How Does Debt Settlement Work?

We are here to help you understand debt settlement.

Debt settlement is a process designed to help qualified individuals in a financial hardship pay off their debts in less time than by making the required minimum monthly payments to creditors.



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Introduction to the Debt Settlement Process

We’ve put together a straight-forward guide to explain how debt settlement works so you can know what to expect when working with debt negotiators.

Our goal is to make the process as painless as possible so that you can focus more on working toward freedom from debt and less on dealing with aggressive creditors.

What is the purpose of debt settlement? The answer is simple: To help you get out of debt faster. The Program works with creditors to reach an agreement and settle the amounts you owe for a smaller portion of the full balance. It can be difficult for consumers to manage this on their own, which is where we come in to deal with the credit companies and negotiate new payment conditions.

One thing to take into consideration is that debt settlement isn’t a one size fits all scenario, the outcome is based on qualifications and how the creditors respond to negotiation. One creditor may reduce the balanced owed dramatically, while another may only allow the settlement to cut off several hundred dollars.


Taking the first step will be contacting us at Financial Rescue by calling 877-973-3287 to discuss your current financial picture and see if you qualify for a debt settlement.

You will be speaking with our certified debt consultants who have years of experience in helping individuals save money on debt repayment. We will ask you a series of questions to determine your eligibility based on your types of debts, amounts borrowed and debt repayment history.

Once we confirm that you qualify for the debt settlement program, we disclose the terms of the program including the monthly payment amount, the number of monthly payments and most importantly the amount of money you will be saving!

When you are ready to start the process, we will be sure to answer any additional questions you may have and make sure that you understand how the debt settlement process works.

Signing the Debt Settlement Contract

We review the important details with you and confirm that you qualify for the program in terms of repayment capacity, the next step will be to go through the enrollment process and sign the contract. The terms and conditions are reviewed in entirety to ensure that both parties agree on the settlement amounts.

In the contract, you will clearly see the overall fee you pay, the savings after the fees and the amount we are helping you to save overall. All of this information enables you to make an informed decision based on your financial needs.

Both parties sign the contract and you are provided with a copy of the full terms and conditions to keep for your records.

Opening the 3rd Party Account

The debt settlement contract requires a third party account to be opened at a financial institution, where your monthly payments will be deducted. The reason for this is the debt negotiators will send the payments to your creditors for each agreed settlement.

Our team requires authorization prior to taking out the payment to ensure that you are aware of the transaction. The 3rd party account will exist for the sole purpose of carrying out the terms of your debt repayment and is not to be used as a normal bank account.

The account is opened for you to start making the payments toward the settlement terms outlined in your contract. It is where you will save the money to put toward settling your owed balances.

Debt Negotiators Contact the Creditors

After the enrollment and account opening process is completed, the expert debt negotiators will start working to contact your creditors.

The benefit of working with us at Financial Rescue LLC is that we help you get relief from overwhelming debts without having to navigate the process on your own.

We make it so you may not have to pick up the phone and speak with a single creditor -- negotiations are handled for you. Often creditors are more willing to work with professionals to lower settlement amounts than they would be for any consumer calling for their own accounts.

Prior to our negotiators, you will start making regular payments to your escrow account in order to save up towards the debts that are part of the settlement. Once the money reaches a level that is considered enough to begin negotiations, the negotiators start reaching out to your creditors and requesting a lump sum payment.

Authorization for Payment

Once a favorable deal is reached between the negotiator and the creditor, the team will reach out to you and advise you of the negotiated amount. We request authorization via voice recording to issue payment to the creditor.

This step is repeated anytime we come to an agreement with a creditor to ensure that you are aware of the amount of money being paid from your account. We keep our client’s best interests in mind and only contact you if it makes sense for your financial situation to settle with a particular creditor.

Debt Settlement Agreement

Once the payment is issued, the creditor will likely report to the credit bureaus that the account is paid in full or closed by settlement. This is where it is vital to retain a copy of the debt settlement agreement to ensure the information is accurately reported on your credit.

After a creditor is paid, allow some time for them to close out the account and mark it as paid in full.

Move to the Next Debt

If the debt settlement contract covers multiple debts, the negotiators will move on to the next creditor and work on settling the debt. This negotiation and payment process is completed until all of the creditors are completely paid off.

In the rare occasion that a creditor refuses to settle a debt qualified under your contract, our negotiators will continue to make attempts on your behalf. Our negotiators are diligent and aim to settle all of your debts whether it is all credit card debt or you are also dealing with medical and collections debt.

In most cases, the entire program can be completed with 24-36 months but it will depend on your particular financial circumstances. The more you are able to save each month toward the settlements, the faster you can move through the negotiation process.

Try not to miss any payments to your 3rd party account because you will be closer to freedom from debt when you contribute more to the program up front.

Contact Financial Rescue

If you feel like you are drowning in debt, contact us at Financial Rescue today to start the debt settlement process and we will make sure to keep you informed every step of the way!

The Answer To Your Debt Settlement Concerns

Financial Rescue has the answer to your debt settlement concerns.

Most of our clients pay off their balances within 36 months with one low monthly program payment.

To ask additional questions and to find out if you qualify, contact us today.

Disclaimer: Some programs and services may not be available in all 50 U.S. States. The information provided is for informational purposes only. No communication should be considered legal advice. Individual results may vary based on program terms, ability to save sufficient funds, underwriting guidelines, the creditors in your individual profile, and the willingness of creditors to negotiate. Individuals depicted in images and videos may or may not be employees, and some are actors or models, all of whom do not necessarily endorse or support Financial Rescue, LLC. Financial Rescue, LLC, does not assume any debt, make monthly payments to creditors or provide tax, bankruptcy, or legal advice.

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