What do I need to know about debt settlement?

The settling of your debt involves negotiating with your creditors, such as credit card companies and other unsecured lenders, to cancel a portion of what you currently owe to them for example, you could owe a lot of money in credit card debt and have lost your job, now you find yourself no longer able to make the monthly payments. Therefore, a debt settlement firm working on your behalf will communicate to your creditors that you are unable to repay what you owe and they may agree to erase or eliminate a portion of your debt in exchange for a commitment to repay a percentage of the outstanding balance. If an agreed upon amount is reached, the accounts will be closed, and a repayment plan will be set up via the settlement company that you will need to make affordable set monthly payments to, that are stored in an escrow account. Once the escrow account contains the negotiated sum, payments from the account proceeds go to the original creditors and the settlement company.

When dealing with a debt problem, make the choice that is best for you, and that starts by examining all of your options. A few words of caution about debt settlement: 1) Settling debt, like other forms of debt relief, can have a negative impact on your credit history. A creditor may note on your payment history that the account was satisfied for less than the full balance owed, but of course, getting to the point of negotiation usually requires considerable delinquency on your part and your credit is already in substantial damage. 2) Get all negotiated terms with creditors in writing, because until a creditor agrees to do otherwise, you run the risk of a lawsuit for being in default of the terms on your original credit agreement. 3) If you do engage the services of a debt settlement company, check them out thoroughly by visiting your local BBB, searching for the company online, checking with your state government to see if they have a history of complaints.

The relationships established over time by debt settlement firms potentially could allow them to settle more debt from each of your creditors, thereby making the total amount settled substantially larger.

Being eligible to settle your debt normally means that you are a few months past due on your account payments and these late payments could remain on your credit report for up to seven years.

Other Settlement and Negotiation Firms

Being included in the subsequent list does not constitute an endorsement from this website and in addition, the retrieved contact information for each firm came from the listed company’s website.

  • Clear Financial
    For those experiencing financial difficulties, on the verge of filing for bankruptcy, having little money left over at month’s end, or are just incapable of continuing to make minimum payments.
    1299 Main Street, Suite A, Dunedin, FL 34698 | Phone: (866) 659-7966

  • Helping you become free of debt and to start the rejuvenation process of your good credit all while resolving past mistakes to improve your financial future.
    811 Church Road, Suite 118, Cherry Hill, NJ 08002 | Phone: (800) 349-5111
  • Debt Free League
    Provider of debt settlement programs to assist borrowers that are unable to repay loans due to legitimate financial difficulties such as bankruptcy, unemployment or a medical event.
    2667 Camino Del Rio South, Suite 105, San Diego, CA 92108 | Phone: (800) 213-9968

  • Experienced in consumer credit, debt settlement, and debt negotiation and helping you plot a course through the complicated financial times.
    13017 Wisteria Drive #443, Germantown, MD 20874 | Phone: (888) 933-2879

  • Trained in negotiating debt reduction while providing you every advantage when it comes to resolving your debt and doing it in a much shorter time than paying the minimum payments.
    1875 South Grant Street, Suite 400, San Mateo, CA 94402 | Phone: (888) 738-4518

  • Eliminating financial strain in order to help you get back on the right track to true financial freedom and personal fulfillment.
    3100 South Harbor Boulevard, Suite 250, Santa Ana, CA 92704 | Phone: (800) 470-8155
  • DebtXscape LLC
    Skillfully negotiating unsecured debt and aiding you in paying a fraction, estimated at 40% to 60%, of that debt.
    2811 Internet Boulevard, Suite 100, Frisco, TX 75034 | Phone: (469) 232-3500

  • Knowledgeable debt specialists negotiating a fair settlement with your creditors for less than the amount owed.
    500 Cummings Center, Suite 5450, Beverly, MA 01915 | Phone: (866) 810-3210

  • Determined to fight for your financial freedom and will not give up, no matter what kind of pressure creditors choose to use.
    11 Broadway, Suite 1300, New York, NY 10004 | Phone: (877) 503-5720
  • Federal Debt Reduction
    Dealing in all unsecured debt, including credit cards, personal loans, signature loans, most IRS tax related issues, non-government backed student loans, repo (deficiency) balances, payday loans, attorney fees, and old utility bills.
    8747 Wolf Den Trail, Port Richey, FL 34668 | Phone: (866) 551-3614

  • In-depth knowledge of how low and long creditors are willing to accept a settlement term in order to make it affordable.
    8880 Rio San Diego Drive, Suite 800, San Diego, CA 92108 | Phone: (877) 956-1500

  • Specializing in debt settlement, a service of negotiating with creditors and getting them to agree to payments of less than what you owe to satisfy your full debt.
    236 East Irving Park Road, Suite 236B, Wood Dale, IL 60191 | Phone: (888) 906-1150

  • Excelling in helping clients achieve the financial freedom that comes from the experience of over ten years fighting hard for your success.
    1875 South Grant Street, Suite 400, San Mateo, CA 94402 | Phone: (800) 544-7211
  • Freedom Financial Law
    Negotiation team with knowledge and relationships with the credit industry so that hardship situations can be persuasively plead to a creditor.
    P.O. Box 271961, Ft Collins, CO 80527 | Phone: (888) 386-7703
  • Halo Debt Settlement
    Helping you understand your options and determining the best debt relief solution that is applicable to your state of affairs.
    1132 Glade Road, Colleyville, TX 76034 | Phone: (866) 448-0174

  • Negotiating with your creditors to decrease principal amounts owed, usually by 50%, while potentially saving you money.
    300 Brickstone Square, Andover, MA 01810 | Phone: (866) 992-7400
  • Riverwalk Debt Solutions
    Understanding the importance of results once you’ve committed to resolving your debt and have made it a priority to help clients successfully settle their debts.
    1601 Airport Freeway, Suite 100, Euless, TX 76040 | Phone: (877) 361-8637

  • A debt relief company dedicated to aiding consumers in lowering credit card debt while encouraging you to grow strong financial habits.
    2625 Redwing Road #140, Fort Collins, CO 80526 | Phone: (866) 896-7616
  • Think Debt Relief
    Skilled debt attorneys will work with your creditors toward negotiating resolution agreements.
    1801 West Knudsen Drive, Phoenix, AZ 85027 | Phone: (877) 637-1966

  • Assisting you with creating a debt-resolution arrangement designed to get you out of debt quickly, and at the lowest potential outlay.
    1444 Stuart Street, Denver, CO 80204 | Phone: (303) 872-8492
  • US Debt Resolve
    Provider of a debt settlement program that clients with qualified unsecured debt such as credit cards, retail store cards, personal loans or other debt, not secured by a home or automobiles.
    5960 West Parker Road, Suite 278 344, Plano, TX 75093 | Phone: (877) 991-3328
  • US Consumer Debt Advocates
    Offering customers a tremendously sensible and effectual method of resolving what they owe credit card firms and other creditors of unsecured debt.
    P.O. Box 2428, Tempe, AZ 85280 | Phone: (866) 679-4744