing if you file.
Source:
The National Debt Relief Foundation
How does Debt Settlement work?
Debt settlement involves negotiating with a creditor or creditors to pay off a percentage of your total debts at an agreed upon settlement amount. Often, people choose to utilize the services of a debt settlement company rather than attempting to do it on their own. Debt settlement companies traditionally employ various negotiation strategies to help settle your debts. However, no settlement company can or should promise or guarantee any type of settlement percentage and a person's individual results can vary based upon circumstances.
In order to fully understand and appreciate the process that takes place between debt settlement companies and credit collection agencies, consider the following: Creditors know that roughly 30% of the 1.5 million bankruptcies that occurred last year were on debt that was reasonably current. Traditionally, people survive by borrowing from one creditor to pay another. However, this process eventually fails when consumers run out of available credit lines and find themselves unable to make their minimum monthly payments.
If a consumer files for Bankruptcy, it is very likely that the creditor will receive nothing of the balance that is owed to them. Therefore, a creditor is better off negotiating with a debt settlement company. Most debt settlement companies work with customers that have legitimate financial problems and honestly need assistance.
The debt settlement process usually takes between twelve (12) and thirty-six (36) months. The most important part of debt settlement is to complete the settlement process with your creditors and or collection agencies. In order to do this, you must have funds available to settle with. During the program, you will make monthly deposits into a "settlement account" that you maintain and control. This account will eventually be used by you for debt repayment. As funds begin to accumulate in the account, the debt settlement company will start to negotiate with your creditors. Once a debt settlement offer has been agreed upon, you will need to send that amount directly from your account to the creditor. Once the payment has been made, that debt is considered settled in full. You will no longer owe anything on that account. Congratulations, you are now one step closer to being debt free.
Without the knowledge and expertise of a Professional Debt Arbitrator on your side, the odds are stacked against you. The tremendous task of reducing your unsecured debts can seem like a battle you will never win. However, there are debt settlement and debt negotiation services that can help.
Debt settlement programs provide you with a viable solution to an otherwise complex problem. By helping reduce your current debts, debt settlement allows you to regain control over your financial affairs and achieve debt relief within a reasonable time frame.
When choosing a debt settlement company, make sure that the company has a solid record with the Better Business Bureau (BBB) and that they have IAPDA Certified Debt Arbitrators. Additionally, make sure that the debt settlement company you choose is listed with the local Chamber of Commerce. This can help verify that they are a reputable and honest company.
Our negotiation process has been developed and tested through years of experience, and we are staffed by a highly-skilled team of professionals in the field of finance and credit card debt. Through the established relationships that we have with the creditors and financial institutions, we are able to successfully negotiate the debts of our clients at a substantial discount.
Creditors are willing to negotiate a debt with Mantis Financial Group, on behalf of our clients, with the understanding that the settled amount will be paid in a timely manner. Furthermore, creditors are always looking to avoid the ineffective and costly efforts of an outside collection company. We continually develop our relationships with creditors throughout the country, and we always maintain a very professional and cooperative relationship with the creditors in order to reach the most favorable settlement offer for our clients. Most importantly, we work directly - and 100% - for you.
Debt settlement is a legitimate way of solving your problem without the need for Bankruptcy. Our representatives work each case individually to determine your eligibility and then, if you qualify, they will establish a program that allows repayment of the debt through affordable monthly payments. This approach reduces your debt vs. consolidation options. Our proven approach assists you by reducing the time to repay the debt and by lowering the total amount you owe.
If you agree that Debt Settlement is the answer to your financial problems, or if you would just like to learn more about a debt settlement solution, call us at (877) 599-8620 or contact us directly through our site.
