How Does Debt Relief Work?
Getting out of debt cheaper sounds great! But how does a debt relief program actually work?
For more about us, visit our about us page
Step 1
Financial Hardship
Struggling to keep up with payments can be stressful, especially if you are falling behind. We want to make sure you are doing what is best for you! We’ll do an analysis to talk through your options before talking about our program.
Step 2
Build Up Funds and Fall Behind
In order to get settlements you need to fall behind on payments, which impacts your credit score, and puts you at risk of a lawsuit (more on lawsuits below). In the meanwhile you build up funds to settle through one payment. You typically need to be 4 to 6 months behind on payments before settling for a lower balance, but it depends on the creditor
Step 3
We Settle On Your Behalf
We’ll acquire the best settlement offer available and send it to you for your approval! Every creditor has a sweet spot of when they offer their best settlement rate for your debt. Several other factors will also impact the timing, such as type of debt, amount of savings, and creditor’s negotiating tactics.
Step 4
We handle the payments
We’ll make sure you keep up with the settlement payments to each of your creditors while you just worry about your one deposit into your account!
Step 5
Graduate from the Program
We’ll settle as many accounts as we can with the funds you have available. Upon paying off your last settlement, your monthly deposits will stop and any remaining funds will be send back to you!
Step 6
Rebuild Credit Score
We hope never to have repeat customers. So we built free tools to automatically track your spending and income so you can rebuild your credit, achieve your financial goals and stay out of debt!
Frequently Asked Questions
What is Debt Relief?
Debt Relief is the process of settling debts for less than what is owed. It can produce significant savings but requires going behind on payments in order to settle the balances.
Debt Relief is also referred to as Debt Settlement, Debt Negotiation or Debt Consolidation.
What are the Pros of Debt Relief?
Lowered monthly draft. Payment flexibility. Avoid Bankruptcy. Faster than paying minimums. Accountability to not spend
What are the Cons of Debt Relief?
Credit score and credit report impact. Potential for lawsuit. Potential taxes on forgiven debt. Late fees and interest. Creditor might not settle. More expensive than Chapter 7 Bankruptcy.
Will you get sued?
Because Debt Relief requires falling behind on payments, there is a risk of lawsuit. This does not mean that you will be sued for sure. We have found that certain creditors tend to sue more than others. We’re happy to go through your creditors together to chat through your specific risk.
What happens if you get sued?
We’ll still work to settle the debt! We can still settle but the settlement may not be as good.
Is Bankruptcy a better option?
It can be! It depends on your situation, values, and personal choice! We’re happy to chat through your specific situation with you
Do you still have some concerns or queries?
We’re here to chat through all your options for free to make sure you understand your options!