A DEBT SETTLEMENT (N) is an agreement parties make for a reduced balance that will be regarded as satisfactory payment to the creditor due to debtor’s financial hardship. Once secured all three credit bureaus are advised that the debt previously reported as past due is now settled as agreed. A debt settlement is not a debt arbitration or a debt negotiation.
Arbitration and negotiation are tools used by the debt settlement company to reach a final debt settlement. This is why many people seek professionals to obtain the best outcomes.
A professionally managed debt settlement company (DSC) is often retained . During the client’s enrollment period all payments by the debtor are made to a third party FDIC Insured bank account. As the client’s savings account increases the (DSC) has certified debt arbitrators who begin to work with the creditors to reach a mutually agreeable settlement. When a settlement is reached a withdrawal made from the clients account after being informed in writing of the successful completion of a debt settlement.
Features you should demand that your DSC provide.
- The debt settlement company reaches out the the client creditor’s and explains the clients financial hardship and conveys that the creditor should from this date forward communicate with the (DSC)
- The DSC assigns a personal CSR to facilitate the interactions during your enrollment period.
- An accredited Rating of A+ with their better business bureau
- Business longevity (7 years seems to be an important threshold)
- Competent enrollment team members. (This is a difficult time for many and people are vulnerable . Your Enrollment specialist should empathetic, knowledgable and patient.
- Assurance that their fees are full disclosed and performance based.
- Electronic signature capability