Each Debt Negotiation client is unique and your results will vary. Settlement savings may depend however is not limited to who your creditor is or what type of debt you have. Settling your debt for 50% of the entire balance owed is not uncommon and most Debt Negotiation companies negotiate for percentages somewhere between 30% and 70%. You should also be aware there are also circumstances where debts may settle lower than 30% and higher than 70% and in rare cases, may only accept the balance in full. Please be aware the percentages listed are not performance guarantees of any kind and results will vary. Example settlement percentages above do not include program fees.
The amount of time it takes to get out of debt greatly depends on your situation. A professional Debt Negotiation program usually takes about 36 to 48 months or to resolve all enrolled debt accounts. Program terms may also be extended past 48 months based on the individual facts of each Client. The time it takes to complete a Debt Negotiation program also depends on how much debt you have, how much money you have to negotiate with, and the status of your debt accounts. Some settlements can take time because it is essential to let your accounts age. It is also important to let your negotiation funds accrue enough to offer a settlement to your creditors. If at any time while enrolled in the program you find yourself able to add additional funds towards settling your accounts, it will certainly expedite the process and the program term should be reduced. Please be aware no debt relief firm can guarantee you will be debt free within any specific time frame and all program terms are estimates only.
Your creditors prefer to collect the full amount you owe; however, they know that if you file bankruptcy, they may get nothing at all. Because of the possibility of taking a total loss, creditors are usually open to debt restructuring, especially once they recognize the financial hardships you are facing. In other words, your creditors would rather accept a lump sum payment of less than the full balance owed than risk getting nothing at all.
Yes, but the money you will have spent on the credit card debt settlements prior to you filing the bankruptcy will be gone. Many consumers that explore filing for Bankruptcy chose to enter a Debt Negotiation program first in an attempt to avoid filing. For some people this is a smart choice, for others, it may not. All in all, you may certainly still file for Bankruptcy if for any reason Debt Negotiation does not work for you. Some examples of situations that may cause a consumer to cancel from a Debt Negotiation program and file for Bankruptcy include loss of wages, illness & change is a creditor account status.
Each Debt relief option that exists may have positive and negative aspects. For the most part, each positive and negative aspect is going to be reliant on each Consumers specific situation. For example, Bankruptcy may stay on your credit as a public record for 7-10 years and may impact you from obtaining employment, obtaining new loans or credit or prevent you from leasing a home or vehicle. On one hand, this may seem like a lot to digest. On the other hand, for the appropriate person, the benefits a Bankruptcy may provide will outweigh the adverse impacts and will be the right thing to do. Debt Negotiation will adversely impact your credit rating while you are attempting to resolve your debts. Creditor calls and creditors pursuing legal remedies to collect on the debt may be other things a consumer could experience while in a Debt Negotiation program. Credit Counseling may show up on your credit as being enrolled in a “Credit Counseling” program and in some cases will prevent you from obtaining a home refinance or new credit.
As you can see, each Debt Relief option will have pros & cons. Once a consumer is educated on each option, you can make an educated decision as to which option is best for you. US Debt Aid will give you the information you need to make this decision and help you each step of the way.
Not everyone qualifies for Debt Negotiation or debt restructuring. Generally, Debt Negotiation is an alternative to bankruptcy for people with overwhelming debt who have endured personal or financial hardships that prevent them from fully repaying their creditors. Typically, most Debt Negotiation companies require that you have at least ten-thousand dollars ($10,000) in unsecured debt (debt that has no collateral, like a home or automobile, attached to it) and are experiencing a legitimate hardship, such as unemployment, illness or other situation that has compromised your ability to repay your debts, or sometimes just barely make minimum payments. Upon enrollment, US Debt Aid would perform thorough intake verification with each consumer to ensure accuracy, affordability and a complete understanding of how the program works.
While each Debt Negotiation company may have a different set of qualifications for their program, most companies require their clients to have at least ten-thousand dollars ($10,000) of unsecured debt, and have, or are experiencing a legitimate hardship. Typically, people who do not qualify for Debt Negotiation either do not have enough debt, the wrong type of debt, or have too much or too little income as compared to their expenses. If you do not qualify for debt restructuring, it may serve your best interest to investigate other debt relief options such as Consumer Credit Counseling or Bankruptcy.
Typically, only ‘unsecured’ debts qualify for a Debt Negotiation program. Unsecured debt is debt that is not ’secured’ by collateral, such as a home or automobile. Credit card debt is the most common type of unsecured debt. The amount of debt you owe may also play a significant factor in qualifying for debt restructuring. If you have ten-thousand dollars ($10,000) or more of unsecured debt (such as credit card debt), you are experiencing a financial hardship and you want to avoid bankruptcy, then you might qualify for debt restructuring.
Below are examples of unsecured debts that typically qualify for debt restructuring: – Unsecured Debt – Credit Cards – Medical Bills – Personal Loans – Department Store Credit Cards – Unsecured Bank Loans – Bank Overdraft & Associated Fees – Gasoline cards – Jewelry Store Loans – Furniture Store Loans – Repossessions (Deficiency Balance) – Business Debt (Restrictions Apply) – Computer Loans – Judgments (Must Be Uncollectible For At Least 12 Months) – Finance Companies – GE Money – Care Credit – Pay Day or Cash Call Loans
You can certainly attempt to negotiate a settlement on your own. But, if you do, make sure you do it right, as we receive many horror stories from consumers who were taken advantage of by their creditors. Our highly trained negotiators have years of experience negotiating and securing excellent settlements with creditors and debt collectors. Furthermore, we believe that US Debt Aid stands out in creditor’s eyes as an honest and reputable law firm that doesn’t enroll unqualified clients (e.g. those consumers who have the ability to fully repay their unsecured debt) and also creditors know that US Debt Aid processes their settlements efficiently reducing time and collection cost for the creditor.
To successfully negotiate and settle debt on your own (among other important things) you need to understand the collections process, differences between various creditors and the right time to begin negotiations and agree to settlements. You must also understand how a settlement agreement is structured to make sure the agreement clearly spells out the negotiated settlement.
Debt Negotiation is a complicated process. If you’re not sure you have the knowledge, organization and self-discipline, you may want to leave it to professionals. Even if you have the time to learn how to save up, negotiate and settle your debts, you may still have some emotional attachment to the debt which could interfere with your objectivity. Professional debt negotiators maintain an objective position with the debt they settle, which means they are less likely to be intimidated by debt collectors.
Our clients feel comfortable with our program because we make sure that our Debt Negotiation program is designed to fit their specific financial situation. Also, our excellent rating with the BBB reflects the professionalism and dedication we have demonstrated to our consumers over the past years. US Debt Aid is not a huge corporate debt relief sales floor with call centers attempting to generate as many clients as we possibly can. We are a consumer centric, customer service focused firm that maintains the necessary balance of staff and technology to ensure our clients receive the best possible results. We also believe in full disclosure so you can rest assured that upon discussing your Debt Relief options with a representative of our firm, you will be aware of the pros & cons of each program available to you so you can make an informed, educated decision that is best for you. US Debt Aid’s values consist of honesty, integrity, service and performance. For future, prospective clients, we are happy to share settlement letters from past clients that will validate the fact that we do in fact provide results. All you need to do is ask.
The Fair Debt Collection Practices Act, often referred to as the ’FDCPA’, was passed by Congress in response to abusive conduct by collection agencies, and concern that the abuses were causing an increase in the filings of bankruptcies. The purpose of the Act is to provide guidelines for collection agencies which are seeking to collect legitimate debts, while providing protections and remedies for debtors.
The FDCPA applies to personal, family, and household debts, including debts associated with the purchase of a car, for medical care, for retail financing, for first and second mortgages, and for money owed on credit card accounts. Please note that most states have similar laws, which typically proscribe the same types of misconduct by debt collectors and which may cover a broader range of debts than the federal law.
FAQ Disclaimer: Please be advised, this FAQ page is intended for informational purposes only. Nothing on the site is to be considered as either creating an attorney-client relationship between users and US Debt Aid or as rendering legal advice on any specific matter. US Debt Aid also makes no prediction as to the outcome of any case and prior results do not guarantee each consumer will see a similar outcome.
Users are responsible for obtaining such advice from their own legal counsel. No client or other user should act or refrain from acting on the basis of any information contained on the US Debt Aid website without seeking appropriate legal or other professional advice on the particular facts and circumstances at issue.
