Debt Settlement Directory

About Debt Settlement: the FAQ

Will the creditors get paid?
When a customer of decides that settlement is the right approach, a settlement firm will establish a "debt settlement account" at a bank, in the client's name. This account houses the client's pays, setting up a fund that can settle debt, paying out monthly.

How do I pay for settlement? How do they profit?
A debt settlement company will work out an affordable amount that you pay monthly. When enough money has accrued in the account, the firm can negotiate with your creditors. They work for a fee, small, and accumulated over time.

Few in this field make monthly payments to creditors, and they will not pay for a settlement without a client's written or electronic approval.

What happens to the creditors while I'm in the debt settlement program?
Your money will be transferred to a personal account, per the settlement schedule. Your money will continue to accumulate until there is enough money to negotiate a settlement. Instead of paying the minimum payment or less each month and falling behind, your money will pile up out of reach until you can afford and use it for lump sum settlements.

Will the creditors start calling and harassing me?
Yes. As you will be going delinquent with their accounts, initially, you will get calls from creditors.

We help clients get out of debt as quickly as possible, and to reach sound financial footing. Credit is secondary to getting debt under control and becoming financially solvent. Many people think that if they stay current on their payments then they will have good credit. If the debt is more than can be afforded, then their credit will be used and no longer credit worthy in the view of most lenders. Eventually with debt settlement your debt-to-income ratio will improve and you can once again build really good credit.