What is debt settlement? Debt settlement is designed to reduce the total amount of unsecured debt owing to creditors by 40-60% of the original balance. The aim is to achieve this in as little as 12-36 months. Other terms used to describe this process are arbitration or debt negotiation. Settling your debt is a wholly legal approach to dramatically reduce debt. Upon completion of the negotiation process, creditors will agree on a proportional amount of the total balance owing, which will then be considered payment in full. The debt will then be successfully erased. This may be done via one lump sum or interest-free monthly repayments.

The duly negotiated debt reduction can only be achieved if the consumer is delinquent on their payments. If minimum monthly payments are still being made, the creditor WILL NOT consider any type of negotiation. Nevertheless, with accounts that are overdue and the balances continuing to grow the creditors fear bankruptcy or and/no future payments. A creditor is therefore willing to accept less than what is owed to them for a variety of reasons. The most obvious is that they would rather receive some payment rather than nothing at all. Instead of waiting another 15-30 years to collect minimum payments from you, they would rather work out a settlement now via our plan and receive one lump sum (almost half), which tops up their cash flow. They can then turn these funds around and provide loans to someone else. It is just working capital to them. Consumers may hire an attorney to act on their behalf (at times this may be very pricey) or use a debt settlement company to settle their outstanding unsecured debts.

Debt settlement is not consumer credit counselling. It is simply designed to reduce or eliminate unsecured debt, which is an alternative to bankruptcy and other complications. When seeking debt relief, debt settlement is considered to be the first option. Because if you can avoid a third party supported alternative, you will pluck yourself out of debt much quicker and without any long term complicated outcome on your personal credit profile.

Your actual results will vary depending on a variety of factors, which include your current balances, how much you can afford to save per month and the amount that your creditors are willing to settle for. We make no guarantee that your debts will be lowered by a specific percentage amount or that you will be “debt-free” within a specific period of time.

The projection assumes the following:

The $40,000 debt example from three different creditors:

Before you attempt to contact our counselors for help, you should be aware of the following:

Your creditors will consider recognizing your hardship and negotiating your balances ONLY if you are delinquent on the accounts you plan to submit for settlement.

There�s no other way around it. Please keep in mind that your credit will only be affected while you�re enrolled in the program. By eliminating the debt, you will be able to get back on your feet and turn around your debt-to-income ratio and thus eventually increase your purchasing power.

Typically, Debt Settlement will NOT impact your credit profile for a long period of time.

Your credit will only be affected while you are enrolled in the program. Compared to the long-lasting, negative effect bankruptcy will have on your credit rating, this program will not be visible on your credit profile once it has been completed.

How it works:

Once a client enrols in our program, we immediately begin the negotiation process with your creditors. Simultaneously, we will assist with the process of creating a separate FDIC insured account where the monthly program re-payments will be held. This account is controlled by the client and it�s managed by the national FDIC insured bank. As money builds up in the settlement account, the negotiations team will begin discussions with the creditors on the client�s behalf. Once enough cash has accumulated, negotiators will attempt to agree a settlement amount with the creditor. Once the agreement has been reached, the funds will be forwarded to the creditor in order to finalize the client's settlement. Meanwhile, the client will continue to accrue more funds in the account to enable further settlements. This process continues with every account that the client brings to the program until each account has been settled in full. Once completed, the client graduates and become debt free from all the enrolled accounts. While there are many benefits in the debt settlement program, there are also several challenges that the client faces while in the program itself. For example, increased collection calls, the possibility of legal action and a negative impact on their credit rating. Student Loans Escape.com consultants are professionally certified and trained to cover the implications of the program in full detail with their clients and partners. In the end, debt settlement is the fastest way to become debt -free with the lowest monthly payments, while at the same time saving the client the greatest amount of money.

Creditors have the legal right to attempt to contact you.

Certain creditors will disregard the limited power of attorney that has been forwarded to them and will continue to make attempts to contact you while you are still in the program. Many creditors though will acknowledge the request to stop all collections calls and will begin communicating directly with your debt settlement representative.

After we complete negotiations with your creditors, we will contact you for approval