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 our certified debt consultants.

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.

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.

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 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 negotiations, 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, we start reaching out to your creditors and negotiating a lump sum payment.

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 qualified 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.